5 Things to Know in Crypto Today: SOL Underperforms on Major Solana Wallet Hack

Key Points

• Cryptocurrencies are a little higher on Wednesday as focus switches from geopolitics back to the economy and Fed policy.
• Bitcoin is currently a little higher on the day just above $23,000, with bulls still eyeing $25,300 resistance.
• Solana is underperforming after over $8M was stolen from more than 8,000 Solana wallets.

Bitcoin Hovers Above $23,000 as Investor Focus Returns to Economy/Fed

Sentiment in cryptocurrency markets has improved a little on Wednesday as concerns about US/China tensions following US House Speaker Nancy Pelosi’s visit to the island fade from investors’ minds. Bitcoin was last trading nearly 1.0% higher on the day in the $23,200 area, having seemingly found some demand ahead of its 21-Day Moving Average in the $22,500 area.

Technicians think Bitcoin’s uptrend that has been in play since mid-June remains intact, suggesting a test of resistance in the $25,300 area remains a good likelihood. Ethereum, meanwhile, is changing hands just under $1,650 and is about 0.5% up on the day.

Technicians said that ETH’s recent failure to push above its 100-Day Moving Average (currently just above $1,700) has shifted focus to a potential return to support in the $1,356 area. However, “if ether clears $1,733 decisively and confirms a weekly MACD “buy” signal, that would support an extended relief rally, with secondary resistance near the 200DMA,” Katie Stockton, founder of Fairlead Strategies.

Investor focus has returned to the weakening global economy on Wednesday. US JOLTs Job Openings data on Tuesday alluded to a softening in labor demand in June. US ISM Services PMI data for July out later on Wednesday will probably point to a slowdown in the US economy last month, as ISM manufacturing figures earlier this week did, and as Service PMI data already released from other countries has shown.

The main focus of the week remains Friday’s official US jobs data, however, with markets looking for evidence of a softening labor market. As was the case last week, soft US economic data could boost stocks/crypto if Fed tightening bets take a hit. However, Fed policymakers have been doubling down on the Fed’s intent to continue tightening to tackle inflation this week, so Fed speak is also worth monitoring.

In terms of the major altcoins, Solana is the underperformer on news that thousands of wallets had been hit in a multimillion-dollar hack. SOL was last down about 4.0% in the last 24 hours according to CoinMarket Cap, while the likes of BNB, XRP, ADA and DOGE are between flat and 3.5% higher.

Solana Wallets Hit in Multimillion Dollar Hack

Late on Tuesday, the Solana blockchain’s crypto ecosystem came under attack. As of early Wednesday morning, at least $8 million worth of crypto has been drained from more than 8,000 different “hot” wallets, including Phantom, Slope and TrustWallet. “Hot” wallets are those that stay connected to the internet at all times to provide users with convenience when sending, receiving or storing digital assets.

Twitter users speculated that the hackers might have access to users’ private keys, thus giving them wallet access. But the exact cause of the attack remains unknown. A spokesperson from Phantom, the developer of the most widely used Solana wallet, told the crypto media that “we are evaluating the incident impacting Solana wallets and are working closely with other teams in the ecosystem to get to the bottom of this”. “The team doesn’t believe this is a Phantom-specific issue at this time,” they added.

Bitcoin Remains “Firmly Within Bear Market Territory”, Says Glassnode

In its latest weekly analysis of Bitcoin network data, on-chain analytics firm Glassnode said that “current network activity suggests that there remains little influx of new demand as yet”. Despite the recent rally above $24,000, demand indicators remain in decline, which indicates that we are “firmly within bear market territory”. Glassnode analyzes indicators such as network transactions, address activity and fees.

Interest in Web3 Developments Strong Despite Crypto Winter

In its latest report examining development activity on the Ethereum, Bitcoin and Solana blockchains, data-focused VC firm Telstra Ventures said that interest in Web3 developments remains strong despite the ongoing crypto winter that has seen many crypto firms scale back operations.

Telstra Venture partner Saad Siddigui said in a CoinDesk interview that “when we looked at the number of monthly active contributors to their GitHub repositories, we saw that despite pretty significant downturns in price over the last few months, (contributions) generally stayed pretty strong”.

Bitcoin Maximalist Saylor Switches Role to Focus on BTC Buying

Well-known Bitcoin maximalist Michael Saylor has stepped down from his role as CEO of US software firm Microstrategy in order to become an executive chairman and focus more of his energy into Bitcoin buying. Phong Le, the company’s President, has been appointed as the new CEO.

“I believe that splitting the roles of Chairman and CEO will enable us to better pursue our two corporate strategies of acquiring and holding bitcoin and growing our enterprise analytics software business,” Saylor said “As Executive Chairman I will be able to focus more on our bitcoin acquisition strategy and related bitcoin advocacy initiatives, while Phong will be empowered as CEO to manage overall corporate operations”.