The price of Bitcoin has maintained a consistent decline over the past week following several economic and market developments. According to data from CoinMarketCap, the premier cryptocurrency currently hovers around the $60,000 price zone, having lost over 11.17% of its market value in the last seven days. As many crypto enthusiasts may hope Bitcoin finds some stability soon, CryptoQuant analyst abramchat has predicted a reverse scenario, indicating the crypto market leader may experience more losses in the coming days. Related Reading: Wondering When To Buy Bitcoin? Here Are The Levels To Watch Bitcoin Price Far From Recovery? In a Quicktake post on CryptoQuant, abramchat stated that amidst the recent market downturn, Bitcoin has now lost a vital short-term support at the $64,580 price mark, which represents the average price at which investors have purchased Bitcoin over the last six months. Such development implies that the average investor is likely currently underwater which can lead to an increased selling pressure in a cut their losses or avoid further losses. According to abramchat, Bitcoin’s recent price fall can be attributed to economic and political news which have negatively impacted several financial markets prominently the stock market which recorded significant losses on Thursday and Friday. Bitcoin’s price drop is also likely influenced by defunct crypto lender Genesis finally commencing repayments to creditors after declaring bankruptcy in January 2023. On Friday, Genesis transferred out $1.5 billion in Ethereum and Bitcoin as they aim to offload $4 billion in debt. Commenting on Bitcoin’s future price trajectory, abramchart states that the failure of the digital asset to reclaim the support level of $64,580 will likely result in a further decline to around $53,000 – $54,000 which represents the next significant support zone. However, such low price levels were recently seen in early July, following the massive market sell-off by the German government. In addition, abramchart has warned investors to be cautious in purchasing altcoins at the moment. The analyst believes the current market “negativity” could produce a significant deleterious effect on other coins aside from Bitcoin. Related Reading: XRP, Bitcoin Sentiment Remains Very Positive: Bad Sign For Price? BTC Price Overview At the time of writing, Bitcoin trades at $60,597 following a 1.20% decline in the last day. Notably, the premier cryptocurrency dipped below the $60,000 mark on Saturday for the first time since mid-July. Currently, Bitcoin’s daily trading volume is also down by 24.45%, indicating a low level of interest due to diminished buying and selling activities. However, with a market cap of $1.19 trillion, Bitcoin remains the largest digital asset and the 9th largest global financial asset. Featured image from Shutterstock, chart from Tradingview
Ethereum whales also known as major investors are gradually returning to the market following recent positive developments around ETH, which demonstrates renewed optimism among institutional and retail investors around the crypto asset. Current data shows that the whales have amassed 426,000 ETH in light of rising excitement over the introduction of spot Ethereum Exchange-Traded Funds […]
Ethereum (ETH) recorded a significant loss in price this week following the trading debut of Ethereum spot ETFs. According to data from CoinMarketCap, ETH has declined by 6.60% in the last seven days, falling as low as $3,100. However, amidst this price crash, CryptoQuant analyst burakkesmeci has made an important observation with a potential impact on market movement. Related Reading: Ethereum Targets Recovery: Can It Mirror Bitcoin’s Performance? Ethereum Open Interest Surges By $1.5 Billion In Three Weeks In a Quicktake post on CryptoQuant, burrakesmeci shared that the Open Interest (OI) on Ethereum has risen by a remarkable $1.5 billion in the past three weeks. For context, Open Interest refers to the total number of outstanding positions for a particular asset. Generally, an increase in Open Interest indicates a rise in market participation for any asset i.e., more traders are opening long or short positions on Ethereum. With this rise in open positions, there is likely an equal increase in the number of leverage trades. Burakkesmeci expressed that a surge in liquidations should also be expected as leveraged trades, which are open with borrowed funds, are always closed once an insufficient price margin occurs. Furthermore, This increase in leverage trading liquidations is expected to produce a high market volatility, resulting in unpredictable and rapid price movements. In regards to price action, a rise in Open Interest indicates the current market trend is gaining stronger. Therefore, despite Ethereum’s price dip in the last week, the prominent altcoin is likely to extend its 7.01% gain of the past three weeks in the coming months. At the time of writing, Ethereum presently trades at $3,278.80 with a 3.46% increase in the last 24 hours. The altcoin appears to be attempting a market recovery with a strong resistance expected at the $3,500 region. However, if the current buying pressure proves insufficient to break past this barrier, Ethereum could return to the $3,100 price mark or even slide as low as $2,900. Related Reading: Ethereum Whales Rapidly Accumulate ETH Amid Price Decline Ethereum Spot ETFs Net Outflows Reach $469 Million In another development, the newly launched Ethereum Spot ETF market has now recorded a cumulative outflow of $469.83 million in its first three days of trading. Data from Farside Investors identifies Grayscale’s ETHE with a total outflow of $1.51 billion as the major cause of this current market position. Meanwhile, BlackRock’s ETHA continues to lead the market with inflows worth $354.8 million, followed closely by Bitwise’s ETHW with $265.9 million. Like their Bitcoin counterparts, the debut of the Ethereum spot ETF has been accompanied by a significant price drop. However, it remains uncertain whether these Ethereum ETFs will eventually trigger a price surge akin to the one experienced in the Bitcoin market during the initial two months of BTC Spot ETF trading. Featured image from Investopedia, chart from Tradingview.com
Bitcoin is seeing a reduction in selling pressure from large investors as its price continues to hold above $67,000.
The Mt. Gox distribution will not end the bullish trend, CryptoQuant CEO noted.
Famous crypto enthusiast and founder of Tron DAO, Justin Sun has revealed the main focus for the Tron ecosystem for the third and fourth quarters of the year in the midst of recent heightened optimism witnessed around the ecosystem. Main Focus For The Tron Ecosystem In The Second Half Of The Year During the weekend […]
According to the latest on-chain observation, the Bitcoin traders’ realized losses have reached a level that has proven critical to the coin’s movement multiple times in recent years. This begs the question — is the Bitcoin price bottoming out? Traders’ Realized Losses Below -12 Again — What Happened Last Time? In a recent post on […]
According to the latest on-chain observation, gas fees on the Ethereum network have fallen to their lowest level in nearly two months. How will this impact the price of ETH? Ethereum Network Activity Wanes Ahead Of Spot ETF In a new Quicktake post, a pseudonymous analyst revealed that the activity on the Ethereum network has […]
The cryptocurrency market has taken an interesting turn in the last few days, with the price of Bitcoin enduring an intense amount of bearish pressure. On Thursday, July 4, the premier cryptocurrency broke below the $60,000 mark, falling as low as $57,000. BTC continued its price descent on Friday, with the market leader traveling down […]
It is no secret that Bitcoin miners are currently experiencing significant financial stress, especially following the completion of the fourth halving event. As a result, these vital network participants are being forced to offload their BTC holdings to offset the increasing operational costs. Interestingly, the latest on-chain data shows that the Bitcoin market is experiencing […]
Recent on-chain data shows that substantial amounts of Bitcoin have made their way to centralized exchanges in the last few days. How could this impact the Bitcoin price? Bitcoin Price To Face Further Selling Pressure? In a new post on the X platform, prominent crypto analyst Ali Martinez revealed that Bitcoin investors have been transferring their assets to centralized exchanges in recent days. The relevant indicator here is CryptoQuant’s Exchange Reserve metric, which tracks the total amount of a particular cryptocurrency held on all exchanges. Related Reading: Shiba Inu Army On The Move: 35 Billion SHIB Invade Shibarium It is worth noting that the value of this metric rises when investors are making more deposits than withdrawals of a cryptocurrency (Bitcoin, in this scenario) into centralized exchanges. Meanwhile, when the metric’s value falls, it means that holders are transferring their assets out of the trading platforms. According to CryotoQuant data, more than 14,000 BTC (valued at approximately $851.2 million) have been sent to crypto exchanges in the last four days. As shown in the chart below, the exchange reserve metric is at its highest level in nearly a month. Typically, an increase in the exchange reserve indicates high selling pressure, as investors often use centralized exchanges to sell assets. Consequently, the movement of huge amounts to trading platforms could exacerbate the downward pressure on the Bitcoin price. Furthermore, the exodus of significant amounts to centralized exchanges could trigger price volatility for the premier cryptocurrency. This would imply an increased likelihood of big price movements in the future. However, there has not been any impact on the Bitcoin price in the past day. As of this writing, the price of the premier cryptocurrency stands at around $60,700, reflecting a bare 0.3% increase in the last 24 hours. Price Rebound Imminent For BTC: Santiment Fortunately, it is not all gloom for the Bitcoin price at the moment. Prominent on-chain analytics platform Santiment has offered a positive outlook for the price of the market leader. According to the blockchain firm, Bitcoin’s recovery following dips in the past two weeks has been short-lived. Santiment believes that a price rebound is imminent for the premier cryptocurrency. The rationale behind this analysis is based on two factors; the recent negative sentiment from the crowd and the low relative strength index (RSI). Santiment said in its post: But note the continued negative sentiment pouring in from the crowd, indicating their patience is wearing thin. This, along with a low RSI of just 36, are strong indications a bounce is close. Related Reading: BlackRock Global Allocation Fund Reveals Major Bitcoin ETF Stake With 43,000 Shares Featured image from iStock, chart from TradingView
Based on on-chain data, the Head of Research at the analytics firm CryptoQuant has explained how Bitcoin has been looking less bullish recently. Bitcoin Bull-Bear Market Cycle Indicator Has Seen A Decline Recently In a new post on X, CryptoQuant Head of Research Julio Moreno shared what the latest trend in the Bitcoin Bull-Bear Market […]
The Bitcoin price performance over the past week failed to bring glory to the crypto market, as the leading cryptocurrency struggled once again. This trend was mirrored across almost all large-cap assets, many of which experienced significant losses. Unfortunately, recent price action data suggests that the Bitcoin price is not safe yet, as there is potential for further downside over the coming days. Is $60,000 The Next Stop? In a new report, blockchain intelligence firm CryptoQuant put forward an interesting prognosis for the price of Bitcoin based on its recent movement. According to the analytics platform, the premier cryptocurrency could be headed for the $60,000 price mark after losing a significant support level. Related Reading: Survival of the Fittest: Here’s How Bitcoin’s Next Rally Hangs on Miner Capitulation On Tuesday, June 18, the Bitcoin price fell below 65,000 for the first time in over a month. The price of BTC didn’t stay beneath this level for too long, as it quickly climbed back to $66,000 by Thursday. However, the premier cryptocurrency succumbed to the bearish pressure, falling as low as $63,500 on Friday, June 21. In its analysis, CryptoQuant postulates that the price of Bitcoin is currently beneath the vital $65,800 level, which is the trader’s on-chain realized price. This price indicator can act as a support level, signaling an impending decline if the BTC price breaks it to the downside. According to CryptoQuant, every time the Bitcoin price crosses beneath the on-chain realized price, it undergoes an 8-12% correction, which explains the $60,000 price target. Interestingly, the waning on-chain metrics of the market leader support this bearish projection. As explained by CryptoQuant, traders’ demand for Bitcoin has continued to decline, as the short-term holders are not purchasing BTC but rather decreasing their holdings. Meanwhile, the demand from large investors (whales) currently lacks the strength often associated with bullish momentum. Furthermore, stablecoin liquidity has been on a steady decline, putting a strain on the Bitcoin bull run. For instance, the 60-day growth in Tether USD’s (USDT) market capitalization has slowed down from $12.6 billion in late April to $3.7 billion as of now — the slowest growth rate since November 2023. Naturally, higher stablecoin liquidity is required to kickstart price rallies in the crypto market. Bitcoin Price At A Glance As of this writing, the Bitcoin price continues to hover around $64,000, with a 1.2% decline in the last 24 hours. In the past two weeks, the premier cryptocurrency has decreased in value by nearly 8%, according to data from CoinGecko. Related Reading: Bitcoin Spot ETFs Effect: Bernstein Analysts Revise BTC Target To $200,000, Here’s When Featured image from iStock, chart from TradingView
On-chain data shows Bitcoin is approaching the “Realized Price” of the short-term holders, a retest of which has historically been important for BTC. Bitcoin Is Close To Seeing A Retest Of Short-Term Holder Cost Basis In a new post on X, CryptoQuant Head of Research Julio Moreno has discussed how BTC has recently been near the Realized Price of the short-term holders. Related Reading: Bitcoin Mining Cost At $86,700: Price To Surpass This Soon? The “Realized Price” here refers to an on-chain indicator that, in short, keeps track of the average price at which investors or addresses on the Bitcoin network acquired their coins. When the cryptocurrency’s spot price is higher than this metric, it means that the average holder in the market is currently sitting on some profits. On the other hand, BTC’s value under the indicator suggests the dominance of losses among the investors. Naturally, when the two are exactly equal, the market as a whole can be assumed to be holding an equal amount of unrealized profits and losses. The holders could collectively be considered just breaking even on their investment. In the context of the current topic, the Realized Price of only a specific part of the sector is of focus: the short-term holders (STHs). The STHs are the investors who bought their coins within the past 155 days. Below is a chart that shows the trend in the Realized Price of the Bitcoin STHs over the past couple of years: The above graph shows that the Bitcoin price is close to the Realized Price of the STHs. This means that the margin is small, although these investors are sitting in profits right now. Thus, it’s possible that if the cryptocurrency continues on its latest bearish trajectory, a retest of the average cost basis of this cohort could be imminent. In the past, such retests have proven relevant for the asset. Moreno has highlighted in the chart the interactions the asset’s spot value has shown with this level during the last two years. It would appear that during two of these retests (marked with green circles), the coin found support at this level and rebounded upwards to continue the bullish momentum. Related Reading: Bitcoin FOMO: Social Media Users Calling To Buy Sub-$66,000 Dip However, in the three other instances (red circles), Bitcoin failed to retest the level and observed a decline. These corrections were from 8% to 12%, and the latest occurrence of the trend was at the end of April/start of May. With another retest possibly approaching for the cryptocurrency, it would be interesting to see which of the two patterns would follow this time around. If a breakdown of the level happens, the analyst notes, “the price could decline to about $60K.” BTC Price At the time of writing, Bitcoin is trading at around $65,400, down over 6% in the past week. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
On-chain data shows that the Bitcoin taker buy/sell ratio has experienced a significant surge on a particular crypto exchange. Here’s how it could impact the price of the premier cryptocurrency. Bitcoin Investors Buying The Dip On This Exchange Prominent crypto pundit Ali Martinez took to the X platform to reveal that investors on a particular […]
The on-chain analytics firm CryptoQuant has explained why Bitcoin and Ethereum have recently appeared to be on a path towards acceleration. Bitcoin & Ethereum Are Looking Bullish In On-Chain Metrics In a new thread on X, the official CryptoQuant handle discussed how some important on-chain indicators are looking for Bitcoin and Ethereum right now. Related Reading: Bitcoin Investors Beware: Extreme Greed Has Returned In Crypto The first two metrics of interest here keep track of the demand from the permanent holders and the whales. First, here are the relevant charts for BTC: As is visible above, demand from the permanent holders, or the HODLers, had been going down after peaking in March, but recently, the metric has seen a turnaround. These investors have added 70,000 BTC to their wallets in the past month. A similar trend has also been witnessed in the whales’ holdings, typically defined as addresses carrying more than 1,000 BTC. According to the analytics firm, the monthly demand from these large investors is up 4.4%. CryptoQuant has also revealed that the sector is experiencing an influx of potentially new capital, as the “new whales” have seen their Realized Cap shoot up recently. The Realized Cap measures the amount of capital a particular investor group uses to purchase their Bitcoin. Thus, the increase in the Realized Cap of the new whales, which are whale entities that have entered within the past 155 days, would represent the fresh demand from large investors coming into BTC. As the charts above showcase, the pattern in this metric has looked similar this year to what was observed back in 2020. The demand that year led to the 2021 bull run. Now, here is what the trend in the permanent holder inflows and whale balance has looked like for Ethereum: As the graphs show, demand for Ethereum from these investor groups has shot up since the spot exchange-traded fund (ETF) approvals last month. The permanent holders are now making inflows of 40,000 ETH per day on average, while whales, the investors holding 10,000 to 100,000 ETH, have increased their holdings to record highs of around 16 million ETH. While signs have been positive for Bitcoin and Ethereum in terms of direct demand, there is a development that may be detrimental to the cryptocurrency sector as a whole. It is the slowdown in the growth of the stablecoins. The chart shows that the Tether (USDT) market cap grew sharply during the rally towards the Bitcoin all-time high. While the largest stablecoin still receives capital injections, its demand has slowed. Related Reading: Shiba Inu, Cardano Seeing Explosive Whale Activity, Santiment Reveals Historically, stablecoins have been one of the gateways for capital into the sector, so consistent demand for them can be required for sustainable rallies. BTC Price At the time of writing, Bitcoin is trading at around $70,200, up more than 4% over the past week. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
The CEO of the on-chain analytics firm CryptoQuant explained that Bitcoin’s price isn’t currently overvalued based on its network fundamentals. Bitcoin Price May Not Be Overvalued Yet Based On Thermo Cap Ratio In a new post on X, CryptoQuant CEO and founder Ki Young Ju has discussed about how the recent trend in the Bitcoin Thermo Cap Ratio has been like. The “Thermo Cap” is a capitalization model for BTC that calculates the total value of the asset by taking each token’s value as the same as the spot price when it was mined on the network. Related Reading: Crypto Analyst Says Bitcoin Will Rise To $79,600 If This Holds Put another way, this model calculates the cumulative value of the coins mined by the miners since the inception of the blockchain. This is quite different from what, for example, the usual market cap does. In the market cap’s case, the current spot price is taken as the value of all coins in circulation. As the coins that miners mine are the only way to increase the cryptocurrency’s supply, the Thermo Cap may be considered a measure of the “true” capital inflows coming into the network. Here is a chart that displays how the Bitcoin Thermo Cap has changed over its history: As the above graph shows, the Thermo Cap has seen an accelerating growth curve. This naturally reflects the increasing amount of capital flowing into the asset over the years. In the context of the current topic, though, the indicator of interest isn’t the Thermo Cap itself but rather the Thermo Cap Ratio. This metric tracks the ratio between the Bitcoin market cap and the Thermo Cap. The chart below shows the trend in the Thermo Cap Ratio over the asset’s history. An interesting pattern is visible in the graph. It appears that very high values of the Thermo Cap Ratio have coincided with highs in the cryptocurrency’s price. Related Reading: Bitcoin Has Solid On-Chain Cushion Below $68,900: Stage Set For Fresh Rally? At high values, the Bitcoin market cap is quite large compared to the Thermo Cap, meaning that coins are trading at a much higher rate than they were mined at. It’s also apparent that bottoms in BTC occur when the ratio assumes low values. The recent trend in the indicator has been that of a rise, but its value has not touched the levels where bull run tops would have happened in the past. “Bitcoin is not currently overvalued based on network fundamentals,” notes the CryptoQuant founder. BTC Price Bitcoin has been unable to break out of its range recently as its price has kept up the trend of sideways movement. At present, BTC is trading at around $68,900. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com
The price of Bitcoin appears to have returned to a choppy market condition, quashing any hopes of a breakout to new highs soon. However, the good news is that the current bull cycle may still not be over, even though it is taking a while for the premier cryptocurrency to resume its upward momentum. Specifically, the latest on-chain observation shows that Bitcoin has been going through a “euphoria wave” over the past few months. Here’s the implication of this phase on the current bull run. How Old Is The Current Bitcoin ‘Euphoria Wave’? Blockchain intelligence firm Glassnode revealed via a post on the X platform that Bitcoin has entered the euphoria phase of the market cycle. This on-chain observation is based on the “Percent Supply in Profit” metric, which measures the percentage of the total circulating Bitcoin supply that is currently in profit. Related Reading: Can BONK Break The Mold? Analyst Predicts Stellar Rise For The Solana Memecoin According to Glassnode, the “Euphoria Wave” is identified as a period during which the supply in profit usually fluctuates around the 90% level. This phase typically lasts between 6 to 12 months and is characterized by increased investor sentiment and heightened market speculation. Glassnode’s data shows that 93.4% of the circulating Bitcoin supply is currently in the green and that the Euphoria Wave is “relatively young”. The on-chain analytics platform noted that the euphoria phase has only been active for about two and a half months. As with every phase in the market cycle, the Euphoria Wave will eventually come to an end at some point. Historically, the euphoria phase can signal tops and is usually followed by a cooling-off period, which is marked by a downturn in the price of Bitcoin. If the last cycle – with a 6-month Euphoria Wave – is anything to go by, then there might still be about three to four months in the current bull run. Ultimately, the current profitability of the premier cryptocurrency may prove pivotal in the duration of its bull cycle and overall future trajectory. Rise Of BTC Accumulation Addresses Continued In May: Analyst One of the tell-tale signs of the bullish sentiment around Bitcoin is the continuous rise in accumulation addresses. According to an on-chain analyst on CryptoQuant’s platform, there has been a notable increase in the number of new BTC accumulation addresses. The analyst pointed out the continuity of this positive trend despite BTC’s relatively slow price action in May. Meanwhile, the large Bitcoin holders have also continued to load their bags, with significant purchases recorded over the past month. Related Reading: Dogecoin Whales Buy $112 Million Worth Of DOGE As Crypto Investors Turn Their Attention To Meme Coins As of this writing, Bitcoin is valued at $67,744, reflecting a mere 0.4% increase in the last 24 hours. According to data from CoinGecko, the pioneer cryptocurrency is up by about 15% in the past month. Featured image from iStock, chart from TradingView
The Bitcoin price has cooled off after surging to as high as $71,000 on the back of the Ethereum ETF approval news last week. Not long after the price spike, the premier cryptocurrency witnessed a correction to $67,000 and appears to be back in a consolidation range. Interestingly, Bitcoin whales seem to be awakening from their slumber, as they have been loading their bags with significant BTC amounts in the past few days. This begs the question – can the returning whales’ appetite push Bitcoin to a new record-high price? Is A Return To All-Time High Imminent? A pseudonymous analyst shared in a CryptoQuant Quicktake post that Bitcoin whales are showing an increased buying appetite and getting active in the market once again. The relevant indicators here are the total whale holdings and a moving average tracking a 30-day percentage change in the balance. Related Reading: Prepare For Impact: Market Expert Says Biggest Disaster In Crypto Yet To Come Whales are entities (individuals or organizations) that own substantial amounts of a cryptocurrency (typically at least 1,000 BTC, in this case). Due to the size of their holdings, whales are often able to influence price movements and market dynamics through their activities. In the Quicktake post, the on-chain analyst noted a recent increase in the monthly percentage change in whale address holdings and a steady rise in the total whale balance. The pseundonymous pundit said: The whales’ appetite for buying Bitcoin has returned strongly, after a two-month decline in buying interest since March. From the chart above, it was observed that the Bitcoin whales had increased their holdings by more than 11% in March when the BTC price hit a new all-time high of $73,737. However, the BTC accumulation rate steadied in April, with the 30-day percentage change falling to around 3% by the end of the month. Bitcoin accumulation appears to be on the rise in May, with the monthly percentage change returning to above 5% as of May 24. The CryptoQuant analyst said in the post: They [whales] are now returning with a strong buying force again, indicating that the current prices are suitable for purchasing and accumulating despite the widespread fear. If the whale accumulation of BTC returns to its March level, there is an increased likelihood of the Bitcoin price returning to and perhaps surpassing its current all-time high. This projection is even more plausible considering that the premier cryptocurrency did forge a new high the last time the whales accumulated BTC at that rate. Bitcoin Price At A Glance As of press time, the price of Bitcoin stands at around $69,216, reflecting a bare 0.8% increase in the past 24 hours. Related Reading: Why Did CORE Price Surge 20% While The Crypto Market Dumped? Featured image from iStock, chart from TradingView
The cryptocurrency market has been on a hot streak in the past few days, with several large-cap assets posting significant gains in the past week. Most notably, the Bitcoin price bounced back from around $61,000 to above $67,000 for the first time in nearly a month. As expected, this latest price movement has sparked a lot of speculation and discussion around the premier cryptocurrency. Popular blockchain analytics firm CryptoQuant has shared on-chain insights into the recent Bitcoin price rally and its future trajectory. How Did Bitcoin Price Reach $67,000? In a recent report, CryptoQuant revealed the catalyst and on-chain manifestations behind BTC’s latest rally to above $67,000. According to the analytics firm, the price of Bitcoin rode to its new highs on the back of the news of lower-than-expected inflation in the United States. Related Reading: Is Dogecoin About to Take Off? Indicators Suggest Upward Momentum Ahead The inflation data released on Wednesday, May 15 showed that the Consumer Price Index (CPI) rose by 0.3% in April – lower than the expected 0.4%. This revelation suggested that inflation might be on a downward slope in the US, making risky assets like Bitcoin more attractive. In its report, CryptoQuant revealed that there has been a decreased selling pressure in the BTC market, as short-term holders are selling at low or negative profits. Meanwhile, Bitcoin balances at over-the-counter (OTC) desks have steadied, implying that fewer coins are entering the open market. What’s more, the analytics platform highlighted a particular on-chain signal that might have predicted the recent Bitcoin price rally. According to CryptoQuant, BTC miners have been extremely underpaid over the past few weeks, which often correlates with price bottoms. The Catalysts For Sustained BTC Rally? CryptoQuant, in its report, identified potential catalysts for a continued rally for the Bitcoin price. According to the on-chain data company, demand from permanent holders and largest investors is on the rise but it needs to climb rapidly to push the price of BTC even higher. Related Reading: Solana Takes The Crown: CoinGecko Ranks It The Best, Leaving Ethereum Behind In Key Metric Furthermore, the latest data shows that Bitcoin ETF (exchange-traded funds) purchases have dwindled to nearly zero daily, while stablecoin liquidity growth is also on a decline. CryptoQuant noted that these two metrics need a jolt, which might be critical for a sustained Bitcoin rally. As of this writing, the Bitcoin price continues to hover around $67,000, reflecting a 2.5% increase in the past 24 hours. According to CoinGecko data, the premier cryptocurrency is up by a significant 10% in the past week. Featured image from iStock, chart from TradingView
The Open Interest in Bitcoin is now 30 times higher than it was 11 days before the 2020 Bitcoin halving.
The price of Ethereum has not exactly lived up to its promise as the month has gone on, despite a stellar start to the month. While this bearish pressure has been widespread in the general cryptocurrency market, regulation uncertainty has been an additional concern for ETH, igniting a negative sentiment around the “king of altcoins.” Interestingly, the latest on-chain revelation shows a substantial amount of Ethereum has made its way to exchanges so far in March, suggesting that investors might be losing confidence in the long-term promise of the cryptocurrency. Are Investors Losing Confidence In Ethereum? According to data from CryptoQuant, more than $913 million has been recorded in net ETH transfers to centralized exchanges so far in March. This on-chain information was revealed via a quicktake post on the data analytics platform. This net fund movement represents the largest volume of Ethereum transferred to centralized exchanges in a single month since June 2022. Even though March is still a week from being over, this exchange inflow appears to be a complete deviation from the pattern observed over the past few months. Chart showing total monthly netflow of ETH on centralized exchanges | Sources: CryptoQuant Related Reading: Dogecoin Whales Go On Massive Buying Spree, Here’s How Much They’ve Bought As shown in the chart above, October 2023 was the last time cryptocurrency exchanges witnessed a positive net flow. It is worth noting that there was significant movement of Ethereum tokens out of the centralized platforms in subsequent months up until this month. Meanwhile, a separate data point that supports the massive exodus of ETH to centralized exchanges has come to light. Popular crypto analyst Ali Martinez revealed on X nearly 420,000 Ethereum tokens (equivalent to $1.47 billion) have been transferred to cryptocurrency exchanges in the past three weeks. The flow of large amounts of cryptocurrency to centralized exchanges is often considered a bearish sign, as it can be an indication that investors may be willing to sell their assets. Ultimately, this can put downward pressure on the cryptocurrency’s price. Substantial fund movements to trading platforms could also represent a shift in investor sentiment. It could be a sign that investors are losing faith in a particular asset (ETH, in this case). Moreover, the recent regulatory headwind surrounding Ethereum specifically accentuates this hypothesis. According to the latest report, the United States Securities and Exchange Commission is considering a probe to classify the ETH token as a security. ETH Price As of this writing, the Ethereum token is valued at $3,343, reflecting a 4% price decline over the past /4 hours. According to data from CoinGecko, ETH is down by 11% in the past week. Related Reading: Bernstein Analysts Says Bitcoin Will Reach A New ATH By Year End, Here’s The Target Ethereum loses the $3,400 level again on the daily timeframe | Source: ETHUSDT chart on TradingView Featured image from Unsplash, chart from TradingView
In line with the decline in Bitcoin’s price, the spot Bitcoin ETF market has appeared rather gloomy in recent days. According to data from analytics firm BitMEX Research, these BTC ETFs have recorded a negative netflow for the last four trading sessions. This situation has been marked by large levels of Grayscale’s GBTC outflows and the record low inflows for the other ETFs, mainly the market leaders BlackRock’s IBIT and Fidelity’s FBTC. However, amidst these persistent declining netflows, Ki Young Ju, a prominent analyst and Chief Executive Officer at Cryptoquant, has predicted a possible resurgence in the spot Bitcoin ETF market. Related Reading: Bitcoin Long-Term Holders & Price Top: Glassnode Reveals Pattern Analyst Pinpoints $56,000 Level As Critical To Bitcoin ETF Recovery In a post on X on March 22, Ki Young Ju shared that a rise in spot Bitcoin ETFs netflows could occur even as the BTC price decline continues. Using data from the historical netflow trends, the analyst noted that demand for Bitcoin ETFs usually kicks in when the cryptocurrency traces to certain support levels. Young Ju stated that, in particular, new BTC whales, especially ETF buyers, have shown to have a $56,000 on-chain cost basis. This suggests that the new significant holders of Bitcoin, particularly those invested in ETFs, usually purchased Bitcoin at an average price of $56,000. Following this trend, the crypto quant boss believes the spot Bitcoin ETF market could experience massive inflows if BTC reached the specified price level. #Bitcoin spot ETF netflows are slowing. Demand may rebound if the $BTC price approaches critical support levels. New whales, mainly ETF buyers, have a $56K on-chain cost basis. Corrections typically entail a max drawdown of around 30% in bull markets, with a max pain of $51K. pic.twitter.com/vZCG4F0Gh5 — Ki Young Ju (@ki_young_ju) March 22, 2024 For now, Bitcoin’s price has oscillated between $62,000 and $68,000, as seen in the last week. However, Young Ju believes that such a descent is quite feasible as price corrections usually see a maximum decline of 30%. Using BTC’s most recent high of $73,750, the analyst predicts the asset price could still trade as low as $51,000. Related Reading: Stablecoins Steal The Spotlight: $150 Billion Market Cap, $122 Billion Daily Trades BTC Price Overview At press time, Bitcoin continues to trade at $64,065.74, representing a decline of 3.73% and 7.17% in the last one and seven days. Meanwhile, the asset’s daily trading volume is down 3.53% and valued at $39.62 billion. Following historical trends of the bull cycle, it is possible that BTC may have reached its price peak leading up to the halving event in April. If that is the case, Bitcoin may likely not return to previous high price levels soon and could experience further price drops in the coming weeks. BTC trading at $64,315.00 on the hourly chart | Source: BTCUSDT chart on Tradingview Featured image from Euronews, chart from Tradingview
Three-quarters of new investment is estimated to come from ETFs as Bitcoin breached the $50,000 mark.
Bitcoin cratered almost 10% below $41,000 early Wednesday around the time Matrixport's report about warning of a spot BTC ETF decline, but it was more likely due to a leverage flush as the market overheated, a K33 analyst said in an interview.