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Tag: btc price

  • Bitcoin Price Crash To $62,000 Was Led By This Holer Cohort, Data Shows

    Bitcoin Price Crash To $62,000 Was Led By This Holer Cohort, Data Shows

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    Este artículo también está disponible en español.

    The Bitcoin price is still recovering from a major dip to $60,000 in the first three days of October. As the bulls and long-term holders continue to capitalize on the dip, analysis of on-chain data has revealed that the selling pressure has been eased massively as the majority of short-term holders have exited the market. Interestingly, these short-term holders are accountable for the drop to $60,000, as the data shows many of them exiting the market during the initial decline, further exacerbating the price drop. 

    Short-Term Holders Exit The Market

    According to an analysis of Bitcoin holder cohorts using data from the CryptoQuant platform, the supply of Bitcoin held by short-term holders has declined substantially since the beginning of the month. Although this contributed to a Bitcoin price decline during this timeframe, it is not necessarily bad for the crypto moving forward. This notable decline is visible in purple bars in the chat below, with every period of price downturns highlighted by an increase in short-term holder selloffs. 

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    The Bitcoin price, which ended September around $65,000, kicked off October with a price dip amidst broader market tensions. This, in turn, led to a 7.5% Bitcoin price dip until it bottomed at $60,100. Notably, the chart highlights that this most recent decline to the $60,000 level coincided with the emergence of more purple bars, revealing that the selloff by short-term holders played a significant role in the price decline.

    What Does This Mean For Bitcoin?

    Moving forward, the selloff from short-term holders and the price decline has given rise to more accumulation by long-term holders. This, in turn, gives rise to the creation of a price floor around $60,000 in the coming weeks and months. It also marks the shift of more bitcoins to stronger hands who would rather hold than sell.

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    Notably, the exit of many short-term holders has given rise to a better average cost for the cohort. According to on-chain metrics revealed by a verified CryptoQuant analyst, the average cost of one to three-month holders is now around $61,633, and the average cost of three to six-month holders is around $64,459. 

    At the time of writing, Bitcoin is trading at $62,130, which positions it right in the middle of these two key holder cohorts. According to analyst Burak Kesmeci, a decisive close above the $64,500 level would significantly strengthen the bullish momentum, giving both short and long-term holders more confidence to continue holding. On the other hand, if Bitcoin falls below $61,600, it could trigger a wave of additional selling pressure from more short-term holders, potentially leading to further price declines to revisit $60,000 again.

    BTC price drops below $62,000 | Source: BTCUSD on Tradingview.com

    Featured image created with Dall.E, chart from Tradingview.com

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    Scott Matherson

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  • Crypto Capo Returns After 2 Months To Predict Ethereum Decline To $1,800, Is It Time To Go Long?

    Crypto Capo Returns After 2 Months To Predict Ethereum Decline To $1,800, Is It Time To Go Long?

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    Este artículo también está disponible en español.

    Popular crypto analyst Il Capo of Crypto has returned to social media platform X after over two months of hiatus to drop an interesting outlook for Bitcoin and Ethereum in the coming months in light of the recent correction since the beginning of October. The analyst, which has been so big on a looming altseason since the beginning of the year, has revealed a bearish outlook for Bitcoin and even Ethereum (king of altcoins) in the short term.

    Known for his sometimes controversial and often contrarian predictions, Capo returned just as the market experienced a notable correction in October, sharing his bearish outlook for both Bitcoin and Ethereum. His latest prediction is that Ethereum could plummet as low as $1,800 before seeing any substantial recovery.

    ETH’s Predicted Decline

    Ethereum has already dropped by 10% in the past seven days and is currently trading around around $2,330, but according to Capo, this decline could worsen. He predicted that ETH might fall further into the $1,800 to $2,000 range, which is a possible 23% dip from its current price, before eventually rebounding. However, he believes an altcoin season will still materialize. 

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    Capo’s track record of analysis since the beginning of the year shows a consistent belief in the upcoming dominance of altcoins. Throughout 2024, he has repeatedly emphasized the potential for altcoins, particularly Ethereum, to outperform Bitcoin as profits generated from BTC flow into smaller assets. However, the altcoin season has yet to materialize, and Bitcoin has continued to dominate the crypto investment scene.

    Time To Go Long On Ethereum?

    It’s worth noting that Crypto Capo’s predictions often have a certain lore attached to them. There is a running joke among some investors that whenever Capo makes a prediction, the market tends to do the opposite. This goes as far back as his prediction of Bitcoin falling to $12,000 last year, but the crypto eventually broke past resistance levels. Now, with Capo predicting the possibility of continued decline for Ethereum and Bitcoin amid October’s bullish market sentiment (often dubbed “Uptober”), it raises the question from many investors if his bearish call is far-fetched.

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    Only time will tell if the market plays out according to Capo’s analysis. However, given the current inflow of investments and the crypto market, which has mostly rallied in October, it wouldn’t be surprising if Ethereum rebounds rather than experiences the significant drop Capo is forecasting.

    Naturally, many savvy whales and traders have seen the current decline as an opportunity to “go long” and accumulate more Ethereum in expectation of the resumption of inflows. This sentiment is reflected through the US Spot Ethereum ETFs, which witnessed $14.45 million in inflows yesterday despite the price correction.

    Interestingly, it is important to note that Capo’s analysis is only talking about a possible case and remains bullish for Ethereum in the long term. 

    ETH price drops sharply | Source: ETHUSDT on Tradingview.com

    Featured image created with Dall.E, chart from Tradingview.com

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    Scott Matherson

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  • Bitcoin Jumps 22% Post-Fed Rate Cut, Yet Key Resistance Sparks Crash Fears – Bitfinex

    Bitcoin Jumps 22% Post-Fed Rate Cut, Yet Key Resistance Sparks Crash Fears – Bitfinex

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    Bitcoin (BTC), the world’s largest cryptocurrency, has rallied over 22% in the past two weeks to trade at around $63,200, following a significant drop to $52,000 on September 6. This is the highest level BTC has reached in almost two months.

    Critical Resistance At $65,200 Looms

    According to a recent report from digital asset trading platform Bitfinex, this price increase was largely driven by the Federal Reserve’s (Fed) decision to cut interest rates, which helped propel BTC to a new local high of $64,200 on September 20. 

    However, despite this positive momentum, Bitcoin is still just below a critical resistance level of $65,200, established on 25 August. The report notes that a failure to breach this level could confirm a worrying trend that has characterized BTC’s price action since its all-time high of $73,666 in March.

    Since that peak, Bitcoin has repeatedly struggled to break previous highs before forming new local lows, indicating a persistent downtrend. This pattern of lower and lower highs is evident on the daily Bitcoin chart, suggesting that the cryptocurrency has been on a downward trajectory since mid-March.

    As seen on the daily BTC/USDT chart above, this repeated price action has been characterized by a sustained and continuous downtrend since the March peak. 

    Nonetheless, further volatility fueled by macroeconomic fears triggered another crash on August 5. BTC hit its lowest level in six months, down to the $49,000 level from the $70,000 level it had been trading at since late July.

    What Drove Bitcoin Recent Gains?

    One notable concern that Bitfinex finds is the discrepancy between BTC’s price gains and open interest in future markets. As BTC rose, open interest rose even faster, reaching $19.43 billion – up from $18.93 billion on August 25- while the Bitcoin price remained around $1,000 below its local high. 

    This divergence suggests that much of the recent price movement may be driven by speculative trading in futures and perpetual contracts rather than strong demand in the spot market.

    Earlier this month, Bitfinex observed that Bitcoin’s rise to around $62,000 was largely fueled by robust spot market buying, in stark contrast to the current situation. 

    While this trend in open interest might suggest increased speculative interest in Bitcoin, it does not directly imply bearishness. The report states that open interest is not a definitive measure of leverage in the market; it merely reflects the total value of outstanding contracts.

    Finally, the report suggests that this renewed speculative interest could be beneficial as traders return from their summer holidays and reassess their positions following the rate cut. However, Bitfinex does note that in the absence of clearer indicators of sustained bullish momentum, market participants should remain cautious. 

    Featured image from DALL-E, chart from TradingView.com

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    Ronaldo Marquez

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  • Challenges Mount For Bitcoin Miners As Difficulty Surges To Record High

    Challenges Mount For Bitcoin Miners As Difficulty Surges To Record High

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    A recent report by Bloomberg highlights that the difficulty of mining Bitcoin has surged to a record high, reflecting increasing competition among cryptocurrency miners. 

    On Wednesday, mining difficulty rose by 3.5%, as reported by crypto-mining tracker CoinWarz. This metric, which has been climbing steadily, often aligns with market expectations for Bitcoin’s price movements.

    Post-Halving Challenges

    Following the April Halving, which reduced miners’ potential revenue by half, the Bitcoin price has dropped approximately 10% to a current trading price of $57,000. 

    Per the report, this reduction has significantly pressured the profit margins of many mining companies, particularly those operating at higher costs. Christopher Bendiksen, Bitcoin research lead at CoinShares, noted: 

    The effect of the all-time high in difficulty, right on the back of the Halving, is making the outlook extremely challenging for many miners—especially those at the higher end of the cost curve. The researcher added that if current trends persist, some miners may struggle to remain cash flow positive, let alone achieve profitability.

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    Miners play a crucial role in the Bitcoin ecosystem by using specialized computers to validate transaction data on the blockchain, thereby securing the network. In return for their efforts, they earn Bitcoin rewards. 

    However, the financial landscape for miners has been tough this year; shares of major publicly traded mining companies have plummeted, with Marathon Digital Inc. and Riot Platforms Inc. experiencing declines of 31% and 54%, respectively.

    In contrast, Bitcoin’s price has shown consistency despite current challenges, climbing 38% and reaching a record high of $73,798 in March, fueled by optimism surrounding the demand for US exchange-traded funds (ETFs) that hold BTC. 

    Additionally, Bitcoin’s hash rate—the total computing power supporting the network—hit an all-time high in September, indicating strong participation in mining activities.

    Crucial Months Ahead For The Bitcoin Market

    Historically, the Bitcoin price has often dipped following its Halving event, only to rebound several months later, eventually hitting new record highs. Many industry participants are anticipating a potential rally in the fourth quarter, with Bobby Zagotta, CEO of crypto exchange Bitstamp USA, expressing optimism about market movements.

    However, Bendiksen cautioned that many miners appear to be banking on a significant price increase in Bitcoin. “If that fails to materialize, there will be trouble ahead for some operators,” he warned. 

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    The coming months will be crucial in determining the sustainability of mining operations and the broader health of the market, with expectations for further price recoveries increasing in the latter part of the year, with other potential catalysts including easing macroeconomic conditions and the outcome of the US election.

    The 1D chart shows BTC’s sideways price action above $57,000. Source: BTCUSDT on TradingView.com

    As of now, the largest cryptocurrency on the market is down a slight 0.4% in the 24-hour time frame, and nearly 2% in the last seven days, showing BTC’s struggle to regain previously lost levels. 

    Featured image from DALL-E, chart from TradingView.com 

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    Ronaldo Marquez

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  • Bitcoin Price Surges Above $64,000 — Here’s The Resistance Level To Watch

    Bitcoin Price Surges Above $64,000 — Here’s The Resistance Level To Watch

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    Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.

    Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part – in fact, far from it.

    Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.

    When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.

    Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books – ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
    Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.

    Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.

    Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time – he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.

    Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon – cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment – spreading the crypto gospel to the rest of the world.

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    Opeyemi Sule

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  • Bitcoin Crash Over? Veteran Trader Predicts Rebound To $90,000

    Bitcoin Crash Over? Veteran Trader Predicts Rebound To $90,000

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    The Bitcoin crash may be over, as a crypto trader has predicted a significant rebound for the pioneer cryptocurrency, foreseeing Bitcoin soaring to new all-time highs of $90,000. This bullish projection comes amid the recent downtrend in the price of Bitcoin, which saw a dramatic crash below $50,000 at some point over the past few weeks. 

    $90,000 Rebound Target Set For BTC

    In an X (formerly Twitter) post on August 5, crypto analyst, Peter Brandt made a bold prediction, suggesting that Bitcoin could witness a significant rebound to $90,000 this bull cycle. Sharing a price chart depicting a series of pumps and dumps in Bitcoin’s value since the beginning of the year, Brandt foresees the pioneer cryptocurrency hitting $90,000 before the end of 2024. 

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    Source: X

    During his post, Brandt emphasized the importance of focusing on what could potentially happen (possibilities), rather than what is likely to happen (probabilities) or what is believed to be certain (certainties). This unique approach to analyzing the market avoids over-dependence on assumptions and remains flexible to various market results. 

    Seeking Brandt’s opinion on the current state of the market, a crypto community member shared that they have been forecasting a bull flag for Bitcoin over the past few months. They inquired if Brandt concurred with this prediction and if a Bitcoin has reached a golden pocket, a key Fibonacci retracement level that often signals the next potential resistance level.

    Responding to the crypto community member, Brandt negated the possibility of a Bitcoin bull flag, citing various technical analytical authorities such as Schabacker, Edwards, and Magee, who state that bull flags should not last longer than two months. This ultimately suggests that if a supposed bull flag pattern has persisted for more than two months, then it does not meet the criteria for a bull flag. 

    Additionally, when asked by another crypto member if a possibility was just a type of probability, Brandt clarified that possibilities could not be described as a probability because probabilities involve assigning numbers and making assumptions. Brandt has disclosed that he strictly avoids trades based on assumptions to remain open to all possible outcomes without bias. 

    Bitcoin Regains Strength After 23% Market Crash

    Before Brandt predicted a rebound to $90,000 for Bitcoin, the cryptocurrency had experienced a sharp decline in its price. Over the past week, Bitcoin’s price had fallen to around $52,000, marking a significant drop of more than 23%, according to CoinMarketCap. 

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    Despite the recent price crash, Bitcoin has seemingly regained positive momentum, recording a price increase of 11.77% in just 24 hours. Based on CoinMarketCap’s reports, Bitcoin’s daily trading volume has also surged by 30.65%. 

    The cryptocurrency appears to be breaking out of its previous bearish trends, steadily approaching previous price highs around the $60,000 mark. At the time of writing, Bitcoin is trading at $55,903. 

    Bitcoin price chart from Tradingview.com
    BTC price reverses gains from $56,000 | Source: BTCUSD on Tradingview.com

    Featured image from Skilling.com, chart from Tradingview.com

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    Scott Matherson

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  • Bitcoin RSI Goes Bearish For The First Time Since August 2023, Will It Crash Below $40,000?

    Bitcoin RSI Goes Bearish For The First Time Since August 2023, Will It Crash Below $40,000?

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    The Relative Strength Index (RSI) is an important indicator for any cryptocurrency, and Bitcoin is no different. Given that the pioneer cryptocurrency has been around the longest, the abundance of data makes it possible to use this indicator in an attempt to pinpoint where the price might be headed next. This time around, the indicator is turning bearish, which means that the Bitcoin price could be headed toward further decline from here.

    Analyst Says RSI Is Turning Bearish For Bitcoin

    Crypto analyst Alan Santana took to the TradingView website to share a bearish development for the Bitcoin price. The analysis, which focused on the Relative Strength Index (RSI), shows a continuation of the bearish trend as Bitcoin is poised to fall further.

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    The crypto analyst, using the Bitcoin weekly chart, shows that the RSI is actually flashing a 3-year long bearish divergence. This is backed up by the RSI chart which showed a continuous decline over the the year 2024 after reaching a local peak at the start of the year.

    Bitcoin’s RSI has declined around 42% since the year began, going from as high as 88 to 50.6 at the time of the analysis. However, Alan Santana uses a longer timeframe from 2021 to 2024, showing a bearish divergence in this indicator.

    This bearish divergence has emerged as the RSI indicator presented a lower high in 2024 compared to the 95 peak of 2021. According to the analyst, this means that the RSI indicator is now turning bearish for the first time since August 2023. This makes it the most bearish that the Bitcoin indicator has become in one year.

    How Low Will The BTC Price Drop?

    At the time of the analysis, the Bitcoin price had already seen a brutal drop from $70,000 to below $60,000 before a small recovery at the time of the writing. However, the crypto analyst does not believe this is the end and warns investors to expect further decline.

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    Going by the chart, Alan Santana expects that the Bitcoin price will fall over 20% from here once more. This would mean a price decline below $50,000. The crypto analyst puts the bottom of this decline at around $44,000.

    Source: Tradingview.com

    If this forecast were to materialize, it would mean the price would revisit the $40,000 level for the first time since January 2024. However, it is not all bad news as the crypto analyst explains that “This, and other signals, is telling us that there is room for lower prices; much lower, before we experience new highs and boom growth.”

    Bitcoin price chart from Tradingview.com
    BTC tug of war continues | Source: BTCUSD on Tradingview.com

    Featured image created with Dall.E, chart from Tradingview.com

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    Scott Matherson

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  • Wondering When To Buy Bitcoin? Here Are The Levels To Watch

    Wondering When To Buy Bitcoin? Here Are The Levels To Watch

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    Due to market volatility and Bitcoin (BTC) price fluctuations, identifying the best times to buy the pioneer cryptocurrency can be challenging. Taking this into consideration, a crypto analyst has pinpointed key price levels for investors to monitor for potential buying opportunities. 

    Buy Levels To Watch For The Bitcoin Price

    A crypto analyst identified as ‘Stockmoney Lizards’ took to X (formerly Twitter) on August 1 to discuss Bitcoin’s recent price movements, highlighting key buy levels and the cryptocurrency’s propensity for a price increase. The analyst notes that Bitcoin’s current price actions indicate a classic 5-wave uptrend followed by an ABC correction with an overarching wave B. 

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    An ABC correction is a continuous pattern that occurs during uptrends or downtrends. It is a pattern within the Elliott Wave Theory that reflects a three wave correction and helps identify a trend continuation. 

    Sharing a Bitcoin price chart illustrating each wave (A, B, and C), the analyst disclosed that Wave B ended at the Value Area High (VAH) around the $69,885 mark. According to the analyst, this price level historically acted as  a resistance. This means that Bitcoin’s price may face difficulty moving above this point.    

    Source: X

    The analyst further revealed that the $66,745 price point also acted as a resistance level for Bitcoin. He highlighted this critical level on the BTC price chart, emphasizing that the red line represents a Point Of Control (POC) for the cryptocurrency. 

    Moreover, the 1.618 Fibonacci extension level for Bitcoin is identified as a potential support area for a new uptrend. The analyst disclosed that this crucial level coincides with the 0.5 Fibonacci retracement level and the Value Area Low (VAL), which are all important support levels. 

    Concluding his analysis, the crypto analyst suggested that the support area between $61,800 and $62,300 was an important buying level to watch out for. He noted that on the higher timeframe, Bitcoin’s potential uptrend was still intact, adding that if the cryptocurrency’s price breaks below the $61,800 mark, then a further decline to test the 2.618 Fibonacci extension at $56,800 should be expected. 

    Overall, the crypto analyst is leaning towards a bullish outlook for the short term and mid term timeframes in Bitcoin’s price. At the time of writing, Bitcoin is trading at $61,594, reflecting a 4.21% decline in the last 24 hours, according to CoinMarketCap. 

    BTC Poised To Breakout In September

    Other analysts have also remained relatively bullish on Bitcoin’s price, predicting rallies to new all-time highs for the pioneer cryptocurrency. According to a crypto analyst identified as ‘TOBTC’ on X, Bitcoin experienced a significant decline in its price, falling below the $63,000 price mark. 

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    Bitcoin 2
    Source: X

    The analyst revealed that despite Bitcoin getting rejected at the $70,000 resistance, a potential breakout is expected by September. This bullish sentiment is shared by a different crypto analyst, Michael van de Poppe, who predicts that if Bitcoin holds above $60,000 to $61,000, the cryptocurrency could witness an upward movement to new all time highs in September or October 2024. 

    Bitcoin price chart from Tradingview.com
    BTC price drops below $62,000 | Source: BTCUSD on Tradingview.com

    Featured image created with Dall.E, chart from Tradingview.com

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    Scott Matherson

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  • Trump Floats Bitcoin Payments As Solution To $35 Trillion US Debt Crisis

    Trump Floats Bitcoin Payments As Solution To $35 Trillion US Debt Crisis

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    In a recent interview with Fox News, former President Donald Trump voiced support for using Bitcoin as a tool to help pay down the United States’ $35 trillion national debt as he positions himself for a potential 2024 presidential re-election, while also signaling a notable shift in the Republican party’s stance on digital assets.

    Trump’s Strategy To Tackle $35 Trillion Debt With Bitcoin

    “Crypto is a very interesting thing, very high level in certain ways, intellectually very high level,” Trump said. The former president acknowledged the rapid growth and adoption of cryptocurrencies globally, warning that if the US does not embrace the technology, countries like China will move ahead and seize the initiative.

    Trump’s recent comments echo proposals from Republican figures such as Wyoming Senator Cynthia Lummis and former House Speaker Paul Ryan, who have floated the idea of the US government investing in Bitcoin holdings to help pay down the national debt. 

    While Trump didn’t offer any new specifics, he did hint at the possibility of the government simply “handing out a little crypto check” or “handing them a little Bitcoin” as a way to pay down the $35 trillion debt.

    Genesis Triggers $1.6 Billion In BTC And ETH Transfers

    Bitcoin, the largest cryptocurrency by market capitalization, briefly dipped below the $63,000 level, reaching a weekly low of $62,440 as news of the Genesis distributions hit the market. According to the announcement made by Genesis on August 2, the firm has commenced making distributions to creditors pursuant to its Chapter 11 bankruptcy plan. 

    As part of the initial distribution, BTC creditors will receive 51.28% of their holdings in-kind, while ETH creditors will receive 65.87% of their ETH holdings. On the other hand, creditors of other altcoins, excluding Solana (SOL), will receive an average of 87.65% of their holdings, while Solana creditors will receive 29.58% of their holdings.

    The distributions have already begun, with wallets linked to Genesis Trading moving 16.6K BTC ($1.1 billion) and 166.3K ETH ($521.1 million) in the past hour, according to market intelligence platform Arkham.

    Interestingly, billionaire investor and crypto supporter Mark Cuban has reportedly received $19.9 million in ETH from the Genesis Bankruptcy, further highlighting the implications of the firm’s downfall.

    The firm also disclosed that creditors have established a $70 million litigation fund to pursue claims against various third parties, including Digital Currency Group (DCG), Genesis’ parent company. 

    At the time of writing, the largest cryptocurrency on the market has managed to regain the $63,100 level after falling towards the $62,000 zone on Friday. BTC is currently down 0.8% in the 24-hour time frame.

    Featured image from DALL-E, chart from TradingView.com

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    Ronaldo Marquez

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  • Why Did This Crypto Whale Spend $400 Million Buying Bitcoin Yesterday?

    Why Did This Crypto Whale Spend $400 Million Buying Bitcoin Yesterday?

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    On-chain data shows a particular Bitcoin whale who accumulated almost $400 million between July 30 and 31. This whale is believed to have purchased the flagship crypto, having seen an opportunity to profit massively thanks to Bitcoin’s recent price action. 

    Bitcoin Whale Purchases Almost $400 Million Worth Of BTC

    On-chain analytics platform Lookonchain revealed in an X (formerly Twitter) post that a Bitcoin whale (12QVs…oN2qo) has withdrawn 5,800 BTC ($387.88 million) from Binance in the past two days. This purchase suggests the whale anticipates higher prices from the flagship crypto soon enough and is looking to profit from such a price rally when the time comes. 

    Interestingly, this purchase comes amid a decline in Bitcoin’s price, meaning that the whale sees this as a ‘buy the dip’ opportunity. Bitcoin dropped to as low as $63,500 on July 31, having rebounded to almost $70,000 days ago. This price drop can be attributed to several factors, including concerns over reports that Iran had ordered a retaliatory attack against Israel for killing Hamas leader Ismail Haniyeh in Tehran. 

    The Federal Open Market Committee (FOMC) meeting was held on July 31, and the Federal Reserve left interest rates unchanged. Fed Chair Jerome Powell also said little to suggest that an interest rate cut could come in September, another factor contributing to Bitcoin’s recent decline. 

    Despite its recent decline, Bitcoin is expected to enjoy another rebound soon enough and possibly break above the $70,000 range on its next leg up and rise to an all-time high (ATH). Crypto analyst Michael van de Poppe recently mentioned that Bitcoin looks good to continue toward a new ATH next month as long as the flagship crypto stays above $60,000 to $62,000.

    Whales Heavily Accumulated BTC In July

    Data from the market intelligence platform IntoTheBlock shows that Bitcoin whales, holding at least 0.1% of BTC’s circulating supply, bought over 84,000 BTC in July. This represents these whales’ largest monthly wave of Bitcoin accumulation since October 2014. These investors looked to take advantage of the price dips that Bitcoin suffered in July. 

    Bitcoin’s price crashes in June extended into the beginning of July, as the flagship crypto dropped to as low as $55,000. However, this BTC accumulation from these whales paid off, as the crypto token enjoyed a massive rebound in the latter parts of July and a monthly close in the green. 

    These whales will still hope Bitcoin can record more impressive gains in August. Data from Cryptorank shows that Bitcoin has historically not enjoyed the best price action in August, ending the month in the red on eight occasions since 2011. 

    At the time of writing, Bitcoin is trading at around $64,400, down almost 3% in the last 24 hours, according to data from CoinMarketCap. 

    BTC price falls below $65,000 | Source: BTCUSD on Tradingview.com

    Featured image created with Dall.E, chart from Tradingview.com

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    Scott Matherson

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  • Crypto Watch: Today’s FOMC Is The ‘Most Important Of Your Life’

    Crypto Watch: Today’s FOMC Is The ‘Most Important Of Your Life’

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    For the crypto and broader financial market, FOMC day is upon us once again today. And analysts agree that today’s meeting will be one of the most important in recent years. Kurt S. Altrichter, a financial advisor and founder of Ivory Hill, even describes today’s FOMC meeting as the “most important of your life.” In a new post on X, Altrichter explains why.

    FOMC Preview

    Central to today’s FOMC meeting is the Federal Reserve’s potential indication of a September rate cut. According to Altrichter, the financial markets are almost unanimously anticipating this move, with Fed fund futures indicating a near-certain likelihood of such an outcome. “Market expectation is a strong signal for a September rate cut,” Altrichter points out, marking today’s update as a pivotal moment for financial markets.

    The key question for today is: “How strongly does the Fed signal a September rate cut?” the expert explains. Investors are directed to pay close attention to the FOMC’s statement at 2:00 pm ET, especially the third paragraph, which could subtly signal the Fed’s confidence in reaching its inflation targets.

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    Altrichter advises, “Look at the 3rd paragraph for this key sentence: The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent.” Any modification in this wording would be a clear signal that the Fed is nearing its inflation control goals, potentially paving the way for rate adjustments.

    Altrichter outlines several potential outcomes from the meeting, each associated with specific market reactions. In a dovish scenario, the Fed signals a rate cut for September. Then, Altrichter expects a broad market rally, especially in sectors less sensitive to interest rates. “Yields and the dollar should fall modestly with a modest rally in commodities,” Altrichter predicts, suggesting significant movements in standard and sector-specific indexes.

    In a hawkish scenario, there will be no change in the forward guidance by the US central bank. If the Fed maintains its current stance without hinting at future cuts, the markets might experience a downturn. “Look out below and expect a sharp decline. SPX should fall by 1-2%,” he warns, noting that tech and growth sectors might relatively outperform due to their appeal during higher yield periods.

    How Will Bitcoin And Crypto React?

    The potential adjustments in US monetary policy bear direct consequences for the Bitcoin and crypto markets. Crypto, often viewed as alternative investments, reacts sensitively to shifts in monetary policy, particularly regarding interest rates.

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    If the dovish scenario materializes, this could make Bitcoin and cryptocurrencies more appealing. A signal of lower future rates could drive increased investment into the crypto market, potentially leading to price increases as investors seek higher returns in alternative assets.

    Conversely, should the Fed signal reluctance to cut rates, indicating a stronger economic outlook or concerns about inflation, this could strengthen the US dollar and increase yields on traditional financial instruments. Such an environment might lead to a pullback in the crypto markets, as the comparative advantage of Bitcoin and cryptocurrencies diminishes against strengthening traditional yields.

    Max Schwartzman, CEO of Because Bitcoin Inc, commented via X: “FOMC is [today] & its incredibly important as we get into the end of this fed cycle… Here is how the last 11 meetings have gone for Bitcoin…”

    How Bitcoin reacted the last 11 times | Source: X @MaxBecauseBTC

    Thus, today’s FOMC meeting is a watershed moment for financial markets globally, with significant implications for both traditional and crypto markets. As Altrichter succinctly puts it, “A Sept Fed rate cut has driven the 2024 bull market. Tomorrow’s meeting will either reinforce that tailwind or refute it. If the Fed signals a cut, the rally continues. No signal: markets could get ugly.”

    At press time, BTC traded at $66,462.

    Bitcoin price
    BTC bounces off the 20-day EMA, 1-week chart | Source: BTCUSDT on TradingView.com

    Featured image from Shutterstock, chart from TradingView.com

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    Jake Simmons

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  • Crypto Analyst Charts Bitcoin Course To New $77,604 All-Time High

    Crypto Analyst Charts Bitcoin Course To New $77,604 All-Time High

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    After hitting an all-time high of $73,400 in March 2024, the Bitcoin price has since retraced, remaining below its all-time high for the last four months. Nevertheless, expectations remain high that the Bitcoin price will eventually recover and hit a new all-time high, with crypto analyst “Melikatrader94” on TradingView predicting another run to $77,600.

    Bitcoin Turns Bullish On The Charts

    In the analysis that was shared on the TradingView website, crypto analyst Melikeatrader94 revealed her thesis for why the Bitcoin price could be headed to a new all-time high. The major reason behind the prediction is bullish chart patterns.

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    The crypto analyst pointed out that the Bitcoin price had successfully broken out of a descending trend line. This is important because such a break indicates a return of bullish pressure, causing the price to go up. From here, Bitcoin could push toward its current all-time high price.

    Furthermore, there have been multiple confirmations on the chart, suggesting that the resulting rally from this descending trend line break could be incredibly strong. The crypto analyst points out that there will be corrections along the way. But ultimately, the direction for the Bitcoin price from here is up.

    Targets For The BTC Price

    With the Bitcoin breakout from the descending trend line, the crypto analyst believes that the price will rise to a new all-time high of $77,604. However, this is not going to be a completely easy path for Bitcoin as major resistance levels lie ahead.

    For starters, the crypto analyst believes that the BTC price risks a downward correction when it eventually gets to $70,000. This makes it the first major level to clear in the road to a new all-time high before encountering another resistance.

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    If Bitcoin is able to beat $70,000, then it is expected to reclaim its current all-time high above $73,400. However, it faces major resistance just a short distance away. The analyst’s next resistance level lies at $73,612. Due to this, the analyst believes that both $70,000 and $73,612 could serve as possible re-entry points.

    Going by the crypto analyst’s prediction, the Bitcoin price could see a notable 15% jump in price from its current level. Furthermore, the BTC price hitting a new all-time high would be positive for the crypto market given that the pioneer cryptocurrency is the established market mover and altcoins follow its path.

    BTC price recovers from lows | Source: BTCUSD on Tradingview.com

    Featured image created with Dall.E, chart from Tradingview.com

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    Scott Matherson

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  • Bitcoin Mining Giant Marathon Digital Makes Major $100M BTC Acquisition

    Bitcoin Mining Giant Marathon Digital Makes Major $100M BTC Acquisition

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    Ronaldo is an experienced crypto enthusiast dedicated to the nascent and ever-evolving industry. With over five years of extensive research and unwavering dedication, he has cultivated a profound interest in the world of cryptocurrencies.

    Ronaldo’s journey began with a spark of curiosity, which soon transformed into a deep passion for understanding the intricacies of this groundbreaking technology.

    Driven by an insatiable thirst for knowledge, Ronaldo has delved into the depths of the crypto space, exploring its various facets, from blockchain fundamentals to market trends and investment strategies. His tireless exploration and commitment to staying up-to-date with the latest developments have granted him a unique perspective on the industry.

    One of Ronaldo’s defining areas of expertise lies in technical analysis. He firmly believes that studying charts and deciphering price movements provides valuable insights into the market. Ronaldo recognizes that patterns exist within the chaos of crypto charts, and by utilizing technical analysis tools and indicators, he can unlock hidden opportunities and make informed investment decisions. His dedication to mastering this analytical approach has allowed him to navigate the volatile crypto market with confidence and precision.

    Ronaldo’s commitment to his craft goes beyond personal gain. He is passionate about sharing his knowledge and insights with others, empowering them to make well-informed decisions in the crypto space. Ronaldo’s writing is a testament to his dedication, providing readers with meaningful analysis and up-to-date news. He strives to offer a comprehensive understanding of the crypto industry, helping readers navigate its complexities and seize opportunities.

    Outside of the crypto realm, Ronaldo enjoys indulging in other passions. As an avid sports fan, he finds joy in watching exhilarating sporting events, witnessing the triumphs and challenges of athletes pushing their limits. Furthermore, His passion for languages extends beyond mere communication; he aspires to master German, French, Italian, and Portuguese, in addition to his native Spanish. Recognizing the value of linguistic proficiency, Ronaldo aims to enhance his work prospects, personal relationships, and overall growth.

    However, Ronaldo’s aspirations extend far beyond language acquisition. He believes that the future of the crypto industry holds immense potential as a groundbreaking force in history. With unwavering conviction, he envisions a world where cryptocurrencies unlock financial freedom for all and become catalysts for societal development and growth. Ronaldo is determined to prepare himself for this transformative era, ensuring he is well-equipped to navigate the crypto landscape.

    Ronaldo also recognizes the importance of maintaining a healthy body and mind, regularly hitting the gym to stay physically fit. He immerses himself in books and podcasts that inspire him to become the best version of himself, constantly seeking new ways to expand his horizons and knowledge.

    With a genuine desire to become the best version of himself, Ronaldo is committed to continuous improvement. He sets personal goals, embraces challenges, and seeks opportunities for growth and self-reflection. Ultimately, combining his passion for cryptocurrencies, dedication to learning, and commitment to personal development, Ronaldo aims to go hand-in-hand with the exciting new era that the emerging crypto technology is bringing to the world and societies.

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    Ronaldo Marquez

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  • Ark Invest’s Bitcoin Report: Why They Bet Big On BTC’s Recovery

    Ark Invest’s Bitcoin Report: Why They Bet Big On BTC’s Recovery

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    In their latest analysis, Ark Invest’s crypto specialists Julian Falcioni, David Puell, and Dan White, are presenting a review of the Bitcoin market behavior and prospects, delineating the interplay of various economic, technical, and policy-driven factors that could shape the future of this pioneering digital currency.

    Bitcoin Validates The Bullish Scenario

    Since early June, Bitcoin witnessed a significant decline, dropping more than -25%. More critically, on July 7, BTC fell beneath its 200-day moving average—a key technical threshold. According to Ark, the dip below the 200-day moving average was “a crucial bearish signal that often precedes further declines unless a strong recovery ensues.” Ultimately, Bitcoin displayed significant strength in the last few days and Ark was right in that BTC staged a quick recovery above the 200-day EMA, invalidating the bearish prospects.

    Source: X @dpuellARK

    A surprising element in June’s Bitcoin volatility was the aggressive sale of approximately 50,000 Bitcoins by the German government. These assets were seized from the illegal streaming site Movie2K and gradually transferred to various exchanges for sale, starting June 19. “The influx of a large volume of bitcoins during a traditionally low liquidity period, around the July 4th holiday, significantly pressured the price downward,” the report notes. Notably, this selling pressure is now gone.

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    Despite these challenges, Bitcoin managed an impressive rally of more than 17% in the last few days. Several indicators supported this reversal, according to Ark. The discrepancy between the decline in Bitcoin’s price and the lesser drop in US ETF balances—17.3 %—suggested that Bitcoin was oversold. “This overselling is likely driven by external shocks rather than intrinsic market movements, pointing towards a mispricing that could correct in the medium term,” the experts explain.

    Delta between 30d percent change in price vs US ETFs
    Delta between 30d percent change in price vs US ETF flows | Source: X @dpuellARK

    Short-term holders, typically a more speculative segment, have been realizing losses as indicated by the sell-side risk ratio. This ratio, calculated by dividing the sum of short-term holder profits and losses realized on-chain by their cost bases, showed more losses than profits, which typically precedes a short-term market correction.

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    June also saw significant activity from Bitcoin miners. “Miner outflows, which often prelude market adjustments, mirrored patterns observed around previous Bitcoin halving events, when the reward for mining a block is halved,” says Ark. Such events historically lead to a decreased supply and potential price increases as market dynamics adjust to the new supply level.

    On the macroeconomic front, the report notes that the US economic data have been consistently underperforming against expectations, with the Bloomberg US Economic Surprise Index registering the most significant negative deviations in a decade. Yet, the Federal Reserve has maintained a surprisingly hawkish tone, which could influence investor sentiment and financial market stability.

    Corporate America is not insulated from these challenges. Profit margins, which peaked in 2021, are on a downward trajectory as companies lose pricing power as Ark notes. This squeeze on profits is prompting price cuts across various sectors, further dampening economic outlooks.

    Regarding equity markets, there has been a notable increase in market capitalization concentration, reaching levels unseen since the Great Depression. “This concentration in larger entities with significant cash reserves could be an early indicator of a shifting economic landscape, which historically sees a breakout in favor of smaller cap stocks,” the report says.

    At press time, BTC traded at $63,131.

    Bitcoin price
    BTC rejected at key resistance (red zone), 1-day chart | Source: BTCUSD on TradingView.com

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

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    Jake Simmons

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  • Crypto Analyst Says Bitcoin Could Reach $100,000, But What About Altcoins?

    Crypto Analyst Says Bitcoin Could Reach $100,000, But What About Altcoins?

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    A crypto analyst has predicted that Bitcoin (BTC) will surge to $100,000 in a few years. At the same time, he has expressed skepticism about the potential for altcoins to embark on a similar bullish trajectory to new highs.  

    Bitcoin Anticipated To Hit $100,000

    In an X (formerly Twitter) post on June 8, a crypto analyst identified as ‘DonAlt,’ disclosed that he was more pessimistic on altcoins than Bitcoin, the world’s largest cryptocurrency. DonAlt believes that Bitcoin could witness a mega rally, pushing its price to trade at $100,000 in the coming years. 

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    Considering the inflows into Spot Bitcoin ETFs and numerous forecasts of an upcoming bull run, a $100,000 price target for Bitcoin seems increasingly plausible. Moreover, numerous market experts, including DonAlt, have maintained an optimistic outlook for Bitcoin, predicting major bull rallies for the cryptocurrency. Specifically, Standard Chartered has projected a price increase to $250,000 and Bernstein analysts anticipate a surge to $200,000 for Bitcoin. 

    In contrast, altcoins have been underperforming significantly, influenced by broader market trends and bearish sentiment. Due to the declining price of these cryptocurrencies, DonAlt has highlighted a possible future where Bitcoin dominates the crypto market while many altcoins trade 90% lower than their current valuations. 

    Sharing a similar sentiment, a crypto community member disclosed that other than meme coins and a few random altcoins, many cryptocurrencies have failed to outperform Bitcoin in this current market cycle. He revealed that all the altcoins which previously witnessed gains on par with Bitcoin have declined significantly, while BTC has remained slightly below its previous all-time high. 

    Furthermore, a few community members have questioned whether Ethereum (ETH) and Solana (SOL) were among the altcoins predicted to decline as Bitcoin price increases. This concern arises because, despite slight declines and market volatility, Ethereum and Solana have witnessed massive gains since the beginning of the year. 

    Solana, in particular, surged significantly following the launch of a Spot Solana ETF filing, whereas Ethereum has been subtly following Bitcoin’s price movements, surging upwards during favorable market conditions and declining severely amidst volatility. 

    Will Altcoins Follow Bitcoin’s Rise To New Highs?

    A crypto analyst identified as ‘Doctor Profit’ on X released a detailed report on altcoins for the third quarter (Q3) of 2024. According to the analyst, altcoins are poised to witness a massive pump following the release of the official launch date for Ethereum Spot ETFs. This implies that altcoins could potentially exit bearish trends and align with Bitcoin’s bullish trajectory if it witnesses a price reversal. 

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    Source: X

    The crypto analyst believes that the recent decline in altcoins presents a great buying opportunity for investors. He asserts that the altcoin market’s recent 35% downturn is a healthy correction that potentially signals a surge to new highs as market conditions stabilize. 

    Furthermore, the crypto expert has predicted a new valuation target for the altcoin market, anticipating its market capitalization to exceed $1 trillion by the end of the year.

    Bitcoin price chart from Tradingview.com
    BTC price falls to $57,000 | Source: BTCUSD on Tradingview.com

    Featured image created with Dall.E, chart from Tradingview.com

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    Scott Matherson

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  • Bitcoin Crash: Here’s What The Data Says About Buying The Dip

    Bitcoin Crash: Here’s What The Data Says About Buying The Dip

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    The on-chain analytics platform Santiment has provided useful insights for investors considering buying the Bitcoin dip. The platform suggested that the worst might not be over as the flagship crypto could still experience further dips from its current price range. 

    To Buy Or Not To Buy The Bitcoin Dip?

    In an X (formerly Twitter) post, Santiment mentioned to those considering buying the dip that market participants also anticipate a rebound. They added that these dramatic dips, like the one Bitcoin recently experienced, are usually met with FUD (Fear, Uncertainty, and Doubt).

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    Source: Santiment

    This suggests that those looking to buy the Bitcoin dip may have to be careful as Bitcoin could dip further due to those waiting to offload their holdings out of panic once the flagship crypto recovers. Regarding FUD, there have also been calls that Bitcoin could still drop to the $40,000 range. As such, such statements could prove bearish for Bitcoin’s price, causing it to further decline. 

    Meanwhile, Santiment noted that Bitcoin usually recovers from such dramatic dips after the average trader has given up hope on crypto. Crypto analyst CrediBULL Crypto also had some words for those looking to buy the dip at Bitcoin’s current price range. He mentioned in an X post that anyone looking to buy at these current price levels must be okay with being “underwater” for a while. 

    He added that anyone uncomfortable with being underwater for a while should wait until some positive price action develops. He noted that this positive price action could ideally come in the “form of a major liquidation flush (open interest reset) or some LTF impulsive price action.” 

    The crypto analyst also addressed spot Bitcoin buyers. He assured them that they need not worry about this current price range, claiming that Bitcoin could drop lower on the higher time frame (HTF) without invalidating the HTF bullish structure. Based on Bitcoin’s bullish structure, he mentioned that the price correction following this downtrend will send the flagship crypto to $100,000. 

    Institutional Investors Are Buying The Dip

    Recent data from Farside investors shows that institutional investors are buying the Bitcoin dip. On July 8, the Spot Bitcoin ETFs recorded total net inflows of $294.8 million. BlackRock’s IBIT, Fidelity’s FBTC, and Grayscale’s GBTC all recorded impressive net inflows of $187.2 million, $61.5 million, and $25.1 million, respectively. 

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    These Spot Bitcoin ETFs also recorded net inflows of $143 million on July 5, which marked a turnaround considering that they had experienced two consecutive days of outflows before then. These inflows into Bitcoin have contributed to the recent price rebound that the flagship crypto has witnessed. 

    At the time of writing, Bitcoin is trading at around $57,100, up over 2% in the last 24 hours, according to data from CoinMarketCap. 

    Bitcoin price chart from Tradingview.com
    BTC price drops toward $57,000 | Source: BTCUSD on Tradingview.com

    Featured image created with Dall.E, chart from Tradingview.com

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    Scott Matherson

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  • Analyst Hints Bitcoin Price Recovery Might Be Underway — Here’s Why

    Analyst Hints Bitcoin Price Recovery Might Be Underway — Here’s Why

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    Opeyemi is a proficient writer and enthusiast in the exciting and unique cryptocurrency realm. While the digital asset industry was not his first choice, he has remained absolutely drawn since making a foray into the space over two years. Now, Opeyemi takes pride in creating unique pieces unraveling the complexities of blockchain technology and sharing insights on the latest trends in the world of cryptocurrencies.

    Opeyemi savors his attraction to the crypto market, which explains why he spends the better parts of his day looking through different price charts. “Looking” is a rather simple way to describe analyzing and interpreting various price patterns and chart formations. However, it appears that is not Opeyemi’s favorite part – in fact, far from it.

    Being able to connect what happens on a price chart to on-chain movements and blockchain activities is what keeps Opeyemi ticking. “This emphasizes the intricacies of blockchain technology and the cryptocurrency market,” he would say. Most importantly, Opeyemi thinks of any market insights as the gospel, while recognizing that he is only a messenger.

    When he is not clicking away at his keyboard, Opeyemi is most definitely listening to music, playing games, reading a book, or scrolling through X. He likes to think he is not loyal to a particular genre of music, which can be true on many days. However, the fast-rising Afrobeats genre is a staple in Opeyemi’s Spotify Daily Mix.

    Meanwhile, Opeyemi is a voracious reader who enjoys a wide category of books – ranging from science fiction, fantasy, and historical, to even romance. He believes that authors like George R. R. Martin and J. K.
    Rowling are the greatest of all time when it comes to putting pen to paper. Opeyemi believes his reading of the Harry Potter series twice is proof of that.

    Indeed, Opeyemi enjoys spending most of his time within the four walls of his home. However, he also sometimes finds solace in the company of his friends at a bar, a restaurant, or even on a stroll. In essence, Opeyemi’s ambivert (haha! been searching for an opportunity to use the word to describe myself) nature makes him a social chameleon who is able to quickly adapt to different settings.

    Opeyemi recognizes the need to constantly develop oneself in order to stay afloat in a competitive and ever-evolving market like crypto. For this reason, he is always in learning mode, ready to pick up the slightest lesson from every situation. Opeyemi is efficient and likes to deliver all that is required of him in time – he believes that “whatever is worth doing at all is worth doing well.” Hence, you will always find him striving to be better.

    Ultimately, Opeyemi is a good writer and an even better person who is trying to shed light on an exciting world phenomenon – cryptocurrency. He goes to bed every day with a smile of satisfaction on his face, knowing that he has done his bit of the holy assignment – spreading the crypto gospel to the rest of the world.

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    Opeyemi Sule

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  • Bitcoin Price Crashes Below $54,000: Top-5 Reasons

    Bitcoin Price Crashes Below $54,000: Top-5 Reasons

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    In the last four days, the Bitcoin price has plummeted over 15%, with a significant 7.8% drop occurring in just the past 24 hours. From a high of nearly $72,000 in early June, the price of BTC has now declined by almost 25%. Here are the key factors behind yesterday’s dramatic fall in price.

    #1 Mt. Gox’s Bitcoin Repayments

    The impending distribution of 142,000 BTC by the defunct crypto exchange Mt. Gox has significantly stirred market anxiety. This amount, representing 0.68% of the total Bitcoin supply, is slated for distribution among the creditors of the exchange, which ceased operations in 2014 due to a major hacking event.

    The distribution process has already seen large transfers, with 52,633 BTC moved in recent hours, suggesting that preparations are underway for a large-scale disbursement. Market observers and analysts are closely monitoring these movements, as the potential for massive selling by these creditors could inject considerable volatility into the market.

    The psychological impact of this distribution has presumably led to preemptive selling among Bitcoin holders, further amplifying market jitters.

    Mt. Gox moves its Bitcoin | Source: Arkham

    #2 German Government

    The German government’s decision to begin liquidating its Bitcoin holdings has sent ripples through the market as well, with transactions recorded on major exchanges such as Bitstamp, Coinbase, and Kraken.

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    Over a fortnight, the government reduced its holdings from 50,000 BTC to 42,274 BTC. Market participants are understandably nervous that a continuous sell-off by a major holder like a government could lead to downward price pressure.

    #3 Massive Long Liquidations

    The Bitcoin market has experienced a sharp increase in the liquidation of long positions, with a record $212 million worth of BTC liquidated just in the past 48 hours. This liquidation is the most significant since April 13, when $261 million worth of BTC longs were liquidated, leading to a steep decline in Bitcoin’s price from $68,500 to $61,600.

    BTC Total Liquidations Chart
    BTC total liquidations | Source: Coinglass

    Such liquidations often trigger a chain reaction, leading to forced sell-offs and further price declines. These liquidations are indicative of a highly leveraged market where investors might be overextended, contributing to heightened market volatility.

    #4 BTC Miner Capitulation

    Post the Bitcoin halving event on April 20, 2024, the mining reward was halved from 6.25 to 3.125 BTC, escalating economic pressures on miners. This reward reduction was anticipated to increase Bitcoin’s price, but the increase did not materialize, leaving miners with diminishing returns.

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    The current capitulation among miners is akin to previous market bottoms, such as the one seen following the FTX collapse, researchers from CryptoQuant recently revealed. Indicators of miner distress, including a significant 7.7% drop in hashrate and a plummet in mining revenue per hash to near all-time lows, means that many miners were forced to turn off their equipment and sell the BTC stash.

    Bitcoin network hashrate drawdown
    Bitcoin network hashrate drawdown | Source: X @jjcmoreno

    #5 Slowdown In US Spot Bitcoin ETF Activity

    Contrary to expectations of a buoyant market driven by institutional investments through spot Bitcoin ETFs, there has been a noticeable slowdown in this sector. The anticipated “second wave” of institutional money has failed to materialize thus far, leading to subdued activity in the ETF space. Instead, the spot ETFs are currently experiencing a summer lull.

    The enthusiasm surrounding Bitcoin ETFs has been unable to counteract the overwhelmingly negative market sentiment; however, its direct impact remains relatively minor. Leading on-chain analyst James “Checkmate” Check recently estimated that only 20% of the spot volume is attributable to spot ETFs, with the remainder stemming from traditional spot markets. Over recent weeks, long-term BTC holders have been selling off their holdings in significant numbers, which has been the primary driver of the downward pressure on the market.

    At press time, BTC traded at $54,434.

    Bitcoin price
    BTC dropped below $54,000, 1-day chart | Source: BTCUSD on TradingView.com

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

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    Jake Simmons

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  • Why Is The Bitcoin Price Down Today?

    Why Is The Bitcoin Price Down Today?

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    The Bitcoin price is in a decline once more, after seeing some recovery on Wednesday due to the turnaround in the Spot Bitcoin ETFs net flows. However, just one day later, it seems the pioneer cryptocurrency has resumed the downtrend and this decline after the recovery has begun a worrying trend. So, what are the factors that are driving this decline?

    Bitcoin Price Suffers From Sell-Offs

    One of the major factors that have been behind the Bitcoin decline is the major sell-offs that have rocked the digital asset. These sell-offs are not just from any investor, but rather large BTC sells being orchestrated by large governments.

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    One of the major news that rocked the space was the fact that the German government had begun selling coins. In total, the German government sold around 2,786 BTC, which was worth around $$140 million at the time of the sale.

    However, the German government is not the only one that has been selling. News also broke that the US government had begun moving Bitcoin seized from the Silk Road bust once again. On-chain data aggregator Arkham reported that the US government had moved almost 4,000 BTC from its wallets to the Coinbase exchange.

    In total, the US government moved 3,940 BTC to the exchange, which amounted to $241.22 million at the time of the transaction. This transfer is worrying as coins are usually moved to centralized exchanges such as Coinbase for sale as these trading platforms possess deeper liquidity compared to their decentralized counterparts.

    Has BTC Reached Its Bottom?

    While the downtrend looks to have resumed, there are signs that point to the bottom being closed. One of these signs is the return of demand into the market. For example, the Spot Bitcoin ETFs had seen seven consecutive days of outflows, which eventually turned around on Tuesday. Data from Coinglass shows that between Tuesday and Wednesday, inflows into the Spot Bitcoin ETFs have crossed $50 million, ending the brutal week of outflows.

    Related Reading

    Another possible tell is the profit and loss margin for investors. This shows how many Bitcoin investors are currently seeing profit, and the higher the profitability, the higher the likelihood of a sell-off as investors take profit from their positions.

    However, the profitability levels have dropped, meaning that investors are less likely to sell their holdings as they wait for better prices. This often gives demand time to build up and create a possible bounce point for a recovery.

    For now, the Bitcoin price is holding steady at the $61,000 support at the time of writing. But if sell-offs resume, then the pioneer cryptocurrency could fall to the $60,000 level soon.

    Bulls reclaim control of BTC price | Source: BTCUSD on Tradingview.com

    Featured image created with Dall.E, chart from Tradingview.com

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    Scott Matherson

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  • Bernstein Analysts Revise Bitcoin Target, $200,000 And $1 Million Become Main Focus

    Bernstein Analysts Revise Bitcoin Target, $200,000 And $1 Million Become Main Focus

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    Bernstein analysts Gautam Chhugani and Mahika Sapra recently revised their price targets for Bitcoin in their latest market report, which also initiated coverage on MicroStrategy. These analysts also outlined factors that they believe could contribute to BTC’s exponential price surge. 

    Bitcoin To Hit $200,000 And Then $1 Million

    Chhugani and Sapra predicted in the report that BTC will rise to a cycle high of $200,000 by 2025 and that the flagship crypto will reach $1 million by 2033. Bernstein had previously predicted that Bitcoin would reach $150,000 by 2025. However, these analysts have now revised their targets and alluded to the institutional demand for BTC as one of the reasons they believe the flagship crypto can reach such heights.

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    The research firm predicts that the Spot Bitcoin ETFs will continue to record impressive demand and that the Bitcoin under management could reach $190 billion by 2025, a significant increase from the $60 billion in BTC that funds issuers already have under management. 

    In other words, these analysts expect BTC’s price to succumb to the supply and demand dynamics, considering that the Bitcoin in circulation is bound to drastically reduce as these Spot Bitcoin ETFs continue to accumulate a significant amount of the crypto token for their respective ETFs. Moreover, two Bitcoin halvings are set to occur before 2033, further reducing miners’ supply and thereby supporting their base case of BTC hitting $1 million. 

    MicroStrategy To Benefit From BTC’s Growth

    These Berstein analysts also initiated coverage on MicroStrategy with an outperform rating. They predict that the software company’s stock can rise to $2,890 thanks to its BTC exposure. A rise to $2,890 represents about a 95% increase for MicroStrategy’s stock, which is currently valued at around $1,500. 

    The research firm noted that MicroStrategy has committed itself to “building the world’s largest Bitcoin company.” This has already paid off so far, with Chhugani and Sapra stating that the software company has transformed from a “small software company to the largest BTC holding company” since August 2020 (when it started accumulating BTC). 

    MicroStrategy already owns 1.1% of Bitcoin’s total supply, with holdings worth around $14.5 billion. The company’s BTC holdings are expected to increase soon enough, as they recently announced plans to offer $500 million of Convertible Senior Notes. Some of the proceeds from the proposed sale will be used to buy additional BTC. 

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    Berstein highlighted how the company’s co-founder Michael Saylor has become synonymous with the Bitcoin brand and that the company’s position as the leading Bitcoin company has helped attract “at scale capital (both debt and equity) for an active Bitcoin acquisition strategy.” In dollar terms, Bernstein noted that MicroStrategy’s Bitcoin net asset value (NAV) per share “has grown nearly fourfold, surpassing the 2.4x growth in Bitcoin’s spot price.”

    “We believe MSTR’s long term convertible debt strategy allows it enough time to gain from Bitcoin upside, with limited liquidation risk to its Bitcoin on balance sheet.” Chhugani and Sapra added. 

    BTC price falls to $66,000 | Source: BTCUSD on Tradingview.com

    Featured image created with Dall.E, chart from Tradingview.com

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    Scott Matherson

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