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Tag: Bitcoin

  • Here's How 2024 Will be Pivotal for Bitcoin in the Stablecoin Arena: CoinShares

    Here's How 2024 Will be Pivotal for Bitcoin in the Stablecoin Arena: CoinShares

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    The emergence of Bitcoin-based stablecoins could make 2024 a pivotal year for the leading digital network, according to analysts at European alternative asset management firm CoinShares.

    In its Outlook 2024 report, the firm explained that the effects of a stablecoin settlement on Bitcoin would be numerous, including the enhancement of BTC’s monetary properties and the acceleration of its global adoption.

    The Need for a Bitcoin-Based Stablecoin

    With Bitcoin in its second decade of existence, conversations about the network have moved from the awareness into the merit phase. People no longer wonder what cryptocurrencies are but how such assets solve real problems.

    While native assets are still a “contentious topic,” according to CoinShares, users have become familiar with digitized crypto dollars, as it is easy to imagine the benefits of tokenizing the USD. The success of stablecoins can be seen in their growth within four years: a 1,100% increase to a market cap of over $123 billion and transfer volumes totaling $5 trillion in the past year.

    Despite the success of these assets, they are facing significant challenges. One such is almost all stablecoins being created on centralized or unstable blockchains, making users vulnerable to systemic failures like the Terra ecosystem collapse.

    These issues have presented the need for developers to launch stablecoins on Bitcoin, as the network has the longest history, greatest stability, least technical debt, and strongest assurances.

    A Pivotal Year

    Although there is a need for stablecoins on the Bitcoin blockchain, the path to such a feat is technically challenging, as BTC was designed without the flexibility to support external assets like dollar-pegged tokens natively.

    Regardless, CoinShares’ analysts believe 2024 will be pivotal for Bitcoin in the stablecoin arena as viable development projects are predicted to emerge as accessible tools. These projects would “rival” the speed and cost of other stablecoins while inheriting the fundamental stability of Bitcoin infrastructure.

    This year, Bitcoin projects focused on competing in the stablecoin sector will likely be made accessible to users, while plugins will integrate stablecoin spending, paving the way for continued usage growth.

    “We find a successful integration likely both increases transaction demand and onboards a new set of users to Bitcoin. Secondly, stablecoins could very well act as a gateway, introducing bitcoin to a broader audience of users, who perhaps have not yet explored its potential and properties as money,” analysts added.

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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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    Wayne Jones

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  • Pastor of online church faces fraud charges for selling $3.2 million in

    Pastor of online church faces fraud charges for selling $3.2 million in

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    A Colorado pastor of an online church is challenging allegations that he and his wife defrauded parishioners out of millions dollars through the sale of cryptocurrency deemed “essentially worthless” by state securities regulators.

    Colorado Securities Commissioner (CSC) Tung Chan filed civil fraud charges against Eligo and Kaitlyn Regalado last week in Denver District Court, according to a statement from the Colorado Department of Regulatory Agencies. The complaint accuses the Regalados of targeting members of the state’s Christian community, enriching themselves by promoting a cryptocurrency token that the Denver couple launched called the INDXcoin.

    The couple allegedly sold the “illiquid and practically worthless” tokens from June 2022 to April 2023 through a cryptocurrency exchange they created called Kingdom Wealth Exchange, Commissioner Chan said in the statement. The sales supported the couple’s “lavish lifestyle,” he alleged.

    Kingdom Wealth Exchange, the only crypto exchange selling the INDX token was inexplicably shut down on November 1, according to the Denver Post.

    “Mr. Regalado took advantage of the trust and faith of his own Christian community and that he peddled outlandish promises of wealth to them when he sold them essentially worthless cryptocurrencies,” Chan said. 

    Pastor says “God was going to provide”

    In a nine-minute long video, Regalado acknowledged on Friday that the allegations that he made $1.3 million from investors “are true.”

    “We took God at His word and sold a cryptocurrency with no clear exit,” Regalado said in the video, adding that he had also been divinely instructed to abandon his former business to take over INDXcoin. 

    “I’m like, well, where’s this liquidity going to come from,’ and the Lord says, ‘Trust Me,’” Regalado said in the video.

    “We were just always under the impression that God was going to provide that the source was never-ending,” he added.

    Regalado did not immediately return CBS MoneyWatch’s request for comment. 

    According to the CSC, the Regalados had no prior experience operating a cryptocurrency exchange or creating a virtual token before minting INDX two years ago. Almost anyone can create a cryptocurrency token, the agency noted in its statement. 

    There are more than 2 million cryptocurrencies in existence, in addition to 701 cryptocurrency exchanges where investors can trade them, according to crypto markets website CoinMarketCap.

    Regalado said in the video that he will go to court to address the allegations against him and his wife. “God is not done with this project; God is not done with INDX coin,” he said.

    Elizabeth Napolitano


    elizabeth-napolitano-cbsmoneywatch-cropped.jpg

    Elizabeth Napolitano is a freelance reporter at CBS MoneyWatch, where she covers business and technology news. She also writes for CoinDesk. Before joining CBS, she interned at NBC News’ BizTech Unit and worked on The Associated Press’ web scraping team.

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  • Treasury yields nudge higher ahead of key data releases

    Treasury yields nudge higher ahead of key data releases

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    U.S. Treasury yields nudged slightly higher on Tuesday, as market participants await the release of key economic data points later in the week.

    At 5:52 a.m. ET, the yield on the benchmark 10-year Treasury note was around 3 basis points higher at 4.128% while the yield on the 30-year Treasury bond was up around 2.9 basis points at 4.345%.

    Yields move inversely to prices.

    Investors are trying to gauge when the Federal Reserve will begin cutting interest rates, which will be a key determinant of the trajectory for markets and the economy this year.

    Two significant pieces of economic data are on the slate this week: a preliminary fourth-quarter GDP growth figure is due on Thursday, followed by the Commerce Department’s closely-watched personal consumption expenditures price index for December on Friday.

    Despite the uncertain rate outlook, risk-on sentiment remained robust on Monday, as the Dow Jones Industrial Average and the S&P 500 both notched all-time highs.

    “It’s an economy proving to be more resilient than many thought and it’s one that is supported by the prospect of central banks cutting rates, and that’s a great environment for bonds and it’s a great environment for risky assets,” PGIM Principal and Global Investment Strategist Guillermo Felices told CNBC’s “Squawk Box Europe” on Tuesday.

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  • Here is How Much Bitcoin (BTC) Drake Lost Betting on UFC Match

    Here is How Much Bitcoin (BTC) Drake Lost Betting on UFC Match

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    TL;DR

    • The Canadian musician Drake faced another betting loss in Bitcoin on a UFC fight, adding to his history of unsuccessful sports wagers.
    • The trend of athletes and teams experiencing losses after Drake’s bets has been termed “the Drake curse,” with examples spanning multiple sports.

    Not the Right Pick

    The famous Canadian rapper, singer, and actor – Aubrey Drake Graham (better known as Drake) – lost $700,000 worth of Bitcoin (BTC) after betting on a UFC fight over the weekend, using the crypto platform Stake. He predicted that Sean Strickland would beat Dricus du Plessis – the bet carried an estimated profit of over $650,000 in BTC. 

    Unfortunately for both Strickland and Drake, things didn’t go as planned. The fighter landed severe blows to his opponent but eventually lost after a split decision from the judges.

    This is not the first time the rapper has lost funds after betting on Strickland’s matches. Several months ago, he placed $500,000 worth of BTC on Israel Adesanya to knock out the aforementioned fighter. However, Strickland emerged victorious after placing a heavy knockdown.

    ‘The Drake Curse’

    The musician is a huge fan of betting on various sports events. Nonetheless, many athletes and teams have suffered a downfall after he put money on them, which prompted the creation of the phrase “the Drake curse.”

    In 2022, he wagered $234,000 in Bitcoin on Ferrari’s driver – Charles Leclerc – to win the Spanish Grand Prix only to see Max Verstappen finishing first.

    Later that year, Drake bet $600K worth of the cryptocurrency on the English soccer team Arsenal to beat Leeds United and FC Barcelona to win its biggest derby against Real Madrid. Unfortunately for him, the team from Spain’s capital won the match known as “El Clasico.”

    In 2023, Drake parted with $400K in BTC after the popular YouTuber Jake Paul lost his fight against Tommy Fury (the younger half-brother of the world heavyweight champion Tyson Fury).

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    Dimitar Dzhondzhorov

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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 Price “Mad Heavy,” Why A Detour To $30,000 Might Be Imminent

    Bitcoin Price “Mad Heavy,” Why A Detour To $30,000 Might Be Imminent

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    The Bitcoin price took a downside turn over the weekend and seems ready to re-test critical support levels. The downside price action was triggered by a spike in selling pressure following the approval of Bitcoin spot Exchange Traded Funds (ETFs) in the US.

    As of this writing, the Bitcoin price trades at $40,900 with a 2% loss in the past 24 hours. Over the last week, these losses doubled, with other assets in the crypto top 10 by market underperforming, except for Dogecoin (DOGE), which still records a 4% profit in the same period.

    BTC’s price trends to the upside on the daily chart. Source: BTCUSDT on Tradingview

    Bitcoin Price Loses Steam, How Low Can BTC Go?

    Via the social media platform X, the founder and former CEO of crypto exchange BitMEX, Arthur Hayes, shared a forecast for the Bitcoin price. According to Hayes, BTC seems poised to lose its current levels.

    The crypto founder and trader claims that the low timeframe price action will likely push Bitcoin below $40,000 and potentially below $35,000 if bulls fail to defend the higher area around these levels.

    The main issue regarding the current market structure rests upon the liquidity in the Bitcoin market. As seen in the chart below and as pointed out by Hayes, the liquidity in the BTC market has been trending to the downside since the Bitcoin spot ETF was approved.

    As a result, and due to the constant selling pressure from the Grayscale Bitcoin Trust (GBTC), the market has been trending to the downside and could maintain this course until the next major macroeconomic event.

    On the above, the BitMEX founder stated:

    Why has $SPX and $BTC stopped moving up together post US BTC ETF launch? Both are love more $ liq, which one is right about the future? $BTC is telling us that there are hiccups ahead for $ liq, next signpost is 31st Jan US Treasury refunding annc (announcement).

    bitcoin price btc btcusdt
    The BTC market sees a decline in liquidity, impacting the price action. Source: Arthur Hayes on X

    If Bitcoin Goes South, What Levels Could Hold The Line?

    A pseudonym crypto analyst showed a cluster of buying orders stacked from the $38,819 to the $40,000 levels in a separate report. In other words, these levels should present opposition and seem like BTC’s biggest opportunity to bounce back, at least on low timeframes.

    In that sense, the analyst stated the following, anticipating a possible short-term recovery, and showing the image below:

    Some big zones starting to build up around 41K & 42K. Pretty certain we’ll at least take out that top part somewhere next week. Will see if price sustains after that.

    Bitcoin price BTC BTCUSDT chart 3
    BTC chart shows a stack of bid liquidity around $38,800 to $40,000. Source: DaanCrypto on X

    Cover image from Unsplash, chart from Tradingview

    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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    Reynaldo Marquez

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  • These Bitcoin L2 Solutions Could Drive Institutional Adoption: Report

    These Bitcoin L2 Solutions Could Drive Institutional Adoption: Report

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    Institutional adoption of the Bitcoin network has been hindered by several challenges, including technical scalability, programmability, and cultural alignment within its developer community.

    However, Spartan Group, a leading player in the Web3 space, and venture capitalist and analyst Kyle Ellicott believe the development of layer2 (L2) solutions will help the network overcome these limitations.

    Developing L2 Solutions on Bitcoin

    According to the “Bitcoin Layers: A Tapestry of a Trustless Financial Era” report by Spartan Group and Ellicott, secondary networks built on the blockchain can “catapult” it into institutional adoption and enable the utilization of its dormant capital.

    Bitcoin had a market capitalization of over $800 billion at press time, but most of the capital is currently unproductive. Activating the dormant capital would entail fully harnessing the potential and capabilities of the Bitcoin network.

    It is worth noting that developers have made efforts to build protocols on top of, or adjacent to, Bitcoin that enable smart contracts to execute scalable transactions; however, the approaches have faced several issues as BTC evolves beyond its presumed role as just a store of value.

    To ease Bitcoin’s transition into a foundational technology platform for the trust-minimized financial system, Spartan Group and Ellicott have introduced a concept focused on a group of secondary networks, including Stacks, Lightning, Rootstock, and Liquid. The Bitcoin Layers concept will be led by the protocols tagged the “Big Four.”

    Fixing Bitcoin’s Limitations

    Partly inspired by Ethereum’s layered architecture, the Big Four aims to fix Bitcoin’s limitations by introducing functionalities like increased transaction speeds and data availability to blend the network with traditional and decentralized financial systems.

    Stacks, which brings smart contracts and decentralized applications to Bitcoin, began operating in 2020 and is preparing to launch an upgrade – the Nakamoto Release – around the time of the upcoming Bitcoin halving in April. The upgrade promises to increase transaction speed and inherit 100% of the network’s reorganization security and finality, enabling users to move their BTC between Bitcoin and the L2.

    Lightning Network facilitates fast and low-cost Bitcoin transactions, Rootstock adds smart contract capabilities to the network, while Liquid is a sidechain used for more confidential transactions and digital asset issuance.

    Although the Big Four lead the new concept, developers are conducting several experiments to bring more protocols to the market. Spartan Group believes the ongoing L2 development positions Bitcoin for institutional adoption, just like Ordinals marked a cultural shift in the network’s landscape.

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    Mandy Williams

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  • Bitcoin (BTC) Price Declines, Major Cardano (ADA) Developments, and More: Bits Recap Jan 22

    Bitcoin (BTC) Price Declines, Major Cardano (ADA) Developments, and More: Bits Recap Jan 22

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    TL;DR

    • Bitcoin’s price fluctuates following the approval of spot Bitcoin ETFs in the US; experts laid out diverse future value predictions.
    • Shiba Inu sees a significant increase in burn rate, with millions of tokens removed from circulation.
    • Cardano exceeds Ethereum in whale daily transactions and another field.

    Where is BTC Headed?

    The hectic approval of the first spot Bitcoin ETFs in the United States on January 10 triggered severe volatility in the cryptocurrency’s price. It soared to around $49,000 on January 11 but dipped below the $45K level shortly after. In the past few days, BTC has been trading between $40,000 and $42,000 (per CoinGecko’s data).

    Despite the ongoing bearish trend, numerous prominent figures remain optimistic that the following months and years will be successful for the asset. Robert Kiyosaki, a well-known investor and author of the bestseller “Rich Dad Poor Dad” – recently predicted that BTC is heading toward the $150,000 mark. 

    Fundstrat’s Tom Lee and the popular X (Twitter) user PlanB were even more bullish. The former forecasted that Bitcoin could explode to $500,000 within five years. PlanB claimed that the stock-to-flow model predicts a price of $532,000 after the halving. 

    On the other hand, skeptics like Peter Schiff envisioned a further slump for Bitcoin. The economist recently maintained that Gary Gensler (Chairman of the US SEC) gave the thumbs up to the spot ETFs after being “backed into a corner.” As such, he expects him to implement soon “new onerous crypto regulations” that could increase the cost of BTC transactions and negatively impact the asset’s price.

    Those curious to find out whether Bitcoin has a chance to flourish this year and reach a new all-time high could take a look at our dedicated video below:

    Shiba Inu’s Burn Rate

    Last week, the meme coin’s burn rate skyrocketed by 3,000% on a daily scale, resulting in more than 30 million tokens being removed from circulation.

    Today’s figure (January 22) is also impressive. According to Shibburn, more than 53 million assets have been destroyed in the last 24 hours.

    Reducing the tremendous circulating supply of SHIB is supposed to make it scarcer and potentially more valuable in time. Nonetheless, its price has been on the downside lately, dipping nearly 5% in a week.

    Cardano’s Achievements

    Cardano has made waves as of late, surpassing Ethereum in two separate fields. As CryptoPotato reported, Cardano whales have settled an average of $13 billion in large daily transactions on a weekly basis. Its rival’s figure stood at $5 billion.

    In addition, Cardano witnessed an NFT sales volume of over $7.6 million for the past month. Ethereum continues to be a leader with $350 million, but this actually represents a 20% decline on a 30-day basis. 

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    Dimitar Dzhondzhorov

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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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    Mandy Williams

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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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    Mandy Williams

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  • Bitcoin Whale Carries Out Massive Sell-Off

    Bitcoin Whale Carries Out Massive Sell-Off

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    An anonymous Bitcoin whale may have triggered a massive sell-off panic in the crypto market recently. According to an X (formerly Twitter) post by Ali Martinez, the whale sold off a whopping 59,000 BTC totaling over $2.45 billion. 

    Bitcoin Whale Dumps 59,000 BTC

    In his X post, Martinez announced that a Bitcoin whale has initiated a large-scale dump, selling off approximately 59,000 BTC. He shared a chart displaying the Bitcoin Spend Output Age Bands which revealed that the Bitcoin whale had initially acquired 59,346.950 BTC during the last six months of 2023. 

    As per the crypto analyst’s estimate, the whale had bought this staggering amount of BTC at an average price value of $26,000. With BTC’s current value nearly doubling since the initial purchase, the whale’s 59,000 Bitcoin investment has yielded an outstanding 57.69% profit. This percentage puts the total gain at approximately $885 million. 

    This recent Bitcoin sell-off adds to a series of similar whale activities observed in the crypto space lately. Shortly after the launch of Spot Bitcoin ETFs, a Bitcoin whale sold 2,742 BTC worth $127.7 million at the time. This strategic move resulted in a substantial profit of over $74 million. Additionally, reports from Whale Alert have seen 6,621 BTC worth over $276 million being transferred from an unknown whale wallet to Coinbase, an American crypto exchange. 

    Usually, in the crypto space, small amounts of Bitcoin transactions have no effect on the market, but a transaction involving hundreds of millions, or billions of dollars worth of Bitcoin can potentially create massive selling pressure and adversely influence the price of the cryptocurrency.

    BTCUSD trading at $41,544 on the daily chart: TradingView.com

    In respect to this, popular market intelligence platform, Santiment disclosed on X that the crypto market has been consistently experiencing declines that could induce panic among traders. 

    The crypto data intelligence platform shared a chart illustrating the dip possibilities that could be triggered by Fear, Uncertainty, and Doubt (FUD) among crypto traders and investors. Santiment predicts that if bearish sentiments cause traders to panic, it may prompt major sell-offs and potentially instigate a significant bounce in the market. 

    BTC Drops Below $42,000

    Although 2024 has been heralded as the year of the crypto bull run, the price of Bitcoin has been experiencing unexpected declines recently. 

    Initially, BTC surged above $49,000, its highest level in 2023. However, currently the price of the cryptocurrency is trading below the $42,000 price mark. At the time of writing, Bitcoin’s price stands at $41,487, reflecting a 3.29% plunge over the past seven days, according to CoinMarketCap.

    Despite the bullish sentiments brought by the approval and launch of Spot ETFs, Bitcoin has failed to rally above the $50,000 price mark predicted by expert crypto analysts. Santiment has suggested that the approval of Spot Bitcoin ETFs appears to be a classic case of a “buy the rumor, sell the news event.”

    Featured image from Shutterstock

    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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    Scott Matherson

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  • El Salvador's Bitcoin Adoption Drops Significantly: Survey Reveals a 12% Usage Rate in 2023

    El Salvador's Bitcoin Adoption Drops Significantly: Survey Reveals a 12% Usage Rate in 2023

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    El Salvador made history by becoming the first nation to embrace Bitcoin as a legal tender more than two years ago.

    Although the country’s financial outlook has seen positive developments, a recent study carried out by José Simeón Cañas Central American University unveiled a mixed sentiment regarding the correlation between the adoption of Bitcoin and perceived improvements in personal well-being.

    Mixed Feelings

    According to the survey, 12% of the local population in El Salvador used Bitcoin at least once to pay for goods and services in 2023. This marks a significant decrease from 2022, when the same university reported that 24.4% of Salvadorans had engaged in transactions using Bitcoin.

    The decline in numbers raised questions about the sustainability and widespread acceptance of the premier crypto asset in everyday transactions.

    Among those who utilized Bitcoin for transactions, nearly half – 49.7% – made purchases using the crypto asset only one to three times. On the other end of the spectrum, 20% of respondents used Bitcoin for 10 transactions or more, indicating a notable difference in the frequency of crypto usage.

    Meanwhile, Groceries topped the list, with 22.9% of respondents using Bitcoin for grocery shopping, followed closely by supermarkets at 20.9%. A surprising 15% of respondents reported using Bitcoin for transactions at veterinary clinics, highlighting the diverse range of businesses incorporating the asset into their payment systems.

    The number of respondents who felt that their family’s life had improved during the past year, coinciding with Bitcoin becoming legal tender, increased from 3% in 2022 to 6.8% in 2023. While this suggests a positive association, it is important to note that the majority of respondents – 93.2% – did not attribute any improvements in their lives to Bitcoin usage.

    Contrary to the positive correlation between Bitcoin adoption and personal well-being, the survey reveals a disconnect between crypto use and perceptions of the overall economic situation in El Salvador. Only 0.5% of respondents believe Bitcoin has played a role in the country’s economic improvement. Instead, more than a third of respondents – 34.3% – attribute the perceived economic improvement to a decline in crime rates – 24.3%.

    El Salvador’s Advancements Thus Far

    On June 9th, 2021, El Salvador’s government officially endorsed legislation in the official gazette, designating the digital currency Bitcoin as legal tender within the nation. The legislation became effective on September 7th, 2021, making El Salvador the world’s first country to embrace Bitcoin as legal tender formally.

    This decision faced considerable criticism from mainstream media and traditional financial institutions, a sentiment that amplified during the subsequent bear market.

    However, El Salvador has made significant strides since then. The country’s investment in Bitcoin proved lucrative as its portfolio turned profitable amidst the bear market, reaching $42,000 in December 2023.

    Taking a step further, the government collaborated with stablecoin issuer Tether to introduce the “Adopting El Salvador Freedom Visa Program.” Applicants are required to submit a non-refundable deposit of $999 in either Bitcoin or USDT, and successful applicants undergo a Know Your Customer (KYC) verification process.

    In another development, the Digital Assets Commission granted approval for El Salvador’s Bitcoin-backed bonds, known as Volcano Bonds. According to the National Bitcoin Office (ONBTC), these bonds will be accessible on Bitfinex Securities, a regulated segment of the cryptocurrency exchange Bitfinex.

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    Chayanika Deka

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  • Bitcoin Spot ETFs Approved After 14 Years- The Journey So Far

    Bitcoin Spot ETFs Approved After 14 Years- The Journey So Far

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    The year 2024 marks the dawn of a new era, not just for technology but for finance, as a major victory was achieved for Bitcoin Spot ETFs (Exchang-Traded Funds). It’s now the era where the past will be appreciated for its foresight and doggedness. 

    When the pioneer cryptocurrency and digital currency, Bitcoin launched in January 2009, it was nothing like a real-world asset or of an ‘agreed’ digital value, but an almost neglected bag of gold as it faced enough rejection from all phases. Even with Satoshi’s Whitepaper, Bitcoin wasn’t given a cordial welcome in the world of finance.

    However, for all its promise, BTC remained shrouded in an air of mystery and skepticism. It took several years for Bitcoin to cement its value in the world of technology, finance, and the digital economy, assuming a giant role amidst many other cryptocurrencies. 

    However, On January 10, 2024, the SEC, in its official filing, approves all 11 Bitcoin Spot ETFs. This long-awaited green light from the US SEC marked a watershed moment, not just for Bitcoin, but for the entire cryptocurrency industry. 

    The 14-year journey to this point was arduous and paved with skepticism; regulatory hurdles loomed large, with the SEC citing concerns about market manipulation and investor protection as justification for repeated rejections. Attempts like Bitcoin futures ETFs offered limited exposure, failing to capture the true essence of a spot ETF’s direct price tracking. 

    Bitcoin Spot ETF Explained

    The recent approval of Bitcoin spot ETFs has stirred excitement across the financial landscape. But what exactly are these instruments, and what impact will they have on the future of BTC and, more broadly, on the investment landscape?

    Bitcoin “Spot” ETFs (exchange-traded funds), unlike their futures-based counterparts, don’t track the price of Bitcoin futures contracts. Instead, they take a more direct approach, holding the underlying asset – Bitcoin itself – in secure digital custodians. 

    This eliminates the potential for “basis risk,” a phenomenon where futures prices deviate from the actual cash price of Bitcoin. Simply put, Spot ETFs offer a more straightforward and transparent way to gain exposure to BTC’s price movements, akin to traditional gold-backed ETFs.

    Bitcoin Spot ETFs function similarly to their traditional counterparts, such as those tracking stock market indices. They pool investor capital, purchasing Bitcoin and holding it securely. Each share of the ETF represents a fractional ownership of the pooled Bitcoin, allowing investors to participate in the market without directly holding or managing the cryptocurrency themselves. This eliminates technical complexities and potential security risks, particularly for those with limited crypto experience, potentially broadening the base of Bitcoin investors. 

    The Genesis Of Bitcoin ETFs (Early Days and Conceptualization – 2013-2017)

    The earliest sparks of a Bitcoin ETF concept date back to 2013, when the Winklevoss twins first proposed their Gemini ETF. Winklevoss twins, Cameron and Tyler, both tech entrepreneurs with a vision in 2013, submitted the first application for a Bitcoin ETF, the Gemini ETF, sparking the decade-long journey to regulatory approval. 

    This audacious proposal was outrightly rejected by the SEC during the tenure of its former chairman, Jay Clayton, who later resigned in 2020 and became a supporter of cryptocurrency. Interestingly, Clayton is now actively involved in crypto regulations when he joined the advisory board of Fireblocks, a crypto custody platform.

    The following years were a crucible of innovation and uncertainty. While Bitcoin’s market capitalization surged, attracting both fervent supporters and cautious observers, the SEC remained hesitant. The regulator’s concerns about market manipulation, price volatility, and the nascent state of blockchain technology were cited as justifications for repeated rejections of subsequent ETF proposals, including Grayscale’s attempt to convert its Bitcoin Investment Trust into a spot ETF.

    Yet, amidst the rejections, there were flickers of progress. Technological advancements improved blockchain security and custody solutions, addressing initial concerns about vulnerability and potential wash trading. The global adoption of Bitcoin, particularly in Canada with its approval of Spot ETFs in 2021, served as a compelling case study for increased accessibility and market stability.

    This period also saw the SEC’s stance slowly evolve. The appointment of Gary Gensler as SEC Chair in 2021 brought a newfound openness to dialogue and exploration of potential regulatory frameworks for cryptocurrencies. The approval of the first US-listed futures-based bitcoin ETF in October 2021, despite its limitations, offered a glimpse of what could be.

    The Turning Point: A Decade Of Persistence Pays Off (2018-2023)

    While the 2017-2018 crypto boom and subsequent crash sent shockwaves through the industry, it also served as a crucible, forging resilience and fueling a renewed focus on compliance and innovation. Industry figures like Grayscale, undeterred by previous rejections, continued to refine their proposals, incorporating crucial safeguards and addressing regulatory concerns.

    This relentless pursuit of approval finally yielded results in 2023. In May, Cathie Wood’s ARK Investments filed for a spot bitcoin ETF, setting a definitive deadline for the SEC’s decision. 

    Then, in June, BlackRock’s entry into the arena with its own Spot Bitcoin ETF application sent ripples of excitement through the financial world. This move by a traditional financial giant signalled a crucial shift in sentiment, demonstrating growing institutional confidence in BTC’s potential.

    The months that followed were a whirlwind of activity. A flurry of applications from firms like Fidelity and Invesco poured in, fueled by the momentum of BlackRock’s move and the prospect of imminent approval. In August, a pivotal legal victory for Grayscale in the D.C. Circuit Court further strengthened the case for spot ETFs, forcing the SEC to re-examine its previous rejections.

    Finally, the SEC, in a historic decision, greenlighted 11 spot bitcoin ETF proposals, including those from BlackRock, Fidelity, and VanEck. This moment marked the culmination of a decade-long struggle, signifying the mainstream acceptance of investor participation in the cryptocurrency space.

    Ripples Across The Crypto Landscape: Implications Of Bitcoin Spot ETFs (2024)

    The arrival of spot ETFs has cast a wide net, sending ripples across various spheres of the financial world. There are a lot of potentials and challenges presented by spot ETFs, vital impact on market stability, institutional adoption, and regulatory oversight. There are positive predictions that the Bitcoin market cap could rise above $1 Trillion after the launch of Bitcoin Spot ETFs.

    Let’s contemplate the broader significance of this pivotal moment, what it means for the future of finance, and its relationship between technology and traditional financial systems here.

    Investor Crossroads

    For retail investors, Spot ETFs offer a convenient and familiar way to participate in the Bitcoin market without directly holding the cryptocurrency. This opens the door to broader adoption and increased liquidity, potentially leading to smoother price discovery and reduced volatility. The influential American magazine, Forbes predicted the BTC price will trade as high as $80,000 as a result of Bitcoin Spot ETFs’ approval. 

    The year 2024 is also shaping up to be a good one, if not one of the best seasons for cryptocurrency, especially Bitcoin, as it’s the season for Bitcoin halving, which will have another mega impact on the crypto industry. 

    However, the inherent risks of Bitcoin, including price fluctuations and potential exposure to fraud, must not be underplayed. Investors should approach spot ETFs with cautious optimism, ensuring a proper understanding of the technology, market dynamics, and associated risks before venturing in.

    Institutional Embrace Bitcoin

    The arrival of spot ETFs marks a significant step towards institutional acceptance of Bitcoin. The involvement of established financial institutions like BlackRock and Fidelity lends credibility to the cryptocurrency and paves the way for further integration with traditional financial products and services.

    Concerns remain about the impact of institutional involvement on market manipulation and potential conflicts of interest. However, regulatory oversight and robust compliance frameworks will be crucial in ensuring a fair and transparent market for all participants.

    Market Redefined

    Spot ETFs could potentially lead to greater market stability by introducing institutional investors and their risk management expertise. This could mitigate some of the inherent volatility of the cryptocurrency market, attracting a wider range of investors and fostering sustainable growth.

    The SEC’s approval represents a cautious acceptance, not a blank check. Further regulatory clarity and potential adaptation of existing frameworks might be required to effectively address the unique challenges posed by the integration of cryptocurrencies into mainstream financial systems.

    Beyond Bitcoin

    Spot ETFs could act as a gateway for investors to explore the broader crypto landscape. Their familiarity and ease of access might encourage exploration of other promising blockchain-based projects, accelerating the overall growth and development of the cryptocurrency ecosystem.

    The success of spot ETFs will hinge on the continued evolution of blockchain technology and associated infrastructure. Scalability, security, and user experience will remain key areas of focus for ensuring the smooth functioning and widespread adoption of crypto-based financial products.

    The 11 Spot Bitcoin ETFs products (with their ticker symbols) approved  on January 10, 2024, are:

    • Blackrock’s iShares Bitcoin Trust (IBIT)
    • ARK 21Shares Bitcoin ETF (ARKB)
    • WisdomTree Bitcoin Fund (BTCW)
    • Invesco Galaxy Bitcoin ETF (BTCO)
    • Bitwise Bitcoin ETF (BITB)
    • VanEck Bitcoin Trust (HODL)
    • Franklin Bitcoin ETF (EZBC)
    • Fidelity Wise Origin Bitcoin Trust (FBTC)
    • Valkyrie Bitcoin Fund (BRRR)
    • Grayscale Bitcoin Trust (GBTC)
    • Hashdex Bitcoin ETF (DEFI)

    Conclusion

    The approval of Bitcoin spot ETFs is a watershed moment, not just for the cryptocurrency itself, but for the entire financial landscape. It marks a new chapter in the saga of Bitcoin, one where its disruptive potential can be harnessed within the framework of established financial systems.

    Also, this path forward is paved with both opportunities and challenges. Navigating regulations and addressing investor risk concerns are important to ensure seamless integration with traditional financial systems and regulatory bodies, which will be crucial in determining the ultimate success of this technological leap.

    Final Thoughts

    The approval of Bitcoin spot ETFs is not merely a regulatory green light; it’s a resounding declaration of Bitcoin’s arrival on the main stage of finance.

    Related Reading: Celestia Network: How To Stake TIA And Position For 5-Figure Airdrops

    However, the journey is far from over. This approval is a milestone, not a destination. As we stand at this turning point, it’s important to remember the spirit of defiance that birthed BTC. It was born from a desire for autonomy, for freedom from centralised control, and for a more equitable financial system. 

    While ETFs offer a bridge between this decentralized world and the established financial order, it’s crucial not to lose sight of these core principles.

    BTC price struggles post-Bitcoin Spot ETF approval | Source: BTCUSD on Tradingview.com

    Featured image from Cryptopolitan, 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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    Scott Matherson

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  • Bitcoin Whale Addresses Hit 15-Month High – A Sign Of Growing Accumulation?

    Bitcoin Whale Addresses Hit 15-Month High – A Sign Of Growing Accumulation?

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    The story has not been much different for the price of Bitcoin this week, as the premier cryptocurrency has struggled to capitalize on its recent advancements. According to data from CoinGecko, BTC is down by more than 3% in the past week, putting doubts over the continuation of the bull run.

    However, the latest on-chain revelation has offered some relief, suggesting that the value of Bitcoin might be up for substantial recovery over the next few weeks. 

    Can Whale Accumulation Trigger Continuation Of Bull Cycle?

    Popular crypto analyst Ali Martinez revealed – via a post on the X platform – that the number of Bitcoin whales has witnessed a significant increase over the past few days. This is based on the “Number of Entities With At Least 1,000 BTC Balance” metric from the on-chain analytics firm Glassnode.

    According to the latest Glassnode data, the number of addresses holding at least 1,000 BTC surpassed 1,510 on Thursday, January 18. This figure represents the metric’s highest level in over 15 months (since August 2022). 

    Chart showing the number of entities with at least 1,000 BTC | Source: Ali_charts/X

    Large holders, commonly known as “whales,” are considered relevant entities in the cryptocurrency market due to their ability to influence prices and market sentiment. Hence, a notable uptick in the number of whales often suggests growing confidence in a cryptocurrency – in this case, Bitcoin.

    Furthermore, this surge in whale addresses signals potential accumulation amongst large investors and institutions. Acquisition of large Bitcoin amounts is a positive sign for the market leader, especially in terms of price performance.

    A recent Santiment report adds strength to this argument, saying that increased whale accumulation of Bitcoin would be a “key” factor to help trigger another bull run for the flagship cryptocurrency and the entire sector. 

    The blockchain analytics firm also highlighted the accumulation of the Tether and USDC stablecoins as a vital signal for the cryptocurrency market’s return to its recent high.

    Bitcoin Price Overview

    As of this writing, the price of Bitcoin stands at $41,593, reflecting a 1.1% increase in the past 24 hours. This doesn’t fully tell the story of the coin’s performance in the past day, though, as it briefly fell below $41,000.

    According to data from CoinGecko, BTC is down by more than 5% in the last 14 days. The cryptocurrency has reversed all its gains and more from the recent launch of spot exchange-traded funds in the United States.

    Nevertheless, Bitcoin maintains its spot as the largest cryptocurrency in the sector, with a market cap of over $814 billion.

    Bitcoin

    Bitcoin's price reclaims $41,000 on the daily timeframe | Source: BTCUSDT chart on TradingView

    Featured image from iStock, chart from TradingView

    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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    Opeyemi Sule

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  • Bitcoin Accumulation: USDT Issuer Tether Goes On Massive 8,888 BTC Buying Spree

    Bitcoin Accumulation: USDT Issuer Tether Goes On Massive 8,888 BTC Buying Spree

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    In an encouraging development for the crypto space, Tether, the issuer of the world’s largest stablecoin USDT, has doubled down on its Bitcoin investment momentum by acquiring a staggering 8,888 BTC, further diversifying its portfolio. 

    Tether Increases Its Bitcoin Holdings

    Tether has recently made its third largest Bitcoin purchase, as the stablecoin issuer added a total of 8,888 BTC valued at $380 million at the time of purchase. This brings its total BTC holdings to 66,465 BTC, valued at $2.81 billion with an average buy price of $42,353. 

    This transaction was captured by BitInfoCharts data, which also showed the previous amounts of BTC accumulated by the blockchain-enabled platform. This recent purchase follows Tether’s Bitcoin investment strategy, in line with its vision to continuously strengthen its reserves by accumulating Bitcoin.

    Earlier in May 2023, the stablecoin issuer announced in a blog post that it would regularly allocate 15% of its net realized operating profits toward increasing its BTC reserves. As of the end of March 2023, Tether held approximately $1.5 billion worth of cryptocurrency, a $1.3 billion difference from its total BTC holdings presently. 

    According to reports from Dune Analytics, Tether has become the 11th largest Bitcoin holder, with Microstrategy, an American business intelligence service, surpassing Tether’s holdings with over 189,00 BTC accumulated. The other addresses in the top 10 rankings are owned by major crypto exchanges and governments, including Binance, Bitfinex and the US government. 

    Tether’s decision to double down on its Bitcoin investments signals its confidence in the cryptocurrency’s future trajectory. It also underscores the blockchain platform’s belief in the long-term potential of BTC as it aims to capitalize on Bitcoin’s potential growth by bolstering and diversifying its digital asset reserve.  

    BTC price sitting at $41,354 | Source: BTCUSD on Tradingview.com

    BTC Accumulation Race Amidst ETF Hype

    Tether’s strategic Bitcoin purchase comes at a time when the crypto market is buzzing with excitement over Spot Bitcoin ETFs. Before the approval of Spot Bitcoin ETFs, Tether had steadily increased its BTC portfolio, purchasing substantial quantities of BTC consistently. In March 2023, the stablecoin issuer bought 15,915 BTC and another 4,083 BTC between the months of May and September.

    The timing of Tether’s BTC purchase suggests a proactive stance towards potentially seizing the opportunities brought forth by the Spot Bitcoin ETF market and the upcoming Bitcoin halving in April.

    In addition to Tether’s large-scale BTC acquisition, Microstrategy is also another major player which has been continually increasing its BTC holdings. The business intelligence software company added a whopping 14,620 BTC to its portfolio in December 2023. At the time, the value of the purchase was about $615.7 million. 

    Other companies with large BTC holdings include Galaxy Digital and Elon Musk’s Tesla, as well as space exploration company SpaceX.

    Featured image from Investopedia, 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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    Scott Matherson

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  • Oaktree's Howard Marks sees minimal difference between Bitcoin and gold

    Oaktree's Howard Marks sees minimal difference between Bitcoin and gold

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    Howard Marks, co-founder of Oaktree Capital Management, questions the intrinsic value of Bitcoin and gold, favoring high-yield bond funds as a more secure investment option.

    In a recent episode of the Merryn Talks Money podcast, Howard Marks, co-founder of Oaktree Capital Management, expressed his views on Bitcoin and gold, suggesting a lack of intrinsic value.

    Marks, whose firm specializes in distressed debt and manages about $180 billion, highlighted gold’s historical reliability but questioned its fundamental justification.

    Discussing the current investment climate, Marks noted a significant shift, indicating that the era of 0% interest rates is likely over, advising investors to explore alternatives like high-yield bond funds.

    According to Marks, these funds offer considerable returns and are inherently safer due to the nature of fixed-income securities. This perspective suggests a cautious approach towards more speculative assets like Bitcoin (BTC) and gold, favoring more traditional investment strategies.

    Bitcoin ETFs versus Gold ETFs

    In 2024, Bitcoin and gold ETFs are quite different in their behavior in the market. Bitcoin ETFs are new and exciting, especially since the SEC recently approved them. However, prices can change significantly due to regulations or events in the Bitcoin world, such as the upcoming Bitcoin halving.

    Conversely, Gold ETFs have been steadier. In 2023, the GLD ETF surged by nearly 13%, according to MarketWatch.com, meaning gold ETFs are becoming more stable and could continue to grow.

    While Bitcoin ETFs are new and can be volatile from a price perspective, gold ETFs do not vary as much as their BTC counterparts. Both are important in their respective markets but differ regarding risk and how the ETFs react to market changes.


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    Bralon Hill

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  • Analyst: Until Bitcoin Retests $61k, The BTC Top Is Not In

    Analyst: Until Bitcoin Retests $61k, The BTC Top Is Not In

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    Despite recent dips in price, Bitcoin is still on track for further gains, according to BitQuant. Based on technical analysis, the analyst predicts that the world’s most valuable coin will likely top out at $61,000, not $50,000, as some analysts have suggested.

    Bitcoin Has Room For Growth, May Peak At $61,000

    Sharing a screen grab on X, the analyst argues that based on Bitcoin’s history, prices tend to peak once it retests the 2X100 exponential moving average (EMA). So far, prices are lower, trading below $45,000, and the uptrend is valid despite the recent cool-off. 

    BTC is yet to retest the 2X100 EMA | Source: BitQuant on X

    For this reason, BitQuant is confident that the recent drop was a temporary correction. Accordingly, BTC will likely extend gains, breaking above immediate resistance levels at $45,000 and even $50,000 in the short to medium term.

    Still, it should be noted that the 2X100 EMA is a technical indicator and may lag. Since the indicator averages past prices, it might not be accurate, showing current events and expectations of prices.

    To demonstrate, in the last bear market, Bitcoin prices dipped below the 2X100 EMA as the coin tanked to as low as $16,000 by November 2022. This development wasn’t expected by the community, taking adherents by surprise.

    So far, looking at the Bitcoin price action in the daily chart, the path of least resistance is northwards. Though the approval of spot Bitcoin ETFs by the United States Securities and Exchange Commission (SEC) was expected to lift prices immediately, BTC unexpectedly crashed. 

    Bitcoin price trending higher on the daily chart | Source: BTCUSDT on Binance, TradingView
    Bitcoin price trending higher on the daily chart | Source: BTCUSDT on Binance, TradingView

    Bears appear in control, recently forcing prices below a short-term support level. For this reason, the immediate trend aligns with the January 12 bear engulfing bar. Making projections from this formation, BTC may, if bears take charge, drop to $40,000 or lower.

    BTC Demand Surging

    Even with this bearish outlook, the encouraging surge of capital to approved spot Bitcoin ETFs is bullish. Investor Fred Krueger notes that in the last five days alone, IBIT, the spot Bitcoin ETF issued by BlackRock, the world’s largest asset manager, received $1 billion. 

    Looking at the pace of inflows, not only IBIT but other spot Bitcoin ETFs, Krueger believes BTC is undervalued at spot rates. The investor estimates that spot Bitcoin ETF issuers now hold over 650,000 BTC, up from 619,000 BTC as of January 1. This suggests that institutional investors are increasingly bullish on Bitcoin, and prices, though depressed, might recover going forward.

    Feature image from Canva, chart from TradingView

    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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    Dalmas Ngetich

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  • Analyst predicts crypto bull run will be more parabolic than 2021

    Analyst predicts crypto bull run will be more parabolic than 2021

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    In a Jan. 19 video on Crypto Banter, Kyle Chassé, the founder of Master Ventures, shares why he believes this year will result in $100,000 BTC and $7,000 ETH.

    Chassé predicts that Bitcoin will hit $100,000 this year, although these prices won’t be seen until around May when the post-halving rally starts. In the meantime, the analyst suggests that 15%-20% pullbacks are likely. To back up his prediction, Chassé points to the Bitcoin (BTC) charts to highlight that massive buy pressure from institutions is much more than the market has seen up until now.

    The analyst relates that unlike the retail buyer, institutions don’t care about BTC prices, they care about how many assets they have under management (AUM) since ETF issuers charge management fees to earn their money. Moreover, with all the money invested into legal fees, efforts, and commissions, institutions expect a certain level of interest in what is likely to be a long-term play, a bullish sign for the market.

    Since Ethereum isn’t in the institutional realm, Chassé also predicts Ethereum (ETH) will be the next play since there is no place for ETH inflows from ETFs yet. It is the only other cryptocurrency that has a chance of getting institutional approval this year. Based on this the analyst predicts a possible ETH season with prices likely to hit between $6,000 to $7,000.

    Chassé also shares that he views Solana as a blue chip, predicting that SOL will outperform ETH this year, hitting the $500 to $1,000 range one day. He attributes this to institutional interest from major players like Franklin Templeton, an American multinational holding company.

    In referencing the 2021 bull run throughout his predictions, it is worth noting that the cycle was previously led by a Bitcoin price of $69,000 in November 2021, with increased growth evident during the COVID-19 pandemic and the market seeing a rising demand for digital payment solutions. Following this run, the market lost $2 trillion in value in the following year and is only now looking at making a comeback.


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    Sarah Jansen

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  • Why Did The Bitcoin Price Fall Below $41,000?

    Why Did The Bitcoin Price Fall Below $41,000?

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    Bitcoin dropped below $41,000 in the last 24 hours before making a recovery to rise above that level once again. This has become the current reality of the flagship crypto token’s price, which has continued to decline since the Spot Bitcoin ETFs were approved. This is surprising considering that these funds were projected to help boost Bitcoin’s price upon launch. 

    Why Bitcoin’s Price Could Be Dipping

    Bloomberg analyst James Seyffart provided insight into what could be the reason for Bitcoin’s declining price as he revealed that Grayscale’s GBTC has experienced an outflow of $2.2 billion since its conversion to a Spot Bitcoin ETF. Crypto analytics platform Arkham Intelligence also revealed that Grayscale had moved 9000 BTC from their wallets to Coinbase, suggesting an imminent sale. 

    A sell pressure of such magnitude would no doubt affect Bitcoin’s price, and that seems to be a plausible explanation for why Bitcoin’s price has declined as of late. The CEO of Jan3 and Bitcoiner, Samson Mow, also echoed similar sentiments as he mentioned that the GBTC sell pressure was pushing prices down. 

    However, Mow believes that this trend “won’t be a long drawn out process,” as he predicts that many of GBTC’s investors won’t be able to offload their stocks because the “tax hit is too big.” JP Morgan will, however, beg to differ as a research report by the bank estimates that up to $3 billion could exit from the GBTC fund with many investors looking to take profit. 

    Crypto analyst Ash Crypto also recently elaborated on how profit-taking is one of the reasons that GBTC is seeing this significant amount of outflows. He explained that a lot of GBTC investors bought shares in the fund when it was trading at a 40% discount from Bitcoin, and now they are exiting their positions since that discount is now at 0%. 

    BTC bulls make a play for control | Source: BTCUSD on Tradingview.com

    Spot Bitcoin ETFs Are Actually Living Up To Hype

    While Grayscale’s GBTC continues to bleed, other Spot ETFs look to be living up to the hype, with there being an impressive demand for these funds. Nate Geraci, the President of the ETF Store, revealed that two (IBIT and FBTC) out of the nine Spot ETFs (excluding GBTC) already hit $1 billion in assets under management (AUM) just after five trading days. 

    Specifically, BlackRock’s IBIT (iShares Bitcoin Trust) was the first to achieve this milestone in just four trading days. Commenting on how impressive this was, Bloomberg analyst Eric Balchunas noted that only two other ETFs ($GLD and $BITO) had done this before now, and none of those funds faced such competition as IBIT did on launch day.  

    The demand for Spot ETFs is evidently there, seeing that two spot Bitcoin ETFs have already achieved a record that was held by only two other ETFs before now.

    Featured image from Yahoo Finance, 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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    Best Owie

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