Bitcoin supply on exchanges has hit a new low for the first time in six years, providing a bullish outlook for BTC. This comes as the flagship crypto continues to hit new all-time highs (ATHs), with the $130,000 target now in sight. Bitcoin Supply On Exchanges Hit Six-Year Low Glassnode data shows that the Bitcoin supply on exchanges has fallen to a six-year low of around 2.8 million BTC. The last time the BTC balance on exchanges was this low was in June 2019, when the flagship crypto was trading at around $8,745. This development confirms that investors are accumulating Bitcoin at an unprecedented pace. CryptoQuant data also confirms this development, with the Bitcoin exchange reserve currently at 2.5 million BTC, even lower than what is shown on Glassnode’s dashboard. This is bullish for the BTC price, as such massive demand usually precedes a major supply squeeze. Notably, this comes amid an increased demand from institutional investors, with the BTC ETFs recording $3.2 billion in weekly inflows last week, their second-largest since their launch last year. Related Reading: Bitcoin Price Still On Track To Hit $165,000, JPMorgan Analysts Reveal Timeline This comes as institutional investors move to Bitcoin as a safe-haven asset as part of the debasement trade during this period of uncertainty caused by the U.S. government shutdown. Thanks to the increased demand, BTC is already up 9% to start this month and rallied to multiple all-time highs amid the ‘Uptober’ rally. The Bitcoin price topped $126,000 for the first time ever yesterday and now looks on course to test the $130,000 milestone. With the massive demand from the BTC ETFs, there is the belief that the flagship crypto could hit this milestone this month. SoSo Value data shows that these funds took in $1.19 billion in net inflows yesterday, their highest daily inflow this year. BTC Could Break Above $130,000 Crypto analyst Titan of Crypto has suggested that Bitcoin is on track to make a new all-time high (ATH) above $130,000. He noted that BTC is testing the same trendline that rejected it a few weeks ago. However, this time around, the weekly MACD is crossing bullish, which could spark the rally above $130,000. His accompanying chart showed that a rally to as high as $140,000 was a possibility if the flagship crypto flips $130,000 into support. Related Reading: Bitcoin’s 2021 Playbook Shows The Final Price Target For This Bull Cycle Crypto analyst Mikybull Crypto also noted that Bitcoin is currently facing resistance around its current price level, making it a key level to watch. He added that a meaningful breakout above this level will send BTC to between $136,000 and $150,000. At the time of writing, the Bitcoin price is trading at around $124,500, up in the last 24 hours, according to data from CoinMarketCap. Featured image from Getty Images, chart from Tradingview.com
The world’s largest asset manager, BlackRock, has notably been on a Bitcoin selling spree throughout this week, triggering a wave of sell-offs in the process. These sales have occurred due to the outflows that the asset manager has witnessed from its BTC ETF. BlackRock Dumps Around $500 Million In Bitcoin Arkham data shows that BlackRock has offloaded around $500 million in Bitcoin this week, with transfers to Coinbase, a move that indicates a move to sell these coins. The asset manager has sold these coins following outflows from its iShares Bitcoin ETF, which was the norm throughout this week. Related Reading: BlackRock’s Crypto Holdings Balloon As Bitcoin, Ethereum Reach For New ATHs — Here Are The Numbers SoSo Value data shows that BlackRock’s Bitcoin ETF first recorded a daily net outflow of $68.72 million on August 18. The fund then further saw net outflows of $220 million, $127.49 million, and $198.81 million on August 20, 21, and 22, respectively. Notably, the iShares Bitcoin ETF has accounted for most of the outflows, with the BTC ETFs as a group currently on a six-day streak of consecutive net outflows. These Bitcoin ETFs have seen total net outflows of almost $1.2 billion since August 15. Meanwhile, in just this week alone, over $1.1 billion has left these funds, sparking a bearish sentiment for the BTC price. Given BlackRock’s position as a major player in the Bitcoin ecosystem, outflows from its fund had sparked a wave of sell-offs. This led to a massive decline for the flagship crypto earlier in the week. The Bitcoin price had dropped to as low as $112,000 this week as BlackRock and other BTC investors took profit on their investments. This followed the flagship crypto’s rally to a new all-time high (ATH) of $124,000 last week. However, BTC has now sharply rebounded on the back of Jerome Powell’s Jackson Hole speech, in which he indicated that a rate cut might happen in September. An End To The BTC ETF Outflow Streak Notably, Powell’s speech was enough to spark fresh inflows into the Bitcoin ETFs on August 22, with BlackRock the only fund manager that recorded a net outflow on the day. Further data from SoSo Value shows that Cathie Wood’s Ark Invest recorded a daily inflow of $65.47 million, the most among the issuers on the day. Related Reading: Analyst Warns Investors To Avoid Bitcoin At All Cost As Price Is Going Below $60,000 Meanwhile, Fidelity, Van Eck, Franklin Templeton, Bitwise, and Grayscale recorded inflows of $50.88 million, $26.41 million, $13.51 million, $12.70 million, and $6.42 million, respectively. However, BlackRock recorded an outflow of $198.81 million, which led to a daily net outflow of $23.15 million for the funds as a group. With the Bitcoin price rebounding, these funds, including BlackRock’s IBIT, could return to witnessing significant daily inflows from next week. At the time of writing, the Bitcoin price is trading at around $115,900, up over 2% in the last 24 hours, according to data from CoinMarketCap. Featured image from Pixabay, chart from Tradingview.com
Up to $2 billion in long positions face liquidation amid this Ethereum price crash. These positions would get liquidated if ETH drops to $4,200. Meanwhile, the ongoing wave of sell-offs puts the largest altcoin by market cap at risk of dropping to this level. $2 Billion In Liquidations On The Horizon Amid Ethereum Price Crash Coinglass data shows that $2 billion in ETH long positions are at risk of being wiped out on exchanges if the Ethereum price drops to $4,200. The liquidation heatmap shows that there is a massive cluster waiting to be triggered. Therefore, further declines to the downside could trigger a wave of forced selling even as traders rush to close their positions. Related Reading: Ethereum 4-Week Trend Shows When It Is Time To Sell Everything However, a positive for the Ethereum price is the fact that more traders are currently short than long. As such, market makers could hunt for liquidity at higher levels up to $4,500, where $2.8 billion in short positions could be wiped out if ETH reaches there. Market commentator Zerohedge also highlighted how the net ETH shorts are at new highs on the CME. Based on this, he remarked that these short traders are “generously providing liquidity into the new all time highs.” Notably, these shorts were at new highs back when ETH broke above $4,000 earlier this month. Meanwhile, ETH continues to see massive demand from the Ethereum treasury companies. The largest ETH treasury company, BitMine, yesterday announced that over the past week, it increased its ETH holdings by $1.7 billion to $6.6 billion. In the process, it added over 373,000 coins, increasing the total from 1.15 million to 1.52 million coins. Such purchases put massive buying pressure on ETH, which is bullish for the Ethereum price. Sell Pressure From ETFs And Whales It is worth noting that the Ethereum price is currently facing selling pressure from the ETH ETFs and some whales, which can be bearish for the altcoin in the near term. SoSo Value data shows that these funds recorded a net outflow of $196.62 million on August 18. BlackRock’s ETHA, the largest ETH ETF, saw a net outflow of $87.16 million. Related Reading: Pundit Predicts ‘Near Term’ Bitcoin And Ethereum Prices, There’s Still Room To Run This marked the second consecutive daily net outflows for the Ethereum ETFs. These funds had recorded an outflow of $59.34 million on August 15. Meanwhile, on-chain analytics platform Lookonchain revealed that whales like Longling Capital are offloading ETH. Longling Capital sold 5,000 ETH today, locking in profits. A whale that has been dormant for a year has also begun selling and has sold 3,075 ETH so far. At the time of writing, the Ethereum price is trading at around $4,230, down in the last 24 hours, according to data from CoinMarketCap. Featured image from Getty Images, chart from Tradingview.com
The Spot Ethereum ETFs have recorded significant outflows recently, sparking a bearish sentiment for the ETH price. These outflows also come at a time when the altcoin has dropped from a six-month high of $3,900 and looks to retest the psychological $3,000 level. Ethereum ETFs See Record Outflows Putting The ETH Price At Risk SoSo Value data shows that the Ethereum ETFs recorded a net outflow of $465.06 million on August 4, their largest outflow since they launched last year. These funds also recorded a net outflow of $152.26 million on August 1, which was the first net outflow after 20 consecutive days of net inflows. Related Reading: Ethereum Exchange Reserves Just Hit A New 9-Year Low Amid Treasury Accumulations These outflows from the Spot Ethereum ETFs indicate a wave of profit-taking, especially considering that the ETH price had rallied to a six-month high of $3,900 last month. Outflows from these funds are bearish for ETH as they can add selling pressure, with fund issuers selling coins to redeem shares. However, a positive is that these net outflows from the Spot Ethereum ETFs have been short-lived. Further data from SoSo Value shows that these funds recorded net inflows of $73.22 million and $35.12 million on August 5 and 6, respectively. This coincides with the rebound in the ETH price, which hit the $3,700 level in the last 24 hours. Another streak of consecutive net inflows for the Spot Ethereum ETFs could spark another uptrend for the ETH price. Moreover, the Ethereum treasury companies like BitMine, SharpLink, and the Ether Machine continue to create massive demand for ETH as they expand their treasuries. BitMine’s Ethereum holdings topped 833,000 ETH this week, making it the largest ETH treasury in the world. Will the ETH Price Crash Below $3,000? BitMEX co-founder Arthur Hayes has predicted that the ETH price could at least retest the $3,000 level. He highlighted the Trump tariffs, which take effect today, as one of the reasons that he holds this bearish sentiment towards Ethereum. The crypto founder also indicated that there isn’t enough liquidity in the market currently to boost crypto prices. Related Reading: Pundit Says Ethereum Price Is Headed For $9,000 After This Broadening Wedge Retest However, from a technical analysis perspective, crypto analyst Titan of Crypto has predicted that the ETH price is likely to continue its uptrend soon enough and avoid a drop to $3,000. In an X post, he highlighted a Bull Pennant pattern, which puts $5,000 in sight for ETH. The analyst remarked that this pattern is shaping up on Ethereum and that if it confirms, then the technical target stands at $5,000. At the time of writing, the Ethereum price is trading at around $3,680, up almost 2% in the last 24 hours, according to data from CoinMarketCap. Featured image from Getty Images, chart from Tradingview.com