Bitcoin price drops for a second day as institutional demand for stablecoins cools. A holder, in particular, burnt nearly $90,000 in ethereum fees to perform a transaction that cost less than $2, all this having come at a time when eth’s gas fees tumbled to lows last seen in 2016. At the same time, the American authorities have declined to set a date on the listing of the Hashdex Nasdaq Crypto Index exchange-traded fund (ETF).
Bitcoin price drops below $59,000 as institutions stop buying stablecoins
Large investors have stopped purchasing stablecoins for the last two days thus making Bitcoin to be below a vital psychological price.
Over the past day, the Bitcoin BTC price fell 3. down from $62,510 touched earlier in the week, BTC/USD was trading 9% lower at $58,930 as of 08:03 am UTC on Aug 12.
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: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:
“He continued, Institutions appear to have pause for the moment and the price of $BTC declined today by 4.5%!!! We need to note that institutions ceased to receive $USDT from #TetherTreasury and send it to exchanges 2 days ago.
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A non-existence of institutional stablecoin inflow to the crypto exchanges can be an indication of weak buying pressure and demand from investors for the underlying asset as the stablecoins are the gateway from fiat to the crypto space widely used by investors.
Tether has issued the largest stablecoin by market capitalization, Tether USDT, and has printed over $1. Of this, between August 5 and August 9 alone, $3 billion worth of stablecoins have been removed from the market.
Crypto user fat fingers $90,000 fee for a $2,000 ETH transfer
In what seems to be the worst case of ignorance, a user thought it prudent to make a $2,200 Ether transfer and in the process burnt through $90,000 in gas fees.
The user spent 34. 26 Ether ETH — equivalent to $89,200 at today’s prices — in gas to move 0. About $2,262, or around 87 ETH, was in its balance as of Aug. 11, as an unnamed author with the alias DeFiac in a post to X referred to the data in Etherscan.
As of the date of writing, gas fees on the Ethereum network still range from yearly lows of 2gwei up to the current average of 4gwei which implies that the cost of transferring ETH should not and does not exceed $5.
When the amount is converted into percentage the user overpaid to the tune of 1.7 million eight hundred and ninety two percent.
It comes at a time when the average gas fees on Ethereum are at a record low with actual reports of the fee going below 1 Gwei.
The decision regarding Hashdex crypto ETF has been delayed
US regulators have delayed their decision on whether to approve the listing of the Hashdex Nasdaq Crypto Index ETF, a portfolio with ten of the largest crypto assets, Bitcoin and Ether, and more, the company revealed in a filing with the SEC on August 9.
ETF proposal is revolutionary because it seeks to be the first diversified spot crypto fund that will be operational when approved in US markets. It would also become the first spot US ETF to hold altcoins such as Litecoin, Chainlink, Uniswap and FileCoin.
As it has been stated in the proposal, the ETF is expected to track the performance of Nasdaq Crypto US Index, which shows a set of cryptocurrencies with a focus on the market capitalization.
The SEC gave its nod to several spot Bitcoin ETFs in January, though it only granted similar permission to spot Ether funds some six months later. According to the industry data the funds now have approximately $ 65 billion of assets.