Bitcoin Price Makes Crucial Breakout, While Fear Enters Cryptocurrency Market

 

The price of major cryptocurrency Bitcoin (BTC) is once again the main attraction, as it always is, to be honest. New day, new reason, and this time it is the fact that the price has made its way back above the crucial level of $60,000 per BTC. 

However, buyers showed their hand, and over the next 12 hours, this imbalance, as they see it, was restored, with Bitcoin now trading as high as $61,200.

It is interesting to note the divergence between what is happening on the price chart of Bitcoin and the sentiment of market participants as, according to the Fear and Greed Index, we are now entering the period of the latter, with a figure of 32 on the radar of this popular indicator. 

Fear or delayed greed?

For comparison, it was flashing 39 yesterday and 41 last week. It is therefore safe to assume that yesterday's collapse in cryptocurrency prices has led to a serious deterioration in sentiment among market participants. 

On the other hand, Bitcoin was able to regain important local price levels and was supported by buyers. Is it really a divergence, and while fear prevails, the bravest take advantage? What's more important - price action or market sentiment?

Without getting too philosophical, the only thing that matters is where Bitcoin goes next. There are really only three options: a march toward the dynamic resistance level currently at around $65,000, a further drop below $60,000 or a prolonged sideways chop that will eventually lead us to the first two options.

The pseudonymous Shiba Inu marketing expert known to the crypto community as Lucie has addressed the SHIB army about the current state of the crypto market, as well as the FUD and insults the team has been hearing from users recently, including threats against Shytoshi Kusama.

"Stop the FUD," Lucie says

Lucie tweeted that the cryptocurrency market remains disappointing, and the whole community is waiting for “a shift in the mood.” She asked the SHIB army to stop “the unnecessary insults and FUD.” “The market is way bigger than any of us,” SHIB’s marketing lead added.

Important Web3 warning from SHIB team

In the same X post, Lucie also issued a warning to the whole Shiba Inu community: “Also, a quick warning to stay safe on Web3.” She strongly recommended that crypto users be “extremely cautious” as they meet anyone online and feel like trusting them.

She reminded that while the cryptocurrency space is exciting, there are still many risks in it. “So protect yourself and always be careful!” she concluded.

SHIB price up 5.4%

The second largest meme cryptocurrency, SHIB, has finally begun to recover after the massive 13.12% decline it faced from Oct. 7 until yesterday, when it slumped from $0.00001870 to the $0.00001625 level.

In the past 24 hours, SHIB has printed a recovery of approximately 5.4% and is currently changing hands at $0.00001714.

In the meantime, according to the Shibburn tracker, the daily SHIB burn rate has seen a drawdown of 52.16% over the past day. As it happened, a total of 1,200,480 SHIB meme coins have been burned, i.e., transferred to unspendable wallets in an attempt to make Shiba Inu scarce in the long run. This, in theory, should lead to a substantial price rise in the future.

Ethereum's cofounder, Vitalik Buterin, recently sparked a conversation about a crucial update to Ethereum's infrastructure — EIP-7708. This proposal could solve a long-standing issue with tracking ETH transfers across various transaction types, something that has plagued the network for years.

EIP-7708 is designed to introduce a new logging mechanism for Ethereum transfers, both from regular accounts and smart contracts. The proposal aims to emit a log every time an ETH transfer happens, regardless of whether the transaction occurs via a normal transaction, a CALL or a SELFDESTRUCT action in smart contracts.

Currently, logs are effective for tracking ERC-20 token transfers but not for native ETH transfers. While transactions from regular external-owned accounts (EOAs) are visible in the transaction list, transfers from smart contract wallets are harder to track, often leading to complications. In the past, exchanges experienced significant delays or even failed to properly recognize ETH deposits from smart contract wallets.

EIP-7708 proposes that every time ETH is transferred, the network automatically generates a log that follows a standardized format. The log would include three critical data points: the sender address, recipient address and the amount of ETH transferred. This change would enable developers, exchanges and users to trace ETH's movements more effectively, making it easier to track all ETH transfers with a unified system.

The biggest advantage of EIP-7708 is simplifying how ETH transfers are logged and tracked, something particularly important for developers and exchanges. It would allow every transfer to be easily monitored through a single mechanism, bringing Ethereum’s ETH-tracking capabilities more in line with ERC-20 token standards.

There are still some open questions regarding the proposal, such as whether logs should also include fee payments or withdrawals. Including these might enhance transparency, but it would also significantly increase the number of logs, raising concerns about performance and storage efficiency on the blockchain.