Bitcoin Bull Run Loses Steam: Profits-to-Value Declines, Sentiment Remains Positive

• The Profits-to-Value Ratio (RPV) of Bitcoin has decreased, indicating a waning enthusiasm for the bull run.
• Trader sentiment remains positive, with an increased volume, velocity, and decreased exchange reserves.
• The MVRV ratio is high, showing that most holders would profit from selling, and the long/short difference is negative, incentivizing short-term holders to sell.

The Bitcoin bull run has seen its fair share of ups and downs and the latest data from glassnode suggests that the enthusiasm for the bull run may be waning. The Profits-to-Value Ratio (RPV) of Bitcoin, which compares profit-taking in the market against the network valuation, has declined significantly over the last few days. This decline in RPV suggests that the optimism for the bull run has decreased and could have implications for both short-term and long-term holders of Bitcoin.

This decrease in enthusiasm was further reflected in an increased MVRV ratio, which indicates that most holders would profit from selling. The long/short difference also remained negative, incentivizing short-term holders to sell as they could collect most of the profits. Additionally, the number of addresses in losses reached an 8-month low, suggesting that multiple addresses would be tempted to sell their holdings during this period.

However, while the RPV decline is a cause for concern, there are also a few positive indicators that point to market strength. Trader sentiment remains positive, with 51.2% of all positions being long on Bitcoin. This suggests that traders are still optimistic about the future of Bitcoin and believe that it will continue to rise in value. Exchange reserves have also decreased, indicating lower selling pressure, and Bitcoin’s volume has increased from 14.56 billion to 31.1 billion over the last month.

In conclusion, the decline in RPV suggests that the enthusiasm for the Bitcoin bull run has decreased and this could have implications for both short-term and long-term holders of Bitcoin. However, there are still positive indicators that point to market strength, such as increased volume, velocity, and decreased exchange reserves, suggesting that the bull run is still intact.

BNB Bulls Push Price Above $310 as Support at $287 Holds

• Binance coin [BNB] posted an impressive performance after sustaining massive FUD at the end of last year, surging from $240 to over $310 in the past two weeks.
• The $287.3 support is a key level to watch, as a break below it could potentially lead to further decline.
• Bulls could still attempt to retest the $314.2 resistance or break above it, especially if BTC remains bullish.

Binance coin [BNB] has been on a remarkable upswing in the past few weeks, gaining over 30% of its value since the end of November. After sustaining massive FUD at the end of last year, the cryptocurrency has seen an impressive performance, surging from $240 to over $310 in the past two weeks. At press time, it was trading at $302.4 and could drop further.

The $287.3 support is a key level to watch, as a break below it could potentially lead to further decline. On the 12-hour chart, the Relative Strength Index (RSI) and the Money Flow Index (MFI) were in the overbought zone. This implies that the buying pressure was strong, but the overbought condition also set BNB for a possible trend reversal. Besides, BTC’s rally only lasted three days during the last U.S. CPI release on 13 December. If the trend repeats, BTC’s bullish momentum could ease, tipping BNB bears to act. Therefore, selling pressure could increase in the coming day(s). This could push BNB to retest the $287.3 support or break below it. BNB’s decline below the support could be kept in check by $283.3 or $277.8. These levels can serve as short-selling targets for bears if the trend reversal is confirmed.

However, bulls could still attempt to retest the $314.2 resistance or break above it, especially if BTC remains bullish. Such an upswing would render the bearish bias null. The upside move will allow bulls to aim at BNB’s November high of $360 if they clear the $337 obstacle. BNB has also seen an increase in daily active addresses but a decrease in transactions, suggesting a consolidation phase.

Overall, BNB investors must keep an eye on the $287.3 support, as a break below it could lead to further downside pressure. On the other hand, a break above the $314.2 resistance could invalidate the bearish bias and pave the way for further gains.

SEC Charges Gemini and Genesis for Selling Unregistered Securities

• The US Securities and Exchanges Commission (SEC) has filed a charge against crypto exchange – Gemini and crypto lending platform – Genesis for offering and selling unregistered securities through Gemini’s Earn program.
• The duo is accused of violating sections 5 (a) and 5 (c) of the Securities Act of 1933.
• Genesis signed a deal with the crypto exchange in December 2020, wherein Gemini’s customers could loan their crypto to Genesis in exchange for interest.

The United States Securities and Exchanges Commission (SEC) has filed a charge against crypto exchange – Gemini and crypto lending platform – Genesis, for offering and selling unregistered securities through Gemini’s Earn program. The complaint was filed in the U.S. District Court for the Southern District of New York, and the duo is accused of violating sections 5 (a) and 5 (c) of the Securities Act of 1933.

This move comes a few months after Gemini and Genesis signed a deal in December 2020, wherein Gemini’s customers could loan their crypto to Genesis in exchange for interest. Following this, Gemini Earn was kickstarted in February 2021, with the crypto exchange acting like an agent between Genesis and its customers. The exchange, in return, received a fee, which went up to 4.29% on returns. However, this came crumbling down after Genesis suspended withdrawals as a result of FTX’s collapse.

The program, at the time, had 340,000 users and about $900 million in assets. The money continues to remain locked and both platforms are yet to decide on a final solution. SEC Chairman – Gary Gensler – said, „Today’s action underscores the importance of compliance with the securities laws as the SEC continues to focus on the offer and sale of digital assets.“

The commission previously charged BlockFi for similar offerings. Investigations into other securities law violations and into other entities and persons relating to the alleged misconduct are ongoing.

Chainlink Price Spikes Despite Decreased Demand for VRF Services

• Chainlink [LINK] recently saw a significant increase in price due to an increase in the number of addresses interacting with the network.
• Despite this positive development, the demand for Chainlink’s Verifiable Random Function (VRF) services has decreased.
• Despite the decrease in demand for VRF, the number of active users utilizing Chainlink as an oracle is still on the rise.

The decentralized oracle network, Chainlink [LINK], has recently seen a surge in price over the past few days. This increase in price can be attributed to the growing number of addresses interacting with the network, according to data from Santiment. Although this is a positive development, it is important to note that this surge in price may be short-lived due to new developments.

One factor that has likely caused the uptick in price is the increasing number of LINK addresses within the network. According to Santiment, this behavior of the addresses started two months ago, and over time, this behavior could have a positive impact on the prices of Chainlink. Despite this increase in address interactions, the interest in Chainlink’s VRF (Verifiable Random Function) services has declined. According to data from Dune Analytics, the number of monthly VRF requests fulfilled by Chainlink has dropped from 43,109 to 8,094 over the last few months.

Despite this decline in demand for VRF, the number of active users utilizing Chainlink as an oracle continued to grow. At the time of writing, 724,854 active users were using the Chainlink Oracle according to Dune Analytics. This suggests that while demand for one service may be decreasing, overall use of the network is still on the rise.

As per Santiment’s data, the network growth of LINK dropped in the past month, which shows a decrease in the number of times new addresses transferred LINK for the first time. This could indicate that the increase in price may not be sustained in the long run, as the number of new addresses is not increasing.

Whilst the demand for Chainlink’s VRF services has decreased, the growing whale interest and collaborations could be another reason for the price spike. For example, the World Economic Forum recently announced a partnership with Chainlink, which could be seen as a major endorsement for the network. Additionally, Coinbase recently announced the listing of LINK on its Pro platform, which could be another positive indicator for the future of Chainlink.

In conclusion, the recent spike in Chainlink’s price can be attributed to the growing number of addresses interacting with the network, as well as increasing whale interest and collaborations. Despite this positive development, it is important to note that the demand for VRF services has decreased and the network growth of LINK has dropped in the past month. This could indicate that the increase in price may not be sustained in the long run, as the number of new addresses is not increasing.

Shiba Inu (SHIB) Gains Attention of Big Whales, But Price Drops

• Shiba Inu (SHIB) became one of the most purchased tokens in the last 24 hours among 100 biggest Ethereum [ETH] whales.
• However, its network activity and daily addresses recorded a fall, and its price dropped by 1.41%.
• The burn rate also dipped significantly, with only 13 million tokens being burned in the last 24 hours.

Shiba Inu (SHIB) has been a hot topic in the cryptocurrency world as of late, with whales buying the token in droves and making it one of the most purchased tokens in the last 24 hours among the 100 biggest Ethereum [ETH] whales. Despite the enthusiasm of whales, however, its network activity and daily addresses have been recording a fall, and its price dropped by 1.41% at the time of writing.

The burning of SHIB has been an important part of stabilizing its value, and the burn rate accelerated, riding high on the buzz surrounding the soon-to-be-launched layer-2 blockchain solution Shibarium. However, the burn rate has also dipped significantly, with only 13 million tokens being burned in the last 24 hours, compared to the 37 million registered on the previous day. This drop was thought to be one of the reasons behind the price rise seen earlier.

WhaleStats data showed that 341, 296, 045 SHIB coins worth $3,002 were snapped up by whales in the last 24 hours. This buying activity is significant, but it will take more network activity and a sustained price increase to make SHIB a viable investment option.

In the near future, SHIB investors will be keeping a close eye on the launch of Shibarium, as well as the burn rate and network activity of SHIB. If these all continue to grow, SHIB could become a viable investment for many investors. For now, however, it remains to be seen how the SHIB token will develop and how its price will be affected.

CAKE Token Enters New Bull Cycle, Good Buying Opportunity Ahead

• Santiment analyst Clementllk opined that CAKE’s price was approaching a good buying opportunity.
• Clementllk assessed CAKE’s movement on a price chart and found that the native token of the leading decentralized finance protocol was forming a shark pattern.
• CAKE commenced the 2023 trading year with a new bull cycle, a price movement assessment on a daily chart revealed.

The cryptocurrency PancakeSwap’s CAKE token is seeing bullish signs as it enters the new trading year. A recent assessment of the altcoin revealed that the native token of the leading decentralized finance protocol (DeFi) on BNB Chain was forming a shark pattern. This pattern historically indicated a high success rate for buying opportunities, as per Santiment analyst Clementllk.

Clementllk assessed CAKE’s movement on a price chart and found that it had reached a technical price pattern. If the token hits the price mark of $3.45, the pattern will be successfully triggered, providing a good buying opportunity for investors. The analyst also assessed CAKE’s Market Value to Realized Value (MVRV) ratio using two formulas, including the {(MVRV 90d / 30d)-1} and (MVRV 30d-MVRV180d). While the first formula returned a negative MVRV ratio, the latter returned a positive value. Clementllk opined that this could be a „potential buying opportunity“ for the investors looking to ape in on the altcoin.

Moreover, a look at the position of the Moving Average Convergence Divergence (MACD) line relative to the signal line confirmed that the altcoin was beginning a new uptrend. This was validated by CAKE’s price growth, and as of this writing, the token’s (MVRV30d-MVRV180d) remained positive at 0.11, as per data from Santiment.

All in all, the analysis of CAKE’s price chart, combined with the positive MVRV ratio, suggests that the token is entering a bullish cycle. This could be a good buying opportunity for investors looking to invest in the altcoin.