All eyes are on Bitcoin moves ahead of Jackson Hole economic symposium while Justin Sun keeps pumping TRON-based memecoins.
TL;DR
- Market drops 2.5% as Bitcoin is to enter a short squeeze due to discrepancy between funding rate and open interest, K33 says.
- Justin Sun-backed memecoin deployer SunPump crosses $1 million in revenue after 11 days of operation.
Bitcoin Poised For Short Squeeze, K33 Reports
Traders are betting on further downward sentiment for Bitcoin, with the derivatives market forming a setup primed for a short squeeze. That was claimed in digital assets brokerage K33’s latest analysis, which revealed a mix of both negative perpetual swap funding rates in recent weeks and a spike in open interest.
Read Also: Crypto Analysis: XRP is Ready to Hit $0.60 Mark When the Market Environment Is Strong
As goes in the report, since the August 5 market panic, Bitcoin’s 7-day average funding rate hit -2.53% on Tuesday, August 20. That’s the lowest it has been since March 2023. By contrast, open interest over the last seven days has surged to its highest weekly recording in over a year, above 28,880.
“This suggests aggressive shorting, structurally creating a setup ripe for a short squeeze,” K33 analyst Vetle Lunde wrote in an analysis.
At the writing time, Bitcoin’s price has seen a 2.25% decrease below the $60,000 mark in the last 24 hours. The downtrend coincides with Mt. Gox’s transfer of 13,625 BTC earlier today according to Arkham Intelligence data. The defunct exchange still holds over 46,000 BTC.
BTC/USDT 1D chart. Source: WhiteBIT TradingView
Tron’s SunPump Tops $1M In Revenue
The beginning of the week turned out fruitful for Justin Sun. Aside from yesterday’s legal success against the U.S. SEC, Tron’s memecoin deployer SunPump has totaled over $1.1 million in revenue in 11 days since its launch.
So far, SunPump’s largest revenue day was August 20, earning nearly 2.78 million TRX, or $400,000, with over 6,000 memecoins created. TRX token reacted positively, as the token demonstrated a staggering 12% growth in the last 24 hours, trading at the $0.164 level and opposing market sentiment.
TRX/USDT 1D chart. Source: WhiteBIT TradingView
Meanwhile, the overall cryptocurrency market decreased 2.5%, CoinGecko data shows. A majority of coins are trading red, with top coins like Solana (SOL), Ether (ETH), Ripple (XRP), and Toncoin (TON) downticking roughly 2%.
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