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OKEx Insights Crypto Market Daily DeFi Ethereum Bitcoin

BTC in danger of declining further as Chinese Bitcoin miners dump GPUs

2021.07.08 Adam James

Nearly the entire cryptocurrency market is down today, although hot gaming altcoin SAND continues to surge. 

The cryptocurrency market is retracing on Thursday. Its total market capitalization is down an even 6%, per data from CoinGecko, while market-leaders BTC and ETH are down 5.6% and 8%, respectively. Most altcoins are similarly down. Leading meme coin DOGE and decentralized-finance blue-chip UNI, for example, are down 8.5% and 10%, respectively.

The only altcoins seeing gains of more than 1% across global exchanges today are FLOW — which is up 17% — and STX, THETA, TFUEL, MANA and LEO.

The cryptocurrency market is a sea of red today, with the exception of select altcoins. Source: Coin360

Visa crypto partnerships grow, Chinese miners dump used GPUs

Despite generally bearish developments in the blockchain and cryptocurrency industry, particularly in regard to increased regulation in various regions, there still exists some bullish news. Leading today's good news is the revelation that payments giant Visa currently has 50 active partnerships with crypto-related firms — a 43% increase over the past four months. Specifically, the partnerships entail crypto companies launching Visa debit/credit cards.

Still, all is not rosy. Chinese cryptocurrency miners are reportedly dumping used GPUs on second-hand markets, such as Alibaba-owned Xianyu. This doesn't come as a surprise — given the fact that China seriously cracked down on Bitcoin mining in the country — but the development may be interpreted as fundamentally bearish, nonetheless.

Despite the fire sale of used Bitcoin miners on Chinese second-hand marketplaces, Bitcoin's daily mining revenue per TH/s is actually similar to what it was around the middle of May — a result of decreased mining difficulty following the largest drop in hash rate in the foremost cryptocurrency's history.

Bitcoin miner revenue per TH/s is similar to what it was in mid-May. Source: The Block

In other news, Binance — a competitor of OKEx — continues to come under pressure from global regulators. The latest to throw fuel on the fire is the Polish Financial Supervision Authority, which has posted a consumer warning about Binance Markets Limited and Binance Group. Similar warnings have already been issued by the German Federal Financial Supervisory Authority, the United Kingdom's Financial Conduct Authority, the Cayman Islands Monetary Authority and Thailand's Securities and Exchange Commission.

Given the fact that the market is a sea of red today, it comes as no surprise that market sentiment has decreased significantly. Per multifactorial crypto market sentiment analysis from alternative.me, participants in the cryptocurrency market are once again extremely fearful — as every increase in sentiment sees subsequent sell pressure being added.

The cryptocurrency market is once again gripped by extreme fear. Source: alternative.me

France and Singapore complete cross-border CBDC test

While the decentralized finance and nonfungible token sectors of the blockchain and cryptocurrency industry remain relatively quiet today, central bank digital currencies are back in the news — with the central banks of France and Singapore exploring cross-border CBDC applications. 

The news comes via a joint announcement, which states that both the Bank of France and the Monetary Authority of Singapore have successfully completed a cross-border payment and settlement test using CBDCs.

With China's Digital Currency Electronic Payment — commonly referred to as DCEP — on the verge of being widely implemented, it stands to reason that other countries' central banks will continue to ramp up efforts to test and develop their own digital currencies.

Top altcoin gainers and losers: SAND continues hot streak

  • SNC/USDT +24.41%
  • SAND/USDT +15.59%
  • OXT/USDK +13.54%
  • REP/USDT -13.35%
  • CSPR/USDT -14.32%
  • ALPHA/USDT -16.56%

SAND is once again among the top-performing altcoins on OKEx today, per the exchange's default time, and is largely following in the footsteps of AXS, a similar ERC-20 token used for NFT gaming. Per data from CoinGecko, SAND is up 143.1% over the past two weeks.

SAND is once again a top-performing altcoin on OKEx. Source: OKEx

BTC technical analysis: Bulls sounding alarms

Some are beginning to sound the alarm for BTC, which is once again visiting a critical area of historic interest for buyers. Generally speaking, the more times the price of an asset visits a level in relatively quick succession, the weaker that level becomes. Should bulls fail to bolster the price above 30,000 USDT, the door may be open for 26,000 USDT.

OKEx's BTC/USDT 4h chart — 7/8. Source: OKEx, TradingView

ETH technical analysis: ETH testing support against BTC

In line with the wider cryptocurrency market sell-off, the price of ETH is losing ground against BTC after an impressive rally. All is not lost for ETHBTC bulls, however, as the leading altcoin is currently testing the four-hour ribbon of exponential moving averages — which ETH has been using as support against the foremost cryptocurrency. Losing support at the four-hour EMA ribbon may signal that more declines are in store.

OKEx's ETH/BTC 4h chart — 7/8. Source: OKEx, TradingView

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OKEx Insights presents market analyses, in-depth features and curated news from crypto professionals.

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Disclaimer: This material should not be taken as the basis for making investment decisions, nor be construed as a recommendation to engage in investment transactions. Trading digital assets involve significant risk and can result in the loss of your invested capital. You should ensure that you fully understand the risk involved and take into consideration your level of experience, investment objectives and seek independent financial advice if necessary.

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