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Over the past 2 days, the crypto market took a huge tumble in yet another weekend of loss as investors are increasingly becoming more risk-off on the back of mounting geopolitical tensions between Russia and Ukraine. As a result, BTC has now plunged below the $40k psychological barrier, and is currently trading below the 100-hourly moving average as of the time of writing. Even though the price of the number one cryptocurrency by market cap did see an upside correction on Monday morning (Asian trading hours), this upside momentum looks certain to be contained below the $40k level, at least in the near-term. Moreover, should the charge toward the immediate resistance level near $39.5k fail, BTC may extend its decline further to the $38.5k zone. On the bright side, ETH has bounced back relatively well from the weekend drawdown, as the number two cryptocurrency by market cap has seen its value rise by 2% in the past 24 hours to keep its price buoyed above the $2,700 level. Additionally, a few major altcoins seem to be leading a mini-comeback charge from the weekend decline, with top performers like SOL even posting a significant 7% gain from 24 hours ago. Finally, on-chain metrics do suggest that the market is still expecting long-term BTC HODL-ers to provide the tailwind out of this difficult period through more accumulation activities. However, in looking at the chart by Ecoinmetrics as displayed above, said long-term BTC HODL-ers' net positions have barely moved over the last couple of days. This is not the best sign in this current macro environment, as it shows that they are not accumulating in conviction as they previously were.
After the weekend dip, the BTC futures open interest to market cap ratio has seen a slight uptick. However, it is not to an extent that is significant enough to indicate any potential deleveraging risks from the derivatives market. Further, BTC perpetual contract funding rates have also remained in the neutral region despite the weekend plunge, indicating that the market is still largely undecided with regard to its next move. With that being said, however, the mounting war tensions and growing inflationary pressures that are currently bearing down on the market are unlikely to inspire any bullish narratives in the near-term. As it currently stands, it seems more likely that prices within the crypto market would spike lower in the short-term before potentially rallying higher in the longer-term.
An exploit on popular NFT marketplace OpenSea has just taken the crypto community by storm. Rumblings of the exploit first surfaced on Saturday when several NFT collectors came to realize that their valuable NFTs and ETH have been stolen from their wallets, before OpenSea officially confirmed on Sunday that there was indeed a large-scale phishing attack that took place. Said phishing attack has resulted in at least $1.7 million worth of digital assets being shifted to malicious wallets, as well as many disgruntled and furious OpenSea users. OpenSea's CEO has since come out to claim that the attack "did not originate on opensea.io", and that the firm has been working closely with victims to identify a number of websites that may have been responsible for the attack.