Morning Crypto Report: XRP Experiences 89% Drop in Fee Revenue; Satoshi Nakamoto Statue Unveiled at NYSE; Bitcoin Liquidation Surges by 3,065%

Markets are currently adjusting to the recent rate cut. Rather than establishing a clear trend, traders are reacting to every piece of news as it comes, given the thin liquidity and unclear direction.

Key Takeaways

XRP's Fee Revenue: XRPL fee revenue has dropped dramatically, hitting its lowest point since December 2020.
Satoshi Nakamoto's Recognition: A statue of Bitcoin's creator was unveiled at the New York Stock Exchange.
Bitcoin Liquidation Surge: Bitcoin saw a liquidation imbalance with a ratio of 3,065%, indicating a crowded long position.

According to data from Glassnode, XRP Ledger (XRPL) fee activity has seen a significant decline, marking its steepest drop since 2020. The 90-day average has decreased from approximately 5,900 XRP per day in February to a mere 650 XRP currently. This steep reduction indicates that the network is at its quietest since late 2020.

The decline in XRPL activity aligns with the recent price movements. XRP attempted to maintain the $3 mark during August and September but was unable to attract demand in October, consequently settling between $2.00 and $2.05. TradingView's two-day candles reflect this trend, showing little buyer enthusiasm, with only minor efforts to stabilize prices.

Source: Glassnode

The market is left pondering whether this slump is a temporary issue or a sign that XRPL activity has peaked. With such a steep drop, market sentiment is likely to remain subdued until fees stabilize.

In a surprising development, the New York Stock Exchange (NYSE) has installed a statue of Satoshi Nakamoto—a move that caught many off guard, given the NYSE's reputation as a traditional trading environment. This installation was orchestrated by Italian artist Valentina Picozzi, with support from Twenty One Capital, coinciding with their first week on the exchange.

The timing of this unveiling is significant, as Twenty One Capital’s debut faced challenges. Shares initially opened at $10.74, dipped to $11.42 by day’s end, and concluded nearly 20% lower than its prior SPAC close of $14.27—an underwhelming start for the company.

Twenty One Capital holds around 42,000 BTC, valued at approximately $3.9 billion, making it one of the top three corporate Bitcoin holders. However, the company has yet to outline a specific roadmap, with CEO Jack Mallers emphasizing that they are not trying to replicate existing strategies.

Mallers mentioned the intention to develop services around their Bitcoin holdings, including brokerage and trading. Still, he has not revealed any concrete product details.

In parallel, Strive Asset Management announced plans to raise $500 million in equity to purchase more Bitcoin. Currently, Strive manages 7,525 BTC, worth roughly $699 million, ranking 14th among corporate Bitcoin holders.

According to Glassnode, corporate and private Bitcoin reserves have surged by 448% since the start of 2023, rising from 197,000 BTC to 1.08 million BTC. Today's market headlines highlight this significant growth, even though Twenty One Capital's trading debut was less successful than expected.

CoinGlass's derivatives map depicted a remarkable liquidation spread recently, illustrating a shift in trading dynamics. Over a 12-hour period, Bitcoin experienced $81.99 million in liquidations, with $79.40 million coming from long traders and just $2.59 million from shorts. This 3,065% ratio indicates that long traders may have jumped in too early in response to the Federal Reserve's announcement.

Bitcoin's price has slipped from the $92,000 mark into the lower $90,000s, encountering resistance levels that had previously limited upward movement. While chart indicators do not currently signal a breakdown, the heavy liquidation hints at an overcrowded long positioning.

Though this situation does not dictate the long-term market trend, it prompts intraday traders to reassess their risk strategies, avoiding the assumption of a quick rebound solely due to the Fed's rate cut.

As we move into Thursday, the market is characterized by caution and uncertainty. Bitcoin is trading between $89,500 and $90,500, lacking decisive momentum. Simultaneously, XRP remains close to the $2 mark, supported by a fee landscape that does not motivate buyers.

Price Levels to Watch

Bitcoin (BTC): Targeting $92,000 as the initial resistance, with a secondary zone at $94,500-$95,000. Immediate support is at $88,000, with a deeper support level at $80,600.
XRP: Facing resistance in the $2.12-$2.18 range, with an extension zone from $2.28-$2.34. Initial support is located at $1.98-$2.00, with critical break levels at $1.92 and deeper support at $1.82-$1.85.