Germany recently made a significant move in the crypto market by transferring 750 BTC, valued at over $46 million. This transfer, which included sending 250 BTC to crypto exchanges Bitstamp and Kraken, is seen as a sign that the country may be preparing to sell the tokens. The government’s actions added to bearish pressures in the market, as they are part of a divestment of BTC seized from a privacy website. Germany currently holds over 45,000 BTC.
Following Bitcoin’s lead, Ether also experienced a drop in price from $3,425 to $3,375. The CoinDesk 20 Index (CD20) also saw a retreat, losing around 0.14%. Alternative cryptocurrencies, on the other hand, have been facing a larger liquidity drain compared to Bitcoin and Ether. Notional open interest tied to altcoins has declined by 34% to $12 billion since Bitcoin’s peak above $70,000 on June 7. This is in contrast to a 13% drop in cumulative open interest in Bitcoin and Ether futures, which now stands at $29.3 billion.
Jeff Dorman, the chief investment officer at Arca, noted that the liquidity drain in altcoins can lead to underperformance relative to major cryptocurrencies like Bitcoin and Ether. He mentioned that bid-side liquidity is less incentivized, and traders may be hesitant to engage in the market. Additionally, with fewer market makers and an increase in coin issuance, the altcoin market may become more volatile.
In a positive development, the Cardano blockchain successfully repelled a distributed denial of service (DDoS) attack aimed at stealing staked tokens. The attack was thwarted without causing any disruptions to the network’s operations. Philip Disarro, the founder of Cardano development firm Anastasia, explained that the attack was stopped by deregistering the stake credentials used by the attacker. Despite this attack, Cardano’s ADA token remained stable before experiencing a slight drop to under 39 cents in line with the overall market sentiment.
On a different note, the meme coin Doraemon (DORAE) experienced a significant price crash, going from over $2 million in market value to less than $200,000 in just 30 minutes. This crash was caused by someone selling 2.5 million DORAE for 10,538 SOL, according to data from Dexscreener.
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