The last week has been extremely intense. The leader of the crypto industry, Bitcoin, has risen again and crossed an important psychological level for the first time in recent months. We are observing new unexpected "stars" on the market of alternative coins. The strong hands and whales continue to teach important lessons for novice entrants, while public opinion is showing important signs of cryptocurrency loyalty. Read more in our new digest.
Bitcoin Increases to 40,000
Bitcoin's rally occurred on July 26th based on the news that Amazon would start accepting cryptocurrencies as payment. As a result, Bitcoin’s price increased from $34,500 to $40,500 in 24 hours. Then a denial of this news was circulated, after which the main cryptocurrency dropped to $37,000.
As a result, information about Amazon turned out to be only half reliable: Andrew Jassy, CEO of Amazon Web Services, said in an interview with CNBC that Amazon is watching cryptocurrency technologies carefully and welcomes their implementation, though, it is only about promising integrations, which are not the nearest.
The main newsmaker in July is the Axie Infinity coin, which increases from $3.26 to $49.58 (i.e. by 1520%) over the month. This is a game project that includes NFT (non-fungible tokens), providing a primitive (at first glance) online game with various options and character upgrade possibilities.
In addition to the success of the investors who purchased the AXS token on the exchanges, the company also has succeeded. It took the project almost 3 years to make the first $30 million in profit. However, the developers made the next $30 million in ... 7 days! In the next 10 days they received a profit of $60 million. This is an incredible success in an obscure market niche, as well as an inspiring example for other companies.
Whose side are you on?
Statistics show that during the entire period, starting from the fall in the crypto market in May, large holders started to accumulate their coins. At the same time, the “weak” players, being frightened by the decline in rates, got rid of their coins at a loss, as they sold their coins at a price lower than the purchase price.
This mirror image says a lot: if the holder has chosen a promising coin and decided to share its success with it, then they will need to perform another important activity – holding.
Short position liquidation
Another important reason why you should not sell your coins is a characteristic feature of the bull market: there can be quite deep and prolonged corrections (as we have seen since May 2021), but at the same time it very quickly sweeps away those who decided to try to speculate on the fall in quotations.
As an example, last week more than $1 billion of short positions of those traders who decided that the price would continue to decrease and made a bet on this were liquidated on the ten leading crypto exchanges. Moreover, the first $110 million were forcibly closed in just 10 minutes!
A US Gallup study shows that over the past 3 years, many more people consider the acquisition of cryptographic tokens as a “risk-free” activity.
In 2018, up to 75% of the respondents attributed cryptocurrencies to the category of “very risky instruments”, while now their number has decreased by 15%.
Of course, this is facilitated not only by the success of Bitcoin and Ethereum, which brought incredible profits to their owners, but also by the emergence of technological projects with high intrinsic value. The EDC Blockchain project is among them. Thanks to the comprehensive functionality, you can create new coins, deploy your own node, make transfers, participate in a staking service and get access to other partner projects – all on a single EDC Blockchain platform.
EDC Blockchain never calls for investment activity. The materials presented on the site are for informational purposes only.