Bitget Research: German government wallet continues selling off, market plunges across the board amid liquidity crisis
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Bitget Research: German government wallet continues selling off, market plunges across the board amid liquidity crisis
In the past 24 hours, several new trending cryptocurrencies and topics have emerged in the market, which could very likely be the next wealth-building opportunities.
Navigating Web3 tides with focused insightsAuthor: Bitget Research
Summary
Bitcoin (BTC) dropped below $56,000 during early trading hours, extending its 24-hour decline to nearly 5.8%, reaching its lowest level since early May. A series of sell-off signals have compounded market pessimism and weakened liquidity. Key highlights:
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Relatively strong wealth-generating sectors: ETH ecosystem, AI sector
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Most searched tokens & topics by users: Unisat, Hamster, Tapswap
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Potential airdrop opportunities: Magic Eden Wallet, Movement
Data collection time: July 5, 2024, 04:00 (UTC+0)
I. Market Environment
Bitcoin (BTC) dropped below $56,000 during early trading hours, extending its 24-hour decline to nearly 5.8%, reaching its lowest level since early May. Amid this sell-off, the wallet of the defunct cryptocurrency exchange Mt. Gox showed activity for the first time in a month, while the German government transferred over $75 million to crypto exchanges—specifically Kraken and Coinbase—indicating clear intent to sell.
These combined selling pressures have deepened market pessimism and weakened liquidity. Investors are advised to remain cautious and observe the market closely in the near term.
II. Wealth-Generating Sectors
1) Sector to Watch: ETH Ecosystem
Main reasons:
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The planned launch of spot Ethereum ETFs on July 4 failed to materialize, causing partial declines in ETH ecosystem tokens. However, there remains a possibility that spot ETH ETFs could be approved and listed by mid-July, creating potential for oversold rebounds in related tokens.
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Bloomberg ETF analyst James Seyffart stated on social media that "asset manager Bitwise has submitted a revised S-1 form for its spot Ethereum ETF, a few days ahead of the July 8 deadline. We expect other issuers to submit revised S-1 filings this week. We believe these products could launch late next week or during the week of the 15th."
Factors influencing future market trends:
Two key factors driving token prices in the Ethereum ecosystem: 1) Whether spot Ethereum ETFs can be approved and listed soon; 2) The U.S. SEC’s regulatory stance toward specific projects. If spot ETH ETFs are approved and launched by mid-July, it would be a significant positive catalyst for all projects in the ecosystem. Otherwise, delayed approval could disappoint market expectations and trigger further sell-offs.
2) Sector to Watch: AI Sector
Main reasons:
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Projects such as IO and ATH, recently launched infrastructure platforms in the AI space, have attracted widespread market attention. These platforms generate stable cash flows, and given that AI remains a dominant narrative in global tech, valuations for crypto-based AI projects continue to rise.
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Recently, due to broader market declines, AI sector tokens have corrected sharply, leading to oversold conditions driven by short-term negative sentiment. Once market conditions recover, these tokens are expected to rebound significantly as value reasserts itself.
Factors influencing future market trends:
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AI narrative: Projects like IO and ATH are computing power supply platforms within the AI domain—core infrastructure. If they establish partnerships with major tech players such as Apple, Microsoft, or NVIDIA, their token valuations would naturally increase.
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Core ecosystem metrics: Platform-based projects have transparent cash flow models. If demand continues to grow sustainably and generates consistent revenue, token valuations will enter a virtuous cycle of growth.
III. User Search Trends
1) Popular Dapp
Unisat
UniSat officially announced it completed a Pre-A round funding round in May this year, led by Binance, though the exact amount was not disclosed. UniSat stated that this strategic investment strengthens the existing technological and business partnership between both parties, laying a solid foundation for future collaboration. Earlier, Inception Capital confirmed its participation in UniSat’s Pre-A round in May.
2) Twitter
Hamster:
Hamster Kombat is a clicker game built on Telegram. Players can earn replacement coins through tapping and other actions. As the CEO of a crypto exchange, players tap a hamster on screen to earn gold coins, which can be used to upgrade their exchange and boost hourly earnings. Future token airdrops will reward players. Additional earning methods include subscribing to Telegram channels and inviting friends. The game has surpassed 200 million users, making it the third-fastest application in history to reach 150 million users.
3) Google Search & Regions
Global perspective:
Tapswap:
Since early 2024, various "tap-to-earn" games on Telegram have sparked community excitement. TapSwap launched on February 15, 2024, allowing users to earn in-game tokens by tapping and completing tasks. Today, the app boasts over 50 million users globally, with nearly 1 million active online users.
Regional search trends:
(1) Asian countries: Terms like “why crypto is down today” and “greed and fear index” ranked highly across multiple Asian nations, indicating strong investor interest in understanding the recent market downturn.
(2) Western countries: No unified hot topics. Different tokens and keywords topped search charts in different countries—for example, Italian traders focused on TAO, NOT, and SOL; German users searched for SOL and LDO; British users looked up ETH and TAO.
IV. Potential Airdrop Opportunities
Magic Eden Wallet
Magic Eden is a well-known NFT marketplace backed by heavyweight VCs including Coinbase, Paradigm, and Solana. The team previously announced on Twitter that a token claim feature within its wallet will launch later this quarter.
Magic Eden Wallet is its mobile app. Besides earning “Diamonds” points via NFT trading and similar activities, Magic Eden has recently started releasing test links for the Magic Eden Mobile Wallet on its official Twitter account—participating in these tests may also qualify users for potential airdrops.
How to participate: (1) Follow the Magic Eden Wallet Twitter account (https://x.com/MagicEdenWallet) and set a notification alert; (2) When test invitation links are posted, quickly access and use the app. Each release offers only a few thousand spots.
Movement
Blockchain development team Movement Labs was founded in 2022 and previously raised $3.4 million in seed funding in September 2023. In addition to its flagship product, Movement L2, Movement Labs plans to launch Move Stack—an execution layer framework compatible with rollup frameworks such as Optimism, Polygon, and Arbitrum.
Recently, Movement Labs secured $38 million in Series A funding led by Polychain Capital, with participation from prominent firms including Hack VC, Foresight Ventures, and Placeholder.
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