Tag: btc price

Bitcoin Flash Crash: Crypto Market Witnesses $2.5 Billion Inflow Following Recent Downturn
[ad_1]
The past week was largely defined by the Bitcoin price climbing above $45,800 for the first time in over 20 months, marking a great start to the year. However, the premier cryptocurrency soon experienced a sharp price pullback due to negative news about the BTC spot (ETF).

Interestingly, the latest on-chain data has revealed that investors seem not to have completely lost faith in Bitcoin, the largest cryptocurrency by market capitalization.

$2.5 Billion Flows Into Crypto Market Following Bitcoin Crash

In a post on the X platform, crypto analyst Ali Martinez has offered on-chain insight into the aftermath of the crash that affected Bitcoin and the entire crypto market. The pundit noted in his post that a substantial amount of funds flooded back into the sector a day after the market downturn.

This revelation was based on on-chain data from blockchain analytics platform Glassnode. The relevant indicator here is the “positive 30-day capital inflows”, which tracks the net influx of capital into the crypto market over a 30-day period.
```
Chart showing aggregate market realized value net position change | Source: Ali_charts/X
```
The chart above shows that a significant amount of funds have been entering the cryptocurrency market over the past few months. According to Glassnode’s data, more than $2.5 billion flowed back into the cryptocurrency market on Thursday, January 4, bringing the positive 30-day capital inflows to about $27.5 billion.

This latest inflow of capital into the market offers insight into the positive shift in sentiment and market condition. It basically signals renewed investor confidence in crypto assets following a short period of uncertainty and price correction.

As of this writing, the Bitcoin price stands at $43,661, reflecting a 0.2% decline in the past 24 hours. However, the market leader seems to be recovering well, with $44,000 not too far out of reach.

How BTC Holders Reacted To The Market Downturn

A recent analysis shows how various classes of Bitcoin investors reacted to the negative ETF news and the subsequent decline. This evaluation was based on the Spent Output Age Bands USD (SOAB) indicator on the CryptoQuant analytics platform.

The investors were divided into five classes based on the age of their holdings. According to the analysis, short-term holders who fell within the 1-week-to-1-month and 1-month-to-3-month classes exited the market at break-even and profits, respectively.

Meanwhile, long-term holders who purchased Bitcoin in the first half of 2023, falling between the 6-month-to-12-month class, dumped about $7.6 billion worth of BTC. The 1-year-to-5-year holder class, on the other hand, barely made a move after the market downturn.
```
Bitcoin price at $43,690 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.
[ad_2]

Opeyemi Sule

Source link
January 6, 2024
These Events Will Create A Bitcoin Crash In March: Arthur Hayes

[ad_1]

Arthur Hayes, the founder of BitMEX, in his latest essay, presents a foreboding prediction for the Bitcoin market in March, anticipating a severe correction of 30-40%. His detailed analysis, rooted in a deep understanding of market dynamics, outlines the complexities and driving factors behind this expected crash, respectively healthy but deep correction.

Hayes begins his discourse with a cautionary reminder of the nascent state of the crypto bull market, warning enthusiasts not to be overly carried away. “The crypto bull market is in its early stages, and we must not get carried away with our enthusiasm,” he says, highlighting the uncertain journey towards the inevitable collapse of the fiat financial system.

Why The Bitcoin Price Could Fall 40% In March

His prediction revolves around three key financial events and indicators converging in March. Hayes first points to the anticipated decline in the Reverse Repo Program (RRP) Balance to a critical level of $200 billion, a scenario he believes will trigger market anxiety about future sources of dollar liquidity. He describes this threshold as a moment of reckoning, “When this number gets close to zero… the market will wonder what is next,” underscoring the gravity of this anticipated development.

The second pivotal factor is the fate of the Bank Term Funding Program (BTFP), which is due to expire on March 12th. Hayes portrays this as a significant test for the financial system, speculating on the decision-making process of the US Treasury in the face of potential liquidity crises among banks. He articulates the market’s anticipatory stance, suggesting that “the market will start getting inquisitive many weeks before about whether or not the banks will continue receiving this lifeline.”

The final piece in Hayes’ forecast is the Federal Reserve’s meeting on March 20th, where a rate cut is expected. This decision, in Hayes’ view, is crucial for setting market expectations and influencing the dynamics surrounding dollar liquidity provision by the Fed and the US Treasury Department.

Hayes then delves deeper into his tactical trading strategy in response to these events, detailing his plans to short the crypto market using Bitcoin puts. He articulates his approach, saying, “I will look to buy a sizable put option position on Bitcoin around this time,” signaling his preparedness to leverage the anticipated market shift.

An important aspect of Hayes’ analysis is the potential impact of the US-listed spot Bitcoin Exchange Traded Funds (ETFs). He argues that the anticipation of substantial fiat capital inflows into these spot ETFs could initially propel Bitcoin’s price to soaring highs. However, he warns that this upsurge could be followed by a dramatic correction, exacerbated by a liquidity squeeze.

“Imagine if the anticipation of hundreds of billions of fiat flowing into these ETFs at a future date propels Bitcoin above $60,000,” he says, illustrating the potential for a steep decline. Hayes explains that a market already heightened by ETF speculation would be particularly vulnerable to a sharp correction, potentially worsening the downturn to 30-40% in the event of a liquidity crunch.

How Hayes Will Trade This Scenario

Hayes then shifts to discuss his tactical trading decisions in response to these indicators. He shares his plan to initially short the crypto market using Bitcoin puts, followed by a return to selling US Treasury bills and acquiring more Bitcoin and cryptocurrencies. In explaining his approach, Hayes states, “I will look to buy a sizable put option position on Bitcoin around this time,” indicating his readiness to capitalize on the predicted market downturn.

Furthermore, Hayes details his strategy for Bitcoin puts, explaining the rationale behind choosing puts expiring on June 28th and his approach to selecting the strike price. He emphasizes the importance of timing and market dynamics, noting, “I expect Bitcoin to experience a healthy […] correction from whatever level it has attained by early March.”

In his conclusion, Hayes contemplates various scenarios that could play out differently from his predictions. He considers the implications of a slower decline in the RRP, a potential extension of the BTFP by Yellen, or alternative outcomes of the Fed’s March meeting. He notes that each of these scenarios could lead to different market behaviors, necessitating adjustments in his trading approach.

At press time, BTC traded at $43,940.

BTC trades just below $44,000, 1-day chart | Source: BTCUSD on TradingView.com

Featured image from YouTube / What Bitcoin Did, 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.

[ad_2]

Jake Simmons

Source link

January 5, 2024
Bitcoin Breaks Through Securities Barrier: Registered Funds Want Exposure To BTC
[ad_1]
An interesting trend looks to be developing among institutional players as their interest in the flagship cryptocurrency, Bitcoin, continues to rise. This interest has in no small way been thanks to the frenzy around the Spot Bitcoin ETFs, which could be approved sooner than later.

Other ETFs Considering Bitcoin As An Investment Option

Crypto commentator and music producer Marty Party recently drew the crypto community’s attention to an emerging trend among fund managers and their ETFs. He noted how these asset managers are amending the prospectus of funds they manage so they can gain exposure to Bitcoin.

These institutions are said to be looking to use 15% to 50% of assets under their management to gain exposure to BTC. One way they will be looking to achieve this is through the Spot Bitcoin ETFs that could potentially launch anytime soon.

Marty Party specifically highlighted the case of Advisors Preferred Trust, which is already looking to gain the SEC’s permission to invest up to 15% of its AuM in Bitcoin-related ETFs like Grayscale’s Bitcoin Trust (GBTC) and ProShares Bitcoin Strategy ETF.

MicroStrategy’s Executive Chairman and Co-founder, Michael Saylor, had previously hinted that something like this was going to happen soon enough. Then, he suggested that more institutional players were going to direct more of their capital to Bitcoin.

A rule that was implemented by the Financial Accounting Standards Board (FASB) has also paved the way for more companies like MicroStrategy to include BTC on their balance sheet.

The launch of Spot Bitcoin ETFs will also make it easier for these institutional investors to gain direct exposure to the flagship cryptocurrency.

For a long time now, those who had a prior interest in the crypto token have had to either invest in Bitcoin futures ETFs or other Bitcoin derivatives on exchanges like the Chicago Mercantile Exchange (CME). But this is changing with the potential approval of a Spot Bitcoin ETF.
```
BTC price holds $45,000 | Source: BTCUSD on Tradingview.com
```
Grayscale Leading In The “Cointucky Derby”

As highlighted recently by Bloomberg Analyst James Seyffart, Grayscale looks to set the lead the way, assuming all pending Spot Bitcoin ETFs were approved simultaneously. This is because the asset manager has already established itself with GBTC and would likely have more capital than other issuers upon launch.

Bloomberg Analyst Eric Balchunas highlighted this fact and hinted that the Securities and Exchange Commission (SEC) could decide not to let Grayscale launch on day one because of this. If that doesn’t happen and all funds launch simultaneously, then Grayscale is likely to have a sort of ‘first mover advantage.’

However, other asset managers will be looking to assert their dominance by adopting different strategies. One such strategy will be these issuers undercutting themselves in terms of the fees they will charge to manage their respective funds. Invesco already made it known that they will be waiving fees for the first six months and the first $5 billion in assets.

Featured image from Finra, 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.
[ad_2]

Scott Matherson

Source link
January 3, 2024
This Bitcoin Historical Pattern Could Send Price To $50,000 Before Major Correction: Analyst
[ad_1]
The pioneer cryptocurrency, Bitcoin, has struggled to hold above the $43,000 price mark over the past few weeks. The last seven days have not been much different for the cryptocurrency, which currently trades below $42,000.

However, a popular crypto analyst on the X platform has come forward with an interesting trajectory for the price of BTC in the coming weeks. Based on his projection, investors could see the market leader trade above the psychological $50,000 level – but there is a caveat.

BTC Price To $50,000 – But What Happens After?

In a recent post on X, prominent crypto trader Ali Martinez put forward a price prediction, stating that Bitcoin’s value could climb as high as $50,000 in the near future. The analyst came up with this projection after identifying and studying a historical pattern on the coin’s price chart on a higher timeframe.

Martinez’s prediction is based on BTC’s price action between 2016 and 2019 on the weekly chart. According to the crypto analyst’s post, the premier cryptocurrency witnessed a major price correction – after reaching a market bottom – when it touched the 0.786 Fibonacci retracement level.
```
A weekly chart showing Bitcoin's price movement between 2016 -2023 | Source: Ali_charts/X
```
Martinez believes that current price action mirrors the Bitcoin pattern observed in the last years of the previous decade. Historical price patterns can be helpful in technical analysis and in predicting the future trajectory of a cryptocurrency.

If this history – on the Bitcoin price chart – does repeat itself, investors could see the value of BTC surge toward $50,000. However, Ali Martinez noted that the flagship cryptocurrency could come tumbling down afterward by a significant 40%.

From the current price point, Bitcoin’s journey to $50,000 would mean an almost 20% upward swing. Meanwhile, a 40% decline right after this surge could see the premier cryptocurrency return to around $30,000.

Bitcoin Price Overview

As of this writing, the value of Bitcoin stands at $41,831, representing a 1.5% price decline in the past 24 hours. This recent dip only further reflects the bearish pressure the market leader has had to face in the past week.

According to data from CoinGecko, the Bitcoin price is down by nearly 4% in the last seven days. However, the cryptocurrency has had a fairly successful December, having increased by about 10% in the last month of 2023.

BTC has had one of the best price performances this year, soaring by an outstanding 150% since January. Consequently, Bitcoin retains its spot as the largest cryptocurrency in the sector, with a market capitalization of roughly $823 billion.
```
Bitcoin price continues to move sideways 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.
[ad_2]

Opeyemi Sule

Source link
December 29, 2023
Crypto Trading Firm Expects Bitcoin To Crash To $36,000, Here’s Why
[ad_1]
A recent market update by the trading firm QCP Capital has provided insights into how Bitcoin’s price would react if a Spot Bitcoin ETF gets approved in January. The firm predicts that there could be a major retracement before any move to the upside.

Bitcoin Could Retrace To $36,000

QCP Capital predicts that Bitcoin could retrace to around $36,000 before an uptrend resumes. At the same time, they expect Bitcoin to face a topside resistance between the $45,000 and $48,500 region. These projections are based on what they expect to happen if the Securities and Exchange Commission (SEC) approves Spot Bitcoin ETFs in January.

QCP Capital is of the opinion that the actual demand for these investment funds might fall short of market expectations at the beginning. If so, it set things up for the classic ‘sell the news’ scenario, which would cause Bitcoin’s price to dump.

The trading firm had previously opined that Bitcoin could hit its all-time high of $69,000 if these Spot Bitcoin ETFs saw enough capital upon launching. Then, they also warned that approval could end up being a sell-the-news event if inflows into these funds were below par. Now, they seem to be suggesting that the latter is likely to happen.

However, they don’t expect that Bitcoin will stay down for too long as they are confident that Bitcoin’s recent resurgence will continue at some point. They estimate that this will likely happen after a few weeks, especially as traders position for a strong rally ahead of the next big thing – the Bitcoin Halving. This event is projected as what will spark the next bull run.
```
BTC price at $43,278 | Source: BTCUSD on Tradingview.com
```
All Attention Will Turn To Ethereum

Ethereum might be the next big play once the pending Spot Bitcoin ETFs are approved. QCP Capital foresees the market’s anticipation, quickly turning to the Ethereum Spot ETFs. Just like with the Spot Bitcoin ETFs, a number of asset managers have also filed to launch a fund that offers direct exposure to Ethereum.

In anticipation of a potential approval of the Ethereum Spot ETFs, some crypto investors could move their capital from BTC to ETH ahead of an expected rally in Ethereum’s price. The trading firm stated that they are “leaning against very strong support in the ETHBTC cross at the 0.051 level.”

QCP Capital, however, believes that any approval of an Ethereum Spot ETF is still “many months away.” In the meantime, they expect that Ethereum’s price will notable rallies based on such speculations. This could be something similar to what happened with Bitcoin, as the flagship cryptocurrency enjoyed significant rallies on the back of the Spot BTC approval rumors.

Featured image from Freepik, 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.
[ad_2]

Scott Matherson

Source link
December 27, 2023
Can Bitcoin Price Climb To $47,000? Here’s What This Crypto Analyst Thinks
[ad_1]
The bulls seem to be back in control following the return of the Bitcoin price to above $43,000 this past week. This positive run comes on the back of a period where the premier cryptocurrency struggled, falling below $41,000 at some point.

However, the market leader appears to have regained most of its lost momentum, with new heights now in sight. A popular crypto pundit on the X platform has put forward a new prognosis and set a new target for the Bitcoin price.

BTC Price To $47,000? Here’s What Needs To Happen

In a post on X, crypto analyst Ali Martinez offered insight into the price action of Bitcoin, explaining the potential movements of the cryptocurrency over the coming weeks. This evaluation is based on the UTXO Realized Price Distribution (URPD) data by the on-chain analytics firm Glassnode.
```
A chart showing the UTXO Realized Price Distribution of Bitcoin | Source: Ali_charts/X
```
Martinez identified the $43,200 area as a crucial support level, which can potentially determine the fate of Bitcoin’s price. The premier cryptocurrency broke above this price zone on Wednesday, December 20, and has been trading mostly sideways since.

In his post, Martinez highlighted that so long as the vital $43,200 support holds, the momentum is with the Bitcoin bulls. According to the crypto analyst, staying above this support is one catalyst that could push the Bitcoin price to above $47,360.

On the flip side of his analysis, he noted that the Bitcoin price could possibly undergo a correction. The crypto pundit emphasized that one of the bearish signals to watch out for is a sustained close below the crucial $43,200 mark.

According to Martinez’s projection, a close below $43,200 could send the price of BTC down towards $37,000. This would mean a decline of over 15% from the current price point.

Bitcoin Price Overview

As of this writing, the Bitcoin price stands at $43,783, reflecting a mere 0.5% gain in the last 24 hours. On the weekly timeframe, though, the premier cryptocurrency has shown tremendous recovery to return back to its heights of early January.

According to data from CoinGecko, the value of BTC is up by more than 4.5% in the past seven days. Meanwhile, the coin’s price has surged by nearly 16% in December as the market leader looks to close out the year on a high.

Bitcoin continues to maintain its position as the largest cryptocurrency in the sector, with a market cap of roughly $858 billion.
```
BTC price experiences correction at $44,000 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.
[ad_2]

Opeyemi Sule

Source link
December 24, 2023
Bitcoin Downfall: Arthur Hayes Reveals What Will Make The Pioneer Crypto Fail
[ad_1]
The former CEO and co-founder of crypto exchange BitMEX, Arthur Hayes, has shared his thoughts on what could lead to Bitcoin’s downfall. His recent comment also echoes the reservation that the crypto founder has about the potential launch of Spot Bitcoin ETFs.

TradFi Could Lead To Bitcoin’s Downfall

In his last article for the year, Hayes stated that TradFi asset managers would “completely destroy Bitcoin” if the ETFs managed by them were a huge success. He made this assertion as he alluded to Bitcoin’s uniqueness. Hayes mentioned that the foremost crypto token is different from “every other monetary instrument humanity has ever used.”

Due to Bitcoin’s uniqueness, Hayes believes that it wasn’t created to be in the hands of these asset managers. As such, they could end up destroying the crypto token, especially in a world where the world’s largest asset managers end up holding all the Bitcoin in circulation. If that were to happen, these firms would end up storing these crypto tokens, which shouldn’t be so in Hayes’ opinion.

The BitMEX co-founder noted that Bitcoin “only exists if it moves” and that it will “die” if it isn’t used. His stance stems from the fact that he sees Bitcoin more as an asset that is meant to be actively traded rather than just being a store of value. He also highlighted the fact that the Bitcoin network would also die if this were to happen.

Miners are known to earn transaction fees from the network being utilized. However, if these tokens were no longer traded but all stored up, these miners would have no choice but to wind up their operations. Without these miners, “the network dies, and Bitcoin vanishes,” Hayes asserted.
```
BTC maintains $43,000 level | Source: BTCUSD on Tradingview.com
```
Hayes’ Reservations About A Spot Bitcoin ETF

Arthur Hayes’ latest comment comes ahead of a potential approval of the pending Spot Bitcoin ETF applications. The former BitMEX CEO has previously made his reservations known about these funds and their issuers. Then, he mentioned that these TradFi institutions weren’t bullish on Bitcoin but were simply making this move to become “crypto gatekeepers.”

Hayes also went as far as to discuss how these firms’ interest in Bitcoin goes against Satoshi’s vision of a decentralized system. However, unlike Hayes, some are looking to look at the bright side and how institutional interest in the foremost cryptocurrency can help with mainstream adoption.

Bloomberg Analyst Eric Balchunas had once touched on the importance of these Spot Bitcoin ETFs, especially considering that many could just choose to hold Bitcoin instead. In his opinion, these ETFs are important because of the convenience they provide investors. Meanwhile, others are excited about the amount of capital that could flow in when these ETFs get approved.

Featured image from Forkast News, 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.
[ad_2]

Scott Matherson

Source link
December 23, 2023
Crypto Analyst Who Predicted Bitcoin 2023 Bull Run Releases New Target
[ad_1]
A crypto analyst who correctly predicted that Bitcoin would hit the heights it is currently enjoying has once again given projections as to Bitcoin’s future trajectory. As part of his predictions, he highlighted the best and worst-case scenarios for the flagship cryptocurrency going forward.

Bitcoin Could Ride To $60,000

In a live stream on his TechnicalRoundup YouTube channel, crypto analyst DonAlt noted that Bitcoin could rise to the resistance level of $60,000 based on historical patterns. The analyst had highlighted a bullish setup on the quarter timeframe, which had occurred both in 2018 and 2021. He also mentioned that the current quarterly is strikingly similar to those periods.

The analyst believes that the road to $60,000 would be fuelled by the Spot Bitcoin ETF rumors (as has been the case so far) before an approval possibly comes in January. However, it is not all good news from the $60,000 price level, as DonAlt believes that the approval will be a ‘sell-the-news’ event.

If that were to be the case, he predicts that Bitcoin will drop to $35,000 before it trends upward afterward. He also provided a bearish side to the quarterly timeframe setup as he suggested that this is more likely to happen as it is more “accurate.” For the bearish setup, he projects a close below the resistance level of $35,000.

He stated that this would suggest a bearish restest and that investors could expect lower prices as a result of this.
```
BTC price looks to retest $43,000 | Source: BTCUSD On Tradingview.com
```
Why An ETF Approval Will Be A ‘Sell-The-News’ Event

DonAlt further elaborated on his stance of a possible Spot Bitcoin ETF approval in January being a ‘sell-the-news’ event. He explained that the reason for this belief is because Bitcoin has ridden high (up about 3x from the bottom) on the back of these rumors. As such, this would naturally suggest that it is already priced in.

He further noted that he would have had a different opinion if Bitcoin had, for example, traded at around $25,000 and then an approval came. He believes that would have been an easy trade as the flagship cryptocurrency will undoubtedly fly high on the back of such development.

Renowned Economist Peter Schiff shares similar sentiments as he once noted how Bitcoin has rallied significantly on the back of the ETF rumor. According to him, there will be no more “good news” to spark a Bitcoin rally once the pending Spot Bitcoin ETFs are approved.

However, trading firm QCP Capital recently highlighted what could prevent this from happening. The firm stated that a significant amount of inflows into these ETFs in the first few weeks of trading could prevent the classic sell-the-news event from happening. If these funds see enough liquidity, they project that Bitcoin could hit its all-time high (ATH) of $69,000 instead.

Featured image from The Block, 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.
[ad_2]

Scott Matherson

Source link
December 15, 2023
Bitcoin Shakeout Drives $190 Million In Losses For Over 81,000 Traders
[ad_1]
Bitcoin has seen a pullback but not to the extent that bears have been expecting. Nevertheless, as a result of this, a lot of traders have incurred massive losses due to Bitcoin staging another unexpected recovery. The loss volumes have quickly risen to $190 million in one day as uncertainty remains the order of the day.

Crypto Liquidations Reach $190 Million

According to data from Coinglass, the 24-hour crypto liquidation volumes quickly rose above $190 million as Bitcoin completed a shakeout. This began with the price pullback to the $43,600 territory. And then a rapid rise back toward $44,000 completed the move.

Following this, traders on both sides quickly found themselves holding loss positions, and the liquidations pilled up. In total, over 81,000 traders were caught in the red, leading to more than $190 million in losses. Interestingly, the majority of these were from long trades who were betting on the price to continue to rise.
```
Source: Coinglass
```
Coinglass puts 73.74% of the total liquidations in the past day to be from long traders, meaning that around 45,000 traders were long this time around. The single largest liquidation event was recorded on the OKX crypto exchange across the ETH-USDT-SWAP pair which was valued at $2.12 million at the time of the liquidation.

There was also a new entrant into the top 3 in terms of liquidation volumes. Naturally, Bitcoin and Ethereum led the pack with liquidation volumes of $47.12 million and $29.16 million. However, ORDI came in third position with $21.64 million in liquidations in 24 hours.

Long Traders In Trouble As Bitcoin Tanks

Long traders have continued to suffer the brunt of the liquidations in the last day, and the tides are still yet to turn against the bears. As Bitcoin’s price has briefly plunged below $43,000 and recovered back up toward $43,400 once more, the long liquidations are still piling up.

At the time of this writing, short liquidations made up 91.05% of the approximately $47.83 million in liquidations that have been recorded in the last four hours. This 4-hour liquidation trend is also being led by the same top three including Bitcoin, Ethereum, and ORDI, all of which have seen a lot of volatility in the last week. If Bitcoin’s recovery continues to show high volatility, these liquidation volumes will continue to rise.

The majority of the liquidations have taken place on both the Binance and OKX exchanges with $82.56 million and $60.51 million, respectively. ByBit exchange snags third position with $27.05 million in liquidations in the last day.

Bitcoin is currently struggling to maintain support above $43,000, which explains why there has been an uptick in the liquidation trend in the last few hours. However, bulls are still ahead and continue to dominate as sentiment remains firmly in greed.
```
BTC exhibits high volatility | Source: BTCUSD on Tradingview.com
```
Featured image from Coin Culture, chart from Tradingview.com
[ad_2]

Scott Matherson

Source link
December 7, 2023
Bitcoin Price Blasts Past $41,500: Here Are The Reasons

[ad_1]

In a remarkable surge, Bitcoin’s price has soared past the $41,500 mark, fueled by a confluence of factors ranging from market anticipation of a Bitcoin spot ETF to broader financial trends. Here’s a detailed analysis of the key reasons behind this rally:

#1 Spot Bitcoin ETF: The Anticipation Game

The buzz around the approval of a spot Bitcoin ETF remains probably the most significant driver of the recent price surge. Although there hasn’t been a specific update, the market anticipation is palpable, with a FOMO effect kicking in. Last week, Bloomberg analyst James Seyffart suggested that a spot ETF is likely to be approved between January 8 and 10, causing the market to react.

Renowned Bitcoin analyst Willy Woo mirrored the anticipation with this statement, “It’s very likely we are on the eve of a Bitcoin spot ETF. The first commodity ETF was SPDR Gold Trust. It provided a simple way for investors to access gold in their portfolio. When it launched gold went on to an 8 year rally with no single down year between 2005 – 2012.”

gold spot price rally after first ETF | Source: X @woonomic

#2 Gold’s Meteoric Rise And Its Correlation With BTC

The unexpected rise of gold, surging by 3.5% in just 30 minutes to a new all-time high on a Sunday afternoon, may have also had repercussions for Bitcoin. This rapid ascent in gold’s value could signal more than just market fluctuations; it could reflect deeper economic shifts that have direct implications for Bitcoin.

Crypto Analyst @TheFlowHorse remarked, “Unless someone is getting carried out right now after shorting Gold, this is saying something important. Gold doesn’t just arbitrarily rip on a Sunday like this unless it means something.” Tom Crown, founder and CEO of Crown Analysis, added, “Something VERY BIG is coming tomorrow. Gold just BLASTED past all-time highs on a Sunday night. Someone knows something.”

#3 Bitcoin Short Squeeze

The liquidation of $65.15 million in Bitcoin short positions, according Coinglass data, has further propelled Bitcoin’s price. The short squeeze, combined with strong spot demand, has been a key factor. Crypto analyst Skew noted, “Another big short squeeze pushing price above $40K. Slight perp premium on Binance during the squeeze, indicating spot selling into the short squeeze.”

Bitcoin liquidations | Source: Coinglass

#4 Whales And Institutional Buyers

The current surge in Bitcoin’s price has been significantly influenced by whales and institutional buyers. Market analyst Skew pointed out their impact, stating, “Someone is still aggressively chasing price here. More importantly if said large market entity actually allows some bids to get filled or not. IF filled then expected for them to push the price higher. Clearly $40K is the price for institutional players.”

Keith Alan, co-founder of Material Indicators, further emphasized the role of these large holders, tweeting, “Bitcoin Whales just blasted through $40k.” His statement underlines the significant influence whales have in driving up Bitcoin’s price. He added, “Locking in some profit here. $42k is a high probability, but definitely not guaranteed.”

Additionally, GreeksLive, a trading tools provider, noted the broader market trend, stating, “Bitcoin broke through $41,000, Ethereum broke through $2,200… The giant whale once again showed a sense of smell before the market.”

December saw a rise beyond expectations, bitcoin broke through $41,000, ethereum broke through $2,200, and continued to rise almost without retracement.
The giant whale once again showed a sense of smell before the market, from last week to re-add positions in the block call,… https://t.co/EO6MddoNXX pic.twitter.com/ekD4LiLExs

— Greeks.live (@GreeksLive) December 4, 2023

#5 Liquidity: The Underlying Force

The surge in Bitcoin’s price is also significantly influenced by global liquidity conditions, a factor often overlooked but crucial in understanding BTC and cryptocurrency market dynamics. Zerohedge highlighted the scale of this influence in a post: “In November, central banks added $350BN in liquidity, the third-largest increase since March.”

This massive injection of liquidity by central banks around the world plays a pivotal role in asset price movements, including cryptocurrencies like Bitcoin. David Marlin, CEO of Marlin Capital, pointed out the significance of this trend in financial conditions, “US Financial Conditions eased 90 bps in November, the largest monthly easing on record (dating back to 1982).”

Adding to this narrative, cryptocurrency expert Charles Edwards commented on the historic nature of this easing, saying, “November saw the largest easing in over 40 years!” Such a significant easing of financial conditions suggests a highly conducive environment for investment in assets like Bitcoin, which are seen as hedges against inflation and currency devaluation.

Arthur Hayes, founder of BitMEX, summed up the sentiment by stating, “Eye on the prize. RRP balances continue to fall and BTC continues to pump. Yachtzee!!!”

At press time, BTC traded at $41,505.

Bitcoin price, 1-week chart | Source: BTCUSD on TradingView.com

Featured image from Shutterstock, chart from TradingView.com

[ad_2]

Jake Simmons

Source link

December 3, 2023
Mystery Bitcoin Whale Who Bought 10,000 BTC Has Been Exposed
[ad_1]
The attention of the crypto community has been drawn to a particular whale that has been accumulating Bitcoin for some time now. The magnitude of the whale’s holdings has left many wondering who it might be and the reason for the accumulation.

Bitcoin Whale Accumulates Over 10,000 BTC In November

In a post on his X (formerly Twitter) platform, popular Bitcoin investor Lark Davis revealed details about the “mystery whale” who had been accumulating Bitcoin. Interestingly, the wallet (bc1qch) had accumulated over 10,000 BTC in November. On-chain data also showed that the wallet currently holds over 12,000 BTC ($460 million).

Following this revelation, many began to speculate on who the owner of the wallet was and the reason for such accumulation. Lark suggested that it could be institutional investors looking to “front-run the Spot Bitcoin ETF approval.” Some were of the opinion that it could be one of the Spot Bitcoin ETF filers who were preparing ahead of a possible approval.

Irrespective of who the owner was, many felt it was a good sign of things to come for the crypto market. That is because the accumulation showed that there was still a huge demand for the flagship cryptocurrency. One could have also inferred that the whale was possibly loading up their bags ahead of the bull run which some project is around the corner.

The bullish sentiment was also ignited by the fact that the wallet had not sent out any BTC since it began accumulation at the end of October. That instantly suggests that the whale was in it for the long term rather than looking to make quick profits.
```
BTC price crosses $38,500 | Source: BTCUSD on Tradingview.com
```
BitMEX The Mystery Whale

The mystery around who the whale might be seems to have been resolved. The wallet is reported to belong to the crypto exchange BitMEX. The exchange is also said to have been simply moving its Bitcoin holdings to this new wallet, which forms part of the exchange’s cold wallet.

This is a real possibility, considering that some of the inflows into the wallet came from a particular BitMEX wallet (bc1qm). ZachXBT, a prominent blockchain investigator, also stated that the wallet belongs to the crypto exchange. He referred to an X post, which noted that the wallet address in question was included in BitMEX’s proof-of-reserves.

If so, then there isn’t so much meaning to read into the accumulation. It has become standard procedure for these exchanges to have proof of reserves as evidence of enough liquidity on their platform. These reserves are usually proportional to the users’ assets on the exchange.

Featured image from ACS Information Age, chart from Tradingview.com
[ad_2]

Scott Matherson

Source link
December 1, 2023
Spot Bitcoin ETF Odds ‘Might Have Increased To 100%’: Matrixport

[ad_1]

Matrixport, a leading digital finance platform, today, November 22, released a comprehensive research note focusing on the significant implications of yesterday’s developments in the crypto industry, particularly regarding the prospects of a spot Bitcoin Exchange-Traded Fund (ETF) in the United States.

Following the guilty plea of Binance CEO Changpeng Zhao (CZ) and the substantial financial settlements involved, Matrixport suggests that the path for approving a spot Bitcoin ETF might have become significantly clearer. The note highlights the regulatory crackdowns and compliance upgrades in the crypto sector, indicating a shift towards greater regulatory alignment with traditional financial (TradFi) systems.

“Some would argue that the US agencies have cleaned up the industry this year by dismantling the US crypto-related banks, as two of them were running an internal ledger that crypto companies could use 24/7 to transfer fiat. Arguably, few (perceived) major actors are left, and with Bitcoin only declining -3.4% during the last 24 hours, the market is stomaching a major risk-off event,” Matrixport remarks.

Spot Bitcoin ETF Approval Odds At 100% Now?

The company points out that with stringent enforcement actions and enhanced compliance programs becoming the norm among crypto exchanges, the differentiation between regulated and non-regulated cryptocurrency exchanges may become a key metric in 2024. This shift is seen as instrumental in the potential approval of a spot Bitcoin ETF in the US, a development long anticipated by the industry.

“The result will likely be that more exchanges will enhance their compliance programs and become part of a surveillance-sharing agreement, which will be instrumental in approving a spot Bitcoin ETF in the US,” the firm stated, adding, “With this plea deal, the expectations for a spot Bitcoin ETF might have increased to 100% as the industry will be forced to follow the rules that TradFi firms must follow.”

The firm believes that this “whitewashing” of the industry will not only enhance Bitcoin’s adoption by institutional players but also position it as a safe-haven asset in investment portfolios. “More importantly, this industry’s whitewashing will strengthen the Bitcoin adoption case for institutional players and will likely become a safe-haven asset in investors’ portfolios,” Matrixport predicts.

The note also touches on the anticipated sale of the FTX exchange and its potential relaunch under a US securities law-compliant management team by Q3 2024. Matrixport speculates that this could lead to significant inflows, estimated between $24-50 billion, into any US-listed Bitcoin ETF. They also note the increasing trend of crypto firms making markets on CME-listed crypto derivatives, indicating a shift from retail-focused, unregulated exchanges to those that are fully regulated and cater to institutional clients.

‘Dark Cloud Has Been Removed’ As ETF Makes Progress

Analysts and industry experts have echoed Matrixport’s sentiments. Will Clemente, a noted analyst, stated, “With resolution on Binance, just a matter of weeks until Bitcoin ETF approval now.” Tony “The Bull” Severino, head of research at NewsBTC, commented, “A dark cloud has just been removed from the crypto market.” Conversely, Scott Johnsson, a finance lawyer at Davis Polk, offered a more cautious view, suggesting that “It’s far more likely an ETF decision led the Binance resolution than the other way around imo. And I’m not convinced either is that likely.”

Remarkably, there has been some movement in the spot ETF approval process in the last few days. Ark Invest has kicked off the third round of amendments to the S-1 filings, Grayscale had a meeting with the US Securities and Exchange Commission yesterday regarding its “uplisting.”

At press time, BTC traded at $36,483.

BTC reclaims the trend channel, 4-hour chart | Source: BTCUSD on TradingView.com

Featured image from Shutterstock, chart from TradingView.com

[ad_2]

Jake Simmons

Source link

November 22, 2023
Bitcoin Open Interest Tops 19-Month High: Historical Data Shows What To Expect
[ad_1]
The Bitcoin open interest can often be an indication of where the BTC price might be headed next depending on whether or not the metric is rising or falling. This time around, the Bitcoin open interest has risen drastically, hitting 19-month highs in the process. Using historical data, it is possible to extrapolate what this means for the crypto’s price, especially as investors remain very bullish.

Bitcoin Open Interest Surges To $17.04 Billion

In an interesting turn of events, the Bitcoin open interest has been rising quickly across various exchanges. In the last 24 hours alone, this metric rose by a cumulative 7.89% across all exchanges in the space, bringing the total open interest to 454,150 BTC worth a staggering $17.04 billion.

For now, most of the Bitcoin open interest is concentrated across the CME, Binance, and ByBit exchanges. But perhaps what is even more interesting is that these open interest levels represent a 19-month high.
```
Source: CoinGlass
```
According to the data presented on the CoinGlass website, the last time that the Bitcoin open interest moved in this fashion and to this high was back in March 2022, before the historical Terra LUNA crash that sent the market into a prolonged bear market stretch.

This means that the last time that the Bitcoin open interest rose this much was during a time when investors were still very much in the throes of bull run euphoria. As such, the historical performance of the BTC price back then in relation to the open interest could serve as a guide to what might happen to the digital asset’s price next.
```
BTC price finds support at $37,400 | Source: BTCUSD on Tradingview.com
```
Historical Data Says BTC Price Will Surge

Similar to the current trend, the Bitcoin open interest had surged from around 38,000 BTC to over 44,000 BTC in the space of a month, and the BTC price followed quickly. This trend saw the price rise in March 2022 from $38,700 to over $47,000 before the month was over.

Going by this historical performance and assuming Bitcoin sticks to this trend, the rally may be far from over. The BTC price is also sitting at a similar price point at $37,500 and a similar surge could bring its price toward $45,000 before the month is over.

However, there is also the possibility that the open interest could peak at this level and begin to decline. Once this happens, then in the same fashion as in April 2022, the BTC price could begin to decline as the open interest drops. A similar crash would send the price back down toward $27,000.
[ad_2]

Best Owie

Source link
November 16, 2023
Bitcoin Macro Index Enters ‘Expansion’, Echoing 400% Bull Run

[ad_1]

In a detailed market update, Charles Edwards, founder of Capriole Investment, has provided an in-depth analysis of Bitcoin’s current market position, highlighting a pivotal shift to an ‘expansion’ phase in the Bitcoin Macro Index. This transition is particularly noteworthy as it parallels conditions observed prior to historical price surges in Bitcoin’s valuation.

Bitcoin has recently experienced a sharp uptick, ascending from $34,000 to an interim high of $38,000. After a brief period of resistance, the price corrected to approximately $36,500. Edwards highlights this movement as a critical technical victory, with Bitcoin overcoming and holding above the major resistance benchmarks of $35,000 on both the weekly and monthly timeframes.

This consolidation above key resistance levels sets a bullish context in the high timeframe technical analysis, positioning Bitcoin in a strong technical stance according to traditional market indicators. “The recent breakout into the 2021 range offers the best high timeframe technical setup we have seen in years. Provided $35K holds on a weekly and monthly basis in November, the next significant resistance is range high ($58-65K).”

Bitcoin price analysis | Source: Capriole Investments

Bitcoin Macro Index Enters Expansion

The crux of Edwards’ update is the shift in the Bitcoin Macro Index, a complex model synthesizing over 40 metrics encompassing Bitcoin’s on-chain data, macro market indicators, and equity market influences. The index does not take price as an input, thus providing a ‘pure fundamentals’ perspective.

The current expansion is the first since November 2020, and only the third instance since the index’s inception, with the two previous occasions leading to substantial price rallies in the following periods. Edwards elucidates this with a direct quote: “The transition from recovery to expansion is simply the optimal time to allocate to Bitcoin from a risk-reward opportunity for this model.”

A look at the Bitcoin chart reveals that the Bitcoin price rose by a whopping 400% during the last bull run from early November 2020 to November 2021, after the Macro Index entered the expansion phase. The first historical signal was provided by the Macro Index on November 9, 2016, which was followed by a massive bull run of almost 2,600% until Bitcoin reached its then all-time high of $20,000 in February 2018.

Bitcoin Macro Index | Source: Capriole Investments

Short-Term Technicals And Derivatives Market Analysis

In the short term, the technical outlook presents a mixed picture, according to Edwards. The derivative markets are indicating an overheated state, with low timeframe analysis suggesting a retracement could be imminent. Edwards introduces the ‘Bitcoin Heater’ metric, recently launched on Capriole Charts, which aggregate various derivatives market data and quantify the level of market risk based on the open interest and heating level of perpetuals, futures, and options markets.

The below chart shows that most of the time when the Bitcoin Heater is above 0.8, the market corrects or consolidates. “But there are large exceptions to the rule: such as the primary bull market rally from November 2020 through to Q1 2021. […] We should expect this metric to be high more frequently in 2024 (much like Q4 2020 – 2021),” Edwards stated.

Bitcoin Heater | Source: Capriole Investments

The analyst concluded that the overall trend for Bitcoin remains positive, with major data points indicating a strong bullish scenario. However, he also cautioned about potential short-term risks in the low timeframe technicals and derivatives market. These, according to him, are common in the development of a bull run and could offer valuable opportunities if dips occur.

At press time, BTC traded at $35,626.

Bitcoin price re-enters trend channel, 2-hour chart | Source: BTCUSD on TradingView.com

Featured image from Shutterstock, chart from TradingView.com

[ad_2]

Jake Simmons

Source link

November 15, 2023
Why $36,300 Is the Key For Bitcoin Next Big Bounce: Insights From Liquidity Map

[ad_1]

The Bitcoin price returned to its sideways price action following a powerful surge into new yearly highs. The cryptocurrency seems poised for further gains if bulls can hold a critical level.

As of this writing, BTC trades at $36,370, with a 2% loss in the last 24 hours. Over the previous week, the number one crypto by market capitalization recorded a 5% gain, while the sentiment in the sector looks mixed, with BTC recording losses as Ethereum and Solana stayed strong in the same period.

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

Bitcoin Likely To Bounce If This Scenario Plays Out

According to a pseudonym analyst, the liquidity in the Bitcoin spot market, measured by a “Liquidity Map,” has been allocated to the downside. This metric gauges the amount of leverage in the BTC/USDT trading pair.

The chart below shows that BTC is trading close to a huge liquidation cluster. Overleverage positions create these levels and are often tapped by big players to exploit the liquidity.

BTC whales chase liquidity, moving prices towards the biggest pools of overleveraged positions. If the $36,300 gets tapped, the next level of interest is located to the upside between $36,961 and $37,700. The analyst stated:

Big clusters at $36K and ~$37K. Would expect there to be quite some positions build up around that 37K region mainly as we chopped around it all day yesterday. Bears are back in control on the LTF (Low Timeframe) below $36.3K I’d say.

BTC’s price liquidation map shows significant liquidity to the downside. Source: DaanCrypto on X

BTC Hits Local Top?

On the other hand, the Bitcoin price could trend sideways between $36,300 and the high of its current range. Additional data from crypto analytics firm Bitfinex Alpha indicates that historical data hints at bad news for optimistic traders.

The firm advises caution for traders as the liquidity gap in the Bitcoin spot market increases. Per recent data, BTC Short-Term Holders Realized Price (STH RP) bought the cryptocurrency at an average price of $30,380, which could incentivize these investors to take profit at current levels.

This is the first time STH has had an opportunity to make a big profit on their BTC holdings since April 2022 and December 2022. Historically, a monthly change in STH RP exceeding $2,000 often signals local peaks, particularly post-recovery in bear markets, as seen in the chart below.

Source: Bitfinex Alpha

Concurrently, a negative monthly shift in LTH RP usually implies long-term holders are offloading their Bitcoin. The convergence of a $2,000 increase in monthly STH RP and a decline in LTH RP suggests a high likelihood of a local peak in Bitcoin’s price.

Cover image from Unsplash, chart from Tradingview

[ad_2]

Reynaldo Marquez

Source link

November 14, 2023
Bitcoin Mining: Potential Highlighted In Top Science Journal

[ad_1]

A new peer-reviewed research paper has emerged, shedding light on the potential symbiosis between Bitcoin mining and renewable energy initiatives. Dennis Porter, CEO and co-founder of Satoshi Act Fund, a non-profit educational organization dedicated to informing policymakers and regulators about Bitcoin mining’s benefits, and president of Satoshi Educate, shared his insights via X, underscoring the importance of the study. He remarked, “JUST IN: New peer-reviewed research states that Bitcoin mining ‘could serve as a bridge to foster investments in renewable energy.’”

Top Science Journal Praise Bitcoin Mining’s Potential

Murray Rudd, Science Advisor for Satoshi Educate, provided a comprehensive overview of the paper, titled “From mining to mitigation: how Bitcoin can support renewable energy development and climate action.” Published in the esteemed ACS Sustainable Chemistry & Engineering journal, which holds a notable 14th rank out of 139 in environmental science-chemistry journals, the paper is expected to be a significant contributor to future research in the field.

The research team, including a PhD student from Cornell University and experienced professors from Western and Cornell, led by Fengqi You, has presented a paper that is “poised to be highly cited”, offering “valuable insights” into the role of BTC mining in renewable energy development, according to Murray.

The paper addresses a critical question: Can Bitcoin mining increase the economic viability of renewable energy projects in the US? According to the findings, the answer is a definitive yes. Utilizing national data, the research method involved assessing the profitability of new solar and wind projects, indicating a real-world approach backed by data from the National Renewable Energy Lab.

Despite its complexity, the essence of the research is clear: The study evaluates capital and operational expenditures against power output, focusing on 58 pre-commercial renewable facilities to determine their profitability before grid hook-up.

Key findings suggest that BTC mining can indeed attract private investment into the renewable energy sector. Furthermore, the authors present three policy recommendations.

Firstly, to adopt flexible decarbonization strategies that include mining; secondly, to encourage the use of clean energy sources for Bitcoin mining, supplemented by carbon credits as incentives; and thirdly, to maximize location-specific renewable energy integration, reinvesting profits into further renewable infrastructure.

The paper concludes with a powerful statement, suggesting “Bitcoin mining, an activity often criticized due to its energy-intensive nature, could serve as a bridge to foster investments in renewable energy”

More Research Needed

Rudd’s personal take highlights Bitcoin’s potential in accelerating the adoption of renewable energy, noting that the study might even underestimate the benefits due to its reliance on historical data on market prices. He emphasizes the need for further research, particularly on the long-term contributions of Bitcoin mining to the financial viability of renewable energy facilities.

Additionally, Rudd points out the need to consider the business structures of miners and renewable energy operators and how they collaborate. At Satoshi Educate, efforts are underway to explore similar models, particularly focusing on landfill methane mitigation, aiming to further elucidate the impacts of mining on the environment.

Remarkably, this paper could be another major step towards rectifying the bad reputation of Bitcoin mining.

At press time, the BTC price rose above $37,000 after breaking out of the ascending trend channel on the 2-hour chart.

BTC breaks out of the trend channel, 2-hour chart | Source: BTCUSD on TradingView.com

Featured image from iStock, chart from TradingView.com

[ad_2]

Jake Simmons

Source link

November 9, 2023
Bitcoin Price Plunge To $12,000 Is Not Foreseeable – Analyst Explains Why
[ad_1]
The Bitcoin price performance was one of the brightest stories in the crypto market in the month of October. While some crypto analysts currently have bearish projections for the premier cryptocurrency, others have maintained a positive stance for BTC’s performance in November and beyond.

A crypto analyst known by the pseudonym Mags on the X (formerly Twitter) platform recently offered an insight into Bitcoin’s price action, quelling bearish sentiments around the pioneer cryptocurrency.

The Current Cycle Witnessed Its Own Black Swan Event

Bitcoin enthusiasts and analysts have been closely monitoring the coin’s price movements, with some skeptics anticipating a significant drop to as low as $12,000. Mags, on the other hand, said on X that the recent slow but steady upward trajectory of Bitcoin suggests a different narrative.

The crypto analyst posited that the current Bitcoin price action resembles a phase of vertical accumulation, hinting at the potential for a parabolic surge in the near future. Mags claimed that people waiting for a substantial price decline seem to be in disbelief.

Furthermore, Mags suggested that most bearish projections are centered around the potential occurrence of a black swan event. For context, a black swan event refers to an unpredictable incident that is beyond what is normally expected of a situation and has potentially severe consequences.

However, the analyst believes that the anticipated black swan event has already occurred. While the black swan event in the 2021 bull cycle was the COVID-19-induced market crash, the current bull cycle witnessed the FTX exchange collapse as its own black swan event.

As a result of FTX’s collapse, Bitcoin price plunged to as low as $15,500. Nevertheless, BTC’s price has been on a gradual ascent and is back up by more than 120% since the market crash. This steady price rise reflects the cryptocurrency’s robust nature and its ability to bounce back from unforeseen setbacks.

Bitcoin Price Overview

The Bitcoin price has been on a tear in the past weeks, rallying by more than 25% in the last month. However, it is worth noting that the premier cryptocurrency has somewhat slowed down in the past few days, with only a 1.9% price increase in the past week.

As of this writing, Bitcoin is valued at $34,765, reflecting a 1.5% price jump in the past 24 hours. Although the market leader breached the $35,000 mark and traveled to a high of $35,700 in the past week, it has struggled to maintain momentum and stay above $35,000.
```
Bitcoin price at $34,758 on the daily timeframe | Source: BTCUSDT chart on TradingView
```
Featured image from iStock, chart from TradingView
[ad_2]

Opeyemi Sule

Source link
November 4, 2023
Bitcoin Magazine Faces Lawsuit Threat From US Federal Reserve Over Parody Apparel | Bitcoinist.com

[ad_1]

The US Federal Reserve (Fed) has taken legal action against Bitcoin Magazine, alleging that the publication’s parody merchandise infringes on its image and trademarks.

The dispute revolves around using the FedNow Service image and trademark in merchandise sold by Bitcoin Magazine, which aims to critique the surveillance capabilities of the FedNow system and its potential impact on civil liberties.

Bitcoin Magazine has responded with an open letter, asserting its First Amendment rights and refusing to comply with the cease-and-desist request.

Fed Accuses Bitcoin Magazine Of Unauthorized Infringement

According to Bitcoin Magazine, the US Federal Reserve has initiated legal proceedings in response to the publication’s parody merchandise.

The central bank claims that the merchandise, which uses the FedNow Service image and trademark, constitutes unauthorized infringement and misleading association with the Federal Reserve.

In an open letter penned to the Federal Reserve Financial Services’s Deputy General Counsel, Bitcoin Magazine’s editor-in-chief, Mark Goodwin, expressed gratitude for the inquiry while asserting the publication’s refusal to comply with the cease-and-desist request.

Goodwin highlighted concerns regarding the FedNow system’s potential infringement on civil liberties and emphasized the publication’s First Amendment rights to criticize and parody the system.

First Amendment Battle

Bitcoin Magazine firmly believes that its parody merchandise falls within protected speech under the First Amendment. It argues that the imagery used serves as social commentary, specifically critiquing the surveillance aspects associated with the FedNow system.

The publication maintains that its readership would not associate Bitcoin Magazine with the Federal Reserve and that no confusion or deception is intended. Goodwin further claimed:

We do not believe that anyone that is familiar with our editorial guidelines and general stance on the world would ever associate Bitcoin Magazine with the Federal Reserve. We agree with your assertion that “no such association or relationship exists.” We look forward to defending our First Amendment rights, and the opportunity to make clear to all Americans the difference between the open, free, and decentralized financial system that is Bitcoin, and the centralized FedNow system that threatens our nation’s founding values.

The legal dispute between the US Federal Reserve and Bitcoin Magazine over parody merchandise sold by the publication highlights the clash between intellectual property rights and freedom of speech.

Bitcoin Magazine asserts its First Amendment rights to criticize and parody the FedNow system, emphasizing the importance of open dialogue and the distinction between the publication and the Federal Reserve.

The outcome of this legal battle will have implications for the boundaries of protected speech and the ability to critique public institutions.

BTC’s pullback on the daily chart. Source: BTCUSDT on TradingView.com

After a brief rally to the mid-$35,000 level, Bitcoin (BTC) has again pulled back, falling below this threshold and failing to establish a strong consolidation above it. Currently, the market’s leading cryptocurrency is trading at $34,700, down 0.5% over the past 24 hours.

Featured image from Shutterstock, chart from TradingView.com

[ad_2]

Ronaldo Marquez

Source link

November 3, 2023
Long-Term Bitcoin Metrics Reversing – ‘Explosive Phase’ Seen
[ad_1]
Bitcoin (BTC) is currently experiencing a notable surge in its value, effectively propelling the entire cryptocurrency market upwards. The recent upswing has drawn the attention of various experts in the field, one of whom is the pseudonymous crypto strategist known as TechDev.

In a recent post on the popular social media platform X, TechDev emphasized that Bitcoin, often referred to as the king of cryptocurrencies, is poised to enter an “explosive” phase, citing the reversal of the king crypto’s long-term metrics as evidence.

According to TechDev, a specific signal occurs approximately every 3 to 3.5 years, indicating an impending period of several months during which the market capitalization of Bitcoin is expected to grow significantly.

Every 3 to 3.5 years, this signal says the next several months will be explosive for #Bitcoin. pic.twitter.com/OQkoCVgbwH

— TechDev (@TechDev_52) October 28, 2023

Analyzing TechDev’s Bitcoin Insights

Analyzing the intricate dynamics at play, TechDev’s chart highlights an intriguing correlation between China’s 10-year yield on its bond and the US dollar index, suggesting that as China’s bond yield decreases in relation to the US Dollar Index, Bitcoin’s price is predicted to rise.

10 degree $BTC/#NASDAQ breakouts are not ones to miss. pic.twitter.com/NmW7n5kiKe

— TechDev (@TechDev_52) November 1, 2023

Simplifying this, it implies that as the yield on China’s long-term bonds decreases in comparison to the strength of the US dollar, there is an increased likelihood of Bitcoin’s value escalating, possibly due to shifting investor sentiment and a growing appetite for alternative assets.

Furthermore, TechDev underlines Bitcoin’s historical breakouts against the NASDAQ over the years, emphasizing the significance of these breakthrough moments.

These instances serve as a strong indication for investors, signaling the importance of not overlooking Bitcoin’s potential to break out significantly against the renowned stock exchange.
```
Bitcoin currently trading at $34,610 on the daily chart: TradingView.com
```
Cathie Wood’s Vote Of Confidence

In addition to the optimistic sentiments surrounding Bitcoin, prominent financial figure Cathie Wood, the head of Ark Investment, has expressed unwavering confidence in Bitcoin as a hedge against the potential risks of deflation.

In a recent interview on Bloomberg’s Marin Talks Money podcast, Wood responded to a question regarding her preferred asset class to hold for a decade. Without hesitation, she unequivocally favored Bitcoin over gold or cash, highlighting its unique characteristics that make it an effective safeguard against both inflation and deflation.

Wood emphasized Bitcoin’s inherent resilience against counterparty risk, along with its decentralized nature, which tends to discourage excessive institutional interference. Describing Bitcoin as the “digital gold” of the contemporary financial realm, Wood’s endorsement adds further credibility to Bitcoin’s position as a resilient and promising investment option.

The current price of Bitcoin according to CoinGecko stands at $34,557, with a slight 24-hour dip of 1.8% countered by a modest seven-day gain of 1.3%. These fluctuations further underscore the dynamic nature of the cryptocurrency market and the ongoing developments that continue to shape the trajectory of Bitcoin’s value.

Amidst these fluctuations, the overarching sentiment remains bullish, emphasizing the growing recognition of Bitcoin’s significance in the global financial landscape.

(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).

Featured image from Freepik
[ad_2]

Christian Encila

Source link
November 3, 2023
Bitcoin Spot ETF Approval: The ‘Most Important’ Short-Term Catalyst For BTC Price? | Bitcoinist.com
[ad_1]
The Bitcoin price has been on a mesmeric run in the past few weeks, largely due to talks of the potential approval of a Bitcoin spot ETF (exchange-traded fund) in the United States. And there has been broad commentary about what is to come for the premier cryptocurrency should the Securities and Exchange Commission (SEC) greenlight the current applications for a spot ETF.

Cantor Fitzgerald, a prominent investment and brokerage firm, is amongst the latest entities to weigh in on the possibility and the potential impact of a Bitcoin spot ETF in the United States.

Here’s Why Cantor Fitzgerald Thinks Bitcoin Spot ETF Will Be Approved

According to a Bloomberg report, Josh Siegler and Will Carlson, research analysts at Cantor Fitzgerald, are becoming “increasingly confident” that the highly-anticipated Bitcoin spot ETF would receive the approval of the SEC in the US.

The Cantor Fitzgerald analysts believe that the SEC, which has been reluctant to approve the Bitcoin investment product due to various market concerns, is now more likely to greenlight the modified and newly filed applications.

The report highlighted that “a comprehensive surveillance-sharing agreement with a regulated market of significant size” might force the hands of the SEC. Interestingly, all the pending spot ETF filings appear to now include a surveillance-sharing agreement in order to detect and address market irregularities.

Furthermore, Cantor’s analysts mentioned the recent ruling in favor of Grayscale, which overturned the SEC’s rejection of the asset manager’s proposal to convert its Bitcoin trust into an ETF. Siegler and Carlson added:

Ultimately, the court found that the SEC failed to explain why it approved Bitcoin futures ETFs, but rejected Grayscale’s spot offering, despite substantial evidence that the two products are similar, across several regulatory factors.

Finally, Siegler and Carlson believe “a Bitcoin spot ETF approval is the most important short-term catalyst for Bitcoin’s price.” To support this assertion, the analysts cited the latest price rally by the premier cryptocurrency, which all began with an erroneous headline that BlackRock’s ETF had been approved.

The Cantor Fitzgerald analysts added:

The approval of a spot Bitcoin ETF in the US will be “a bedrock moment” for Bitcoin’s long-term adoption and legitimization.

Bitcoin Price Overview

As of this writing, Bitcoin trades at $34,104, with a negligible 0.2% increase in the past 24 hours. The market leader has been moving mostly sideways since failing to close above $35,000 – its highest level in almost 18 months – earlier this week.

Nevertheless, BTC has maintained a huge portion of its profit on the weekly timeframe, with a substantial 13.2% gain in the past seven days. Meanwhile, the premier cryptocurrency has jumped nearly 27% in the past two weeks, according to CoinGecko data.
```
Bitcoin price thickens on the daily timeframe | Source: BTCUSDT chart on TradingView
```
Featured image from iStock, chart from TradingView
[ad_2]

Opeyemi Sule

Source link
October 29, 2023