Altcoins
Germany Moves 750 Bitcoin (BTC), Altcoins Lose Liquidity
Bitcoin, after a brief surge above $62,000 at the start of the Asian session, fell back to $61,400. The price dropped due to significant on-chain activity in the German government’s BTC holdings. blockchain detective Lookonchain, the euro zone’s largest economy transferred 750 BTC, valued at over $46 million, sending 250 BTC to crypto exchanges Bitstamp and Kraken, an indication that the country could be preparing to sell the tokens. The action, part of a divestment of BTC seized on a privacy website, added to downward pressures in the market. The government holds over 45,000 BTC. Ether followed Bitcoin’s lead, falling from $3,425 to $3,375 and the CoinDesk 20 Index (CD20) also fell, losing around 0.14%.
Alternative cryptocurrencies have recently seen a greater outflow of liquidity than bitcoin and ether. For example, notional open interest – or the dollar value locked in active futures contracts – tied to altcoins has declined 34% to $12 billion since BTC peaked above $70,000 on June 7. according to Coinalyze data source. That compares to a 13% decline in cumulative open interest across bitcoin and ether futures, to $29.3 billion. “This one-way flow quickly becomes reflexive downward and exacerbates underperformance relative to the majors. Liquidity on the supply side is less encouraged and traders are reluctant to catch a falling knife. Add to that fewer market makers and a huge increase in coin issuance and you have a very sloppy altcoin market,” said Jeff Dorman, chief investment officer at Arca. wrote in the weekly note.
The Cardano blockchain has demonstrated its resilience in repel successfully a distributed denial of service (DDoS) attack aimed at stealing tokens staked on Tuesday. The attack was thwarted without any disruption to network operations. In a DDoS attack, a large number of compromised computers, called “bots” or “zombies,” flood a target with excessive traffic, making it overloaded and inaccessible. Philip Disarro, the founder of Cardano development company Anastasia, said the attack could be stopped by removing the stake credentials used by the attacker. The attack was stopped shortly after it was published. Cardano’s ADA token remained stable before slightly decreasing at less than 39 cents, in line with general market sentiment.