On August 5, the Crypto Fear & Greed Index scored 17 out of 100, which is the lowest since July 12, 2022.
For the first time in two years, the Crypto Fear & Greed Index has entered the “Extreme Fear” zone when US spot Bitcoin exchange-traded funds recorded $168.4 million in withdrawals from trading on August 5.
On August 5, the index, which gauges public opinion toward Bitcoin and the cryptocurrency sector as a whole, dropped to a score of 17 out of 100, the lowest since July 12, 2022.
This time last week, on July 29, the index score was 67, which was one of the largest week-to-week drops in recent memory.
It coincides with the $168 million in withdrawals that spot Bitcoin (BTC) ETFs announced on August 5. According to statistics from Farside Investors, the majority came from the ARK 21Shares Bitcoin ETF and the Grayscale Bitcoin Trust, which brought in $69.1 million and $69 million, respectively.
While BlackRock’s iShares Bitcoin Trust showed a zero, the Grayscale Bitcoin Mini Trust, VanEck Bitcoin ETF, and Bitwise Bitcoin ETF all managed to register inflows of $21.8 million, $3 million, and $2.9 million, respectively.
On the other hand, iShares Ethereum Trust topped the $48.8 million inflow into the spot Ether (ETH) ETFs, with $47.1 million, as reported by Farside Investors.
Additionally, there were inflows of $16.6 million and $16.2 million for VanEck and Fidelity’s Ether instruments, respectively.
On August 5, sentiment declined when Bitcoin (BTC) and Ether (ETH) plunged 10% and 18%, respectively, in a brief two-hour period.
Leveraged long bets worth over $600 million were lost, with other cryptocurrencies suffering even worse losses than Bitcoin and Ether.
On August 5, trillions of dollars were also removed from the US stock market.
Weak job statistics, slower growth among key tech firms, and renewed recessionary worries have been the main causes of the market’s downturn.
The previous three days, according to independent trader Bob Loukas, were a once-in-a-ten-to seven-year event that saw the value of the cryptocurrency market erased by more than $500 billion.
Tuur Demeester, a Bitcoin expert, thinks the price of the cryptocurrency may bottom between $40,000 and $45,000, although he advised against placing a bet.
“In a Bitcoin bull market you don’t take bearish bets because prices can whipsaw back up in no time.”
Since falling to $49,780 on August 5, Bitcoin has somewhat rebounded, rising 11.85% to $55,680, according to CoinGecko statistics.
RippleX schedules XRPL Testnet reset to boost these features
In an effort to improve stability, cut expenses, and be ready for EVM integration and strategic expansion, RippleX has announced that the XRPL Testnet will reset on August 19.
Plans to reset the XRP Ledger (XRPL) Testnet on August 19, 2024, at 3:00 AM EST have been revealed by RippleX. The reset is intended to improve the Testnet’s working stability and efficiency, and it should take about fifteen minutes.
RippleX schedules XRPL Testnet reset
The XRPL Testnet is continuously being stabilized and its running costs are reduced by the Testnet reset that RippleX schedules. Testnet will be offline for around fifteen minutes starting at three in the morning EST on August 19, 2024, due to the procedure.
As noted by RippleX, these kinds of resets are necessary to guarantee the integrity of the testing environment for both consumers and developers.
🚨Attention #XRPL Developers: we’re planning a Testnet reset on August 19, 2024, starting at 3:00am EST. The reset will take approximately 15 minutes, during which the Testnet may be unavailable.
Resets improve the Testnet stability and reduce the cost of running a Testnet…
— RippleX (@RippleXDev) August 5, 2024
In addition to the reset, RippleX is searching for long-term fixes to fortify the Testnet even more. To lessen network load, these ideas include limiting access to Testnet XRP, bolstering security measures, and establishing a consistent cadence for upcoming resets.
Enhancing Testnet resilience
The goal of RippleX’s activities is to increase the Testnet environment’s stability. Testnet XRP’s access restrictions were implemented with the intention of preventing network overcrowding and any misuse, allowing the network to properly fulfill its testing function.
Simultaneously, further precautions will be taken to guard against any danger or interference with the XRPL Testnet.
The development of reset schedules is an additional measure to enhance Testnet stability. This is a smart approach that will inform developers about the intended testing environment and guarantee proper performance.
Strategic partnerships and ecosystem growth
As the Testnet progresses, RippleX is intensifying its investigation on integrating EVM on the XRPL. For developers, this development offers enormous promise in the DeFi space and with tokenizing real-world assets.
The alliance between Axelar and RippleX, which will serve as the only bridge for the sidechain’s native coin, strengthens this tactic. The XRPL EVM sidechain’s integration is strengthened by Axelar’s capacity to span more than 50 blockchains.
Another new collaboration is with Archax, which will support the onboarding of tokenized real-world assets valued at hundreds of millions of dollars into the XRPL.
XRPL developments and community engagement
In addition, RippleX continues to engage with the XRPL community and promotes the development of more testnets for diverse uses. Multi-Party Computation (MPT) standards and Oracles are two of the most recent innovations from Ripple President Monica Long that will soon be implemented on the XRPL to improve data dependability and transaction security.
It is anticipated that these will increase network utilization and draw in additional developers and institutional participants. Furthermore, a Coingape research states that the rise in micropayment transactions is the main reason for the activity of XRPL.
These have lately increased in volume and are now regularly adding significant transaction volumes to the network. This is because new users and apps have started using the XRPL for frequent, small-scale transactions, demonstrating the ledger’s effectiveness in managing high transaction traffic.
Tron’s Justin Sun buys 13,883 Ethereum (ETH) amid market recovery
On Monday, Justin Sun added $36 million to his Ethereum holdings, bringing his total to 392K. The price of ETH rises beyond $2,500.
Veteran members of the crypto business are purchasing the dips in this market collapse, offering full support. Justin Sun, the inventor of Tron, has been accumulating Ethereum since February 2024 and bought 14,884 more ETH on Monday.
Justin Sun buying Ethereum
The inventor of Tron, Justin Sun, reportedly bought an astounding $36 million worth of Ethereum from Binance in the last ten hours, according to blockchain analytics firm Spot On Chain. As previously stated, Sun has been gradually increasing his ETH holdings over the past few months as part of a lengthier accumulation plan, bringing his total to 392,474. These assets are believed to have cost $1.19 billion to acquire, and because of the recent decline in the price of Ethereum (ETH), their market worth is currently less than $1 billion.
Justin Sun (@justinsuntron) withdrew 14,884 $ETH ($35.97M) from #Binance 10 hours ago!
This brought the total amount of $ETH he accumulated since Feb to 392,474 $ETH (est. cost: $1.19B, now worth: $995M).
Note that Justin Sun also deposited a net amount of 49M $USDT to #HTX in… pic.twitter.com/43dHfK4U74
— Spot On Chain (@spotonchain) August 6, 2024
There were strong suspicions that Justin Sun’s leveraged long holdings worth over $200 million were liquidated on Monday when the price of ETH crashed below $2,000. Sun, however, responded quickly to this issue, saying that the Tron team never does leveraged deals.
The price of ETH has increased significantly along with the rebound of the wider cryptocurrency market as concerns about the US recession have mostly subsided in the wake of positive PMI data and rising employment rates. The price of ETH is currently trading at $2,500, and its market capitalization has increased by $300 billion.
Ether ETFs see net inflows
The spot Ether ETFs witnessed net inflows yesterday, despite Monday’s carnage on Satoshi Street and ETH’s plunge below $2,000. According to information provided by Farside Investors, net inflows into spot Ether ETFs were $48.8 million as of yesterday.
Grayscale’s ETHE experienced withdrawals of $46.8 million, while the BlackRock Ethereum ETF (ETHA) had inflows of $47.1 million. ETHV from VanEck and FETH from Fidelity both experienced inflows of more over $16 million.
This demonstrates that institutional investors are still seeing long-term potential in ETH and are viewing the market declines as opportunities to purchase.
