Good Morning Crypto Enthusiasts!

Glad to have you back for another edition of the UseTheBitcoin.com newsletter.

1. Justin Sun to Buy German Gov’t’s BTC: Tron founder Justin Sun has offered to purchase the German government's Bitcoin holdings, valued at over $2.3 billion, to prevent potential market disruptions.

2. Mt. Gox Moves $2.7B in Bitcoin: The defunct Japanese crypto exchange Mt. Gox transferred 47,229 Bitcoin, worth $2.71 billion, to a new wallet address as part of its plan to repay creditors.

3.  📈Technical Analysis Masterclass - Mt. Gox creditor repayment and Germany’s government sell-off has sparked a massive market downturn for the whole crypto industry! Know what’s the status of the biggest cryptocurrencies by watching UseTheBitcoin’s latest Youtube video “Technical Analysis for the top cryptocurrencies” or join our Official Discord Channel for more alpha!

4. UFC Star Launches Meme Coin: UFC star Khamzat Chimaev's meme coin, SMASH, crashed to zero shortly after its launch, losing 96% of its value within 24 hours.

5. 💡Feature of the Day - German ‘Hasty’ Bitcoin Sell-Off: German lawmaker Joana Cotar has called for an immediate halt to the government's rapid Bitcoin liquidation, advocating instead for Bitcoin to be adopted as a strategic reserve currency.

   
   All this and more in today’s headlines!

📰 News Highlights:

Justin Sun to Buy German Gov’t’s $2.3B BTC [Source][Source][Source][Source]

Tron founder Justin Sun has proposed purchasing the German government's Bitcoin holdings, valued at over $2.3 billion, to mitigate potential market disruptions. Sun's offer, made on July 4 via a post to his 3.5 million followers on X (formerly Twitter), aims to negotiate an off-market transaction to prevent negative price impacts.

The German government-linked wallet, which began transferring its nearly 50,000 BTC holdings on June 19, has stirred concern among traders about potential price declines.

The BTC in question, believed to have been seized from the pirate movie website operator Movie2k, has been steadily sold off, causing continued Bitcoin selling pressure.

The latest transfer on July 4 saw $172 million worth of Bitcoin moved to multiple wallets, with $75 million sent to major exchanges like Coinbase, Kraken, and Bitstamp. A BKA spokeswoman clarified that the seized Bitcoins are managed by the relevant public prosecutor’s office or court, and the proceeds are directed to the Land Revenue Office.

Mt. Gox Moves $2.7B in Bitcoin [Source][Source][Source]

The defunct Japanese crypto exchange Mt. Gox has transferred 47,229 Bitcoin, valued at $2.71 billion, to a new wallet address. This significant move, reported by blockchain analytics platform Arkham Intelligence, occurred on July 5 and is part of the exchange’s plan to begin repaying creditors.

The repayment process, set to start in July, involves a total of $8.5 billion in Bitcoin to be returned to creditors who have been waiting for over a decade.

Market analysts are concerned about the impact of such a large volume of Bitcoin potentially entering the market. However, experts like Galaxy Digital's Alex Thorn believe that many Mt. Gox creditors may hold onto their Bitcoin, rather than selling immediately, to avoid adverse capital gains taxes. This speculation suggests that the feared market "dump" might be less severe than anticipated.

As of now, Bitcoin is trading at $57,226, reflecting a 6.9% weekly decline but maintaining a 35.6% gain year-to-date.

📈Technical Analysis Masterclass:

Technical Analysis for Top Cryptocurrencies

Bitcoin

• Break Below 200 MA: Bitcoin recently dipped below the 200 MA, indicating a potential bearish trend.

• Key Levels: Support lies around $56,000 to $57,000. A failure here could lead to a drop to $52,000 to $51,000.

• RSI Signal: The daily RSI shows a bullish divergence, suggesting that bearish momentum might soon end.

Ethereum

• Relative Strength: Ethereum is hovering above the 200 MA, showing more stability than Bitcoin.

• Support Levels: Numerous support levels could prevent significant drops.

• RSI Observation: No bullish divergence on the RSI, but the 200 MA may provide support for a bounce back.

Solana

• Trading Below 200 MA: Solana's position is similar to Bitcoin's, trading below the 200 MA.

• Support: Tighter support levels may facilitate a rebound.

• RSI Signal: The RSI shows a bullish divergence, indicating potential upward movement soon.

BNB

• Sideways Movement: BNB is trading near the 200 MA without significant progress.

• RSI Observation: No bullish divergence on the RSI.

• Investment Opportunity: Despite low activity, BNB offers potential at its support levels but is less exciting compared to other major coins.

Investors should monitor these technical indicators to navigate the volatile crypto market effectively.

UFC Star Launches Meme Coin [Source][Source]

UFC star Khamzat Chimaev’s attempt to enter the crypto market ended abruptly when his meme coin, SMASH, crashed to zero shortly after launch.

Promoted on Twitter, the SMASH token plummeted 96% within 24 hours, sparking accusations of a pump-and-dump scheme. Blockchain detective ZachXBT linked the rapid sell-off to insider wallets associated with Chimaev's development team, suggesting a coordinated scam.

Chimaev, who has not fought in nine months, pivoted to crypto by first engaging his followers in discussions about potential investments. The next day, he urged fans to buy SMASH, named after his famous mantra.

However, the token’s collapse followed soon after, with significant amounts traced to wallets linked to the development team, as revealed by ZachXBT's analysis.

💡 Feature of the Day: 

German ‘Hasty’ Bitcoin Sell-Off [Source][Source]

German lawmaker and Bitcoin advocate Joana Cotar has called for an immediate halt to the government’s rapid Bitcoin liquidation. Cotar argues that Bitcoin should be adopted as a strategic reserve currency to protect against inflation and currency devaluation, rather than being sold off hastily.

Her appeal comes as the government has sold 7,583 Bitcoin, worth $434.9 million, since June 19, raising concerns about the impact on market stability.

Cotar's letter to the government, dated July 4, highlights the potential benefits of holding Bitcoin, such as diversifying treasury assets and promoting financial innovation.

She invited four German politicians to the "Bitcoin Strategies for Nation States" event in October, aiming to educate and persuade them about Bitcoin's strategic advantages.

😂 Crypto Meme of the Day: 

And that’s it for this today.

With all of the recent hacks taking place, remember to protect your crypto assets with today’s sponsor Trezor hardware wallets.

See you all tomorrow’s edition!

Jonathan Gibson
UseTheBitcoin.com