Bitcoin price falters as institutional investors’ accumulation of stablecoins slows down. A crypto user accidentally spent nearly $90,000 on gas fees for a small transfer despite Ethereum gas fees hitting lows not seen in five years. Meanwhile, United States regulators have postponed a decision regarding the listing of the Hashdex Nasdaq Crypto Index exchange-traded fund (ETF).
Bitcoin price drops below $59,000 as institutions stop buying stablecoins
Institutional investors have halted their accumulation of stablecoins over the past two days, causing Bitcoin’s price to drop below a key psychological level.
During the past 24 hours, the Bitcoin BTC $59,738 price fell 3.9% to trade at $58,930 as of 08:03 am UTC on Aug. 12, falling from a weekly high of $62,510.
The drop below the $60,000 mark was likely caused by institutions stopping their stablecoin buying frenzy, according to an Aug. 12 X post from onchain analytics platform Lookonchain:
“Institutions seem to have temporarily stopped buying, and the price of $BTC dropped 4.5% today! We noticed that institutions stopped receiving $USDT from #TetherTreasury and transferring it to exchanges 2 days ago.”
The lack of institutional stablecoin inflows to crypto exchanges can signal a lack of buying pressure and investor appetite for the underlying asset, as stablecoins are the main on-ramp from the fiat to the crypto world used by investors.
Tether issues the world’s largest stablecoin, Tether USDT $1.00, and has minted over $1.3 billion worth of stablecoins from the market bottom on Aug. 5 to Aug. 9.
Crypto user fat fingers $90,000 fee for a $2,000 ETH transfer
An unknown crypto user appears to have accidentally spent $90,000 in gas fees in what should’ve been a simple transfer of $2,200 in Ether.
The user spent 34.26 Ether ETH $2,686 — worth $89,200 at current prices — in gas to transfer 0.87 ETH, worth just $2,262, according to Etherscan data cited in an Aug. 11 post to X by pseudonymous user DeFiac.
At the time of publication, gas fees on the Ethereum network are hovering at yearly lows of between 2 and 4 gwei, meaning that a transfer of ETH should only cost a maximum of $5.
Expressed as a percentage, the user overpaid by more than 1,783,900%. It comes despite median Ethereum gas fees hitting their lowest levels in five years, with recent reports that the fee went below 1 Gwei.
Hashdex crypto ETF decision postponed
According to an Aug. 9 regulatory filing, US regulators have postponed their decision on whether to approve the listing of the Hashdex Nasdaq Crypto Index ETF — a portfolio that includes ten of the largest crypto assets, including Bitcoin and Ether.
The ETF proposal is significant because, if approved, it would become the first diversified spot crypto fund trading on US markets. It would also become the first spot US ETF to hold altcoins, including Litecoin, Chainlink, Uniswap, and Filecoin.
According to the proposal, the ETF is designed to track the Nasdaq Crypto US Index, which represents a portfolio of crypto assets weighted by market capitalization.
The SEC approved several spot Bitcoin ETFs in January before greenlighting spot Ether funds around six months later. Based on industry data, the funds now command roughly $65 billion in assets.
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