bull market

SPXHits $1.5B Market Cap First Time As Open Interest Rises

Published

1 day ago

January 7, 2025

The meme coin SPX6900 has set a significant milestone, passing the $1.5 billion market cap for the very first time on Jan. 7, 2024.

This follows increased trading activities and rising interest in meme coins as an asset class in the crypto market. It goes without saying that it has placed SPX6900 (SPX) among the best-performing digital assets in the early days of 2025, which is often known as the January effect.

https://twitter.com/blocknewsdotcom/status/1876436386334605787

Trading at $1.53, the token gained 1.87% in the past 24 hours, with a daily trading volume exceeding $95 million, highlighting growing investor interest.

A chart showing the market cap and price trajectory of SPX from August 17 to December 31, with SPX's market cap crossing $1.5 billion and its price nearing $1.80 by the end of the year. — PX’s market cap surpasses $1.5 billion as its price soars to $1.80, marking a significant milestone in the token’s performance during the last quarter of the year. Sourced from Coinglass by crypto.news.

SPX is a meme coin that runs on the ETH blockchain, which comes at a time when meme coins continue to catch market attention with their combination of speculative appeal and cultural resonance. Described in its unofficial manifesto as “the stock market for the people,” the token symbolizes a movement toward economic liberation and an alternative to traditional wealth creation systems. As of today, the circulating supply is estimated to hover around 931 million, with about 6.9% of tokens or roughly 69 million burnt. The token uses the Wormhole technology to be a cross-chain asset, enhancing availability across different blockchain estates.

SPX’s market perspective

From a market point of view, the token could rise on support from technical indicators that show a rather bullish sentiment. The Moving Average Convergence Divergence (MACD) has seen the MACD line cross above the signal line, a classical bullish determinant.

A TradingView chart showing the performance of SPX6900 in 2024, highlighting the Moving Average Convergence Divergence (MACD) indicator. The blue line represents the MACD line, and the orange line represents the signal line. Green and red bars in the histogram below indicate the strength of buying and selling pressure, with a sharp upward trajectory observed in late 2024 and early 2025. — SPX6900’s MACD analysis shows bullish momentum with a significant upward crossover in late 2024, indicating sustained buying pressure and growing market enthusiasm into early 2025. Source: TradingView

The MACD histogram, which displays green increasing bars, refers to the uninterrupted buying pressure. Moreover, the rise in the trading volume indicates some ongoing enthusiasm within the market.

A chart from Coinglass showing the open interest in SPX futures (in USD) alongside the SPX price. The green area represents the rising open interest, while the yellow line tracks the SPX price. A sharp increase in both open interest and price is observed from late December 2024 to early January 2025, with open interest surpassing $65 million and SPX price reaching $1.50. — SPX futures open interest surges past $65 million as the SPX price hits $1.50, reflecting growing trader participation and bullish sentiment in early January 2025. Sourced from Coinglass by crypto.news.

In addition, open interest for SPX futures has grown consistently and surpassed $65 million on Jan. 7, 2025, according to Coinglass. Specification of trader inflows points to increased trader sentiment and willingness to operate in the derivatives market. The growing open interest and an increase in holder counts suggest SPX’s growing adoption. According to Santiment, the number of holders rose from 14,955 in Oct. 2024 to over 23,667 in last week of Dec 2024, reflecting the market confidence that the token is witnessing in early January.

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Bitcoin Magazine Pro

How To Buy Bitcoin During Bull Market Dips

Published

2 weeks ago

December 27, 2024

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Buying Bitcoin at significantly higher prices than just a few months ago can be daunting. However, with the right strategies, you can buy Bitcoin during dips with a favorable risk-to-reward ratio while riding the bull market.

Confirming Bull Market Conditions

Before accumulating, ensure you’re still in a bull market. The MVRV Z-score helps identify overheated or undervalued conditions by analyzing the deviation between market value and realized value.

*Figure 1: MVRV-Z Score indicates dips are still for buying.*

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Avoid Buying when the Z-score reaches high values, such as above 6.00, which would indicate the market is overextended and nearing a potential bearish reversal. If the Z-score is below this, dips likely represent opportunities, especially if other indicators align. Don’t accumulate aggressively during a bear market. Focus instead on finding the macro bottom.

Short-Term Holders

This chart reflects the average cost basis of new market participants, offering a glimpse into the Short-Term Holder activity. Historically, during bull cycles, whenever the price rebounds off the Short-Term Holder Realized Price line (or slightly dips below), it has presented excellent opportunities for accumulation.

*Figure 2: Short-Term Holder break-even has historically marked bull market turning points.*

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Gauging Market Sentiment

Though simple, the Fear and Greed Index provides valuable insight into market emotions. Scores of 25 or below often signify extreme fear, which often accompanies irrational sell-offs. These moments offer favorable risk-to-reward conditions.

Figure 3: The Fear and Greed Index highlights moments of extreme fear during macro uptrends, which historically align with strong risk-to-reward buying opportunities for Bitcoin.

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Spotting Market Overreaction

Funding Rates reflect trader sentiment in futures markets. Negative Funding during bull cycles are particularly telling. Exchanges like Bybit, which attract retail investors, show that negative Rates are a strong signal for accumulation during dips.

*Figure 4: Negative Funding Rates due to excessive shorting often provide great opportunities.*

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When traders use BTC as collateral, negative rates often indicate excellent buying opportunities, as those shorting with Bitcoin tend to be more cautious and deliberate. This is why I prefer focusing on Coin-Denominated Funding Rates as opposed to regular USD Rates.

Active Address Sentiment Indicator

This tool measures the divergence between Bitcoin’s price and network activity, when we see a divergence in the Active Address Sentiment Indicator (AASI) it indicates that there’s overly bearish price action given how strong the underlying network usage is.

*Figure 5: AASI dip buying has historically worked exceptionally well.*

View Live Chart 🔍

My preferred method of utilization is to wait until the 28-day percentage price change dips beneath the lower standard deviation band of the 28-day percentage change in active addresses and crosses back above. This buy signal confirms network strength and often signals a reversal.

Conclusion

Accumulating during bull market dips involves managing risk rather than chasing bottoms. Buying slightly higher but in oversold conditions reduces the likelihood of experiencing a 20%-40% drawdown compared to purchasing during a sharp rally.

Confirm we’re still in a bull market and dips are for buying, then identify favorable buying zones using multiple metrics for confluence, such as Short-Term Holder Realized Price, Fear & Greed Index, Funding Rates, and AASI. Prioritize small, incremental purchases (dollar-cost averaging) over going all-in and focus on risk-to-reward ratios rather than absolute dollar amounts.

By combining these strategies, you can make informed decisions and capitalize on the unique opportunities presented by bull market dips. For a more in-depth look into this topic, check out a recent YouTube video here: How To Accumulate Bitcoin Bull Market Dips

For more detailed Bitcoin analysis and to access advanced features like live charts, personalized indicator alerts, and in-depth industry reports, check out Bitcoin Magazine Pro.

Disclaimer: This article is for informational purposes only and should not be considered financial advice. Always do your own research before making any investment decisions.

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bear market

Crypto Bull Market Much Closer To End Than We Realize, Warns Analyst Jason Pizzino

Published

2 weeks ago

December 27, 2024

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A closely followed analyst says the crypto bull market’s end is much closer than most traders realize.

In a new thread on the social media platform X, Jason Pizzino tells his 123,400 followers that investor sentiment indicates traders now are closer to the end of the bull market than the start.

“Bitcoin and crypto ‘end-stage’ emotional volatility has dramatically increased which only suggests we are much closer to the end than the beginning of the cycle.

That might seem like an obvious statement now, but wait until the market gets closer to the final top; it won’t be so obvious which is generally a signal within itself.”

In an accompanying video update, Pizzino says historically, when the market gets excited and overconfident, stagnation tends to follow.

“I think a lot of people believe this cycle should run until the end of 2025, but what if we’re seeing a lot of that excitement come back into the market?

Every time it goes up, all I see is just everyone getting super bullish and then it pauses for a bit, corrects, and then we start on the next move. So I’m just keeping an open mind.”

GfiO4c2bgAADMvd — Source: Jason Pizzino/X

The trader’s chart uses Bitcoin (BTC) as an example. According to Pizzino, the top crypto asset by market cap may correct or trade sideways all the way until October 2025.

“Looking somewhere [between] Q2 out to Q3, just the beginning of Q4… Most people can’t handle six to 10 months.

They talked about a drop of one month and they all freaked out yesterday, it’s absolutely bonkers out there, which is why I think we are in those final moves, basically the end of the cycle.”

BTC is trading at $98,900 at time of writing, a marginal increase on the day.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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ARK Invest

Bitcoin To Hit $1 M by 2030

Published

3 weeks ago

December 20, 2024

admin

Cathie Wood, who is the CEO and chief investment officer of Ark Investment, made a prediction during an interview with Bloomberg, suggesting that Bitcoin will hit a price of $1 million by 2030.

In the conversation on Dec. 20, Cathie Wood pointed towards Bitcoin’s (BTC) fixed supply of 21 million cap as the key denominator which will drive the asset’s value. She brought to light the scarcity of BTC as more than 19.5 million BTCs have already been mined, which she says have increased the institutional investor’s hunger for the asset.

“Bitcoin is really the first of a new asset class, and it will be the largest opportunity of them all,” Wood stated. As a result of this increasing institutional adoption and supply-demand dynamic, she argues that the likelihood of BTC reaching $1 million is now considerably higher. Referencing Ark Investment’s Big Ideas 2023 research report, Wood highlighted the asset’s inherent scarcity as a key driver of its growing demand.

Responding to criticism of BTC’s speculative character, Wood drew parallel to gold, with both acting as stores of value. Also, she noted that BTC’s annual supply growth rate has recently fallen to 0.9%, lower than gold’s long-term average supply growth rate of 1%, meaning that BTC is more scarce than gold.

Wood said that while gold could lead to increasing supply in a rising price environment, BTC cannot due to its decentralized mechanism. “Like gold, Bitcoin is secured by its scarcity, but unlike gold it’s backed by the largest computing system in the world, making it the most secure network in the world,” she explained. It is this mathematical scarcity along with its decentralized and rules-based design that differentiates BTC as a radically new era financial asset, Wood claimed.

Wood largely credits the sudden boom in digital asset adoption to the COVID-19 pandemic, which she says has “turbocharged” a period of financial self-education by younger investors whose personal standards for accreditation traditionally fall short. This change has been also documented in statistics; where 63% of people invested in cryptocurrency in 2021 during the pandemic, with the bulk of adopters being millennials and Gen Z.

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