Analyst claims that one of the main reasons behind Bitcoin’s recent downturn was movements from dormant addresses.

According to the CryptoQuant analyst, over 52,000 Bitcoins (BTC), held for less than three months, have been moved on-chain over the past three days. In addition, 75,228 coins aged between three and six months have also been moved.

These assets belong to short-term and mid-term holders. Per CryptoQuant’s data, 2,834 BTC tokens that have been dormant between six months and two years started making movements on-chain.

As the price continues to consolidate below the $60,000 mark, data shows that 16,003 Bitcoins aged five to seven years have entered the market.

The analyst claims these movements have been contributing to the market-wide bearish sentiment and “need to stop.” 

“When bitcoins that have remained dormant for a long time are moved, it’s usually in preparation for something, and you may see them used for selling.”

CryptoQuant analyst wrote.

While Bitcoin’s funding rate hints at a potential rebound for the asset’s price, the increased amount of dormant circulation could still trigger a further price drop.

Bitcoin is down by 0.2% in the past 24 hours and is trading at $59,750 at the time of writing. The asset’s market cap is currently sitting at $1.17 trillion with a daily trading volume of $33 billion.

The BTC Relative Strength Index is still hovering at the 46 mark, according to data from crypto.news price page. The indicator shows that Bitcoin is oversold at this price point but is getting close to the neutral zone as the price roams near the $60,000 mark.

A rebound from the broader cryptocurrency market triggered a $170-billion recovery in valuation, spiking the market cap 8% to $2.26 trillion.

Here are some of the most notable movers to watch this week.

Solana reclaims $160

Last week, Solana (SOL) surged 12%, reclaiming the $160 level and peaking at a two-week high of $162 on Aug. 24 despite setbacks in its ETF product. After closing the week strong, SOL has now pulled back to $157.17.

However, Solana remains above the 200-day EMA at $140.12, signaling ongoing bullish momentum. This week, SOL needs to hold above the 200-day EMA to sustain the ongoing upward trend. 

Meanwhile, the Chande Kroll Stop indicators place the Stop Long at $145.22 and the Stop Short at $153.18. Maintaining above $153.18 is key for further gains, as a breach could lead to a bearish reversal.

This week, investors should watch for a retest of the $160 and $162 resistance zones or a decline toward key support at $153.18.

FET spikes 50%

Fetch.ai (FET) closed last week as one of the top gainers, spiking 50% and reclaiming the $1 level. On Aug. 24, FET reached a monthly peak of $1.3 but has since retraced to $1.249.

FET currently trades above the 50-day EMA ($1.108), signaling midterm bullish momentum. However, it remains below the 200-day EMA ($1.766), indicating lingering long-term bearish sentiment. 

FET’s immediate resistance points this week are at $1.447 and $1.565, with strong support at $1.063 and $0.945, with a pivot level of $1.255. A break above the resistance could target the 200-day EMA, while failing to hold support would lead to a drop below the 50-day EMA.

RENDER breaches upper Bollinger Band

Render (RENDER) saw a 37% rise last week, reclaiming the $6 level for the first time this month. 

Currently trading at $6.153, RENDER is comfortably above the Upper Bollinger Band ($5.894), which often signals overbought conditions. This suggests a potential pullback or consolidation might be on the horizon.

However, the strong trend indicated by the ADX at 33.25 supports the idea of sustained upward momentum. The asset maintains a bullish bias with the +DI at 28.35 and -DI at 16.63. 

If the current momentum holds this week, Render could aim for higher targets around $6.5 and potentially $7.0.

Nonetheless, a dip below the Upper Band might lead to a retest of the 21-day moving average ($4.875).

Crypto corporations have become the dominant force in federal election spending, spending over $119 million to influence the U.S. election outcome. 

According to a report by the non-profit organization Public Citizen, nearly half of all corporate money contributed to this year’s United States elections came from crypto backers, totaling $248 million.

This makes the crypto industry the largest corporate political spender in 2024, with Koch Industries, primarily known for oil and gas, a far second, contributing $28.25 million to support Republican candidates and causes.

According to the report, the massive investment has primarily been funneled into the nonpartisan super PAC Fairshake, which is dedicated to electing pro-crypto candidates and defeating those skeptical of the sector.

One of the report’s general concerns with the spending was that crypto-influenced lawmakers are undermining consumer protections and financial system safeguards.

“Crypto-influenced lawmakers bending over backwards to benefit Big Crypto means weaker protections preventing individual consumers from being defrauded by reckless crypto scams – and softened regulations protecting our financial system from destructive innovations that exploit consumers while enriching insiders.”

Public Citizen report

Unprecedented spending

Over the past three election cycles, crypto corporations have spent $129 million, accounting for 15% of all known corporate contributions since the Supreme Court’s 2010 Citizens United ruling, which allowed unlimited corporate contributions to super PACs. 

During the cycles, 92% of this spending occurred in 2024 alone.

Crypto’s political spending

The report highlighted how spending appears to be paying off in the United States’ political landscape.

According to the report, crypto companies pledged support in the Montana senate race without specifying the candidate. At the same time, Senator Jon Tester voted in favor of pro-crypto legislation despite previous skepticism. 

The House Republicans’ bill, known as the Financial Innovation and Technology for the 21st Century Act, or FIT21, was approved by 71 Democratic House members, defying the Biden administration. If enacted, this legislation is expected to legitimize the crypto industry.

Additionally, politicians such as Donald Trump, J.D. Vance, and members of Kamala Harris’ team have made pro-crypto gestures, indicating a growing impact of the crypto sector on political stances and decision-making.

Fairshake 

Fairshake PAC, the primary beneficiary of this influx of crypto cash, has raised $202.9 million to date, with more than half of its funding—$107.9 million—coming directly from corporations like Coinbase and Ripple (XRP). 

The remainder of Fairshake’s funds have come from billionaire crypto executives and venture capitalists, including the founders of Andreessen Horowitz and the Winklevoss twins.

Warnings as crypto influences the election

The surge in corporate spending is seen as an aggressive move by the crypto industry to push its regulatory agenda to the forefront of the 2024 elections. However, the strategy is not without controversy. 

According to the report, critics argue that the overwhelming influence of crypto money in politics could undermine the public interest in favor of private, profit-driven goals. 

“We’ve already had enough of elected officials looking the other way because influential billionaires and Big Businesses told them to,” the report read. “Regulators and lawmakers should be free to carry out their public interest missions without fear of political attacks from corporate interests.”

The report warned that this trend could increase corporate influence and weaken established electoral norms, further consolidating the power of wealthy interests in the political process.