Bitcoin has seen its price suffer from the tremendous selling pressure that has filled the market over the last few weeks. However, as investors hope for relief, it seems that the sellers are far from done, with one notable Bitcoin sell transaction in particular sending the market into a frenzy. Whale Dumps $1 Billion Worth Of Bitcoin Whale tracker Whale Alert took to X (formerly Twitter) to inform the crypto community of a large Bitcoin transaction that was participating in the sell-off. The transaction was carrying a total of 16,276 BTC which was worth around $1 billion at the time that the transaction was carried out. Related Reading: XRP Whales Are On The Move Again, But Are They Bullish Or Bearish? While large transactions are not out of the ordinary, their destination is often the determinant of whether it is a bearish or bullish transaction. In cases where the coins are headed away from centralized exchanges and into personal wallets, it can be bullish because this often means that the investors are consolidating their coins into personal private storage and don’t plan on selling. However, in cases where coins are being transferred to centralized exchanges, it can be very bearish since it often means that investors are looking to sell their coins. This was the case with the $1 billion Bitcoin transaction, as the 16,276 BTC were transferred to the Binance exchange. Naturally, the transaction caused a stir among investors who contemplated the impact that such a large sell-off could have on the price of the cryptocurrency. However, the origin of the transaction would be revealed soon after, and prices would stabilize as a result. Binance Says 16,276 BTC Transaction Was SAFU Fund Conversion In the early hours of Thursday, Binance, the largest crypto exchange in the world, took responsibility for the 16,276 BTC transaction that was sent to the exchange. The funds were reportedly from its emergency insurance fund known as the Secure Asset Fund for Users (SAFU) fund. Related Reading: Crypto Analyst Says Don’t Buy Altcoins Just Yet – Here’s Why According to the announcement, the exchange is converting this insurance fund into stable coins to avoid fluctuations in price associated with Bitcoin. Binance explains that it maintains the balance of this fund at $1 billion, which represents an ample level that is enough to safeguard user funds on the exchange. As to why the exchange chose USDC as its stablecoin of choice, it said, “Making use of a trusted, audited, and transparent stablecoin for SAFU further enhances its reliability and ensures it remains stable at $1B.” The Bitcoin has since been converted to USDC, and the SAFU wallet maintains a balance of 1 billion USDC. BTC price stages another recovery | Source: BTCUSD on Tradingview.com Featured image from Bitcoin News, chart from Tradingview.com
As the US economy grapples with rising inflation expectations and scaled-back forecasts for Federal Reserve rate cuts, the Bitcoin market remains buoyant, according to a detailed analysis by Reflexivity Research. With the US CPI headline inflation projected to accelerate to 4.8% by the November 2024 elections, according to Bank of America, conditions are seemingly unfavorable for a loosening of monetary policy. Despite this, the cryptocurrency sector, particularly Bitcoin, appears insulated and optimistic. Bitcoin Unfazed By Delayed Rate Cuts? The bond market now anticipates only three Federal Reserve rate cuts this year, a significant reduction from the earlier forecast of six. The CME FedWatch tool indicates that the majority of market participants do not expect a rate cut to occur before the mid-September FOMC meeting. This adjustment reflects a recalibration of expectations regarding the Fed’s capacity to manage persistent inflation pressures. Amidst these macroeconomic shifts, Ritik Goyal, in a guest post for Reflexivity Research, presents a compelling analysis in his report titled “The Fed is Unable to Cause a Recession. Risk Assets are Yet to Realize This.” Related Reading: Pre-Halving Jitters: Bitcoin Price Briefly Slips Below $60,000 The report argues that, contrary to conventional wisdom, the Federal Reserve’s rate hikes have had unintended stimulative effects on the economy. Goyal elucidates three specific mechanisms through which this phenomenon operates: 1. Increased Government Interest Payments: “Rate hikes raised interest payments by the government to the private sector,” Goyal notes. As the Fed raises rates, it increases the interest burden on the government, which has borrowed extensively during the post-COVID period. With the federal debt-to-GDP ratio exceeding 120%, the doubled interest payments now effectively act as a stimulus, channeling approximately $1 trillion annually to the private sector 2. Direct Subsidy to Banking System: The Fed’s policy adjustments have also led to a redistribution of wealth within the financial system. “Rate hikes raised the Fed’s direct subsidy to the banking system,” states Goyal. This has occurred as the yield curve inversion resulted in the Fed incurring losses on its balance sheet, losses that directly benefit the banking sector, translating to an estimated $150 billion annual subsidy. Related Reading: Bitcoin Displays Bullish Adam And Eve Double Bottom: What It Means 3. Induced Housing Construction Boom: The rate hikes have paradoxically stimulated the housing market. “Rate hikes induced a housing construction boom,” according to Goyal. As higher rates discourage existing homeowners from selling, the only viable option to meet housing demand is new construction, a sector with one of the highest GDP multipliers. Goyal’s insights underline a critical misalignment in the Fed’s current approach against the backdrop of substantial fiscal interventions since the pandemic. “The traditional monetary policy framework is breaking down under the weight of fiscal dominance,” Goyal concludes, suggesting an environment that could favor non-traditional assets like Bitcoin. Echoing Goyal’s findings, crypto expert Will Clemente highlighted the broader implications for cryptocurrencies on X (formerly Twitter), stating, “With debt/GDP as high as it is, we’re in a backwards world where high rates mean interest payments on debt are stimmy checks for people that buy assets—~$1T will be paid out in 2024. Big picture is very constructive for the internet coins.” At press time, BTC traded at $61,173. Featured image from Shutterstock, chart from TradingView.com
Cryptocurrency exchange and trading platform, Bybit has released a new report highlighting the impacts of the upcoming Bitcoin halving event on the supply dynamics of Bitcoin within exchanges in the crypto space. The crypto firm has provided valuable insights on how the halving event would enhance scarcity and considerably influence the price of BTC. Exchanges Set To Face Bitcoin Supply Crunch On Tuesday, April 16, Bybit published a new report, providing a detailed analysis of the Bitcoin halving event set to take place this month. The crypto firm disclosed that the Bitcoin reserves within the world’s crypto exchanges have been depleting at a rapid pace, leaving only nine months of BTC supply left on exchanges. Related Reading: Arbitrum’s Massive $107 Million Token Unlock Threatens To Send Price Below $1 For a clearer perspective, Bybit explains that with just two million Bitcoin left in its total supply, a daily influx of $500 million into Spot Bitcoin ETFs would result in approximately 7,142 BTC leaving exchanges daily. This suggests that it would take only nine months to completely consume all of the remaining BTC reserves on exchanges. Bybit has stated that a major contributor to this supply squeeze would be the upcoming Bitcoin halving event, which would reduce the cryptocurrency’s total supply by 50% by cutting Bitcoin miners’ rewards in half. The crypto exchange has also disclosed that after the halving event, the sell-side supply of BTC flowing into Centralized Exchanges (CEXs) will become grossly reduced. Additionally, Bitcoin’s “supply squeeze will ostensibly be worse.” BTC To Become “Twice As Rare As Gold” In its report, Bybit compared Bitcoin’s supply after the halving event with that of gold. The crypto exchange revealed that Bitcoin was steadily growing to become one of the safest investment choices, even for the most seasoned and sophisticated investors within the crypto space. According to the exchange, the Bitcoin halving event would significantly impact the cryptocurrency’s scarcity factor, making it an even rarer asset than gold. Basing this analysis on the Stock-to-Flow (S2F) ratio, Bybit disclosed that Bitcoin’s S2F ratio is around 56 currently, while gold’s ratio is 60. After the halving event this April, Bitcoin’s S2F ratio is projected to increase to 112. Related Reading: Arkham Releases Top 5 Crypto Rich List – You Won’t Believe How Much Is Inaccessible “Each Bitcoin halving sharpens the narrative of Bitcoin as not just a currency, but a scarce digital asset, akin to digital gold. This upcoming halving in 2024 will thrust BTC into an era of unprecedented scarcity, making it twice as rare as gold,” the Co-founder and CEO of Bybit, Ben Zhou stated. While highlighting the significance of Bitcoin’s rarity following the halving event, another report also disclosed that the price of Bitcoin would experience significant upward pressure post-halving. This suggests that BTC’S supply squeeze could potentially propel its price to new heights during this period. Furthermore, the report revealed that several crypto analysts predict that the post-halving increase in Bitcoin’s price would be less remarkable than the early pre-halving surge which saw the price of Bitcoin hitting new all-time highs of more than $73,000. BTC price drops below $63,000 | Source: BTCUSD on Tradingview.com Featured image from Analytics Vidhya, chart from Tradingview.com
Asset manager Blackrock has emerged as the frontrunner in the Bitcoin ETF race in terms of inflows with its IBIT ETF, which is increasingly attracting institutions’ attention as a key development showing its success. Many fund managers have flocked to invest in BlackRock’s ETF, signaling a growing interest in digital assets among traditional financial institutions. […]
On-chain data shows the Bitcoin long-term holder selling pressure has been running out recently after an extended selloff from the group. Bitcoin Long-Term Holders Have Sold Huge In Past 4 Months As analyst James Van Straten explained in a post on X, the long-term holders have massively reduced distribution during the last ten days. The “long-term holders” (LTHs) here refer to the Bitcoin investors carrying their coins since more than 155 days ago. The LTHs comprise one of the two main divisions of the BTC sector, with the other cohort known as the “short-term holders” (STHs). The STHs are naturally the investors who bought within the past 155 days. Related Reading: Bitcoin Has Next Major Demand Zone At $56,000: Brace For Impact? Statistically, the longer an investor holds onto their coins, the less likely they become to sell at any point. As such, the LTHs represent the more committed part of the BTC market. The STHs, on the other hand, are fickle-minded hands who may sell at the first sight of any FUD or profit-taking opportunity. As such, selling from the STHs is usually not that noteworthy. However, Selloffs from the LTHs can be something to watch for, as they rarely occur. One way to track the behavior of these Bitcoin cohorts is through the total amount of supply they carry in their respective combined wallets. The chart below shows the STH and LTH supply trend over the past year. How the supplies held by these two cohorts have changed during the past twelve months | Source: @jvs_btc on X As displayed in the above graph, the supply of Bitcoin LTHs increased through most of 2023. At the same time, the supply of STHs naturally decreased. Something to note here is that this increase in the LTH supply didn’t mean that these HODLers were buying then. Instead, some STHs bought 155 days ago and have finally held long enough to qualify for the cohort. Thus, there is a 155-day delay between accumulation and the increase registered in the LTH supply. When it comes to selling, though, no such time lag exists, as the LTHs who transfer coins on the blockchain immediately eject from the group and become part of the STHs. The chart shows that this trend of the supply of these diamond hands going up flipped this year, and the LTHs have been selling instead. In the past four months, these investors have distributed 700,000 BTC. Related Reading: Bitcoin Whales Showing Different Behavior From Past Cycles, But Why? This excludes the selloff from Grayscale Bitcoin Trust (GBTC), which has constantly been bleeding coins since the US SEC approved the spot exchange-traded funds (ETFs) in January. These coins had also matured enough to become part of the LTHs. Recently, as the price has gone through some bearish action, the LTH supply has flatlined, implying that the selling from these HODLers has finally stopped, at least for now. Given this new trend, it now remains to be seen how BTC’s value develops from here. BTC Price Following the latest drawdown in Bitcoin, its price has dropped towards the $63,200 level. Looks like the price of the asset has gone down recently | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, Glassnode.com, chart from TradingView.com
With the fourth Bitcoin Halving just around the corner, Lady of Crypto, a market analyst and trader, has weighed in on claims concerning this bull cycle. The crypto analyst shared her insights after analyzing the recent market decline and the impending Bitcoin halving this month. According to the expert, there have been speculations that since BTC broke its all-time high early, the cryptocurrency can continue seeing fresh gains. Bullish Run Misconception: Bitcoin Can Hit Another ATH? Lady of Crypto has disregarded the claims that this bull cycle will begin early, saying she believed the community was “lied to and suggesting widespread misinformation” and dismissing the current gains as the signs of a widespread bull run. Related Reading: Will The Halving Send Bitcoin Price To $100,000? Analytics Platform Reveals What You Should Expect As The Halving approaches, the analyst noted that Bitcoin and Altcoins are severely down, but this is not the time to panic. Drawing attention to the 2016 and 2020 pre-halving dips, she highlights that BTC plummeted by 30% and 20% shortly before the event. Meanwhile, during this pre-halving period, BTC has dropped by over 17%, with altcoins falling by 29%. Although the current decline was severe, Lady of Crypto notes that it is in the range of a typical pre-halving dip and a black swan event. She compares the COVID meltdown, in which BTC fell by 58% and altcoins by 68%, suggesting that the current decline pales in significance. Lady of Crypto clarified that Bitcoin Spot Exchange-Traded Funds (ETFs) have been a major factor in BTC breaking its peak early, highlighting that the masses have not yet arrived. The expert then points to social media presence, revealing that the masses are returning to the crypto market. “YouTube views and subscribers show interest in returning gradually, in line with this time last cycle, as do new Twitter followers,” she added. This Bull Cycle Is Mirroring Past Halving Except for BTC’s early all-time high break, Lady of Crypto believes this bull run is unfolding similarly to the last two, albeit with more volatility. However, the volatility suggests this will be the biggest bull market ever. Related Reading: Bitcoin Bonanza Before The Halving? Analyst Sees Pre-Crash Buying Window She advises underexposed investors that the dips are the best chance to purchase BTC during a bull run. Meanwhile, if an investor is overexposed, holding the crypto asset has historically been the best course of action, drawing attention to 2020 and 2021 dips. Addressing fear and panic among investors, Lady of Crypto cautioned that multiple situations might trigger a panic sell during every bull run. Even though these events appear terrible, like the bull run coming to an end, they are just sideshows. Featured image from Istock, chart from Tradingview.com
The Bitcoin Halving is set to take place this week. Miners’ rewards will be cut in half from 6.25 BTC to 3.125. This event is expected to have far-reaching effects on the miners themselves, as they are bound to lose a significant amount of revenue once the halving occurs. Bitcoin Miners Could Lose Up To $10 Billion In Revenue According to a Bloomberg report, Bitcoin miners could lose up to $10 billion annually following the Bitcoin Halving. This is because these miners, who currently earn 900 BTC daily from validating transactions, would see their income drop to 450 BTC once the halving happens. However, it is worth noting that this projected revenue loss is based on Bitcoin’s current price. Related Reading: Ethereum Whales Go On Buying Spree As Market Crash Leaves Retail Panicking Therefore, this revenue loss can be cushioned if Bitcoin’s price experiences a significant surge after the halving. These miners will, however, have in mind that reliance on Bitcoin’s price rise isn’t sustainable, considering that they will also encounter subsequent bear markets, which would lead to a price decline for the flagship crypto. That is why miners like Marathon Digital and CleanSpark are reported to have invested in new equipment and have sought to weed out the competition by buying out their smaller rivals. Buying out the competition can reduce the number of miners competing for block rewards and cushion the drop in their daily revenue. Bitcoinist also previously reported that Bitcoin miners were looking to diversify their operations in a bid to boost their revenue streams and earn additional income that could cushion the effects of the halving. The artificial intelligence (AI) sector is one of those areas in which these miners are actively seeking opportunities, considering that Bitcoin mining’s infrastructure is well suited for certain AI operations. BTC Miners Facing Competition From Tech Giants Bloomberg also reported that US Bitcoin miners are facing competition from the largest tech companies in the world for electricity to power their operations. These tech giants, who also happen to be high-energy consumers, are looking for as much energy as Bitcoin miners to power their data centers. Related Reading: Market Expert Reveals Why Solana Price Is Poised To Go Higher The report further noted that electricity constraints in the US, alongside the high demand for electricity among miners and tech giants, have led to a surge in electricity rates. This development is also making it harder for Bitcoin miners to run their operations smoothly in the country. Tech companies are said to have an edge over them when acquiring power from utility companies due to their consistent revenue streams, unlike Bitcoin miners, whose success largely depends on Bitcon’s volatile price. BTC bulls reclaim control | Source: BTCUSD on Tradingview.com Featured image from Atlantic Council, chart from Tradingview.com
Data shows the Bitcoin Open Interest has observed a notable cool off recently, something that could be positive for the rally’s hopes. Bitcoin Open Interest Has Cooled Down From Recent Overheated Levels As explained by an analyst in a CryptoQuant Quicktake post, the Bitcoin Open Interest has registered a retrace recently. The “Open Interest” here […]
The price of Bitcoin took a nose dive on Saturday following reports of Iran launching missile and drone attacks on Israel. Alongside the market leader, many other prominent cryptocurrencies also experienced a significant selloff as news of a brewing international conflict in the Middle East circulated on the internet. Related Reading: Bitcoin Halving: A Tale Of 2 Emotions – Will FOMO Or FUD Rule The Market? Bitcoin Suffers Major Decline For Second Consecutive Day According to multiple reports on April 13, Iran commenced a drone attack against Israel in retaliation to an attack on an Iranian diplomatic building in Syria on April 1 which claimed the lives of nine Iranian officers, including a highly ranked general in Iran’s Islamic Revolutionary Guards. This incident marked Iran’s first-ever direct assault on the Jewish state following years of rising political tensions between both countries. With the Iranian forces confirming further missile attacks on “specific targets” in Israel, it is likely that both nations may be heading for a full-scale war. Following reports of the drone attacks in the Middle East, Bitcoin’s price dropped by 8.07%, falling from $67,132.1 to $61,710.58, reflecting a high selling pressure. Interestingly, this price action marked the second consecutive day the maiden cryptocurrency suffered a significant loss following a 5% decline on Friday amidst minor turbulence in the US stock markets. Generally, Bitcoin has shown an underwhelming performance in the past weeks, recording a 12.51% loss in the last month based on data from CoinMarketCap. The maiden cryptocurrency has struggled to replicate its bullish form seen at the beginning of 2024 when it achieved a new all time high price of $73,750.07. However, with the Halving event fast approaching, BTC investors are likely optimistic about a potentially massive price gain in the coming months based on historical price data. Currently, Bitcoin trades at $63,943, showing a 3.61% gain from its earlier slump on Saturday. In tandem, the token’s daily trading volume is up by 22.46% and valued at $57.37 billion. Bitcoin trading at $63,971 on the daily chart | Source: BTCUSDT chart on Tradingview.com Related Reading: Waiting For The Bitcoin Bull Run To Resume? Here’s The Indicator To Watch For Altcoins Not Spared From Market Crash Alongside Bitcoin, the price of altcoins also decreased significantly due to the escalated geopolitical tension in the Middle East. Ethereum, the most popular altcoin and second largest cryptocurrency, suffered a loss of 10.89%, falling as low as $2,880.16 Meanwhile, other prominent tokens such as Solana (SOL), XRP, and Avalanche (AVAX) also recorded price dips to the tune of 12.68%,18.11%, and 16.00%, respectively. Generally, the total crypto market cap declined by 7.78%, falling to around $2.2 trillion. Featured image from Shutterstock, chart from Tradingview
On-chain data shows the Bitcoin exchange inflows have remained low recently, a sign that the whales have been disinterested in selling. Bitcoin Inflows For Binance & OKX Have Stayed Low Recently As pointed out by CryptoQuant founder and CEO Ki Young Ju in a post on X, the BTC deposits for cryptocurrency exchanges Binance and […]
Bitcoin is now hovering around the $70,000 threshold after a notable recovery it witnessed a few days ago. Due to the recent momentum, crypto enthusiasts are becoming less pessimistic about the digital asset’s growth prior to the halving event. With the fast approaching much-anticipated Bitcoin Halving, Rekt Capital, a well-recognized cryptocurrency analyst and aficionado, has offered his market insights mapping out three distinct stages of the event for investors. 3 Distinct Aspects Of The Bitcoin Halving Rekt Capital’s analysis delves into Bitcoin‘s movement before and after the halving takes place, which is expected to happen this month. In the seven days leading up to the occurrence, the crypto analyst underscored three stages to observe for a successful outcome. Related Reading: Bitcoin To $150,000 Is “Programmed” With Halving Approaching: Analyst These three phases include the final pre-halving retrace, the re-accumulation phase, and the parabolic uptrend phase. Emphasizing on the first aspect, Rekt Capital noted that the pre-halving retrace is documented in the books and has already manifested. During this period, Bitcoin experienced an 18% pullback compared to 2016 and 2020’s retracement of 38% and 19%, respectively. The expert believes that the concluded pre-halving Retrace was the last chance to purchase a deal during the pre-halving phase. Following the conclusion of the retrace, Rekt Capital has confirmed the development has laid the groundwork for the Re-accumulation range. It is important to note that the aforementioned range occurs a few weeks ahead of the halving, and it ends with a breakout from it a few weeks later. Specifically, the period could last for several weeks and up to 150 days or five months. Given the manifestation of the range, sideways movement through the halving and beyond is the major purpose of BTC. Thus, the analyst has stressed the need to be patient around this phase, as many investors get frustrated, bored, and disappointed here because their Bitcoin investments lack significant returns. As a result, they lose confidence and get shaken out of the market before the event. BTC’s Post-Halving Rally Might Mirror Previous Trend As for the parabolic uptrend, Rekt Capital claims the phase will begin when Bitcoin breaks out from the re-accumulation range. He further stated that the price of BTC tends to grow more quickly and enters a parabolic upsurge during this stage. Related Reading: Bitcoin To Go ‘Ballistic’ After Halving, Says Top Analyst – Here’s Why According to the expert, this area has typically lasted about a year or a little more, particularly around 385 days in the past. However, with the possible accelerated cycle that is currently in development, the period could be halved within this bull market cycle. Rekt Capital’s key perspectives came amidst Bitcoin demonstrating strength to revisit its current all-time high of $73,000. BTC has managed to amass gains of more than 6% in the past few days. It recovered to the $70,000 level after plunging as low as $67,000 on Wednesday and is getting close to $71,000. At the time of writing, BTC was trading at $70,854, indicating over 6% increase in the past week. Its market capitalization is up by 1% and its trading volume has plummeted by more than 21% over the past day. Given the current trend in the coin market, BTC could be in a position to see even bigger gains in the months to come. Featured image from iStock, chart from Tradingview.com
Bitcoin, the world’s largest cryptocurrency, has caught the attention of the ultra-wealthy elite, as individuals with assets worth millions and billions of dollars are setting their sights on entering the digital asset market, eager to become part of Bitcoin’s innovative and revolutionary ecosystem. Wealth Titans Are Shifting Focus To Bitcoin Investments In a recent interview with CNBC Last Call, Barbara Goldstein, the Managing Partner at R360, an invite-only networking and investment club for the uber-rich, discussed a new shift among wealth titans towards Bitcoin investments. Related Reading: The Era Of Flippenings: Can Dogecoin Take XRP’s Spot? Shedding light on the growing appeal for digital currencies among the elite echelons of the R360 club, Goldstein disclosed that the members of the club had engaged in thorough discussions about Bitcoin, expressing optimism regarding its potential to be a lucrative investment bracket for the wealthy. She revealed that a prominent member of the R360 club members, a leading hedge fund manager, had championed the pioneer cryptocurrency, continuously encouraging other members to invest in it. Additionally, Goldstein detailed several bullish factors she believes served as a primary catalyst for driving Bitcoin’s value, citing the upcoming Bitcoin halving event this April and the growing Spot Bitcoin Exchange Traded Funds (ETFs) market. When questioned about whether the members of the R360 club were treating Bitcoin as a casual investment or delving deeply into investing in the tokens, Goldstein responded by affirming that Bitcoin was among the investment vehicles favored by the members of the R360 club. This notable shift in Bitcoin’s appeal among wealthy individuals reflects the growing acknowledgement of the cryptocurrency’s potential to serve as a valuable hedge against inflation. Additionally, it underscores the cryptocurrency’s evolution as the preferred asset for diversification amongst investors globally. BTC Emerges As New Gold Standard During the interview, Goldstein declared that “Bitcoin was a corollary almost to Gold,” suggesting its potential to become a digital store of value. Related Reading: Crypto Analyst Predicts Shiba Inu Price Will Reach $0.0001 If This Happens The R360 managing partner has not been alone in drawing parallels between this digital asset and gold. Leading figures in the crypto industry, like Co-founder and CEO of MicroStrategy, Michael Saylor and ArkInvest CEO and Founder Cathie Wood, have also likened the pioneer cryptocurrency to the precious metal. Commending Bitcoin further, Goldstein extolled its remarkable growth and evolution, asserting Bitcoin’s position as the number one asset class in the digital asset industry. She disclosed that Bitcoin was a vital investment asset that everyone should possess, affirming its role as a hedge against inflation and praising its track record of impressive performance over the past 14 years. Additionally, Goldstein concluded by acknowledging the numerous positives related to Bitcoin, while cautioning that it remains a volatile asset class. BTC price remains above $70,000 | Source: BTCUSD on Tradingview.com Featured image from Forbes, chart from Tradingview.com
According to a recent Reuters report, Hong Kong is on the verge of becoming Asia’s first city to launch spot Bitcoin ETFs. Notably, the initial approvals for these ETFs are expected to be announced as early as next week, which is significantly ahead of industry expectations for such launches this year. Hong Kong’s Bid For […]
Data shows Bitcoin is currently nearing two notable on-chain price levels. Here’s what happened the last time BTC broke above them. Bitcoin Is Approaching Vaulted Price & MVRV +1SD Currently In a new post on X, Glassnode leads on-chain analyst Checkmate points out that BTC has been near two on-chain price levels recently. The first of these levels is the “MVRV +1SD.” The Market Value to Realized Value (MVRV) ratio is a famous indicator for Bitcoin. In short, it compares the value that BTC holders are currently carrying (that is, the market cap) against the value they put into the cryptocurrency (the realized cap). Related Reading: Bitcoin 40% Of Way Through Bull Run If This Metric Is To Go By This metric is generally used to determine the scale of profit or loss that the market as a whole is carrying right now. Based on this, the fairness of the coin’s price may be judged. In the context of the current discussion, the +1 standard deviation (SD) of the MVRV ratio from its mean is of relevance. More specifically, the price level at which the market would satisfy this MVRV ratio condition is of focus. The other on-chain level of interest here is the “Vaulted Price.” This indicator is a product of the “Cointime Economics” framework that Checkmate came up with alongside David Puell from Ark Invest. In reference to this metric, the paper reads: Vaulted Realized Price may be considered to be a pricing level that reflects the ‘potential energy’ stored in the system. Somewhat counter-intuitively, the more long-term coin accumulation that takes place, the larger the uncertainty becomes between the proportion of truly lost vs. HODLed supply. Vaulted Realized Price will trade lower in this instance, as more cointime accumulation takes place, and uncertainty regarding future distributive pressure builds (and vice-versa). Now, here is a chart that shows the trend in these two indicators, as well as some other “original” on-chain levels, over the past few years: Looks like the asset has been near these two levels in recent weeks | Source: @_Checkmatey_ on X As displayed in the above graph, the Bitcoin spot price earlier broke through the Vaulted Price and went to the MVRV +1SD (note that the labeling is flipped in the chart by mistake, as Checkmate has noted in reply to the post). Since then, the price has come down a bit and is trading under both of these levels. Nonetheless, it currently stands quite near to them and far above the other on-chain price levels like the realized price. Related Reading: Polygon (MATIC) In Buy Zone That Earlier Led To 112% & 87% Surges As the chart highlights, the last time cryptocurrency was in this situation was December 2020. Obviously, what followed then was the bull run of 2021. It remains to be seen how Bitcoin’s interactions with these levels will be this time around and whether a similar euphoric run will follow with a potential break above them. BTC Price Bitcoin had shot up above the $72,000 mark earlier, but it has since slumped back again, and it’s now floating around $69,000. The price of the asset appears to have plunged over the past day | Source: BTCUSD on TradingView Featured image from Yiğit Ali Atasoy on Unsplash.com, checkonchain.com, chart from TradingView.com
The recent volatility in the Bitcoin (BTC) price and its struggle to consolidate above the $70,000 mark has raised questions about the sustainability of its ongoing bull run. However, market expert Charles Edwards, co-founder of Capriole Invest, believes that the decentralized finance (DeFi) protocol Ethena Labs (ENA) could significantly extend and boost Bitcoin’s bull market to new heights. In a recent post on social media site X (formerly Twitter), Edwards suggested that Ethena’s actions, such as constraining over-leverage in derivatives markets and reducing spot supply, can propel Bitcoin’s price higher for a longer period. Bitcoin Bull Market Boost To provide further context as to why Edwards is suggesting this possibility, on April 4th, Ethena Labs announced its intention to engage in a cash-and-carry trade involving Bitcoin. According to the protocol’s announcement, Ethena Labs can manage risk and provide a more stable backing for its product by buying and shorting Bitcoin. Related Reading: Solana Open Interest Drops $370 Million Amid Network Troubles, $200 Still Possible? One of the key factors Edwards highlights is Ethena’s ability to constrain over-leverage in Bitcoin derivatives markets. By doing so, Ethena aims to prevent excessive risk-taking and potential market instability. Additionally, Ethena’s taking spot supply off the market can reduce selling pressure, thus supporting Bitcoin’s price and prolonging the bull market. The protocol also noted that Bitcoin derivative markets offer superior scalability and liquidity compared to Ethereum (ETH). This characteristic reportedly makes Bitcoin a suitable asset for delta hedging, a risk management strategy employed by Ethena. With $25 billion of Bitcoin open interest available for Ethena to delta hedge, the capacity for its synthetic dollar product, USDe, to scale has increased significantly. Ethena Labs noted in their announcement the following: In just 1 year, BTC open interest on major exchanges (exc. CME) has grown from $10bn to $25bn, while ETH OI has grown from $5 to $10bn BTC derivative markets are growing at a faster pace than ETH and offer better scalability and liquidity for delta hedging Weighing The Risks While Edwards’ statement is optimistic about Ethena’s impact on Bitcoin’s bull market, one user raised concerns about potential downsides. Edwards acknowledges that execution risks, such as custody failure or delta neutrality failure, could have adverse effects. Edwards identifies custody risk as the most significant risk in this context. However, he highlights that any negative impacts will likely be short-lived, and market forces will ultimately dictate Ethena’s net annual percentage yield (APY). Related Reading: Bitcoin To $150,000 Is “Programmed” With Halving Approaching: Analyst In short, by limiting over-leveraging in future markets and reducing spot supply, Ethena could significantly support the price of BTC and extend the current bull run. Currently, BTC’s price has experienced a significant decline, plummeting to the $68,800 level. This marks a 4.3% decrease compared to Monday’s price. In parallel, Ethena’s native token, ENA, has also followed the overall downtrend of the market, reflecting BTC’s price movement with a 4% decrease. Presently, ENA is trading at $1.22. Featured image from Shutterstock, chart from TradingView.com
Investors in the cryptocurrency space are eagerly awaiting the halving of Bitcoin in order to fuel future market growth. However, top cryptocurrency expert and trader Benjamin Cowen cautions that if the price of BTC follows a previous pattern, there may be a correction. Bitcoin Halving Could Impact Price Negatively Cowen has highlighted a trend that could potentially lead to a significant decline in the crypto asset’s price when the Bitcoin halving event commences, which suggests that BTC could be poised for a decline in the coming days. Related Reading: Bitcoin Final Dance: Analyst Eyes Final Peak Ahead Of Halving According to Cowen, should Bitcoin continue to follow the same trajectory as it entered the spot ETF during the halving, BTC may witness a trend toward the downside. The crypto expert advocates that these patterns typically do not repeat precisely. However, he believes putting the idea out there is crucial in case it happens again in a similar manner. In response, a pseudonymous user commented on Cowen’s post and reminded the expert that he forgot the arrow backup. Responding to the user, Cowen stated that he believes the outcome of the next phase will depend on whether or not ALT/BTC pairs have collapsed by then. Furthermore, he affirms there could be a move on the upside if they have not broken down. Meanwhile, in the event that they have broken down, the pattern can transit to something new. It is worth noting that the Bitcoin halving event is forecasted to take place within the next 11 days. Given Bitcoin’s halving previous significant impact on price, BTC could be positioned for a notable price surge in the coming days. However, if Cowen’s recent prediction manifests, it could paint a different picture for the crypto asset during the halving event. The expert’s prediction has sent quite a frenzy in the crypto community, with analysts like Peter Brandt supporting his insights. Peter Brandt acknowledged Cowen’s projections noting that previous Bitcoin bull markets have exhibited a similar fundamental trend. What To Expect During The Halving Event As the halving event approaches, the cryptocurrency data analytics platform Kaiko has laid out a perspective to watch out for. Kaiko’s perspective delves into the impact the halving has had on BTC’s price in the short term over the years. Related Reading: Crypto Expert Reveals What To Expect For Bitcoin, Dogecoin, And XRP In 12-16 Months According to the platform, in the past, the short-term price effect of Bitcoin halvings has been inconsistent. Nonetheless, historical data reveals that the coin tends to rise 9-12 months after halving, making it a generally bullish development. At the time of writing, Bitcoin’s price was up by 8% in the past 7 days, valued at $70,770. Its overall market cap is down by over 2%, however, while its trading volume is up by over 8% in the past day. Featured image from iStock, chart from Tradingview.com
Authur Hayes, the co-founder and former Chief Executive Officer (CEO) of cryptocurrency exchange and trading platform, BitMEX has released another blog post, predicting a major fire sale and a potential price decline for Bitcoin, the world’s largest cryptocurrency. Bitcoin Fire Sale Imminent In his blog post, Hayes provided a detailed analysis, explaining his perspectives on how the Bitcoin halving event would adversely affect the price of the cryptocurrency. Related Reading: Crypto Analyst Predicts Shiba Inu Price To Rise 5000% To $0.001 – Here’s When The Bitcoin halving is an occurrence that takes place every four years which reduces Bitcoin miner block rewards by half. This, in turn, decreases the amount of Bitcoin created and leads to an increase in the cryptocurrency’s value. While most analysts in the crypto market anticipate a bullish rally for Bitcoin and other altcoins during the halving event, Hayes holds a more contradictory view, suggesting that the halving period could instead initiate a more bearish action than expected. Hayes has acknowledged that the price of Bitcoin and other cryptocurrencies are likely to pump during the halving period, at least in the medium term. However, the BitMEX co-founder has also predicted that the price action of Bitcoin both before and after the halving event could potentially turn negative. He revealed that because the 2024 Bitcoin halving coincides with a period of diminished liquidity in the United States Dollar (USD), it could potentially ignite a “raging fire sale for crypto assets.” The crypto founder also foresees the price of Bitcoin and other cryptocurrencies plummeting around this time. As a result, Hayes has advised the broader crypto community to refrain from trading cryptocurrencies during this period. He emphasized that when the majority of the market participants agree on a specific outcome, such as a rally induced by the Bitcoin halving, the market tends to move in the opposite direction. Despite his captivating predictions, Hayes conceded that the crypto market could defy his bearish forecasts, essentially recognizing the speculative nature of his prediction. Hayes Says April Is The Best Time To Short Sell In his blog post, Hayes unveiled that the period from April 15 to May 1, 2024, would be precarious for risky assets in the financial sector. This is attributed to tax payments draining liquidity from the system and Quantitative Tightening (QT) accelerating during this timeframe. Related Reading: Expert Maps Out Timeline For The XRP Price To Cross $1,000 The crypto founder has suggested that this period might potentially present a prime short position for traders, indicating that April could be the ideal month for short selling. He predicts that after May 1, the market will revert to its “regular programming.” BTC price above $70,000 | Source: BTCUSD on Tradingview.com Featured image from CNBC, chart from Tradingview.com
Crypto expert Ash Crypto has outlined his price predictions for several crypto tokens, including Bitcoin (BTC), Dogecoin (DOGE), and XRP, heading into this bull run. He also suggested that these price levels could be attained in the next 12 to 16 months. How High Will Bitcoin, Dogecoin, And XRP Rise? Ash Crypto predicted in an X (formerly Twitter) that BTC would rise between $100,000 and $250,000 by 2025. This prediction aligns with those made by other notable crypto analysts. One of them is Skybridge Capital CEO Anthony Scaramucci, who predicted in January that Bitcoin would rise to $170,000 18 months after the Bitcoin Halving. Related Reading: Ripple CEO Makes Bold Prediction For Crypto Market – $5 Trillion In 2024 Source: X Meanwhile, some other crypto analysts will argue that Bitcoin hitting $100,000 could even happen this year rather than 2025. This includes Tom Dunleavy, the Chief Investment Officer (CIO) at MV Capital, who claims that Bitcoin will rise to $100,000 by the end of this year. Tom Lee, Managing Partner and Head of Research at Fundstrat Global Advisors, also predicted that Bitcoin would rise to as high as $150,000 this year. Regarding his price target for DOGE, Ash Crypto predicted that the meme coin would rise to $1 in the next 12 to 16 months. This prediction is also a common sentiment shared by several other crypto analysts and members of the crypto community. Specifically, crypto analyst DonAlt once mentioned that “it isn’t too unlikely for Dogecoin to go to $1,” while crypto analyst Altcoin Sherpa stated that DOGE could do “something silly like go to $1 this cycle eventually.” Ash Crypto also shared his price target for XRP, stating that the crypto token could rise between $3 and $5. This price prediction, however, seems conservative, considering other predictions that crypto analysts have made for the XRP token. Crypto analyst CrediBULL Crypto recently mentioned that XRP could rise to as high as $20 in this market cycle. Meanwhile, Crypto analyst Egrag Crypto has repeatedly stated that XRP hitting $27 is possible. Undervalued Altcoins Make The List Crypto expert Michaël van de Poppe recently included Chainlink (LINK), Celestia (TIA), and Polkadot (DOT) in a list of ten crypto tokens he believes are undervalued. Interestingly, these three altcoins also made their way into Ash Crypto’s list of coins, for which he outlined price targets. Related Reading: $115-Million Bitcoin Whale Wakes Up From 10-Year Slumber – What’s Next? For LINK, Ash Crypto predicted that the crypto token could rise to between $250 and $500 by next year. LINK’s rise to such levels would undoubtedly be massive, considering it currently trades at around $17. Ash Crypto also predicted a parabolic surge in TIA and DOT’s prices, as he believes they could rise to as high as $150 and $120, respectively. DOGE price rises above $0.2 resistance | Source: DOGEUSDT on Tradingview.com Featured image from CoinGape, chart from Tradingview.com
As Bitcoin (BTC) continues its upward trajectory, regaining its bullish momentum after brief range-bound price action and inching closer to its all-time high (ATH) of $73,700, crypto analyst Miles Deutscher shared insights on several altcoins to watch for potential gains this week. Altcoins With Strong Potential First, Deutscher observes a robust recovery in Bitcoin following its recent dip below the $65,000 level on April 3rd. The analyst notes that Bitcoin’s structure appears positive, with $73,8000 being the critical level to watch as it represents the previous ATH and the cryptocurrency’s last resistance before further gains. According to Deutscher’s analysis, BTC’s ability to break through this level could signal further upward momentum for the market leader. Related Reading: Polygon (MATIC) In Buy Zone That Earlier Led To 112% & 87% Surges Despite recent network congestion issues, Deutscher remains optimistic about Solana’s long-term prospects, as it is the first of several altcoins on the analyst’s radar this week, promising further gains on top of its already 23% uptrend over the past month. The analyst highlights that sentiment around Solana has deteriorated slightly but emphasizes that these issues are unlikely to significantly impact the medium to long term. Next on the list, Deutscher identifies BTC’s equivalent to non-fungible tokens (NFTs), Ordinals, as a strong performer within the BRC-20/BTC narrative ecosystem. With the Bitcoin halving scheduled for the last half of April just days away, Deutscher remains bullish on the ORDI token ahead of the event. While the narrative surrounding the halving remains relatively quiet, Deutscher continues to suggest that Ordinals stands out as a leader in the space. Orion And Altlayer Deutscher has expressed interest in Altlayer, an altcoin closely associated with the EigenLayer protocol, due to recent rumors surrounding the upcoming EigenLayer airdrop. According to the analyst, Altlayer’s proximity to the airdrop and its involvement in the restaking narrative contributes to its appeal. Given these anticipated developments, Deutscher sees a potential boost for the token as the market prepares for the airdrop. The token is up 14% in the last month alone and over 4% in the previous 24 hours. Similarly, Deutscher highlights ORN as the first restaking rollup on EigenLayer and emphasizes the limited opportunities to get exposure to EigenLayer before its official launch. This factor, combined with Orion’s rebranding to LUMIA, has attracted positive market sentiment, the analyst said, noting that recent weeks have demonstrated the market’s positive response to token rebrands, further increasing Orion’s potential. Dogecoin’s ‘Doge Day’ Next on the altcoin watchlist, Deutscher notes the upcoming “Doge Day” on April 20, which has historically seen increased interest and speculation surrounding the dog-themed meme coin. According to the analyst, the possibility of Elon Musk tweeting about the meme-inspired cryptocurrency has fueled expectations for potential price moves. Deutscher suggests monitoring DOGE for strength and considering it as a viable short-term trading opportunity. Related Reading: XRP Price Drops After Massive Whale Dump, Casting Doubt On $1 Target In April Finally, Deutscher points to previous instances where early altcoins airdrop participants experienced initial selling pressure, followed by potential rebounds. Wormhole’s native token, W, is facing a similar scenario as the token has fallen over 30% since trading began on April 3. Deutscher advises watching how the token reacts around the significant support level of $1. Once the initial selling pressure potentially subsides, Deutscher notes that a positive reaction can be expected, but whether the $1 support holds will be key to determining the cryptocurrency’s next moves. Featured image from Shutterstock, chart from TradingView.com
Amid the renewed strength recently displayed by Bitcoin, Michael Van De Poppe, a recognized cryptocurrency analyst and trader has offered an intriguing prediction for BTC, highlighting that the crypto asset is likely to reach the $300,000 threshold in this bull cycle. Bitcoin Price Targetted At Unprecedented Heights This Cycle Over the past month, the price of Bitcoin has been consolidating and hasn’t been able to sustain its rise beyond its new peak of $73,000. However, things could soon be changing, as Michael Van De Poppe expects the coin to surge immensely in the short term. His forecast coincides with anticipation around the upcoming Bitcoin Halving expected to take place in less than 12 days, fueling optimism within the crypto community. Related Reading: 12 Days Until Bitcoin Halving: Why $100,000 Isn’t Much Further Away According to the expert, the largest cryptocurrency asset by market cap is still experiencing significant resistance. Nonetheless, if Bitcoin manages to break out of this zone, the coin could witness a progression towards new all-time highs in the coming months. Given that BTC achieved the $70,000 price level ahead of the halving event, Poppe believes that it is likely to surge to unprecedented levels, particularly topping out at $300,000 in this bull run. The post read: Bitcoin still facing crucial resistance. If this breaks, then we will be seeing a continuation towards new all-time highs. Bitcoin at $70,000 pre-halving. Likely $300,000 this cycle. Poppe underscored that the price of Bitcoin returned to $70,000 level over the weekend. As a result, he has pointed out bullish indicators that are presently occurring in the crypto landscape. The analyst also noted that the strength of the cryptocurrency markets has now exceeded our perceptions, and dips in altcoins represent opportunities for good entries. In addition, BTC’s price action demonstrates the potential to reach a new all-time high pre-halving, and the shift in favor of altcoins is on the horizon. Altcoin Season Set To Kick Off In Weeks Poppe is super bullish toward an ‘altcoin season’. However, it is important to note that altcoins’ value has frequently coincided with shifts in Bitcoin’s supremacy. But even though Bitcoin’s dominance is still at its peak prior to the halving, Poppe thinks these coins still have a lot of momentum. Related Reading: Forget Bitcoin! Altcoins Set For Explosive Growth With Potential 1,000x Returns — Analyst He advocates that a new altcoin season will undoubtedly begin in the upcoming weeks. “We always have one, we have seen Meme coins, Solana (SOL) ecosystem, and AI,” he stated. The expert’s statement suggests that the Solana ecosystem, AI projects, and meme coins in recent months have led the altcoin market. Thus, Michael Van De Poppe has contended that in the impending alt season, crypto initiatives that prioritize the tokenization of Real-World Assets (RWA), the Ethereum (ETH) ecosystem, and the Decentralized Physical Infrastructure Network (DePIN) are likely to be next, paving the way for alts this cycle. At the time of writing, the altcoin’s overall market excluding Bitcoin and Ethereum was valued at $753.47 billion. This indicates a 2% increase in the market cap in the past 24 hours. Featured image from iStock, chart from Tradingview.com
Bitcoin (BTC) is back below $70,000 after momentarily rising above this psychological price range on April 7. This price action suggests that the bears are still in control, which could remain the case throughout this week. As the tug of war continues, here are some key events to watch out for. Is The Pre-Halving Retrace […]
With the fourth Bitcoin halving just 12 days away, the community is buzzing with anticipation, speculating on the potential for Bitcoin to breach the significant $100,000 threshold. Joe Consorti of Theya Research has offered a comprehensive analysis, diving into the intricacies of Bitcoin’s current market position and the factors that might catapult its value to new heights. This event, a cornerstone in Bitcoin’s design to halve the rewards for mining new blocks every four years, historically triggers a bullish momentum, and the present scenario appears to be aligning with past precedents. The Significance Of Bitcoin’s Consolidation Phase Consorti’s analysis titled, “Bitcoin’s 4th Halving Is [12] Days Away, and $100,000 Isn’t Much Further Behind It”, begins with a deep dive into Bitcoin’s ongoing consolidation phase, which he argues is a critical period that precedes a potential bull run. “Bitcoin continues its consolidation. In keeping with its previous phases of consolidation at $30k and $40k, BTC spends several weeks at key psychological price levels exchanging hands between buyers and sellers before advancing higher,” Consorti stated on X. Related Reading: FOMO Gives Way To Fear: Bitcoin-Ethereum Ratio Signals Shift In Crypto Sentiment He emphasizes that this is the sixth week of Bitcoin’s consolidation above $60,000, marking the least volatile period at this price level and following a new all-time high. This, according to Consorti, signals a strong market confidence that could be the foundation for the next surge. The analysis further explores the broader market dynamics, particularly the correlation breaks within the current cycle that have made the stock market an unreliable indicator of US economic sentiment. “The market at large has experienced massive correlation breaks this cycle […] This has a great deal to do with businesses extending their debt maturity during 2021 when rates were still low, and the US Treasury’s massive crisis-level fiscal deficit,” Consorti explains. He argues that these factors have contributed to the decoupling of traditional economic indicators from the stock market’s performance, inadvertently benefiting asset prices, including Bitcoin. The Role Of ETFs And The Spot Market A significant portion of Consorti’s analysis is dedicated to the behavior of Bitcoin ETFs and their interaction with the spot market. Despite a slowdown in net inflows to Bitcoin ETFs, the volume remains robust, indicating a healthy market. “This was one of the lowest weeks yet for BTC ETF inflows, although when you net in the outflows they are still healthy compared to previous weeks,” Consorti notes, suggesting that ETF shares are actively exchanging hands, mirroring the consolidation seen in the spot market. Related Reading: $115-Million Bitcoin Whale Wakes Up From 10-Year Slumber – What’s Next? This interplay between ETFs and the spot market, according to Consorti, provides a stable foundation for Bitcoin’s price, further solidifying the case for an impending bull run. “The funding rate is extremely muted, and we’re still at the same price [around $70,000]. In this period of consolidation, the spot market has really taken control of Bitcoin price action. This will mean more stable footing for the ensuing bull run, raising my confidence further that this consolidation is preceding a move higher rather than lower,” Consorti concluded. Expert Consensus On The Bullish Outlook Consorti’s optimistic forecast is echoed by other industry experts, who have also shared their bullish predictions. CRG, another renowned analyst, emphasized the significance of Bitcoin’s recent performance, stating, “Great weekly close. Fresh all-time highs this week,” indicating a positive momentum that could be sustained in the post-halving period. Great weekly close Fresh all time highs this week Source: my plums pic.twitter.com/wyxwomdDjZ — CRG (@MacroCRG) April 8, 2024 TechDev, a crypto analyst, highlighted a rare pattern in Bitcoin’s trading history: “It doesn’t happen often. Bitcoin closed 2 consecutive months over the upper Bollinger band. Each time it has then doubled within 3 months before the next red candle.” This historical pattern, if repeated, could potentially drive Bitcoin’s price way beyond $100,000. It doesn't happen often.#Bitcoin closed 2 consecutive months over the upper Bollinger band. Each time it has then doubled within 3 months before the next red candle. pic.twitter.com/veOOOmT8Id — TechDev (@TechDev_52) April 7, 2024 Daan Crypto Trades provided a technical perspective, focusing on Bitcoin’s resistance levels and potential targets: “Thoses previous ‘resistances’ didn’t end up putting much of a fight. It’s just the previous all-time high that’s making the price stall for the time being. Targets above are ideas for price discovery if we can leave this area behind us.” Daan’s targets are the 1.272 Fib at $83,562, the 1.414 Fib at $91,164 and the 1.618 Fib at $102,085.” #Bitcoin High Timeframe Level Cheat Sheet ✍️ Thoses previous "resistances" didn't end up putting much of a fight. It's just the previous all time high that's making price stall for the time being. Targets above are ideas for price discovery if we can leave this area behind us. https://t.co/AeP9vzOk7M pic.twitter.com/BWvcg8EjLE — Daan Crypto Trades (@DaanCrypto) April 7, 2024 At press time, BTC traded at $69,739. Featured image created with DALL·E, chart from TradingView.com
Bitcoin is still pushing a price recovery on its quest to return to the $70,000 price level. This has seen the cryptocurrency now trading above $69,000, up by 1.6% in the past 24 hours. This price fluctuation has occurred in the middle of increased accumulation activity from some whales and some short-term holders. Related Reading: Forget Q1 Slump: Solana Explodes Over 300% Amid DEX Boom Blockchain analytics platform Lookonchain has revealed an instance of whale activity on social media. An interesting transaction came from a whale wallet which recently woke up after 10 years of dormancy to transfer 246 BTC worth $16.73 million. Bitcoin Whale Wakes Up From 10-Year Slumber The Bitcoin blockchain is home to a vast number of early investors with large amounts of BTC that have remained dormant for many years. In fact, the re-ignition of dormant Bitcoin addresses has been sporadic for the past six months, particularly as the price of Bitcoin surged to new all-time highs and with most causing a stir and rising interest amongst Bitcoin investors. According to Lookonchain, a new Bitcoin whale address has been added to the roster of wallets raised from the dead. The whale address “1CLxmH” which held 1,701 BTC (worth $115 million at the time of writing) during its 10-year period of dormancy, recently woke up and transferred 246 BTC worth $16.73 million into another wallet. Interestingly, on-chain data shows the whale address received 4,272 BTC throughout 2013 at an average price of $29.39. A whale with 1,701 $BTC($115.42M) woke up after 10 years of dormancy and transferred 246 $BTC($16.73M) out 20 mins ago. The whale received 4,272 $BTC($125,541 at the time) in 2013 at an average price of only $29.39. Address: 1CLxmHRhoi9VpSj5QihqPEdbhLL8E1oeUZ pic.twitter.com/W45On1Q7vb — Lookonchain (@lookonchain) April 6, 2024 Incoming Sell Pressure? Reactivations of old dormant wallets are often driven by whales looking to sell all or some of their holdings. Massive selloffs like this often lead to a price slump and increase the selling pressure from short-term investors. However, the motive behind the reactivation of dormant addresses is impossible to predict and not all of them indicate profit-taking. Bitcoin market cap currently at $1.3 trillion. Chart: TradingView.com In this case, transaction data shows the assets were transferred into two new private wallets. 50 BTC were transferred into address “1PRREb,” while 195 BTC were transferred into address “bc1qga.” At the time of writing, address “1CLxmH” still holds 1,455 BTC worth $100.89 million. Related Reading: Bitcoin Dips, But Don’t Panic: ETFs See Three Days Of Bullish Inflow In the ongoing spirit of an accumulation from whales, Lookonchain outlined a new purchase from another whale address. This address, which has accumulated 1,308 BTC worth $89.75 million at an average price of $68,617 since March 6, purchased another 113.735 BTC worth $7.85 million from Binance less than 12 hours ago. With Bitcoin trading at $69,348, this wallet now holds $90.7 million worth of the cryptocurrency. Blockchain analytics platform Santiment noted this accumulation pattern by the whales, revealing wallets holding between 100 and 100,000 BTC have purchased $21.6 billion worth of the cryptocurrency in the last three months. Featured image from Pexels, chart from TradingView
In recent times, the increasing appeal of Bitcoin (BTC) among asset managers and traditional finance (TradFi) institutions has gained significant attention, particularly with the notable success of Bitcoin ETF products offered by industry leaders like BlackRock, Grayscale, and Fidelity. This success has prompted more Wall Street banking institutions to eagerly enter the newly approved ETF […]
The recent ratio between Bitcoin (BTC) and Ethereum (ETH) prices suggests a potential decline in risk appetite within the crypto market. The ratio has reached its highest level since April 2021, indicating a stronger demand for Bitcoin than its smaller rival, Ethereum. This development has led crypto asset trading firm QCP Capital to speculate that this shift in the ratio could be an early indication of a transition from “fear of missing out” (FOMO) to outright fear. Bitcoin And Ethereum Performance Regarding recent market trends, the second quarter of 2024 has begun with relatively subdued activity. Bitcoin’s price has dipped below the $70,000 mark and has remained range-bound between $65,000 and $68,000 for the past few days despite briefly touching the $70,000 mark on Monday. Related Reading: XRP To $20 And Ethereum To $20,000: Crypto Analyst Reveals When This Will Happen According to QCP’s analysis, the inflow of funds into the spot Bitcoin Exchange-Traded Fund (ETF) market has not been substantial enough to drive significant price movements in either direction. As a result, the company has observed that funding rates have stabilized, and the front end of the forward curve has declined from previous highs of 50% to less than 20% currently. Interestingly, while the front end of the forward curve has decreased, the back end remains elevated. This has led to interest in rolling spot-forward basis positions further out, potentially driven by the continued demand for long-dated Bitcoin calls extending into 2025. On the other hand, Ethereum’s performance has been relatively weak. QCP also notes that the ETHBTC ratio cross-tests a critical support level after breaking below 0.05. Notably, there has been sustained selling of Ethereum calls, resulting in lower volatility and downward pressure on the price. Ultimately, QCP finds that these developments are prompting speculation as to whether this could be an early sign of FOMO turning into fear, particularly about Ethereum’s role as a proxy for altcoins. While Bitcoin may find support from topside demand and ETF inflows, Ethereum’s performance and its impact on altcoins will be important factors to watch closely. Will BTC Experience A Double-Top? Renowned crypto analyst Crypto Con has raised an intriguing question about whether BTC is poised for a double top similar to the patterns observed in 2013 and 2021. Analyzing previous market cycles, Crypto Con highlights that more evident double tops, such as those witnessed in the first and third cycles of 2021, triggered significant initial surges on the Fisher Transform indicator. In contrast, the 2017 double-top formation showed a more subtle initial rise in June. Notably, all final cycle tops ended with a regular bearish divergence, where the price reached higher levels while the indicator declined, as seen in the chart below. Related Reading: Polygon Observes Buy Signal: Analyst Suggests MATIC Rebound To This Level Currently, Bitcoin is approaching levels similar to those seen in 2017, as seen in the lower part of the chart. Crypto Con suggests that if the Fisher Transform indicator can consolidate around these levels without spiking to the line seen in 2013 and 2021, it could indicate a higher likelihood of a single top formation, which is the analyst’s most likely outcome, for December 2024, marking the top of this cycle. Featured image from Shutterstock, chart from TradingView.com
Bitcoin has continued to trade sideways since hitting a new all-time high (ATH) of $73,750. That has raised concerns that BTC’s bullish momentum in this bull run may be shortlived. However, crypto analyst Lark Davis has outlined reasons why BTC’s price will keep soaring till the remainder of the year. Why 2024 Is A Bullish […]
Crypto Jelle, a cryptocurrency analyst and aficionado, has expressed optimism toward the price action of Bitcoin, highlighting the potential for the digital asset to revisit the $69,000 threshold in the short term. Bitcoin Poised For Short-Term Gains Due to waning interest in the cryptocurrency market, the price of Bitcoin fell by 5.60% to $66,650. However, the latest price decline does not seem to have dampened traders’ and analysts’ expectations for a sustained bull run, and one of those is analyst Crypto Jelle. Related Reading: Bitcoin Crash Warning: CryptoQuant CEO Sees LUNA-Like Risks Ahead Crypto Jelle advocates for the largest crypto asset noting that although Bitcoin did not break $69,000 in one go, it appears that it is making a new higher low at this point. He believes that the coin could reach the aforementioned price again soon, urging investors to hold around the $66,500 price level. Thus, he advises the crypto community and traders to be patient, since the much-anticipated Bitcoin halving is approaching quickly. Jelle underscored that new all-time highs for Bitcoin do not happen in one go. According to the analyst, every ATH breakout over the past years was preceded by a chopping period. As a result, a large number of people tend to lose hope in the crypto asset, prompting them not to invest in BTC. Given the recent performance of BTC, Jelle claims, we are witnessing the same thing occur once more. Drawing attention to a bullish pennant formation, Jelle stated that Bitcoin currently appears to be getting ready to break out of this area. This is due to a strong bounce from the 4-hour Exponential Moving Average (EMA) 200, and now reaching an even higher low. Based on the development, the crypto expert anticipates the breakout to take place in the upcoming weeks. Within the next 15 days, the Bitcoin halving event has been slated to commence. Given its past impact on BTC’s price, Crypto Jelle’s prediction could come to pass more quickly than anticipated. Two Events Aside from Halving Considered To Boost BTC’s Price This Year While the community is hoping for the halving event to improve prices, Lark Davis, a crypto expert has pointed out two other events that could impact the asset significantly, affirming a bullish year for BTC. These include the United States elections scheduled to happen in November, and the Federal Reserve interest rate cuts. According to Davis, these events are equally as important as the halving event as they will propel the bull market even further. Related Reading: Banking Giant Goldman Sachs Ranks Bitcoin As World Best Performing Asset With the stock market performing traditionally well, around 83% during an election, and Bitcoin being part of Wall Street, BTC is expected to rise. Davis then mentioned the three rate decreases that Goldman Sachs said would occur in 2024, starting in June. It is worth noting Goldman Sachs predicts that the terminal interest rates will fall between 3.25% and 3.5%. Davis believes these reductions will increase market liquidity and encourage investors to invest more in cryptocurrency assets. Featured image from iStock, chart from Tradingview.com
Bitcoin price is attempting a recovery wave above the $66,500 resistance. BTC must clear the $70,000 resistance to continue higher in the near term. Bitcoin is facing many hurdles near the $69,500 and $70,000 levels. The price is trading above $67,000 and the 100 hourly Simple moving average. There was a break above a key bearish trend line with resistance at $66,350 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair could start another increase if it stays above the $67,000 support zone. Bitcoin Price Eyes Recovery Bitcoin price found support near the $64,500 zone and started a recovery wave. BTC was able to rise above the $66,500 and $67,000 resistance levels to move into a short-term positive zone. There was a break above a key bearish trend line with resistance at $66,350 on the hourly chart of the BTC/USD pair. The pair even spiked above the $69,000 zone. A high was formed at $69,354 and the price is now consolidating gains. It traded below the 23.6% Fib retracement level of the upward move from the $64,572 swing low to the $69,352 high. Bitcoin is now trading above $67,000 and the 100 hourly Simple moving average. Immediate resistance is near the $68,250 level. The first major resistance could be $69,350. The main resistance now sits at $70,000. If there is a clear move above the $70,000 resistance zone, the price could start a fresh increase. In the stated case, the price could rise toward $71,200. Source: BTCUSD on TradingView.com The next major resistance is near the $72,000 zone. Any more gains might send Bitcoin toward the $73,500 resistance zone in the near term. Another Decline In BTC? If Bitcoin fails to rise above the $69,350 resistance zone, it could start another decline. Immediate support on the downside is near the $67,200 level. The first major support is $67,000 or the 50% Fib retracement level of the upward move from the $64,572 swing low to the $69,352 high. The next support sits at $66,400. If there is a close below $66,400, the price could start a drop toward the $65,500 level. Any more losses might send the price toward the $64,500 support zone in the near term. Technical indicators: Hourly MACD – The MACD is now losing pace in the bullish zone. Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is now declining toward the 50 level. Major Support Levels – $67,200, followed by $67,000. Major Resistance Levels – $69,350, $70,000, and $71,200.
The Bitcoin Network Value to Transactions (NVT) Golden Cross indicator attained overheated values coinciding with the recent local top in the price. Bitcoin NVT Golden Cross Surged To 3.17 During Recent Peak An analyst in a CryptoQuant Quicktake post explained that the NVT Golden Cross may have served as an indicator of the recent top in cryptocurrency prices. The “NVT” refers to an on-chain metric that tracks the ratio between Bitcoin’s market cap and transaction volume (both in USD). This ratio is generally used to determine whether the asset’s price is fair or not. Related Reading: Bitcoin Short-Term Holders Capitulate: $5.2 Billion Sold At Loss When the indicator has a high value, the asset’s price (the market cap) is high compared to its utility (the transaction volume). Such a trend may suggest that the coin could be overvalued currently. On the other hand, the low metric could suggest the network isn’t valued fairly compared to its high ability to transact capital, and as such, its price may be due to an uplift. In the context of the current discussion, the NVT itself isn’t interesting, but rather, a modified version called the NVT Golden Cross is. This metric compares the short-term trend of the NVT (10-day moving average) against its long-term trend (30-day MA). Like the NVT, this variant is also used to estimate the fairness of the asset. Historically, values greater than 2.2 have been a signal that BTC is overheated, as the short-term trend is notably outpacing the long-term at these levels. Similarly, values under the -1.6 level may indicate that the cryptocurrency is undervalued; hence, its price may likely form a bottom and find a rebound soon. Now, here is a chart that shows the trend in the Bitcoin NVT Golden Cross over the last few years: The value of the metric seems to have been going up in recent days | Source: CryptoQuant As displayed in the above graph, the Bitcoin NVT Golden Cross rose to relatively high levels earlier. This growth happened as the asset’s price rallied towards the $71,000 level. The metric had touched the 3.17 mark in this surge, which suggests the coin may have become too overpriced. Indeed, the asset followed this by observing a sharp drawdown, which took it back under the $65,000 level. As the quant has marked in the chart, a similar pattern of the NVT Golden Cross hitting these high levels and resulting in a price correction was observed at different points over the last few years. Related Reading: Bitcoin Traders No Longer Extremely Greedy: Rebound Signal? Since the latest overheated signal, the indicator has cooled off alongside the Bitcoin price, although it hasn’t gone towards the negative side yet. BTC Price Bitcoin has recovered over the past day as its price has now climbed back to $67,800. Looks like the price of the asset has seen some uplift over the last 24 hours | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, CryptoQuant.com, chart from TradingView.com
The age-old debate over how best to store wealth reignites as Bitcoin and gold lock horns. Peter Brandt, a veteran financial trader, throws his weight behind Bitcoin, claiming it will dethrone gold as the long-term champion. Related Reading: Bitcoin Champion Max Keiser Blasts Argentinian President’s Crypto Stance Brandt cites a chart showcasing the leading cryptocurrency’s […]