Crypto trader Duncan has explained why he is “extremely long” on Ethereum (ETH) despite the crypto token’s recent drop to around $3,400. He emphasized the Spot Ethereum ETFs, which he believes could spark a significant rally for ETH. A ‘Significant Upside Repricing’ Could Be On The Horizon ForTHEEthereum Duncan mentioned in an X (formerly Twitter) post that he believes that the market is way too bearish at the moment and that there could be a “significant upside repricing” for Ethereum if the Spot Ethereum ETF inflows are “anything but horrible.” He further explained why he thinks the Spot Ethereum ETFs will be a huge success, contrary to what some might think. Related Reading: Telegram-Based Notcoin Burns 210 Million Tokens Amid Positive Recovery First, he noted that asset managers view the crypto ETF space as a “new frontier” that could generate billions in management fees for them over the next ten years. He highlighted how BlackRock has had its most successful product launch ever with its Spot Bitcoin ETF, which he claims is already generating $45 million in fees yearly, just six months after its launch. Based on this, Duncan stated that the Spot Ethereum ETFs provide these asset managers another “massive opportunity” to launch a product that could bring them similar success to the Spot Bitcoin ETFs, generating hundreds of millions in fees. Duncan remarked that the Spot Ethereum ETFs are “almost as big as the Bitcoin ETF given the base management fees and the future ability to clip a fee off the staking yield.” Duncan further alluded to an interview Scott Melker (aka Wolf Of All Streets) had with VanEck’s Head of Digital Asset Research, Matthew Sigel, to emphasize how these asset managers feel about the Spot Ethereum ETFs. From what was said during the interview, Duncan noted how VanEck is betting on the Spot Ethereum ETFs to spark a “reflexive rally” in ETH, which Sigel claimed could make them more money. Spot Ethereum ETF Issuers Could Provide A Narrative For ETH Duncan tried to counter the argument made by crypto figures like Andrew Kang, who argued that Ethereum had no narrative and that the Spot Ethereum ETFs might not succeed because of that. Duncan stated that asset managers like BlackRock and VanEck can “literally start the narratives themselves.” He added that this narrative could be about BlackRock’s Real World Assets (RWA) on-chain, VanEck’s new stablecoin, or the asset managers’ “open app store” thesis. Dunan said the market could witness a “massive ETH rally” when these narratives are mixed with some “good flows and ETH’s extremely reflexive characteristics.” Related Reading: Why Is The Bitcoin Price Down Today? The crypto trader admitted that this could take time but opined that it is naive to think that these asset managers won’t deploy significant resources to attract inflows to their Spot Ethereum ETFs. Crypto analyst and trader Tyler Durden shared a similar sentiment when he mentioned that Ethereum reaching $10,000 was the “most asymmetric bet” in crypto today. He claimed that Wall Street had put so much effort into ensuring that the Spot Ethereum ETFs were approved, and now, they will make as much money from it while pumping ETH. Featured image created with Dall.E, chart from Tradingview.com
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Explosive Gains Ahead: There’s growing concern about a potential further decline in Bitcoin’s price. On June 26, Bitcoin’s price fell back to $61,000, further alerting the investors. Analyst Altcoin Buzz took to his latest analysis and asked ‘Are we on the brink of a bigger dump in Bitcoin’s price?’ Meanwhile, he said that three altcoins …
The post T-Rex Group Files for Potentially Most Volatile ETF in U.S. History appeared first on Coinpedia Fintech News
Financial services firm T-Rex Group has filed for a leveraged MicroStrategy (MSTR) exchange-traded fund in the United States. This ETF could potentially be the most volatile ETF ever seen in the country. Read on to learn what experts think about this development and to do an in-depth comparative analysis! What Experts Think About T-Rex Group’s …
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Atlanta Federal Reserve President, Raphael Bostic, stated on Thursday that an interest rate cut in the fourth quarter was likely, with inflation moving in the right direction, as reported by Reuters. He further included that penciled in four quarter-percentage-point rate cuts for 2025, the Fed is on a long-term arc. Fed can achieve a 2% …
In a recent filing with the US Securities and Exchange Commission (SEC), the BlackRock Global Allocation Fund disclosed its ownership of 43,000 shares of the asset manager’s Bitcoin ETF, iShares Bitcoin Trust, as of April 30. This announcement follows two previous filings by BlackRock on May 28, which disclosed the fund’s exposure to Bitcoin in its Strategic Global Bond Fund and Strategic Income Opportunities Portfolio. BlackRock Bitcoin ETF Investment Plan The investment giant’s move towards Bitcoin integration became evident in March when it submitted a filing to the SEC, expressing its intention to include Bitcoin ETFs in its Global Allocation Fund. BlackRock’s objective is to invest in Bitcoin ETFs that directly hold BTC, aiming to mirror the performance of the digital currency market. The company’s filing specified that the Global Allocation Fund may acquire shares in exchange-traded products (ETPs) that seek to reflect the price of Bitcoin by directly holding the cryptocurrency. However, it clarified that investments in Bitcoin ETPs will be limited to those listed and traded on recognized national securities exchanges. Related Reading: Dogecoin Profitability Rises To 75% As Shiba Inu Plunges To 52% This initiative aligns with BlackRock’s broader investment strategy for its Global Allocation Fund, a mutual fund designed to diversify investors through a wide range of assets, including equities, bonds, and potentially Bitcoin ETPs. With $17.8 billion in assets under management (AUM) and a year-to-date return of 4.61% as of March 2024, the fund aims to capitalize on global investment opportunities while effectively managing risk and pursuing long-term capital growth and income. This marks the third internal BlackRock fund to invest in Bitcoin through the iShares Bitcoin Trust (IBIT) ETF. The Strategic Global Bond Fund, Strategic Income Opportunities Portfolio, and now the Global Allocation Fund have all recognized the potential of Bitcoin as an investment asset. Bitcoin Price Analysis In the past 24 hours, Bitcoin has shown resilience by reclaiming the $61,780 level after experiencing a dip to as low as $58,000 on Monday. This recovery suggests that the leading cryptocurrency is withstanding the selling pressure it has encountered over the past week, indicating a potential continuation of its halted uptrend. According to technical analyst Ali Martinez, Bitcoin is forming an Adam & Eve bottoming pattern, which could lead to a projected 6% increase towards $66,000 if BTC maintains a candlestick close above the $62,200 level. Furthermore, historical data indicates that July has historically been favorable for Bitcoin’s price growth, particularly in years of Halving. Analyzing the image above, 7 out of the previous 11 July months resulted in positive gains. The green months, in particular, generated an impressive upside of 16.52%, while the red months experienced a downside of 6.99%. Examining the performance of Bitcoin in the third quarter (Q3), the data presents a more balanced picture. Out of the previous 11 Q3 periods, 5 were positive. Green Q3s, on average, produced a significant upside of 33.52%, while red Q3s generated an average downside of 16.023%. Related Reading: Chainlink (LINK) To Hit New Highs? Analysts Predict $25 Target Whether historical price performance will repeat itself, leading to price gains for BTC, remains to be answered. If history were to repeat in this scenario, it could potentially result in Bitcoin retesting its all-time high, which reached $73,700 in March, potentially even surpassing it. Featured image from DALL-E, chart from TradingView.com
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President Joe Biden and former President Donald Trump had a heated face off at their first 2024 presidential debate today. From deep discussions on abortion policies to tackling inflation and addressing global conflicts in Ukraine and Gaza, the debate took a sharp turn when both sides hurled nasty accusations. However, what disappointed keen crypto enthusiasts …
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President Joe Biden and former President Donald Trump took the stage in Atlanta on the debate floor. At the beginning of the debate, Biden waved at Trump and then launched into a critique of Trump’s presidency in response to a question about inflation. Biden argued that Trump was a terrible president, mentioning in his usual …
The ongoing legal battle between Nigerian authorities and the crypto exchange Binance has significantly affected the country’s blockchain industry. The Blockchain Industry Coordinating Committee of Nigeria (BICCoN) recently expressed its concerns about the negative impact of the current dispute and urged for a “balanced resolution.” Related Reading: DeFi Protocol Alex Lab $4 Million Hack Linked […]
Crypto analyst Alessio Rastani has warned that XRP is in “trouble” following his recent analysis of the chart. He outlined certain “strong warnings” on the chart, which showed that the crypto token could experience further price declines. Why XRP Is In Trouble Rastani mentioned in a video on his YouTube channel that XRP could drop to $0.13 or even lower as part of Wave C of his analysis using the Elliot Wave Theory. He noted that a drop to that price level represents about a 100% decline for XRP from Wave B and a similar corrective move to Wave A that occurred in 2020. Related Reading: Bitwise CIO Expects $15 Billion To Flow Into Spot Ethereum ETFs, How Will ETH React? The crypto analyst also alluded to the the altcoin’s bounce in 2020, around the time the crypto token was declared a non-security. He claimed that the rally then overlapped, which suggested it was a corrective bounce. He noted that these corrective rallies are bearish in nature as they usually resolve to the downside. Rastani claimed that an impulsive rally is required for XRP to continue its uptrend. That is why he believes that XRP can still drop lower since the corrective rally from 2022 is still in play. The analyst also highlighted the support levels at $0.41 and $0.35 as crucial, stating that a break below those levels will serve as confirmation for the downward move to $0.2 and $0.17. He added that XRP could even drop lower to $0.13. Meanwhile, Rastani predicts that this move could take several months, stating that the crypto token could drop to these levels by year-end or sometime in 2025. He also said that the altcoin needs to stay below the resistance levels at $0.64 and $0.74, as a break above those levels will invalidate his projections. Rastani also highlighted the momentum indicator on XRP’s chart, noting that there has been a lot of “downward negative momentum” for XRP recently, suggesting that a downward move will likely occur. He claimed that the downward momentum hasn’t been triggered yet, but he believes that it will soon happen, especially if the altcoin breaks below $0.35. An Alternative Move For Price Rastani also outlined an alternative move that XRP could make if his projections are invalidated, although he doubts that will happen. He claimed that if XRP manages to break above $0.64 and $0.74, that would mean that the rally in 2022 was Wave A, and the recent drop to around $0.40 was Wave B, thereby setting up XRP for a move to around $1.40 for Wave C. Related Reading: Dogecoin Sees Rapid Accumulation Amid Price Crash, Whale Transactions Soar The crypto analyst added that XRP could also retest the 2021 highs at around $2. However, he claimed that would mean that the next move is still downward, suggesting that the alternative move isn’t still bullish for XRP. He once again reaffirmed that the first scenario of XRP dropping to as low as $0.13 was likely to happen. Featured image created with Dall.E, chart from Tradingview.com
In a recent development, Coinbase, the largest cryptocurrency exchange in the United States, has initiated a legal offensive against the Securities and Exchange Commission (SEC) and the Federal Deposit Insurance Corporation (FDIC). The lawsuits, filed in a Washington, D.C., district court, aim to secure access to internal records that would shed light on what Coinbase […]
The elusive “Crypto Queen” Ruja Ignatova, mastermind behind the infamous OneCoin scam, remains a thorn in the side of law enforcement despite a significant bump in the reward for her capture. The US State Department upped the ante to a staggering $5 million this week, the latest move in a years-long chase that has captivated […]
Quinn Thompson, Chief Investment Officer (CIO) at Lekker Capital, articulated a strong buy signal for cryptocurrencies amidst a landscape fraught with bearish sentiment. In a statement released through the social media platform X, Thompson described the present market conditions as “one of the most obvious and attractive crypto buying opportunities of recent memory.” Lekker Capital, which has carved a niche in trading cryptocurrencies based on macroeconomic cues, provides an analysis that contrasts sharply with the prevailing market mood. Thompson’s commentary comes at a time when the broader crypto community appears enmeshed in pessimism. He expressed concern over the current trend where it’s become fashionable among crypto investors to adopt a bearish stance. “In all of my 5 years in crypto, I have never seen it be so ‘cool’ amongst crypto native investors as it is right now to be bearish,” Thompson noted, reflecting on the cyclical nature of market sentiments. Related Reading: ‘Crypto Queen’ Wanted: FBI Puts $5 Million Price Tag On OneCoin Founder’s Arrest Thompson pointed to the reactive nature of the market, particularly surrounding major events like ETF launches. He revisited the aftermath of the US spot Bitcoin ETF launch, which contrary to the bullish anticipation, saw Bitcoin’s price plunge from $49,000 to $38,000, marking a steep 22% decline in just 12 days. This event, he argued, should serve as a cautionary tale about the market’s tendency to move against consensus expectations. Addressing the most recent market dynamics, Thompson highlighted the significant impact of the sell-off that dampened the spirits of market participants, discouraging the usual strategies of buying the dip with leveraged positions. “It’s clear this most recent selloff has finally stung market participants given the lack of leveraged long dip buying,” he observed. This scenario, according to him, sets the stage for a market correction that typically follows a pattern of initial slow recovery, stabilization, and then a rapid upward movement once a catalytic event occurs. He recalled the BTC ETF leak in October as a “buy the news” event that realigned market sentiment. Furthermore, Thompson discussed the forward-looking nature of financial markets, emphasizing that the crypto market is no exception. He believes that the market has already adjusted to past events such as the Mt. Gox saga and Bitcoin sell-offs from the US and German governments. “The key thing to remember here is markets are forward looking. Citing the Mt. Gox or US and German government supply overhangs is old news – the market has priced this in. Fear and capitulation invokes an irrational near-sightedness,” the Lekker Capital CIO remarked. Related Reading: Here’s Why The Bitcoin Bottom Is In, New Highs Imminent: Crypto Expert Looking ahead, he underscored several macro and microeconomic developments poised to influence the market. “On the macro front, these include a November election and additional Fed liquidity. On the micro front, they are the ETH ETF, Circle IPO, and improved BTC miner profitability thanks to AI,” he explained. These factors are expected to reduce selling pressure (e.g. Bitcoin miners) and invigorate market sentiment. Delving deeper into market technicals, Thompson pointed out that several key indicators are at cycle lows, which historically precede upward movements. He noted, “BTC and ETH CME basis, alt open interest as a percentage of total, and macro relative value all sit at cycle lows while stablecoin supply is finally growing again.” This combination of factors, according to Thompson, signals a potential market bottom forming. In a bold closing prediction, Thompson projected significant rallies for major cryptocurrencies in the near future. “Personally, I think ETH will reach $7,000 and BTC will make its first attempt at $100,000 by the election in November,” he stated confidently. At press time, BTC traded at $60,766. Featured image from Shutterstock, chart from TradingView.com
In a surprising turn, former President Donald Trump has positioned himself as a strong advocate for cryptocurrencies, pledging to champion financial innovation and deregulation in the industry. As the 2024 election approaches, Trump’s pro-crypto stance has gained significant attention, reflected in the betting odds on prediction markets like Polymarket, where he is currently favored to […]
In a landmark case brought by the US Department of Justice (DOJ), two individuals have been convicted of manipulating the price of a crypto asset deemed a “security” and allegedly conspiring to defraud investors by purchasing Hydrogen Technology’s HYDRO cryptocurrency. The federal jury’s verdict resulted in significant prison terms for the defendants and established a crucial […]
Florida Congressman Matt Gaetz has ignited a fresh debate on the intersection of cryptocurrency and traditional finance. This week, Gaetz introduced a bill proposing Bitcoin (BTC) as a legitimate payment method for federal income taxes in the United States. The proposal aims to usher in a new era of tax efficiency and technological leadership for […]
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The short-term trends look a bit shaky for the cryptocurrency market and the potential for a breather keeps lingering. After sailing in the red zone, Bitcoin has now drifted to the green zone, trading above the $61,500 levels. Analyst’s Perspective on Price Range Analyst Josh of Crypto World said that Bitcoin has been stuck in …
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On Crypto Banter’s The Sniper Trading Show, the analyst opened up about the short-term outlook for Bitcoin. He said that the coin may aim for the $62,000 to $63,000 range, and any break above $62,000 could push it towards $65,000. Closing above these levels this week would be a strong sign. However, there’s also a …
In a significant development for the crypto industry, Republican Congressman Matt Gaetz is set to introduce a new bill allowing federal income tax payments to be made using Bitcoin (BTC). Gaetz believes that by allowing taxpayers to utilize Bitcoin for their federal tax obligations, the country can foster innovation, enhance efficiency, and provide greater flexibility […]
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Jonah Van Bourg, former oil derivatives trader at Goldman Sachs and Vitol and crypto and precious metals trader at DRW, recently shared why he is confident in his contrarian view on altcoins. He proposed a systematic strategy: buy an index of the top thousand altcoins, market cap-weighted, when Bitcoin has been in a bull market …
Recent insights from a survey conducted by Nomura Holdings and Laser Digital Holdings shed light on the evolving attitudes of Japanese institutional investors towards cryptocurrency. The survey, which included responses from 547 investment managers across various sectors such as family offices and public interest corporations, suggested a big embrace of cryptocurrency from these respective fields. […]
The Solana bearish price action might be coming to a close, as many cryptocurrencies have started to show mixed price action in the past 24 hours. Dialing the price action further back shows Solana has been mostly bearish and has been on a price decline since the beginning of the month. Notably, the crypto recently reached a 30-day low of $123.96, representing a 29% decline from a monthly high of $174.65. However, some proponents remain undeterred and are still looking forward to a bullish Solana on the long run. Particularly, an interesting prediction from crypto analyst Crypto Patel puts the price of Solana rising to $1,000 in the long term. Solana To $1000? Crypto Patel, mostly known for his Bitcoin takes, recently dropped a brief analysis on social media platform X regarding Solana’s price trajectory. According to his Solana/TetherUS 1 week timeframe chart, Solana’s price formation on the long-term seems to lead up to a surge towards $1,000. Notably, the chart shows the formation of a giant cup and handle pattern, which is generally considered a bullish pattern. Related Reading: Analysts Battle Over Cardano’s Next Move: 12,000% Rally Or 50% Crash? Solana has been on a U-formation since 2022, with a recent six-month surge since October 2023 completing the other side of the U cup. However, the pattern shows a prevailing neck line resistance around SOL’s current all-time high of $259, leading to the start of the handle pattern. According to the technical analysis, this handle pattern is expected to be completed sometime around late 2025. Following its completion, Solana will have the opportunity to break through this neckline resistance at some point in 2026, which would initiate a surge to new all-time highs. The first price target is around $430, and the second is just above $1,000, representing gains of 220% and 640%, respectively, from the current price levels. As explained above, the analyst’s technical analysis is more of a long-term outlook than on a short-term price prediction. This serves more as a strategic roadmap for the next few years. Related Reading: SkyBridge Capital’s Scaramucci Says Bitcoin Will Reach $250,000 Is This US Presidential Candidate Wins It’s important to note that while Crypto Patel’s final SOL price target might be ultra-bullish, the path to attaining it looks very tough. Surprisingly, the analysis suggests that Solana could fall to as low as $46 during the formation of the handle pattern, a price that might not resonate well with Solana bulls. At the time of writing, Solana is trading at $136 and is 9% in the past 24 hours as the bulls look to undo a month long price decline. According to price history, investors can look forward to Solana kickstarting a bullish price action in July. This is because Solana has registered price increases in July for the past six years. Featured image created with Dall.E, chart from Tradingview.com
In a significant development for the cryptocurrency market, asset managers are eagerly preparing for the launch of new spot Ethereum ETFs, pending approval from the US Securities and Exchange Commission (SEC). Bitwise Chief Investment Officer (CIO) Matt Hougan has weighed in on the potential of these ETFs, predicting substantial inflows into the regulated market within the first months of trading. Market Data Suggests $15B Demand For Spot Ethereum ETFs Hougan’s projections are based on a thorough analysis of available data. He emphasizes that there is no need for speculation when estimating the demand for spot Ethereum ETFs. Instead, Hougan points to the existing market data to support his forecast of $15 billion in net inflows during the initial 18-month period. To arrive at this estimate, Hougan compares the relative market capitalizations of Bitcoin (BTC) and Ethereum (ETH). As a starting point, he expects investors to allocate to Bitcoin and Ethereum exchange-traded products (ETPs) roughly in proportion to their market capitalizations. Related Reading: 10x Your Crypto Portfolio: Top Analyst Highlights 4 Altcoins To Buy Bitcoin’s market cap currently stands at $1,266 billion, representing 74% of the combined market, while Ethereum’s market cap is $432 billion, accounting for 26% of the combined market. Considering US investors already have around $56 billion invested in spot Bitcoin ETPs, Hougan anticipates reaching $100 billion or more by the end of 2025 as these ETFs mature and gain approval on prominent platforms such as Morgan Stanley and Merrill Lynch. Using this $100 billion benchmark, he suggests that spot Ethereum ETFs would need to attract $35 billion in assets to achieve parity, which he estimates will take approximately 18 months. However, Hougan acknowledges that the actual inflows may differ due to various factors. For instance, the Grayscale Ethereum Trust (ETHE) is expected to convert to an ETP on the launch day, bringing along $10 billion in assets. Factoring this in, the estimated net inflows to reach parity would be around $25 billion. Analysis Of International ETF Markets To validate his estimates, Hougan looks at international ETF markets, particularly Europe and Canada, which already offer Bitcoin and Ethereum ETFs. The asset split between the two cryptocurrencies in these markets is similar, according to Hougan, with Bitcoin ETPs accounting for approximately 78% and Ethereum ETPs representing around 22% of the total Assets Under Management (AUM). This alignment with market cap breakdowns strengthens Hougan’s earlier estimate. Hougan also considers the potential impact of the “carry trade” on Bitcoin and Ethereum ETP markets. While a significant fraction of US Bitcoin ETP flows are linked to the carry trade strategy, he highlights that the Ethereum ETP carry trade is not profitable for institutions. To maintain a conservative estimate, Hougan removes the $10 billion carry-trade-related AUM when sizing the Bitcoin market, leading to a revised estimate of $15 billion in net inflows for Ethereum ETPs. Related Reading: Analysts Battle Over Cardano’s Next Move: 12,000% Rally Or 50% Crash? In sum, Hougan believes that while there are several factors to consider and potential adjustments to the model, a starting point of $15 billion in net new demand for spot Ethereum ETFs within the next 18 months is a reasonable projection. At the time of writing, ETH was trading at $3,405, up nearly 3% in the past 24 hours, after hitting a low of $3,230 on Monday. Featured image from DALL-E, chart from TradingView.com
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The cryptocurrency market continues to display a bearish price action with the market leader, Bitcoin price hovering close to its $60,000 mark with a 24-hour low of $58,601.70. Reportedly, the BTC coin has recorded a correction of 5.54% within the past seven days. On the other hand, the altcoin leader, Ethereum price, has failed to …
In a chilling display of digital deception, a sophisticated deepfake scam featuring an uncanny likeness of Elon Musk recently duped thousands of cryptocurrency enthusiasts. Over the weekend, YouTube hosted a five-hour livestream where an AI-generated Musk announced a “revolutionary” Tesla event alongside a “generous cryptocurrency giveaway.” Related Reading: Bitcoin On Her List: Suriname’s Presidential Hopeful […]
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Billionaire Marc Cuban’s Ethereum wallet, “markcuban.eth,” has been actively leaping upwards, selling 14 NFTs for $38,500 and listing two more worth $66,000. After being inactive for almost two years, Cuban’s wallet witnessed activity on June 23, and dumped multiple NFTs like Pudgy Penguins and Wrapped MoonCats. The former had the highest sale for $30,578. However, …
Crypto analysts have given varying opinions on the Cardano (ADA) future trajectory. One analyst predicts that the crypto token could enjoy an unprecedented price rally. On the other hand, another analyst holds a bearish view and predicts that Cardano could experience a significant price crash. Cardano To Enjoy A 12,000% Rally In a post on Tradingview, crypto analyst Fiery Trading raised the possibility of Cardano rising to as high as $40 and even higher. The analyst highlighted a parallel channel and noted that Cardano could reach the top of this channel in the coming bull run, which would cause the crypto token to rise to $40. Related Reading: SkyBridge Capital’s Scaramucci Says Bitcoin Will Reach $250,000 Is This US Presidential Candidate Wins Fiery Trading admitted that Cardano rising to $40 is not a “likely outcome” but claimed that the risk-reward ratio is worth the risk. He added that Cardano’s current price is the “entry of a lifetime” and advised crypto investors not to miss out on it. In another post, Fiery Trading again hammered on Cardano’s current price level as an entry of a lifetime. He claimed that this entry is a “no-brainer” as long as Cardano keeps trading within that channel. Meanwhile, the crypto analyst highlighted more conservative price targets, pointing out $25 as another price level Cardano could reach, while he mentioned $3 as a target for “more defensive traders.” ADA Could Drop To As Low As $0.24 Crypto analyst Swallow Premium gave a bearish outlook for ADA. He noted that the crypto token has finally broken the liquidity zone at around $0.40 and now risks dropping to as low as $0.24. The crypto analyst predicted that Cardano could drop to that price level within a week or two. However, crypto analyst Sebastian suggested that Cardano might not drop below its current price range. He stated that the dump was over and that Cardano and the broader crypto market should enjoy a bounce from their current price level. He noted that the magnitude of the bounce will determine whether or not there may be more downside for ADA. The crypto analyst further stated that the next move the market should look forward to is seeing higher lows and higher highs. He claimed that the next target for Cardano is $0.40 and that the crypto token needs to rise above it and stay there. Related Reading: Shiba Inu Enters Accumulation Zone Amid 493% In Shibarium Transaction Fees Crypto analyst Trend Rider also noted that there are “quite a few bounce signals” on Cardano’s daily chart. He stated that Bitcoin needs to stop bleeding for ADA to recover. Bitcoin’s recent drop below $60,000 contributed to the significant declines that altcoins like Cardano experienced. At the time of writing, Cardano is trading at around $0.38, up almost 4% in the last 24 hours according to data from CoinMarketCap. Featured image created with Dall.E, chart from Tradingview.com
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Bitcoin’s recent downtrend and declining transaction volumes have sparked speculation among analysts about the impending altcoin season. Turning to the current state of the crypto market, analyst Altcoin Buzz noted Bitcoin’s struggle to hold support around $60,000. Santiment’s observation of heightened fear among traders despite Bitcoin’s recent price range between $65,000 and $66,000 was also …
The altcoin market is experiencing an early “crypto winter” as initial investors and founders of various projects sell off their tokens. According to a recent Bloomberg report, this decline can be attributed to a combination of factors, including the unlocking of tokens held by venture capitalists (VCs) and founders, as well as the selling pressure caused by the correlation between altcoins and major network tokens. Altcoin Market Hit By Token Unlock Wave As the crypto market recovered from the prolonged decline of two years ago, many projects’ tokens have reached their unlock dates this year. Per the report, venture capitalists and founders who received these tokens in exchange for investments or work contributions now have the opportunity to sell them. Out of the 138 tokens tracked by researcher TokenUnlocks, 120 have scheduled for this year, with a combined market value of approximately $58 billion. This anticipated selling from unlocking VCs has led to downside price reflexivity as non-VC holders attempt to front-run the selling pressure, often resulting in steep discounts to spot prices. Related Reading: Bitcoin Price Crashes Below $61,000: The Main Reasons The price performance of altcoins such as DYDX, Avalanche (AVAX), and Pyth (PYTH) has been significantly impacted by token unlocks. DYDX’s token price has more than cut in half since mid-March, while AVAX and PYTH have also seen significant declines. These three tokens had unlocks scheduled for May, adding to the selling pressure. Token unlocks, which had previously helped drive 2023 prices, are now receiving more attention from both VCs and public participants, prioritizing short-term profits over long-term holdings for altcoins with unlocks. Liquidity Crisis? Notably, since March 14, when Bitcoin (BTC) reached an all-time high of $73,700, only 12 out of the top 90 non-stablecoin assets tracked on centralized exchanges (CEXs) have posted positive returns, while 81 have recorded negative returns, according to the report. Bitcoin has dropped around 12% since its peak, and most of the top 100 tokens have declined by more than 25%. The smaller altcoins, including those correlated with major network tokens like Ethereum (ETH) and Solana (SOL), tend to be sold off first when there is a decline. The unlocking of tokens exacerbates this selling pressure, further impacting the altcoin market. Related Reading: Toncoin On Fire: Crypto Explodes To All-Time High – Can It Hit $10? According to Bloomberg, the current market presents challenges for infrastructure projects funded during the bear market phase. While these projects launch their tokens, there is limited demand from “regular buyers” at high prices. The altcoin market is currently characterized by a lack of liquidity and a surplus of tokens being unlocked, leading to downward pressure on prices. Featured image from DALL-E, chart from TradingView.com
The Bitcoin price has experienced a significant correction after failing to consolidate above the $70,000 level and retesting its all-time high of $73,700, which it reached in March. With a retracement of nearly 10% over the past week, BTC is now trading just above support at the $60,000 level. However, based on historical data, further price drops may be expected in the coming days, aligning with patterns observed before explosive bull runs. Bitcoin Price Analysis Crypto analyst Rekt Capital has compiled data showing the depth and length of retracements during previous market cycles. Historical patterns show retracements of approximately -23% (February 2023), -21% (April/May 2023), -22% (July/September 2023), -21% (January 2024), -23.6% (April/May 2024), and the current -16% retracement. Related Reading: Solana Developer Shares “Big News” That Could Send The SOL Price Flying Notably, the current retracement has not yet reached the average depth or length. Considering these statistics, Bitcoin could potentially retrace a further 6% to a trading price of $56,400. Additionally, the downtrend may continue for the next seven days until July 1st, possibly marking the final retrace below the sub $60,000 levels before a potential restart of the bull run and explosive price gains. However, the Bitcoin Crosby Ratio, a key indicator, is approaching the oversold territory. Throughout Bitcoin’s history, this has often signaled crucial reversal points for the cryptocurrency. Notably, the last time this occurred, Bitcoin rallied over 190% from approximately $25,000 to new all-time highs above $73,000. Furthermore, the Bitcoin daily Relative Strength Index (RSI) has entered the oversold zone for the fourth time since the $15,500 bottom reached in November 2022. In the past, such occurrences have frequently preceded rallies, resulting in gains of over 100%. Time To Buy The Dip? Renowned market expert Ali Martinez has identified a compelling correlation between Bitcoin’s market value to realized value (MVRV) Ratio and subsequent price jumps. The MVRV Ratio is a metric that compares the market capitalization of Bitcoin to the realized value of its coins. It provides insights into whether Bitcoin holders are at a profit or loss based on when they acquired their coins. Related Reading: Solana Slides 13% – Can It Recover Despite Analyst’s $1,000 Prediction? When the MVRV Ratio dips into negative territory, it suggests that many Bitcoin holders are in unrealized losses, potentially indicating an attractive buying opportunity. Analyzing the historical data, Martinez observed a consistent pattern where Bitcoin’s price experienced notable jumps following MVRV Ratio dips below -8.40%. On four occasions, these dips were followed by price surges of 63%, 100%, 92%, and 28%, respectively. These findings indicate that periods of negative MVRV Ratios can indicate strong market support and a subsequent bullish trend. Featured image from DALL-E, chart from TradingView.com
The Solana price has experienced a sharp decline over the past month in line with the broader market correction, intensifying concerns as rumors of a potential investigation into the popular blockchain platform have recently surfaced. Regulatory Storm Brewing? In a social media post on X (formerly Twitter), market expert Crypto Bitlord, who has a considerable following of over 300,000 people, hinted at a rumored investigation into Solana. The post read: We are hearing rumors that SOL is under investigation and a huge case is about to be made public. This has been brewing for weeks and couldn’t come at a worse time. Related Reading: Bitcoin Price Crashes Below $61,000: The Main Reasons While no specific details about the jurisdiction or agency conducting the alleged investigation into Solana have been disclosed, the United States has been at the forefront of an ongoing crackdown on the cryptocurrency industry since the collapse of the FTX crypto exchange in late 2022. The aftermath of the FTX incident resulted in a series of lawsuits and charges against various industry executives. Notable figures like Binance’s former CEO Changpeng Zhao (CZ) and Coinbase have faced legal scrutiny. A comparable scenario can be drawn with XRP and Ripple, as they have been engaged in a complex legal showdown over the sale of the digital asset. For Crypto Bitlord, who has contributed to projects such as Shiba Inu (SHIB), Floki Inu (FLOKI), and Pepe Coin (PEPE), the potential impact on the Solana price is significant. In response to skeptical comments, Bitlord warned, “Don’t cry when SOL is $3 again.” However, until further news emerges regarding the alleged investigation, these statements remain speculative. Solana’s founders have made no official statements regarding these rumors. Solana Price Analysis The Solana price has experienced significant losses across various time frames, with declines of over 9%, 18%, and 22% in the past seven, fourteen, and thirty days, respectively. However, despite the downward trend, trading volume for SOL has remained robust, surpassing $2.8 billion in the past 24 hours alone, according to CoinGecko data. Digital asset investment firm CoinShares reported notable inflows into various altcoins following the recent price weakness, with Solana seeing inflows of over $2.7 million. This suggests that despite the price decline, some investors see potential value in SOL and are strategically entering the market. Related Reading: Toncoin On Fire: Crypto Explodes To All-Time High – Can It Hit $10? Nevertheless, the Solana price faces a critical test as it approaches crucial support levels. Currently, SOL is trading just above a four-month support level at $127, which marked the uptrend when the Solana price reached a yearly peak of $210 in mid-March. If selling pressure intensifies and this support is broken, SOL could retrace down to $117, representing the token’s next significant mid-term support level. Other support walls for SOL in the event of a sustained bearish move are at the $109 and $102 levels. These levels should be watched closely by bullish investors looking to prevent Solana from falling below $100. Featured image from DALL-E, chart from TradingView.com