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Tag: crypto

  • Crypto Investment Products See Record $2.2 Billion Inflows—Is The Bull Run Here?

    Crypto Investment Products See Record $2.2 Billion Inflows—Is The Bull Run Here?

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    Este artículo también está disponible en español.

    The latest weekly digital asset fund flow report from CoinShares has revealed that last week, crypto asset investment products saw roughly $2.2 billion in net inflows globally, marking the largest inflow since July.

    This rise in inflows comes amid the gradual recovery of top crypto assets last week, with the majority now reclaiming major highs and registering nearly double-digit gains over the past 7 days.

    Related Reading

    Who Led the Charge?

    Bitcoin-based products were the standout beneficiaries of last week’s inflows. US spot Bitcoin exchange-traded funds (ETFs) added $2.1 billion, with BlackRock’s IBIT ETF alone generating over $1.1 billion.

    The cumulative inflows for these Bitcoin ETFs, which began trading in January, now stand at $21 billion. These funds have grown to manage a record $66 billion in assets under management, highlighting their significant role in the market.

    BTC price is moving upwards on the 2-hour chart. Source: BTC/USDT on TradingView.com

    Notably, the renewed confidence in Bitcoin products mirrors earlier this year’s positive sentiment. Last week’s inflows were the largest since March, when US spot Bitcoin ETFs saw $2.6 billion as Bitcoin reached its all-time high above the $73,000 price mark.

    This strong demand suggests that investors remain bullish on Bitcoin’s long-term prospects, despite recent market fluctuations. While Bitcoin stole the spotlight, other cryptocurrencies also experienced inflows last week although way lesser than that of BTC.

    Crypto asset fund flows.
    Crypto asset fund flows.

    Ethereum-based products attracted $58 million in net inflows, while Solana, Litecoin, and XRP-based funds saw smaller inflows of $2.4 million, $1.7 million, and $700,000, respectively.

    However, multi-asset investment products did not fare well, experiencing net outflows of $5.3 million, ending a 17-week streak of consecutive inflows.

    What Prompted The Surge In Crypto Inflow?

    According to CoinShares, this surge in inflows is tied to growing optimism about the upcoming US elections, with a potential Republican victory driving investor sentiment.

    Many believe that a Republican administration would favor the digital asset market more favorably, leading to an increase in investor confidence and positive price momentum. James Butterfill, Head of Research at CoinShares, particularly noted:

    We believe this renewed optimism stems from growing expectations of a Republican victory in the upcoming US elections, as they are generally viewed as more supportive of digital assets.

    Notably, Butterfill, reiterated these views, adding that trading volume for these investment products surged by 30% last week. Total assets under management (AUM) for crypto funds are now nearing the $100 billion mark on a global scale, highlighting the substantial interest in digital assets.

    Related Reading

    However, while US-based funds thrived, investment products in other countries such as Canada, Sweden, and Switzerland experienced net outflows, indicating a more polarized global market.

    Crypto asset fund flows by region. | Source: CoinShares
    Crypto asset fund flows by region.

    Featured image created with DALL-E, Chart from TradingView

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    Samuel Edyme

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  • BONK Jumps 20% As ‘Dog Season’ Starts, Analyst Says

    BONK Jumps 20% As ‘Dog Season’ Starts, Analyst Says

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    They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

    Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

    Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!

    So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

    Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

    Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

    Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

    Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.

    So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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    Christian Encila

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  • What is the price of gold in Canada? And more about gold investing – MoneySense

    What is the price of gold in Canada? And more about gold investing – MoneySense

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    That, together with the fear of a stock-market correction, has prompted a lot of Canadians who never considered owning the precious metal before to wonder whether this age-old asset should be part of their portfolios. After all, Canada’s largest robo-advisor, Wealthsimple, allocates 2.5% of its clients’ accounts to gold—and 10% in its halal portfolios.

    Should it be part of yours? Or would you just be buying in at the peak? There’s no way to know, except in hindsight. There will always be “gold bugs” out there urging you to sell everything and buy gold before the world goes to pot. Their advice is best avoided.

    Here instead are some important facts around investing in gold that will help you make a better-informed decision.

    Why is gold so valued?

    Gold is used for a wide range of products—such as jewellery, dental fillings and electronics—but most of it is simply stored in vaults, in the form of gold bars. Like money itself or cryptocurrency, gold is valuable because people have decided it is. But unlike the other two, it’s immune to manipulation.

    As of mid-October, all the refined gold in the world, an estimated 212,582 tonnes, was worth a staggering USD$18.3 trillion. Mines around the world poured another 1,788 tonnes in the first half of 2024. So, the supply of gold is increasing, but slowly. And there’s little anyone can do to change that.

    Why do investors buy gold in Canada?

    As an investment, gold is classified as a commodity. That is, it’s a standardized and graded substance that trades globally. But unlike, say, soybeans or Brent crude oil, you can store a meaningful amount of gold in your jewellery drawer or safe deposit box. It’s also uniquely non-perishable; part of its appeal in ancient times was the fact it didn’t corrode like other metals. So, you can hold it indefinitely.

    If you own gold as an investment, it won’t generate any income; it’ll just go up and down in value according to supply and demand. Over the very long term, its price tends to track the rate of inflation.

    Most importantly, gold has a history as a store of value and unit of exchange. Many central banks still hold it to help stabilize their currencies. In developing countries like India and China, many people consider it more trustworthy than paper or electronic money. This is why it continues to hold a privileged place in investment portfolios.

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    Michael McCullough

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  • Bitcoin Breaches $67k After Spot ETFs See Highest Inflows

    Bitcoin Breaches $67k After Spot ETFs See Highest Inflows

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    They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

    Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

    Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!

    So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

    Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

    Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

    Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

    Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.

    So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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    Christian Encila

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  • What’s Behind Bitcoin And Ethereum’s Exchange Exodus?

    What’s Behind Bitcoin And Ethereum’s Exchange Exodus?

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    Este artículo también está disponible en español.

    Crypto investors are not keen on dealing with cryptocurrency trading platforms, which has resulted in the dwindling exchange reserves of Bitcoin and Ethereum. Centralized exchanges on Bitcoin and Ethereum hit a historic low after investors and crypto enthusiasts opted for self-custody solutions for their virtual assets.

    Related Reading

    Staying Away From Cryptocurrency Trading

    A recent trend showed that traders and other enthusiasts choose to hold on to their crypto assets rather than sell them on Bitcoin and Ethereum exchange platforms.

    They preferred direct ownership of their assets using self-custody wallets, which created an increasing demand for self-custody solutions. However, it led to a decline in the liquidity of BTC and ETH on centralized exchanges.

    Strengthening Bitcoin And Ethereum Values

    A positive consequence of traders’ preference for self-custody solutions is the increasing value of Bitcoin and Ethereum assets over time. Traders veering away from cryptocurrency trading platforms create a sense of scarcity, leading to the growth of its value.

    At the time of writing, the price of Bitcoin is pegged at $64,842. Since hitting a record-high of $73,000 in March this year, the price remains somewhere between $66,000 and $49,000. Meanwhile, according to Coinmarketcap, Ethereum is trading at $2,464.

    Source: CoinMarketCap

    Bitcoin, Ethereum Reserves Drop

    Bitcoin and Ethereum on centralized reserves took a nosedive and hit a historic low early this month. As of October 13, CryptoQuant’s chart showed that centralized exchanges for BTC recorded an all-time low of 2,666,717 bitcoins.

    BTC exchange reserves. Source: CryptoQuant

    The highest amount of Bitcoin was pegged at 3,361,854, which was recorded on June 8, 2022. After that period, Bitcoin went on a sharp decline. It hit its lowest level early this month.

    In terms of volume, spot exchanges have 1.1 million Bitcoin in reserves, while derivative exchanges own 1.39 million reserves. By far, Binance owns 563,000 Bitcoin reserves, the largest crypto exchange by trading volume, followed by Kraken with 112,3000 reserves.

    Total crypto market cap currently at $2.2 trillion. Chart: TradingView

    On the other hand, Coinbase Advanced holds 830,530 Bitcoin reserves and Coinbase Prime has 3,000 reserves. Ethereum’s centralized exchanges also face a similar dilemma to Bitcoin wherein its reserves continue to plummet and hit a record low of 18.7 million.

    Related Reading

    According to CryptoQuant, derivative exchanges hold a big portion of Ethereum with 10.3 million in reserves, while 8.4 million Ethereum reserves are being kept at spot exchanges.

    Historically, Ethereum’s all-time high in reserves was 2,310,823 recorded on 6 September 2022. Since that period, Ethereum reserves in central exchanges continue to plunge.

    In terms of reserves, Coinbase has a large reserve of 4.5 million Ethereum, followed by Binance with 3.6 million Ethereum. Kraken also holds a significant Ethereum reserve of 1.3 million.

    Featured image from Pexels, chart from TradingView

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    Christian Encila

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  • Whales Accumulate 40 Million XRP In 48 Hours – Where’s The Price Headed?

    Whales Accumulate 40 Million XRP In 48 Hours – Where’s The Price Headed?

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    Este artículo también está disponible en español.

    Popular crypto analyst Ali Martinez shared data suggesting an interesting accumulation trend among XRP investors despite ongoing price uncertainty. According to Martinez, who referenced data from on-chain analytics platform Santiment, XRP whales have made substantial purchases totaling around 40 million XRP within the last 48 hours.

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    This significant accumulation trend coincides with a rise in large transactions to and from cryptocurrency exchanges, as highlighted by whale transaction tracker Whale Alerts during the same period.

    Whales Buy Millions Of XRP

    In a recent post on social media platform X, Martinez shared a Santiment data chart that illustrates the total holdings of XRP addresses containing between 1 million and 10 million XRP tokens.

    He highlighted that these specific cohorts of traders have collectively acquired approximately 40 million XRP over the past 48 hours, amounting to an investment of around $22 million. While this figure might appear modest in comparison to the more substantial movements typically seen from XRP whales, it marks a significant development as it represents the first notable inflow into these wallets since the beginning of the month.

    The chart shared by Martinez reveals a concerning trend. The total holdings of these whale wallets have been in a steep decline since the start of October. On October 1, the cumulative holdings for this group were recorded at approximately 3.93 billion XRP.

    However, in a matter of days, these wallets experienced a substantial loss of around 130 million XRP, driving their total holdings down to a three-month low of 3.8 billion XRP by October 8. However, recent accumulation by the whale addresses has seen their collective holdings increase to 3.85 billion in the past 24 hours.

    According to data from Whale Alerts, there have been multiple instances of large XRP transactions entering and leaving crypto exchanges in the past 24 hours. The largest transaction occurred with the transfer of 104 million XRP tokens worth $55 million from an unknown wallet into a new unknown wallet.

    XRP is currently trading at $0.53. Chart: TradingView

    Another notable transaction was the transfer of 52 million XRP tokens worth $27.8 million from an unknown wallet into crypto exchange Bybit. A while later, 30 million XRP tokens were transferred from Bybit into another private wallet.

    Is XRP Headed To $0.5 Or $0.6?

    Current price action shows XRP consolidating between an upper range of $0.54 and a lower range of $0.52 within the past seven days. This lack of clear direction suggests low volatility and a lack of interest among crypto traders, as evidenced by a trading volume decline of approximately 30% in the last 24 hours.

    Related Reading

    However, the recent increase in whale holdings could signal a renewed interest among large investors in XRP, hinting at a potential shift in market sentiment as the new week begins. Historically, increases in whale accumulation have often been accompanied by a steady rise in the XRP price. If this trend continues, it could replicate the accumulation seen in September, which propelled XRP to a peak of $0.668.

    Featured image from Pexels, chart from TradingView

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    Scott Matherson

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  • New Documentary May Reveal the Identity of Bitcoin’s Creator

    New Documentary May Reveal the Identity of Bitcoin’s Creator

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    A new HBO documentary has fired up fresh speculation with evidence to suggest that Canadian developer Peter Todd is the elusive Satoshi Nakamoto, the pseudonym behind the creator of Bitcoin. The documentary claims it has identified Todd as the man behind the world’s first cryptocurrency by piecing together old and new clues. 

    Todd Regularly Claims He Is Satoshi

    Near the documentary’s conclusion, director Cullen Hoback confronts Todd, who responds to the filmmaker’s questions by casually admitting, “Well, yeah, I’m Satoshi Nakamoto.” However, this remark is far from conclusive, as Todd, a well-known figure in the cryptocurrency space, has used “I am Satoshi” many times to defend the creator’s quest for privacy.

    A former Bitcoin Core developer, Todd has been known to communicate directly with Satoshi before the mysterious figure vanished from crypto forums in 2010. Despite his commanding position in the cryptocurrency community, Todd has rarely, if ever, been touted as a notable Satoshi suspect. Speaking for CNN, he denied he was Bitcoin’s creator.

    For the record, I’m not Satoshi. Cullen is grasping for straws here. He is playing up a few coincidences into something much more. That’s a hallmark of conspiracy thinking.

    Peter Todd

    Should the documentary’s claim prove true, it would end over a decade of speculation about who created Bitcoin. Satoshi Nakamoto’s innovative work paved the way for the rise of cryptocurrencies, which changed finance but also facilitated fraud, illegal gambling, and other criminal activity. The mystery around Nakamoto’s true identity has fascinated crypto insiders and the general public, spawning endless theories and debates.

    Crypto Insiders Remain Unconvinced

    Filmmaker Cullen Hoback noted that while digital forensics provided some direction for his investigation, the most compelling evidence came from offline sources. He commented on his findings for POLITICO, lauding Todd’s mastery of game theory. Hoback closely monitored social media shortly before the documentary’s release and was amazed that Todd’s name never came up in discussions even though the developer was in the official trailer.

    Despite Hoback’s sensational claim, many industry insiders doubt his findings. Jameson Lopp, the co-founder of Bitcoin company Casa, dismissed the claim, as did Nic Carter, founding partner at Castle Island Ventures. Carter acknowledged Todd’s talents but noted the developer lacked the deep expertise in cryptography and digital cash systems required to create Bitcoin.

    The fact that Satoshi successfully pulled this off — it really is magical. I personally hope we never find out who Satoshi is.

    Nic Carter, founding partner at Castle Island Ventures

    The HBO documentary did not significantly impact the price of Bitcoin. 1 BTC currently trades for $63,126, with the price remaining relatively stable since its rally in March 2024. As for the identity of Bitcoin’s founder, the latest revelation does more to stir questions than provide answers in the dynamic world of cryptocurrency.

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    Deyan Dimitrov

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  • Gemini is exiting the Canadian market, plus more crypto news – MoneySense

    Gemini is exiting the Canadian market, plus more crypto news – MoneySense

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    Is ethereum being left behind?

    As this chart shows, ethereum (ETH)—the second-largest cryptocurrency in terms of market cap—has lagged bitcoin (BTC) in investment returns over the past year. The blue line is BTC and the red line is ETH. (As of 12 p.m. EST on Oct. 1, 2024.)

    Source: TradingView

    Over the past year, BTC has gained about 122%, whereas ETH has gained only about 45%. Hang on—both are amazing one-year gains. However, ETH has been left behind comparatively. Here are two reasons why:

    1. New bull market: Usually, in a new crypto bull market—like the one that began in January 2024—BTC leads the way, in much the same way that large blue-chip stocks lead the charge in a new bull market for stocks. So, BTC’s outperformance is to be expected right now. There’s no obvious reason for ETH investors to panic (at least, not yet).
    2. BTC spot ETFs: In January 2024, the U.S. Securities and Exchange Commission (SEC) approved spot BTC exchange-traded funds (ETFs) for the first time. This opened the floodgates for institutional investors and large individual investors in the U.S. to gain exposure to crypto without buying it directly. True, Canada was the first country to approve BTC and ETH spot ETFs, starting in 2021 but the big market-moving money comes from the U.S. Since BTC ETFs got the nod from the SEC first—followed by ETH ETFs six months later—BTC saw more money flowing in, and earlier, compared to ETH.

    How will rate cuts affect crypto?

    The U.S. Federal Reserve (Fed) lowered interest rates by 50 basis points in September. And more cuts are likely to come. This is significant for bitcoin and crypto. 

    TLDR: when the U.S. Fed lowers interest rates, it’s essentially adding dollars into the system by reducing the cost of borrowing. The more dollars there are sloshing around in the economy, the less each of those dollars is worth. Consequently, asset prices rise—including stocks, real estate and crypto. 

    Think of it this way: if the number of Gucci bags in the world doubled tomorrow, each of those bags would be worth less than they are today. In other words, each Gucci bag would have been devalued. It’s the same with money. 

    When there’s a lot of money in the economy, people don’t want to hold cash, because of its devaluation. Instead, they’d rather hold growth assets such as stocks, real estate, gold and—yes, you guessed it—cryptocurrencies. In fact, the devaluation of the U.S. dollar is one of the strongest narratives in support of investing in bitcoin.

    The chart below was shared on x.com (formerly Twitter) on Sept. 16, 2024, by Raoul Pal—author of the investment newsletter “Global Macro Investor.” It shows the close relationship between the anticipated global money supply (Global M2 10-week lead) and the price of BTC. 

    Federal Reserve rate cuts often lead to a rise in the money supply. So, the market is anticipating a rise in M2. If the price of BTC continues to resemble the moves in Global M2, we could be in for a sharp rise in BTC. That’s a big “if,” though. No chart can predict the future, so investors should not make decisions solely based on this (or any other) chart.

    The evolving regulatory landscape and increased institutional adoption are positive signs for crypto in Canada. Sure, some exchanges may exit due to tighter regulation, but many more are aligning themselves with securities laws. This makes crypto investing safer for Canadians. 

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    Aditya Nain

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  • Starknet: Long Positions Liquidated Lead To 16% Losses

    Starknet: Long Positions Liquidated Lead To 16% Losses

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    They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

    Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

    Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!

    So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

    Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

    Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

    Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

    Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.

    So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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    Christian Encila

    Source link

  • 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. 

    Related Reading

    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.

    Related Reading

    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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  • ETH Rally Pushes Profitability To Nearly 70%

    ETH Rally Pushes Profitability To Nearly 70%

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    Este artículo también está disponible en español.

    Ethereum’s movement last week was full of mixed signals as Spot Ethereum ETFs started to witness good inflows. Notably, ETH has been on a rally since the middle of September, reflecting a 25% gain from the September 6 low of $2,171 as it crossed $2,715 on September 27. 

    Related Reading

    This rally and the well-anticipated inflows in Spot Ethereum ETFs brought a much-needed breather into the Ethereum ecosystem. According to on-chain data, last week’s price action saw many Ethereum addresses moving into the profitability zone. Particularly, last week’s rally pushed Ethereum’s profitability from 59% of addresses to 69%.

    Ethereum Addresses See Much-Needed Profitability

    After enduring weeks of market consolidation and outflows from Spot Ethereum ETFs, Ethereum’s price began an upward trajectory in the middle of September that has reignited investor interest. According to data shared by on-chain analytics platform IntoTheBlock (ITB), the rally has led to more than two-thirds of Ethereum holders being in profit. 

    The key to understanding this development lies in ITB’s “In/Out of the Money” metric, which plays a crucial role in assessing the profitability of cryptocurrency holders. This metric compares the current market price of Ethereum to the purchase prices recorded for addresses that hold the asset.

    By doing so, it calculates which holders are in profit, in loss, or at the break-even point (known as “at the money”). According to this measure, Ethereum has reached its highest profitability levels in nearly two months, a significant indicator of growing bullish sentiment.

    The graph below shows that the number of Ethereum addresses in profit reached 85.03 million last week, representing 69.38% of the total Ethereum addresses. At this time, Ethereum was trading at $2,693. Furthermore, the data highlights that at this time, 2.61 million ETH addresses were at the money (neither in loss nor profit), while 34.94 million ETH addresses were in losses.

    ETH Profitability To Keep Rising?

    Looking ahead, it is only natural to wonder if the profitability will continue to increase in October. Fortunately, the crypto industry is now reveling in bullish sentiment, especially in light of the recent Fed rate cuts and weakening currencies in some parts of the world. 

    Related Reading

    According to IntoTheBlock’s social media handle on X, over 80% of ETH volume is now profitable, indicating strong buying support at critical levels. With bullish projections now falling in place, we could see many more addresses and ETH easily crossing into profitability next week. 

    As Ethereum pushes toward higher price levels, the focus will also turn to key psychological barriers, such as the $3,000 mark. The first step for ETH bulls is to make a clean break above $2,700 next week. This would set the stage for a successful run to $3,000, bringing even more addresses back into profit.

    Featured image from Stormgain, chart from TradingView

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    Scott Matherson

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  • XRP Set To Soar 900% To $31, Analyst Highlights Key Resistance

    XRP Set To Soar 900% To $31, Analyst Highlights Key Resistance

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    XRP aficionados are ecstatic when market analyst EGRAG predicted an 888% increase in the cryptocurrency’s value. This optimism isn’t just wishful thinking; it’s based on trends seen on XRP’s one-month chart that mirror the cryptocurrency’s rapid success in 2017. As XRP struggles to reclaim prior highs, many traders wonder if this is the beginning of another bull run.

    EGRAG’s chart analysis shows that XRP almost touched the red rising support line four times. The pattern is similar to the price movements this currency experienced during the 2017 bull run as XRP popped from a value of $0.003 to a solid $3.31 in January 2018.The repeat of this pattern suggests that XRP may soon embark on a similar course.

    Breaking Through Key Resistance Levels

    But what would make XRP reach such an explosion? According to EGRAG, the first big resistance stands at the all-time high of $3.31. He feels that when this price will be recaptured, it will lay the groundwork for a rally.

    Interestingly, EGRAG implies that just 20% of the gains observed in 2017 could pave the way for a new rise, matching the important Fibonacci extension level of $31.

    If it does break to $31, that will be a reflection of market sentiment at the moment and might even draw more investors in. Statistical data shows that in previous bull runs, price milestones greatly influenced market psychology. In fact, the rise from $0.003 to $3.31 was not only influenced by numbers but also because people saw XRP as something that would revolutionize the entire crypto space.

    XRP Price Forecast

    However, the recent estimates given by CoinCodex add more optimism to this view. The crypto price prediction site anticipated a possible increase in the price of XRP by 19.78% by the end of October 28, 2024, and it could peak high to $0.71033.

    This is because the market sentiment is seen as bullish, with the Fear & Greed Index spotted at 64, representing investor greed. A greed rating sometimes causes a new increase in price, making this a quite attractive opportunity for the potential buyers to take action.

    Throughout the month, XRP has recorded 16 out of 30 days in the green, which translates into a positive rate of 53%. Given that the price volatility is low at 3.73%, the above statistics paint a pretty rosy picture for traders eager to make a profit when there’s a breakout. Optimism is palpable and traders are focusing their hawkish eyes on critical resistance points that will probably act as important hurdles going forward.

    Featured image from Fortune, chart from TradingView

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    Christian Encila

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  • Dogecoin Eyes Bullish 50% Rally To $0.16, But Will A Crash Come First?

    Dogecoin Eyes Bullish 50% Rally To $0.16, But Will A Crash Come First?

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    After a long stretch of muted price action, Dogecoin has finally entered a position where it could be gearing up for a surge. With major developments such as an increase in participation from both small and large investors, as well as indicators turning bullish, the DOGE price looks primed for a major recovery. However, there could be a small roadblock for the meme coin when it comes to achieving this uptrend as one analyst has pointed out the possibility of a further crash from here.

    A Crash Or A Surge For DOGE?

    Crypto analyst Ali Martinez has presented a forecast for the Dogecoin price with mixed signals for the future. The analysis focuses on both the bullish and bearish possibilities for the meme coin as it continues to trade in a trading range. Both of these scenarios are possible, with the Stochastic RSI may win out this time.

    According to the analysis, the Stochastic RSI has made a bearish crossover for the Dogecoin price. This bearish crossover suggests that there is a price crash coming for the altcoin. In this case, the DOGE price could be falling below $0.1 again. Not only this, but Dogecoin may lose around 15% of its value if this bearish scenario were to play out. This could see the DOGE price fall as low as $0.087 in the worst case scenario.

    On the flip side, the Dogecoin price is also showing some bullish tendencies, as the crypto analyst points out. The price is apparently “flirting with a bullish breakout,” which could be significant if it plays out. In this case, the bullish breakout could see the meme coin’s price rise as high as $0.16 and that would mean a 45% breakout from the current price.

    Dogecoin Looking For A Breakout

    The crypto analyst has previously presented bullish scenarios for the Dogecoin price but chalked it up to two key signals. The first of which is the RSI actually making a successful break out of the descending trending on the daily chart. Second of these is a break above the $0.11 resistance on the chart.

    One of these signals had been triggered, with the RSI breaking the descending trendline. However, that has since changed as the Stochastic RSI has actually turned bearish in the meantime. The DOGE price is still trending below $0.1, suggesting that bears are still well in control of the price.

    These developments show more potential for the Dogecoin price to actually crash from here before a recovery. But in the event of a market-wide recovery, DOGE could end up following the uptrend regardless.

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    Scott Matherson

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  • Ethereum Whales Spend $185 Million To Accumulate 70,000 ETH, Time To Buy?

    Ethereum Whales Spend $185 Million To Accumulate 70,000 ETH, Time To Buy?

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    Este artículo también está disponible en español.

    Ethereum has largely mirrored Bitcoin in terms of price action and has yet to break out on its own accord in the past few months. According to price data, Ethereum is up by 13% in the past seven days, outpacing Bitcoin’s increase of 5.8% in the same time frame. Behind this interesting increase in Ethereum are some large Ethereum holders who seem to be increasing their holdings. 

    Notably, on-chain data from multiple analytics platform points to an uptick in activity from Ethereum whales in the past few days. Particularly, Glassnode data suggests large holders of Ethereum have added at least 70,000 ETH into their wallets since the beginning of last week.

    Ethereum Whales Spend Big On ETH

    The interesting Ethereum whale activity noted above is revealed through on-chain analytics platform Glassnode. As shown in the chart below, the number of Ethereum wallets holding 10,000 ETH or more has experienced a rise in the last 24 hours, increasing to 925 wallets. This marks a gain of about seven new whale wallets that have accumulated a huge number of ETH tokens, up from the 918 wallets recorded on September 18. 

    Related Reading

    Source: Glassnode

    Supporting this trend, additional data from IntoTheBlock (ITB) indicates a surge in activity from addresses holding substantial amounts of Ethereum. ITB tracks these movements through a specific metric that monitors the number and value of transactions exceeding $100,000. According to this metric, Ethereum whale activity has reached over $29 billion in the past seven days. While this figure accounts for both inflows and outflows from whale wallets, the sheer scale of these transactions is notable. Historically, such high levels of activity from large holders tend to be a bullish indicator for cryptocurrencies.

    This heightened activity is further reflected in the inflows of ETH into large holder wallets. On September 23, these inflows soared to 515,520 ETH, representing an impressive 440% spike compared to the 95,820 ETH recorded during the previous 24-hour period. 

    Time To Buy ETH?

    At the time of writing, Ethereum is trading at $2,626. As noted earlier, this is on the back of a 13% increase in the past seven days, prompting Ethereum’s overperformance over Bitcoin for the first time since the beginning of the year. The leading altcoin has mirrored Bitcoin’s movements so consistently that some analysts have questioned its potential for decoupling anytime soon.

    Related Reading

    Ethereum’s importance in the crypto industry means there’s never a bad time to accumulate more ETH. Ethereum just broke over $2,600 for the first time in September, which is the first step in a sustained move to the upside. The next key target is to break above $2,700 before the end of the month, which could pave the way for a push towards $3,000 in October.

    Ethereum price chart from Tradingview.com
    ETH price at $2,600 | 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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  • Shiba Inu Symmetrical Triangle Pattern Reappears, Why A 200% Rally Is Possible

    Shiba Inu Symmetrical Triangle Pattern Reappears, Why A 200% Rally Is Possible

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    Este artículo también está disponible en español.

    Shiba Inu (SHIB) may be on its way to reclaim former price highs, as a crypto analyst identified as the ‘Charting Guy’ has confirmed the reappearance of a unique symmetrical triangle pattern on the SHIB price chart. A breakout from this symmetrical triangle could see Shiba Inu potentially rallying above 200% from its current price. 

    Shiba Inu Triangle Pattern Points To Breakout

    On September 23, Charting Guy took to X (formerly Twitter) to unveil a new trend pattern in Shiba Inu’s price chart. The chart highlighted three wave patterns and several Fibonacci retracement levels which acted as resistance and support zones for Shiba Inu’s price.

    Related Reading

    Source: X

    In classic wave 1 and 2, Shiba Inu’s price movements exhibited a series of fluctuations, followed by a brief upward momentum before sliding downwards again. Now in wave 3 which the analyst has predicted would be an explosive one, Shiba Inu has formed a historical symmetrical triangle pattern which could trigger a potential surge to new highs at $0.0.0000493, representing a 244% rally. 

    Currently, Shiba Inu is trading at $0.0000143, with its next key resistance at the 0.382 Fibonacci retracement level, near $0.0000164. If the meme coin fails to surpass this resistance, the 0.236 Fibonacci retracement level at $0.000011 could provide strong support. 

    In contrast, if Shiba Inu exceeds resistance levels at $0.0000164, the cryptocurrency could see its price breakout to $0.0000226. More resistance can also be seen at Fibonacci retracement levels around 0.618 and 0.702, representing the $0.0000312 and $0.0000392 price marks, respectively. 

    If Shiba Inu can successfully break out of these key levels, the cryptocurrency would experience an explosive surge to $0.0000493, a price level well above its previous March high of around $0.000045. 

    Interestingly, this price level is not the highest Shiba Inu can reach based on its symmetrical triangle pattern. According to the Charting Guy, if SHIB can break above the 0.888 Fibonacci retracement level at $0.0000651, the meme coin could potentially skyrocket to new all-time highs at $0.0000884, corresponding to the 1 Fibonacci retracement level and marking a massive rally of approximately 518%. 

    However, in the event that Shiba Inu fails to surpass this key level, it is likely to find support at the 0.786 Fibonacci retracement level of $0.00004936. 

    Related Reading

    SHIB Price Analysis

    Supporting the optimism surrounding Shiba Inu’s future outlook, the cryptocurrency has been on a steady upward trajectory. In the past week, the price of Shiba Inu increased by an impressive 8.91%. However, it has recently retraced some of those gains, experiencing a 1.52% decline in the last 24 hours. 

    Earlier in March, Shiba Inu witnessed a significant rally, positioning it as one of the top gainers. According to data from CoinMarketCap, the cryptocurrency has seen a staggering 95.65% price increase since the start of 2024. 

    Shiba Inu price chart from Tradingview.com
    SHIB price pushes toward $0.000015 | Source: SHIBUSDT 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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  • SUI Climbs 36% Amid Bullish Breakout – Is $1.50 The Next Target?

    SUI Climbs 36% Amid Bullish Breakout – Is $1.50 The Next Target?

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    They say journalists never truly clock out. But for Christian, that’s not just a metaphor, it’s a lifestyle. By day, he navigates the ever-shifting tides of the cryptocurrency market, wielding words like a seasoned editor and crafting articles that decipher the jargon for the masses. When the PC goes on hibernate mode, however, his pursuits take a more mechanical (and sometimes philosophical) turn.

    Christian’s journey with the written word began long before the age of Bitcoin. In the hallowed halls of academia, he honed his craft as a feature writer for his college paper. This early love for storytelling paved the way for a successful stint as an editor at a data engineering firm, where his first-month essay win funded a months-long supply of doggie and kitty treats – a testament to his dedication to his furry companions (more on that later).

    Christian then roamed the world of journalism, working at newspapers in Canada and even South Korea. He finally settled down at a local news giant in his hometown in the Philippines for a decade, becoming a total news junkie. But then, something new caught his eye: cryptocurrency. It was like a treasure hunt mixed with storytelling – right up his alley!

    So, he landed a killer gig at NewsBTC, where he’s one of the go-to guys for all things crypto. He breaks down this confusing stuff into bite-sized pieces, making it easy for anyone to understand (he salutes his management team for teaching him this skill).

    Think Christian’s all work and no play? Not a chance! When he’s not at his computer, you’ll find him indulging his passion for motorbikes. A true gearhead, Christian loves tinkering with his bike and savoring the joy of the open road on his 320-cc Yamaha R3. Once a speed demon who hit 120mph (a feat he vowed never to repeat), he now prefers leisurely rides along the coast, enjoying the wind in his thinning hair.

    Speaking of chill, Christian’s got a crew of furry friends waiting for him at home. Two cats and a dog. He swears cats are way smarter than dogs (sorry, Grizzly), but he adores them all anyway. Apparently, watching his pets just chillin’ helps him analyze and write meticulously formatted articles even better.

    Here’s the thing about this guy: He works a lot, but he keeps himself fueled by enough coffee to make it through the day – and some seriously delicious (Filipino) food. He says a delectable meal is the secret ingredient to a killer article. And after a long day of crypto crusading, he unwinds with some rum (mixed with milk) while watching slapstick movies.

    Looking ahead, Christian sees a bright future with NewsBTC. He says he sees himself privileged to be part of an awesome organization, sharing his expertise and passion with a community he values, and fellow editors – and bosses – he deeply respects.

    So, the next time you tread into the world of cryptocurrency, remember the man behind the words – the crypto crusader, the grease monkey, and the feline philosopher, all rolled into one.

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    Christian Encila

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  • How to invest tax-free in a bitcoin ETF in Canada – MoneySense

    How to invest tax-free in a bitcoin ETF in Canada – MoneySense

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    Investment Investment account Purchase price Sale price Gain Capital gains tax After-tax gains
    Bitcoin Non-registered $23,500 $61,000 $37,500 $3,750 $33,750
    Bitcoin ETF TFSA $23,500 $61,000 $37,500 $0 $37,500

    As you can see, in this hypothetical situation, gains for the tax-free bitcoin ETF come out ahead by $3,750, which is about 11% more than the after-tax gain on bitcoin.

    Canadian crypto ETFs 

    The table below lists all the crypto spot ETFs based in Canada. You can buy bitcoin ETFs (ETFs that invest entirely in BTC), ethereum or ether ETFs (those that invest entirely in ETH) or multi-crypto ETFs (those that invest in BTC and ETH). As of now, BTC and ETH are the only cryptocurrencies available through ETFs. (Figures are current as of Aug. 30, 2024.)

    ETF Ticker symbol Management expense ratio (MER) Assets under management
    (in Canadian dollars)
    Bitcoin ETFs
    Purpose Bitcoin ETF BTCC / BTCC.B 1.5% $2.1 billion
    CI Galaxy Bitcoin ETF BTCX.B 0.77% $724.7 million
    Fidelity Advantage Bitcoin ETF FBTC 0.69% $491.6 million
    3iQ Coinshares Bitcoin ETF BTCQ 1.75% $283 million
    Evolve Bitcoin ETF EBIT 0.75% $165.5 million
    Ethereum (ether) ETFs
    Purpose Ether ETF ETHH / ETHH.B 1.47%–1.49% $318.7 million
    CI Galaxy Ethereum ETF ETHX.B 0.77% $385 million
    Evolve Ether ETF ETHR 0.75% $55.2 million
    3iQ Ether Staking ETF ETHQ 1.97% $65.8 million
    Fidelity Advantage Ether ETF FETH 0.95% $18.7 million
    Multiple cryptocurrency ETFs
    Evolve Cryptocurrencies ETF ETC 0.85% $35.4 million
    CI Galaxy Multi-Crypto ETF CMCX.B 1.03% $3.7 million

    U.S. crypto ETFs: Should you invest?

    U.S.-based bitcoin ETFs have created quite a buzz in 2024. The Securities and Exchange Commission (SEC) approved the first one in January, almost three years after Purpose Investments launched Canada’s first spot bitcoin ETF. 

    Numerous American ETF providers now offer bitcoin ETFs, including big investment brands like BlackRock’s iShares, Fidelity and Invesco. Canadian investors can buy these ETFs, too, through their discount brokerage account—just like they would any U.S. stock or ETF. And, yes, these ETFs can be held in registered accounts like the TFSA or RRSP.

    Which is better: Canadian or U.S. ETFs? 

    Truth be told, there’s not much difference between the two. For instance, bitcoin ETFs in both countries hold the same underlying asset: bitcoin. Investors could make a decision based on their preferred parameters. 

    For example, you may pick the bitcoin ETF with the lowest management expense ratio (MER) or the highest assets under management (AUM), or you could look for the oldest fund—regardless of where it’s based. 

    If you go with a Canadian ETF, you could have more choices to make: Do you want a Canadian ETF that hedges its currency risk or one that doesn’t? Do you want to hold the ETF in U.S. dollars? The table below lays out the options for one example, the Purpose Bitcoin ETF. (Figures are current as of Sept. 13, 2024.)

    ETF (ticker symbol) Currency Currency hedge One-year return
    BTCC Canadian dollar Yes 117.94%
    BTCC.B Canadian dollar No 121.15%
    BTCC.U U.S. dollar No 120.88%

    In the right-hand column, you’ll notice there’s a difference in the ETFs’ one-year historical return, even though they all hold bitcoin as their underlying asset. This difference is because of the appreciation or depreciation of the currency in which the ETF holds its bitcoin. In this case, the non-hedged ETF delivered higher returns because it benefited from the appreciation of the U.S. dollar against the Canadian dollar. But there’s no way to have known this one year ago. Like all financial markets, the currency market is largely unpredictable.

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    Aditya Nain

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  • What are the risks of trading crypto? – MoneySense

    What are the risks of trading crypto? – MoneySense

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    Dramatic gains are possible, but so are devastating losses, and investors should understand crypto’s wide-ranging risks. Here’s an overview of crypto volatility risk, technology risks, regulatory uncertainty and other issues that could affect the value of your investment.

    Price volatility

    Cryptocurrency prices can fluctuate wildly from week to week, or even within a single day. On May 19, 2021, for example, bitcoin’s price dropped 30%, after the Chinese government cracked down on bitcoin mining and trading.

    Crypto prices may also rise and fall based on diverse factors such as changing public sentiment, world news, mainstream adoption, protocol upgrades, impending regulation, hacks, scams and more. Plus, crypto is a relatively new asset class, and the market is still in the process of price discovery.

    Technology risks

    Cryptocurrencies’ underlying blockchain technology is built with numerous security measures, including decentralization, cryptography and consensus mechanisms to confirm that transactions are legitimate. However, no blockchain is immune to every threat.

    Backing up your crypto wallet regularly and storing it safely helps to protect you against computer failure, device theft and your own mistakes—such as accidentally uninstalling your digital crypto wallet. But it’s harder to guard against threats such as software bugs, data glitches and 51% attacks (when a group of crypto miners takes control of more than half of a network’s computing power).

    Crypto investors and developers are also concerned about advances in quantum computing, the next generation of computer technology. Its potential computing power could allow bad actors to hack crypto wallets, forge transactions or rewrite parts of a blockchain to alter transaction records. If that were to happen, crypto values would likely plunge—even get wiped out. That day is likely still several years away, but Ethereum and other crypto organizations are already working on post-quantum cryptography.

    Low liquidity

    Liquidity means how easily and quickly you can exchange an asset for cash. Cryptocurrencies—especially smaller, newer ones—tend to be less liquid than other investments like stocks and bonds. That means trading or cashing in your digital coins may not happen as quickly as you’d like, even though crypto markets around the world operate nearly around the clock.

    As a result, you might get “slippage”—a difference between the price you expect and the price you get once the trade has been executed. Slippage can happen if the bid/ask spread—the gap between what buyers are willing to pay and what sellers are willing to accept—changes while you’re waiting for your trade to be filled, perhaps even several times. When the actual price is lower than what’s expected, your buying power increases; this is called “positive slippage.” When the actual price is higher than expected, your buying power decreases; this is called “negative slippage.”

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    Jaclyn Law

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