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Tag: Bitcoin ETF

  • Here’s How Much Outflow Grayscale’s GBTC Recorded in the Past 7 Days

    Here’s How Much Outflow Grayscale’s GBTC Recorded in the Past 7 Days

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    The Grayscale Bitcoin Trust (GBTC) has recorded massive outflows since the United States Securities and Exchange Commission (SEC) approved its conversion and listing as a spot Bitcoin exchange-traded fund (ETF). This has led to a significant plunge in its Bitcoin (BTC) stash, and from the look of things, the withdrawals are not slowing down.

    According to data shared by Ki Young Ju, the founder and CEO of on-chain analytics platform CryptoQuant, GBTC’s BTC holdings fell by 15% in the past seven trading days.

    GBTC’s Bitcoin Stash Declines 15%

    A deeper on-chain analysis by Lookonchain revealed that Grayscale’s ETF has lost more than 95,600 BTC since January 11, when it went live on national securities exchanges.

    Some of the highest outflows were seen on January 16, 18, 22, 23, and 24, with the fund recording withdrawals of 13,793 BTC, 14,301 BTC, 14,292 BTC, 15,986 BTC, and 13,179 BTC, respectively. The lowest outflow was recorded on the day the ETF went live, with 2,083 BTC being offloaded.

    While GBTC’s BTC stash is plunging, that of the other eight ETFs is rising. Since their launch, the products have increased their holding by more than 110,000 BTC. As GBTC offloaded around 13,179 BTC yesterday, the others added 8,251 BTC to their stash, with Fidelity’s FBTC recording the highest increase of 4,023 BTC.

    CryptoQuant’s founder expressed concern about the GBTC outflow trend continuing till mid-March and reducing the ETF’s BTC stash to zero, asking, “What’s their plan?”

    GBTC Sell-off to Affect BTC

    At the beginning of the year, GBTC’s initial stash of roughly 619,162 BTC was valued at approximately $25 billion. With the exchange-traded product having suffered almost $4 billion of outflows, around $21 billion of its shares remain to be liquidated.

    Crypto market analysts have predicted that BTC’s price would likely remain stagnant or plunge until the $21 billion liquidation is complete due to the selling pressure from the process. BTC has already fallen under $40,000, losing roughly 20% of its value since it jumped above $49,000 following the SEC’s ETF approval.

    However, Galaxy Digital founder Mike Novogratz countered the view, insisting that investors would eventually shift their focus to alternative ETFs, leading to a rally in bitcoin’s price.

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    Mandy Williams

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  • European Brokers Cut Fees on Spot Bitcoin ETFs to Outpace US Providers: FT

    European Brokers Cut Fees on Spot Bitcoin ETFs to Outpace US Providers: FT

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    According to the Financial Times, European brokers are slashing spot Bitcoin ETF fees after Invesco and WisdomTree reduced theirs by over 60% on European BTC products.

    The decision comes as the U.S. Securities and Exchange Commission (SEC) recently approved spot Bitcoin ETFs from major players like BlackRock, Fidelity, and Invesco, resulting in an influx of new investment options for U.S. investors.

    Fee Wars Move to the European Market

    Gary Buxton, Invesco’s Head of ETFs for Europe, the Middle East, Africa, and Asia Pacific, stated that the approval of spot Bitcoin ETFs led to an “unprecedented supply of new products” for U.S. investors. Previously, such investors had to look to Canadian or European providers for exchange-traded exposure to the cryptocurrency.

    The competition in the U.S. market has prompted a wave of fee reductions, with “multiple” providers lowering fees as the market works to find a new equilibrium between supply and demand. As a result, the range of prices for spot Bitcoin ETFs in the U.S. is now “considerably lower” than existing tracking products in Europe, according to Buxton.

    In response to the changing landscape, WisdomTree and Invesco have taken proactive measures by cutting fees on their European-listed Bitcoin ETPs by over 60%. WisdomTree’s Physical Bitcoin ETP fees will fall from 0.95% to 0.35%, while Invesco’s Physical Bitcoin ETP fees will drop from 0.99% to 0.39%. Both fee adjustments will take effect before the end of the month.

    Impact on European Market

    WisdomTree Europe head Alexis Marinof commented on the impact of the launch of spot Bitcoin ETFs in the U.S., stating that it had “captured a lot of attention in Europe.”

    After the SEC’s decision, VanEck plans to intensify marketing efforts for its European crypto products. Martijn Rozemuller, CEO of VanEck’s European business, believes the SEC’s decision has boosted investor interest in cryptocurrency and positively impacted the firm’s brand in Europe.

    Senior Investment Manager Peter Sleep noted that U.S.-listed products may be more attractive to European investors due to increased liquidity and a larger market.

    Meanwhile, HanETF CEO Hector McNeil emphasized the importance of spreads, tax, and custody in investment decisions. He notes that U.S. ETF price wars have settled around 30 basis points, making it challenging for providers to be profitable unless they attract significant assets under management.

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  • Bitcoin dips below $40k amid BTC ETF selloffs

    Bitcoin dips below $40k amid BTC ETF selloffs

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    Bitcoin dropped under $40,000 amid GBTC sell-offs from bankrupt crypto exchange FTX and BTC deposits on Coinbase by spot BTC ETF issuer Grayscale.

    Bitcoin (BTC) slid down nearly 9% on Jan. 22, exchanging hands around $39,700 on venues like Binance and Coinbase. The largest cryptocurrency likely saw depreciating prices due to outflows from Grayscale’s spot Bitcoin ETF, a fund built on the firm’s long-standing GBTC product. 

    BTC below $40k | Source: TradingView

    GBTC is the largest spot BTC ETF in the U.S. marketing with over $20 billion in assets under management. The fund has seen daily outflows of up to $500 million since the Securities and Exchange Commission (SEC) permitted exchange-traded funds that track spot Bitcoin prices, resulting in over $2.8 billion leaving GBTC.

    Since actual Bitcoins underpin these ETFs, Grayscale has also sent BTC to exchanges for liquidation and redemption. Grayscale has deposited 52,227 BTC worth an estimated $2.2 billion into Coinbase Prime accounts from its custodial wallets, per crypto.news. The firm’s GBTC Bitcoin is also held with Coinbase.

    A major entity exiting GBTC, as revealed on Jan. 22, is the defunct crypto exchange FTX. Under bankruptcy administrator and CEO John J. Ray III, FTX’s estate has sold millions of GBTC shares for $1 billion. 

    In addition, FTX-affiliated crypto hedge fund Alameda Research voluntarily dropped its lawsuit against Grayscale and its parent company, Digital Currency Group, that alleged internal malpractice from the pair — the lawsuit aimed to unseal $9 billion on behalf of FTX debtors.

    Elsewhere, the SEC acknowledged Nasdaq’s request for spot BTC ETF options. These types of derivatives allow traders to either speculate on an asset’s volatility or hedge against it in a move that may pull more capital into Bitcoin ETFs.


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    Naga Avan-Nomayo

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  • Bitcoin Investor Demand Weakens in the US Post-ETF Approval: CryptoQuant

    Bitcoin Investor Demand Weakens in the US Post-ETF Approval: CryptoQuant

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    Roughly a week after the United States Securities and Exchange Commission (SEC) approved the first wave of spot Bitcoin exchange-traded funds (ETFs), BTC investor demand in the country has slumped.

    According to a weekly report from market intelligence platform CryptoQuant, the weak BTC demand from U.S. investors is evident in crypto exchange Coinbase’s premium turning negative for the first time in 2024 amid high selling activity from short-term holders.

    BTC Investor Demand Slumps

    CryptoQuant said the spot Bitcoin ETF approval was a sell-the-news event, as expected. Although the products started trading on January 11 with record volumes, Coinbase saw high over-the-counter transfer volumes running into billions of dollars, and the funds are trading at a premium to spot Bitcoin for the first time since March 2021; BTC has witnessed a downward price pressure.

    BTC had lost roughly 15% of its value in days, from $49,000 to $41,500. While the asset currently hovers around $42,800 and downward pressure seems to have eased up, on-chain indicators suggest a tendency for more price corrections.

    Currently, short-term investors and large BTC holders have turned into a “risk-off” attitude and are on a selling spree. This is seen in the Inter-exchange Flow Pulse (IFP) metric falling below its 90-day moving average for the first time since August 2021. Analysts at CryptoQuant say this is a sign that investors’ BTC flow to derivative exchanges has stopped growing, suggesting caution and the tendency for price corrections.

    Unrealized Profit Margins Still High

    According to the report, it appears the Bitcoin market will not hit a price bottom soon as unrealized profit margins have not declined enough for sellers to be exhausted. As such, a new rally is presently not on the cards.

    From a short-term perspective, BTC has plummeted to more sustainable levels, with short-term holders’ unrealized profit falling from 48% in December 2023 to 16% after the asset’s latest slump. However, the profit margins may need to go below 0% before we can call a price bottom.

    Meanwhile, CryptoQuant predicted BTC might eventually plunge to $32,000, the short-term holder realized price, as traders paid too much to open long positions before the ETF approval.

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  • Here's How Much the Crypto Market Grew in 2023: CoinGecko

    Here's How Much the Crypto Market Grew in 2023: CoinGecko

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    Crypto market analysis platform CoinGecko has provided a breakdown of the industry’s growth in 2023 amid optimism and anticipation about several events this year, including the recent approval of spot Bitcoin exchange-traded funds (ETFs) and the upcoming Bitcoin halving.

    According to the report, the market witnessed substantial growth in several areas, including decentralized finance (DeFi), non-fungible tokens (NFTs), centralized exchanges (CEXs), and decentralized exchanges (DEXs).

    Crypto Market Cap Increased 2.6x

    During 2023, the crypto ecosystem more than doubled its total market cap, rising 108% from $832 billion recorded at the beginning of the year. Most of the growth occurred in Q4 when optimism surrounding the potential approval of the spot Bitcoin ETFs ramped up, leading to a 55% rise in the market cap from $1.1 trillion to over $1.7 trillion.

    CoinGecko attributed the market cap rise to Bitcoin’s (BTC) impressive resurgence, as the asset soared from $27,000 to $42,000 in Q4 and recorded a 155% growth throughout the year.

    “BTC had a strong first leg up in Q1, rising +72.4%, followed by another spike in Q2. It then pulled back in Q3, dropping -11.5%, before rallying in Q4. Similarly, the average trading volume of BTC dropped off around the end of Q1 and gradually declined in Q2 and Q3. It then picked up in Q4 to $18.0 billion, a gain of +64.3% QoQ,” analysts said.

    Other crypto assets like Ether (ETH) and Solana (SOL) also recorded impressive gains last year. The former rose 90.5%, closing the year at $2,294, while the former surged over 900% and ended the year at $103.

    CEXs Dominated Crypto Trading Volume

    Furthermore, the crypto market saw $36.6 trillion in trading volume in 2023, with the most impressive growth experienced in Q4, a gain of 53.1% from $6.7 trillion in Q3 to $10.3 trillion. Q4 2023 marked the first quarter-on-quarter growth of the year, stemming from excitement around ETFs.

    CEXs dominated the trading volume despite the regulatory hurdles of the largest crypto exchange, Binance, and the implosion of FTX the year before.

    Meanwhile, NFT trading volume declined, ending the year at less than half of the figure from 2022. The volumes of the top 10 chains amounted to $11.8 billion, while that of the previous year stood at $26.3 billion.

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  • Here's Why Grayscale's Bitcoin ETF Charges the Highest Fees: CEO Sonnenshein

    Here's Why Grayscale's Bitcoin ETF Charges the Highest Fees: CEO Sonnenshein

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    In a recent discussion with CNBC, Grayscale’s CEO, Michael Sonnenshein, shed light on the company’s decision to offer the highest fee among the 11 issuers of spot Bitcoin ETFs in the United States.

    Amid this 1.5% fee, Grayscale’s newly converted spot Bitcoin ETF has attracted the most substantial trading volumes compared to other issuers. Sonnenshein shared the rationale behind Grayscale’s decision to maintain the highest fees and emphasized the significant market share the investment firm has secured.

    GBTC Sees Over $25B in AUM

    A few days before the approval date of the ETFs, most of the financial companies that had filed for the investment vehicle and were awaiting approval started reducing their fees to attract more investors. Firms like BlackRock, Fidelity, WisdomTree, and others joined the frenzy by downsizing their fee structure, with some even introducing a zero-fee structure.

    Since the approvals, some of these Bitcoin ETF issuers have slightly increased their fees after gaining user attention. On the other hand, Grayscale maintained its stance on a 1.5% fee. Despite having the highest fee, the firm currently records over $25 billion in assets under management (AUM) for its Grayscale Bitcoin Trust ETF (GBTC).

    Why is Grayscale’s Fee the Highest?

    Explaining the reasons for his comment, Sonnenshein said:

    “Investors are weighing heavily things like liquidity and track record and who the actual issuer is behind the product. Grayscale is a crypto specialist. And it has really paved the way for a lot of these products coming through.”

    According to the Grayscale boss, investors have more confidence in established platforms like the company. Sonnenshein’s comment also suggests that investors would have minimal confidence in most Bitcoin ETF issuers who have reduced their fees to attract more clients because they “don’t have a track record” of offering such a product.

    The CEO also mentioned that some existing Bitcoin ETF issuers will not survive for long. However, he believes that others will rake in substantial profits from the business.

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  • Why Is Bitcoin Price Trading Sideways? 3 Key Factors

    Why Is Bitcoin Price Trading Sideways? 3 Key Factors

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    The Bitcoin price has been experiencing a phase of stagnation over the past days, leaving investors and analysts searching for the underlying causes. Three key factors can be seen as central to explaining Bitcoin’s current sideways trading trend:

    #1 ETF Inflows Are Offset By GBTC Selling, But For How Much Longer?

    The spot Bitcoin ETFs continue to be the dominant theme on the market, and Grayscale in particular, with its GBTC, remains the focus of analysts. While the ETF inflows continue to be record-breaking, the Bitcoin price remains flat. One of the main reasons for this is presumably the outflows on GBTC, which is viewed as overpriced with its fee of 1.5% per year (compared to 0.25%) by other issuers.

    Thomas Fahrer of Apollo pointed out the significant flow discrepancies in the market: “In three days of trading. IBIT +16K BTC, FBTC +12K BTC, BITB +6.7K BTC, ARKB +5.3K BTC, GBTC -27K BTC. GBTC BTC is flowing but not enough to sustain the other ETFs. Supply shock inbound imo.”

    Alessandro Ottaviani provided further insights, stating, “Bitcoin inflow in the ETFs: +47k, Bitcoin outflow from Grayscale: -27k, net inflow: 20k. […] Soon or later I expect Grayscale outflow stopping or reducing significantly. Those who have Grayscale GBTC were already into Bitcoin and therefore I think they already made the decision to sell, the execution of which should happen not so much later than the launch of the ETF.

    Bloomberg analysts James Seyffart and Eric Balchunas expect a portion of GBTC outflows to migrate to other Bitcoin exposures, highlighting the complexities of fund accounting and settlement delays in tracking these movements. They noted, “GBTC has crossed $1.1 billion in outflows…We expect a meaningful percentage of those assets to find their way back into Bitcoin exposure, mostly other ETFs.”

    #2 Bitcoin Miners Sell

    Ali Martinez has spotlighted the intensified selling activity by Bitcoin miners as another factor influencing the current price stagnation. Recent on-chain data indicates that miners have significantly increased their Bitcoin sales.

    Martinez commented on X (formerly Twitter), “Bitcoin Miners in Selling Mode: Recent on-chain data from Cryptoquant indicates a substantial increase in selling activity by BTC miners.”

    Bitcoin miners in selling mode | Source: X @ali_charts

    Notably, the shift in miner behavior is consistent with historical trends, where miners sell their holdings to manage cash flow or capitalize on price increases during market rallies.

    #3 Consolidation Phase Following ETF Mania

    The market is currently undergoing a consolidation phase after the euphoria surrounding Bitcoin ETFs, which led to an 82% rally. Such a phase is considered natural and mirrors historical patterns seen in other markets, like the first gold ETF.

    Although gold initially recorded an increase of around 6%, it then took a full nine months to start the actual rally, which almost quintupled the price. The same goes for the Bitcoin ETFs. It will take some time before the marketing machine of the asset managers starts up and new institutional investors can be convinced of the new asset class.

    Analyst Skew provided a technical perspective, stating, “BTC 4H: Remaining flexible till trend confirmations, however not looking good for the bulls without 4H 200EMA reclaim & RSI below 50. Yearly open [is] still very important for overall risk-reward. Above is good with bullish confirmations. Below is bad for risk & with bearish confirmations leads to downtrend (hedge mode). Pivotal area for 1H – 4H trend ~ $42.5K”

    At press time, BTC traded at $42,684.

    Bitcoin price
    BTC price, 4-hour chart | Source: BTCUSD on TradingView.com

    Featured image created with DALL·E, chart from TradingView.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Jake Simmons

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  • ARK Investment shifts $16m from ProShares to own Bitcoin ETF

    ARK Investment shifts $16m from ProShares to own Bitcoin ETF

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    ARK Investment Management, led by Cathie Wood, divested from the ProShares Bitcoin ETF, reallocating approximately $16 million towards its own Bitcoin ETF. 

    This move involved the sale of ProShares Bitcoin ETF (BITO) shares, a pioneering ETF in the Bitcoin futures market in the U.S., and the acquisition of 365,427 shares of ARK 21 Shares Bitcoin ETF (ARKB). 

    This adjustment resulted in ARKB accounting for 1% of the ARK Next Generation Internet ETF (ARKW). The value of ARKB shares declined to $43.51 on Tuesday, a significant drop from the initial listing price of $49 on Jan. 11.

    Previously, ARK Investment Management had shifted its investments from the Grayscale Bitcoin Trust (GBTC) to BITO in December in anticipation of the U.S. approving direct Bitcoin ETFs.

    Cathie Wood had expressed confidence in investing in an already approved fund over one pending approval. This latest portfolio reshuffling aligns with ARK’s ongoing strategy to optimize its position in the evolving landscape of cryptocurrency investments.

    ARK’s 21Shares Bitcoin ETF currently offers one of the lowest fees at 0.21%. Leading crypto exchange Coinbase acts as the custodian of ARK’s ETF. 


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  • Ethereum's Market Dominance Over Bitcoin Surges Double Digits Amid ETF Approvals

    Ethereum's Market Dominance Over Bitcoin Surges Double Digits Amid ETF Approvals

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    Even with significant capital flowing into the recently introduced spot Bitcoin ETFs, the anticipated positive influence on BTC’s price is yet to materialize. Bitcoin experienced a decline of more than 5% following the approvals last week.

    In contrast, Ethereum recorded an almost 8% rise over the same period despite struggling to sustain the $2,600 level. Data suggest that the price dominance of the world’s largest altcoin continues to surge against Bitcoin.

    Ethereum’s Soaring Dominance

    According to on-chain analytic firm Santiment, there has been a significant rise in Ethereum’s market dominance over Bitcoin. Over the past week alone, the figure saw a notable increase of more than 22.4%.

    During this period, an average of 89.4k new Ethereum addresses were generated daily, emphasizing the network’s increasing popularity. Additionally, 96.3K wallets were created on January 16th.

    The planned Ethereum network upgrades, starting with the Dencun hard fork, are one the catalysts driving the appeal for Ether and forming a bullish perspective among investors. These events could potentially present an opportunity for the leading altcoin to further decouple from the rest of the crypto market.

    A recent analysis by QCP Capital revealed that Bitcoin forwards have also plunged deeper than Ether forwards. The 1-month forward rate for Bitcoin dropped from a peak of 32% annually to a minimum of 9%, reflecting a decrease of 23%. Similarly, the 1-month forward rate for Ether decreased from a high of 28% to 12%, marking a reduction of 16%.

    The digital asset trading firm added,

    “ETH forwards still look attractive despite yields coming off, paying 11 – 13% ann. Selling ETH 1m 2200 Puts is also a decent play with yields above 21% ann. and a decent level to buy if there is a dip into the potential ETH spot ETF approvals.”

    Looking ahead, significant upcoming events include the Bitcoin halving scheduled for mid-April and the potential approval of spot Ethereum ETFs starting in May. Meanwhile, broader macroeconomic events may influence the direction of the market in the interim.

    Ether Exchange Supply Near All-Time Low

    The supply of Ether on crypto exchanges has been on a consistent decline. Over the last ten days, Santiment found that the figure has dropped from 8.18% to 8.10%. This supply is currently nearing an all-time low of 8.05%

    Such a trend indicated that Ether holders have increasingly moved their stash from crypto exchanges into long-term storage in anticipation of a price rise.

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  • Bitcoin ETFs Have Traded $10B Since Launch, Hold 34.5K BTC

    Bitcoin ETFs Have Traded $10B Since Launch, Hold 34.5K BTC

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    Almost $10 billion has been traded in spot Bitcoin ETFs in the first three days since they launched last week.

    On Jan. 17, Bloomberg ETF analyst James Seyffart posted the updated figures revealing $9.7 billion in volume.

    Moreover, Grayscale has the lion’s share of this, with 52% or $5.1 billion in trade volume.

    ETF Trading Surges

    However, it is not all capital inflows since many investors were switching strategies. Some have sold GBTC to move into alternatives with better fees, and others have switched out of futures-based funds in preference for a spot-based product.

    According to data from CC15Capital posted on Jan. 17, Grayscale’s Bitcoin Trust saw outflows of 11,188 BTC.

    Moreover, the total number of BTC held was 34,589, worth an estimated $1.48 billion at current prices.

    “Today is likely to be a net outflow day for the Bitcoin ETFs,” said Seyffart, who added:

    “Estimating ~$594 million left GBTC for a total of $1.173 billion in outflows. Most others saw inflows but doubt its enough to offset nearly $600 mln out of GBTC,”

    BitMEX Research posted its figures, which included flows for each fund. On day three of trading, Bitwise (BITB) had an inflow of $17.3 million, it reported.

    Crypto Podcaster “MartyParty” observed that BlackRock removed 11,500 BTC from Coinbase on Jan. 14 and has just returned it, posing the question:

    “Could this be to introduce artificial scarcity? That’s half a billion out and half a billion back in.”

    ETF Latest News

    On Jan. 17, senior ETF analyst Eric Balchunas reported that ProShares had just filed for a bunch of leveraged spot bitcoin ETFs. “They could have up to a dozen of these on the market in a few months,” he added.

    The five new applications for leveraged funds from the firm included ones to short Bitcoin. The ProShares UltraShort Bitcoin ETF (-2x), ShortPlus Bitcoin ETF(-1.5x), and Short Bitcoin ETF (-1x) all give speculators the option to short the asset with leverage.

    Additionally, it filed for ProShares Plus Bitcoin ETF (+1.5x) and ProShares Ultra Bitcoin ETF (+2x).

    Meanwhile, Fidelity Digital Assets posed a question on Jan. 17, asking whether it was likely or possible for a competitor to replace Bitcoin. “While technically possible, we believe it’s unlikely,” it said before adding:

    “For one, Bitcoin’s open-source software can be copied, but its community and network effects cannot.”

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  • Grayscale Transfers Almost 12,000 BTC To Coinbase, Bitcoin Price Reacts

    Grayscale Transfers Almost 12,000 BTC To Coinbase, Bitcoin Price Reacts

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    In a significant development that could potentially impact the Bitcoin price, Arkham Intelligence data reveals that Grayscale, the manager and owner of the Grayscale Bitcoin Trust (GBTC), has been sending a significant amount of Bitcoin to Coinbase since the launch of Bitcoin spot exchange-traded funds (ETFs) on January 12.

    Grayscale Bitcoin Trust Initiates Substantial BTC Outflow

    According to the data, four days ago, Grayscale initiated the first batch of BTC outflows from their holdings to the US-based exchange in four separate batches, totaling 4,000 BTC, which amounted to approximately $183 million. However, the asset manager resumed outflows from the Trust to the exchange on Tuesday.

    A portion of Grayscale’s transfers to Coinbase. Source: Arkham

    In a recent update, approximately three hours ago, the asset manager sent an additional 11,700 BTC to Coinbase, amounting to $491.4 million. This additional selling pressure could push the Bitcoin price to test lower support levels.

    Furthermore, Bloomberg reports that investors have withdrawn over half a billion dollars from the Grayscale Bitcoin Trust during the initial days of trading as an ETF. 

    According to Bloomberg’s data, outflows from the Grayscale Bitcoin Trust reached approximately $579 million, while the other nine spot Bitcoin ETFs witnessed inflows totaling nearly $819 million.

    Investors Shift Capital To ‘Lower-Cost’ Spot Bitcoin ETFs

    James Seyffart, an ETF analyst at Bloomberg Intelligence, noted that investors may be profit-taking following the ETF conversion. The flow data provides valuable insights into the ETF’s performance following SEC approval. 

    Although over $2.3 billion of GBTC shares were traded on its first day, the outflows indicate that a portion of that volume was due to selling. Seyffart anticipates that a significant amount of capital will enter other Bitcoin exposures.

    The outflows from Grayscale’s ETF were somewhat expected. Bloomberg Intelligence had previously projected that the fund would experience outflows of over $1 billion in the coming weeks. 

    Some of this outflow can be attributed to investors shifting towards more cost-effective spot Bitcoin ETFs. With an expense ratio of 1.5%, GBTC is the most expensive US ETF directly investing in Bitcoin. In contrast, the VanEck Bitcoin Trust, the second-most expensive fund, charges 0.25%.

    On the other hand, other spot Bitcoin ETFs have witnessed net inflows. BlackRock’s IBIT attracted nearly $500 million in the first two days of trading, while Fidelity’s FBTC received approximately $421 million. 

    According to Bloomberg, these inflows suggest strong demand for Bitcoin exposure in physically backed ETFs, even beyond potential seed funding from the fund issuers.

    Bitcoin Price Finds Support At $42,000

    Currently, the Bitcoin price remains unaffected by the news of Grayscale’s transfers to Coinbase. The leading cryptocurrency is trading at $43,100, showing a slight increase of 0.8% over the past 24 hours.

    However, since the commencement of ETF trading, it is important to note that the Bitcoin price has experienced a significant retracement, declining by 8%. This decline can be attributed to profit-taking and selling pressure, with Grayscale’s involvement being noteworthy.

    In the event of a further drop in the Bitcoin price, a significant support level has been established at $42,000. If this level is breached, the next key level for Bitcoin bulls to watch is $41,350, followed by a potential dip below $40,000.

    The market is eagerly observing whether Grayscale and its BTC selloff will continue and how this will impact the Bitcoin price leading up to the scheduled halving event in April, which many consider to be the main catalyst for the year.

    Bitcoin price
    The daily chart shows BTC’s valuation at $43,100. Source: BTCUSDT on TradingView.com

    Featured image from Shutterstock, chart from TradingView.com 

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • Grayscale Bitcoin ETF sees $579m in daily net outflows

    Grayscale Bitcoin ETF sees $579m in daily net outflows

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    According to reports from Bloomberg Intelligence, Grayscale’s Bitcoin ETF has experienced significant withdrawals, amounting to approximately $579 million. 

    The magnitude of this withdrawal is notable in the context of the broader market for Bitcoin ETFs. Contrastingly, other spot Bitcoin ETFs have attracted nearly $819 million in investments.

    This stark divergence in investor behavior underscores a critical assessment of the Grayscale Bitcoin ETF’s performance post-SEC approval. Initial enthusiasm, marked by a trading volume of over $2.3 billion on the ETF’s inaugural day, has cooled, with these outflows suggesting a shift in investor sentiment.

    The withdrawal trend from the Grayscale ETF aligns with previous projections by analysts, which anticipated over $1 billion being pulled from the fund in the ensuing weeks.

    A contributing factor to this outflow could be the fund’s relatively high expense ratio, which is 1.5% — the highest among U.S. Bitcoin ETFs. In comparison, other spot ETFs, including BlackRock’s IBIT and Fidelity’s FBTC, have seen substantial inflows of $500 million and $421 million within initial trading periods. 

    SEC’s historic approval of Bitcoin ETFs last week brought a lot of positivity and optimism into the industry. However, it has also sparked several controversies and concerns. Experts have cautioned against the potential risks of Coinbase’s dominance as the custodian of most ETFs.

    The immediate supply shock after the SEC’s approval has also triggered significant volatility in Bitcoin’s value, as the leading cryptocurrency constantly fluctuates between $41,000 and $44,000. 


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    Mohammad Shahidullah

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  • Bitcoin Steals the Show With 98% of Weekly Inflows, Solana Trails Behind: CoinShares

    Bitcoin Steals the Show With 98% of Weekly Inflows, Solana Trails Behind: CoinShares

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    Digital asset investment products experienced a $1.18 billion increase in inflows last week, according to CoinShares. This figure, however, did not surpass the previous high set in October 2021 when futures-based Bitcoin ETFs garnered a total of $1.5 billion.

    The latest edition of “Digital Asset Fund Flows Weekly Report” further revealed that the trading volumes for Exchange-Traded Products (ETPs) did break records by reaching $17.5 billion last week, marking the highest recorded level. This significantly surpassed the 2022 weekly average of $2 billion.

    CoinShares’ estimatest suggests that the trading volumes constituted almost 90% of the daily trading volumes on reputable exchanges last Friday, a noteworthy deviation from the typical range of 2%-10%.

    Bitcoin’s Unrivaled 98% Inflows, Solana Sees Decline

    After an impressive streak, Solana amassed only $0.5 million in inflows over the past week, indicating a current preference among investors for products linked to the leading crypto assets.

    Interestingly, Solana’s inflow was lower than those of Cardano and Litecoin, which attracted $1.4 million and $0.8 million, respectively. As such, Bitcoin continued to dominate funds with a whopping $1.16 billion in weekly inflows and 98% of the total inflows. This also represented a significant 3% of total assets under management (AuM).

    Short-bitcoin also registered minor inflows totaling $4.1 million, the report revealed.

    During the same period, Ethereum experienced total inflows amounting to $26 million, while XRP saw inflows of $2.2 million. Polkadot, on the other hand, settled with a modest $0.2 million in weekly inflows.

    US Dominates Inflows

    The approval from the Securities and Exchange Commission for the first-ever spot Bitcoin ETF was a watershed moment for crypto. Amidst such a heightened level of excitement, the United States took the lead as anticipated, with a substantial influx of $1.24 billion recorded last week.

    In a notable development, Switzerland also witnessed significant activity, observing inflows totaling $21 million.

    CoinShares’ Head of Research, James Butterfill, asserted that the outflows observed in Europe and Canada, amounting to $44 million in the latter, $27 million in Germany, and $16 million in Sweden, may be attributed to basic traders seeking to transition from those markets to the United States.

    Meanwhile, blockchain equities saw substantial inflows amounting to $98 million, contributing to a cumulative total of $608 million in inflows over the past seven weeks.

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    Chayanika Deka

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  • SUI Price Hits New All-Time High: Details

    SUI Price Hits New All-Time High: Details

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    TL;DR

    • SUI Price Milestone: SUI reaches a new high in price and market capitalization.
    • Growing Interest and Metrics: There’s rising interest in SUI and strong on-chain performance indicators.

    Sui (SUI) is among the best-performing cryptocurrencies today (January 15), tapping an all-time high price of $1.43 (per CoinGecko’s data). The last time it reached the $1.4 level was in May 2023 – shortly after the mainnet launch of Sui Network. SUI’s market capitalization surpassed the $1.5 billion mark, making it the 51st largest digital asset.

    SUI Price
    SUI Price, Source: CoinGecko

    The asset’s current upswing comes amid a time of a broader market correction, which followed the historic (yet hectic) approval of spot Bitcoin ETFs in the United States. BTC has experienced a decrease in the past few days, while on-chain metrics of Solana, Cardano, and more are far from the December heights.

    This is not the case with SUI. According to DefiLlama, total value locked (TVL) on the Sui network soared today to a peak of almost $350 million, whereas trading volume has been hovering between $30 million and $76 million in the past week.

    The price rally of SUI coincides with a rising interest from industry participants. The Singaporean crypto exchange Jubi revealed that the token was the third-most searched coin last week (January 8 – January 14), trailing behind Bitcoin (BTC) and Ethereum (ETH).

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    Dimitar Dzhondzhorov

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  • Here's a Timeline of Events Leading to Spot Bitcoin ETF Approval in The US

    Here's a Timeline of Events Leading to Spot Bitcoin ETF Approval in The US

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    Earlier this week, a long wait for the launch of a spot Bitcoin exchange-traded fund (ETF) in the United States ended after the Securities and Exchange Commission (SEC) approved 11 products for listing and trading on several national exchanges.

    The journey began ten years ago, and there are industry participants who laid the foundation for the SEC’s decision, which now represents a major step toward legitimizing the crypto asset class.

    The First Application and Rejection

    In 2013, Cameron and Tyler Winklevoss, co-founders of the crypto exchange Gemini, applied with the SEC to launch a spot Bitcoin ETF for the first time. The same year, crypto asset management firm Grayscale Investments launched its Bitcoin Investment Trust (GBTC), an open-ended private Bitcoin trust.

    After several adjustments to their application, the SEC rejected the Winklevoss twins’ request in 2017 on the grounds that bitcoin markets were not mature enough. Within the same period, Grayscale, which had filed with the Commission to convert GBTC into a spot Bitcoin ETF the year before, withdrew its application, citing underdevelopment of the regulatory environment.

    The Winklevoss brothers went on to file a second application for a Bitcoin ETF in 2018 but encountered another rejection from the SEC within a month. At the time, the agency said BTC markets were prone to manipulation.

    The Grayscale Court Ruling

    Two years later, Grayscale transformed GBTC into an SEC-reporting entity with its shares trading on pink sheets, asset manager VanEck filed a proposal with the SEC to launch a spot Bitcoin ETF, and rival firm Bitwise withdrew an application filed in 2019 for a similar product.

    In 2021, Bitwise filed another request, the SEC rejected VanEck’s proposal, and Gary Gensler replaced Jay Clinton as SEC chair. The same year, Grayscale filed another application with the SEC, but the agency approved the first U.S. futures Bitcoin ETF instead.

    By 2022, the Commission had rejected applications from several asset managers, including SkyBridge, Fidelity, Bitwise, and Grayscale. Since Grayscale would not have the SEC’s decision, it dragged the agency to court, and in 2023, a federal appeals judge ordered the latter to reevaluate the application.

    The False Approval

    Before the landmark Grayscale ruling, asset managers like Ark Invest, BlackRock, Fidelity, and Invesco had filed applications with the SEC to launch spot Bitcoin ETFs. While it appeared the SEC would reject the requests as it had done in the past years, the agency’s decision not to appeal the court’s ruling increased the likelihood that the opposite would be the case.

    By the end of 2023, a total of 13 asset managers had filed for spot Bitcoin ETFs, and the deadline for the SEC’s decision was set on January 10.

    As optimism around the SEC’s decision grew, the agency’s X account was compromised on January 9, 2024, and a tweet announcing the approval of all the applications was posted. However, the news was debunked within an hour as Gensler revealed that the post was unauthorized and the products had not been approved yet.

    A Landmark Decision

    Amid market volatility and speculation surrounding the spot Bitcoin ETF approvals, the SEC finally greenlighted the products on January 10. By the next day, the 11 ETFs started trading on several securities exchanges and amassed $4 billion in volumes with 700,000 trades.

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    Mandy Williams

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  • After Bitcoin, Will the SEC Greenlight Spot Ethereum (ETH) ETF This Year? (Poll)

    After Bitcoin, Will the SEC Greenlight Spot Ethereum (ETH) ETF This Year? (Poll)

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    The US Securities and Exchange Commission finally greenlighted a spot Bitcoin ETF earlier this week, although in a slightly reluctant fashion.

    Now, speculations are starting to arise on when the agency will do the same in terms of an exchange-traded fund tracking the performance of the second-largest cryptocurrency.

    When ETH ETF?

    2023 will go down in history as the year with the most news and developments in terms of ETFs as numerous companies filed for such products for BTC and ETH. Perhaps the trend intensified after BlackRock did so in the middle of the year, and many others followed.

    With already nearly a dozen BTC ETFs trading on US stock markets, the focus has now shifted to other cryptocurrencies, such as Ethereum. Currently, several companies have filed to launch such products, including Grayscale, which is trying to convert its ETH Trust into a spot ETF, as it did with its flagship Trust – GBTC.

    The SEC, though, keeps delaying the decision, with most applications now having to wait until May. History shows that the Commission tends to delay or reject crypto ETFs for years before it finally allows them to reach the markets, but will this be the case now as well?

    The analytics platform Santiment took it to X to check with the community about their opinion on the matter. It turns out that the majority, over 52% in fact, believe the US will have a spot Ethereum ETF by the end of this year. Roughly 10% are even more optimistic, saying it will be greenlighted this month, while 11.3% don’t see it happening ever.

    Price Effects?

    We saw that BTC skyrocketed in the months ahead of the SEC approvals and even on the first day of trading. However, the trend reversed violently in the following day or so, and the asset slumped by almost $8,000 in 36 hours when the ETFs were already live for trading.

    This has given those in camp “sell-the-news” advantage so far. ETH, on the other hand, has just now started to increase in value, which could be a speculative run as many expect an ETF to arrive soon.

    As such, it would be interesting to follow how ETH’s price will perform in the months prior and after such a product is approved, if ever.

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    Jordan Lyanchev

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  • Bitcoin Price Suffers Post-Spot ETF Blues, Drops 7% To $43,200

    Bitcoin Price Suffers Post-Spot ETF Blues, Drops 7% To $43,200

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    The introduction of Bitcoin (BTC) exchange-traded funds (ETFs) has triggered a significant sell-off, leading to a sharp decline in the Bitcoin price.

    After gaining approval and commencing trading on Thursday, the ETFs have prompted a “sell the news” event, causing Bitcoin’s value to plummet from its initial trading price of $46,500 at the time of approval to a low of $43,200 within a matter of hours on Friday.

    Over the past 24 hours, Bitcoin, the largest cryptocurrency by market capitalization, has experienced a 7% drop. Its gains over the past 30 days have been limited to a mere 4%, erasing much of the progress made during that period. 

    Additionally, as selling pressure continues to mount following the approval, there are indications that the Bitcoin price may face further downward pressure.

    Bitcoin Price Under Pressure

    CryptoQuant analyst J.A. Maartunn observed significant sell orders in Bitcoin’s two-week chart on Wednesday. Notably, three clusters of sell orders were positioned between $46,100 and $48,000, comprising stacks of 755, 1,031, and 794 BTC, respectively.

    According to the CryptoQuant analyst, such patterns are typically associated with market tops, unless these orders are later withdrawn or executed.

    This influx of sell orders may help explain the lackluster response to the ETF approvals until now, as it appears that selling pressure has been building up. However, the situation has intensified even further. 

    According to Maartunn, additional sell orders were detected on Friday, indicating that the seller is not yet finished. Two substantial sell orders have been placed just above the current Bitcoin price: one for 894 BTC at $44,000 and another for 1,071 BTC at $45,100.

    Sell orders placed in BTC’s 2-week chart since Wednesday. Source: Maartunn on X

    These developments suggest that market participants are taking advantage of the ETF news to offload their Bitcoin holdings, leading to increased selling pressure and a subsequent price decline. 

    The market’s stabilization following this period of heightened selling pressure remains uncertain. The introduction of ETFs was believed to bring about heightened institutional interest and potentially drive up the Bitcoin price. 

    However, it is important to note that the impact of these ETFs is expected to unfold over the long term, rather than being evident within days, weeks, or even months. It will likely take years to fully gauge the effects and consequences of ETF integration on the Bitcoin market.

    Bitcoin’s Bullish Structure Remains Intact

    Amidst the ongoing selling pressure, several support lines may potentially halt the downtrend and bring positive news for the Bitcoin price and BTC bulls.

    Although Bitcoin has already lost its $44,000 support level, there is another crucial threshold at $42,700 that could prevent further decline. If this level holds, there is a chance for Bitcoin to regain the $43,000 mark and reverse the downward momentum.

    Bitcoin price
    The daily chart shows BTC’s price drop. Source: BTCUSDT on TradingView.com

    If the $42,700 support is breached, additional support lines come into play. These include $42,300, $41,700, and $41,200, which act as the last barriers before a potential test of the $40,000 support level. The $40,000 mark holds significance as it represents the final support before a potential dip towards $38,000.

    However, there is a positive aspect for Bitcoin bulls to consider. The current bullish structure of the cryptocurrency remains intact as long as the dip does not breach the $29,900 mark.

    This level marked the beginning of the current bullish uptrend, and its preservation would ensure the maintenance of the overall positive market structure.

    Featured image from Shutterstock, chart from TradingView.com 

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Ronaldo Marquez

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  • SEC Chair Says Bitcoin Is Centralized After Approving ETFs

    SEC Chair Says Bitcoin Is Centralized After Approving ETFs

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    The chairman of the Securities and Exchange Commission (SEC) has doubled down on his criticisms of Bitcoin (BTC) despite approving a slew of exchange-traded funds for the asset earlier this week.

    During an interview with CNBC on Friday, the chairman argued that Bitcoin boasts few use cases aside from illicit activity, and has ironically trended toward centralization across time.

    The Irony Of Bitcoin ETFs

    Bitcoin descended 6% to $43,500 on Thursday as many investors rotated out of the asset after its highly anticipated ETF launch actually passed.

    “Investors, I think, should be aware that the underlying asset is a highly speculative, volatile asset,” said Gensler regarding the ETFs, stressing that the agency does not “approve” or “endorse” Bitcoin.

    The chairman expanded on his Wednesday statement explaining the approvals, in which he named “ransomware, money laundering, sanction evasion, and terrorist financing,” among Bitcoin’s alleged use cases. Its alleged use cases as a store of value and medium of exchange, he argued, remain suspect.

    Furthermore, while Gensler respects certain innovations with blockchain as an “accounting system,” he claimed that there’s a certain “irony” around approving an ETF for a supposedly “decentralized” system.

    “Think about the irony of those who would say this week is historic,” he said. “Now you can buy [Bitcoin] through this thing called an exchange-traded product that’s, well, centralized.”

    Many within the Bitcoin community share Gensler’s view around ETF products, advising followers to hold their own BTC on a personal wallet where possible, rather than with an ETF.

    However, many in the industry argue that ETFs bring Bitcoin access to companies who can’t control coins themselves, and can only own assets packaged within an ETF or securities wrapper.

    Mining Centralization

    Yet even without an ETF, Gensler claimed there’s “a lot of centralization” with Bitcoin, with particular respect to its mining firms.

    “Even the underlying ledger, largely, the Bitcoin is produced by a handful of mining companies and the like,” the chairman said. Rival currencies, by contrast, have a “common economy” that relies on them.

    According to Hashrate Index, just two Bitcoin mining pools control over 50% of the network’s hash rate, which is enough to re-write the network’s transactions if both pools conspire to act nefariously.

    However, those pools are comprised of several other mining firms that can choose to change pools or mine independently at any point.

    Last year, Twitter co-founder Jack Dorsey backed a non-custodial new mining pool aimed at decentralizing the mining industry.

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    Andrew Throuvalas

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  • Bitcoin Erases $49,000 ETF Rally As Coinbase Users Take To Selling

    Bitcoin Erases $49,000 ETF Rally As Coinbase Users Take To Selling

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    Bitcoin had earlier shown a sharp rally toward the $49,000 mark, but the asset was quick to retrace the entire surge as the Coinbase Premium turned negative.

    Bitcoin Coinbase Premium Gap Plunged Into Negative During Past Day

    As pointed out by CryptoQuant Netherlands community manager Maartunn in a post on X, the Coinbase Premium Gap has now turned notably negative after being mostly positive for the last few days.

    The “Coinbase Premium Gap” refers to the difference between the Bitcoin prices listed on the cryptocurrency exchanges Coinbase (USD pair) and Binance (USDT pair).

    This indicator’s value basically provides hints about how the buying or selling behaviors on these two largest platforms in the sector differ from each other right now.

    When the metric has a positive value, it means that the price listed on Coinbase is higher than on Binance currently. Such a trend implies the former platform’s users are participating in a higher amount of buying (or lower amount of selling) than the Binance users.

    On the other hand, the indicator being positive suggests that Binance might be observing a higher degree of buying pressure at the moment as the price listed on the exchange is greater.

    Now, here is a chart that shows the trend in the Bitcoin Coinbase Premium Gap since the start of the year:

    Looks like the value of the metric has taken a plunge during the past day | Source: @JA_Maartunn on X

    As displayed in the above graph, the Bitcoin Coinbase Premium Gap has observed a sharp plunge down into the negative territory during the past day or so. Before this plummet, the indicator had been mostly at positive values since the start of the year.

    There were a few dips into the red zone earlier as well, but the indicator only attained minor negative values during these drops. This time, though, the premium is down to significantly negative levels.

    The price surges this year were being driven by the buyers on Coinbase, as the price rose every time the premium did as well. Coinbase is popularly known to be used by US institutional investors, so the green premium suggested that these large entities were buying, most likely in anticipation of the ETFs, which finally gained approval on January 10th.

    A while after this approval, BTC went on to sharply rally toward the $49,000 level, but the asset’s run was very short-lived as its price plummeted hard back towards the price prior to the move, thus erasing all the gains.

    The Coinbase Premium Gap had been notably positive alongside the surge, but the indicator then showed its plunge into the negative territory alongside this quick retrace. It would appear that some American institutional traders may have used the opportunity to harvest their profits.

    BTC Price

    Bitcoin has been moving sideways since the quick rally and drawdown, as its price is still floating around the $45,800 level.

    Bitcoin Price Chart

    The price of the coin seems to have shown an overall trend of consolidation recently | Source: BTCUSD on TradingView

    Featured image from Shutterstock.com, charts from TradingView.com, CryptoQuant.com

    Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

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    Keshav Verma

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  • Analyst: Bitcoin market setting in a major top

    Analyst: Bitcoin market setting in a major top

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    According to YouTube analyst Crypto Banter, the narrative around the Bitcoin ETF hype is starting to die down, prompting investors to start taking profits.

    As stated in the Jan. 12 video, spot Bitcoin ETFs traded at a total volume of $4.6 billion, with Grayscale (GBTC) taking the lead. However, the analyst reveals that in taking a closer look at the data, the GBTC sales were due to higher fees and the majority of “old Bitcoin” being locked up, meaning the data shows closer to zero new inflows that might result in a market scare and a sell-off.

    At the same time, the analyst concludes the technical analysis and the fundamentals are in line right now, pointing to a candle chart to highlight some standard makings of a local top, with the CME Bitcoin Futures launch being one of the candles.

    However, Crypto Banter concludes that the sentiment does not have the makings of a cycle top and certainly not the end of the bull run. However, in the interim, investors are cautioned to heed the very early signs of a pullback, as evidenced by Bitcoin’s (BTC) daily candle close.

    Zooming out, the analyst shares that Bitcoin halving is still set to increase demand and price for the cryptocurrency, citing the 96-day countdown. When put on a longer time cycle, the analyst concludes that the little pullbacks in the market as part of the larger upward trend were, in fact, severe pullbacks of 40%.

    While he doesn’t predict a 40% correction, one in the range of 20% to a maximum of 30% is possible.


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    Sarah Jansen

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