Ethereum (ETH), the second-largest cryptocurrency by market cap, continues to trade slightly below the psychologically important $4,000 price level, following the brutal drawdown on October 9, which saw the digital currency test the support at around $3,435.
According to a CryptoQuant Quicktake post by contributor TeddyVision, Ethereum is trading above its Realized Price at approximately $2,300. Dubbing the price level a “fundamental support zone,” the analyst said that historically, any dips below this level have marked a capitulation phase.
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For the uninitiated, Realized Price represents the average cost basis of all ETH holders, calculated by dividing the total value of all ETH at the time they last moved on-chain by the current circulating supply.
Realized Price effectively shows the “true” average price investors paid, serving as a key indicator of whether the market is in profit or loss. As long as ETH trades above Realized Price, the market structure is likely to remain bullish.
The analyst also highlighted Ethereum’s Market Value to Realized Value (MVRV) ratio. Notably, ETH holders are currently, on average, at 67% profit relative to their cost basis. This metric gives two major hints about the current market.
First, it shows that although the market is profitable, it is still far from “overheated” levels. Second, it indicates that market participants are confident about the market’s upward momentum, but not quite euphoric.
To explain, the MVRV ratio compares the market value of an asset to its realized value. A higher MVRV indicates holders are sitting on larger unrealized profits – often signaling potential overvaluation – while a lower MVRV suggests undervaluation or market fear.
Further, TeddyVision noted Ethereum’s reaction from the Upper Realized Price Band, which is currently located around $5,300. The analyst remarked:
Price pulled back before reaching the “Overheating Zone. This isn’t a reversal – it’s a consolidation phase after distribution, a healthy cooldown without structural damage.
Finally, spot inflows of ETH to crypto exchanges are also slowing down, hinting that the next leg up for the digital asset will likely depend on fresh liquidity, and not leverage. To sum it up, Ethereum is slowly moving from the distribution phase to the consolidation phase.
Is It A Good Time To Buy ETH?
While providing reliable future predictions in the crypto market remains a challenging task, fresh on-chain and exchange data point toward ETH regaining its bullish momentum. For instance, Binance funding rates recently hinted that ETH could surge to $6,800.
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Similarly, ETH reserves on exchanges continue to fall at a rapid pace. Earlier this month, ETH supply on exchanges hit a multi-year low, increasing the probability of a potential “supply crunch” that can dramatically increase ETH’s price.
That said, crypto analyst Nik Patel recently cautioned that ETH’s price correction may not yet be fully over. At press time, ETH trades at $3,849, up 0.3% in the past 24 hours.
As Bitcoin (BTC) continues to trade in the high $100,000 range following the October 9 crypto market crash, some bullish signs are starting to emerge. Notably, stablecoin reserves on leading crypto exchanges like Binance are entering all-time high (ATH) territory, hinting at a potential rally for BTC.
Stablecoin Reserves Rise – Will Bitcoin Benefit?
According to a CryptoQuant Quicktake post by contributor PelinayPA, Binance stablecoin reserves are approaching ATH levels, indicating that investors are ready to deploy funds to accumulate BTC at current or lower levels.
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The CryptoQuant analyst highlighted the rapidly falling Bitcoin-Stablecoin Ratio (ESR). For the uninitiated, the ESR measures the proportion of Bitcoin reserves to stablecoin reserves on exchanges like Binance.
The ratio also gives hints about the market’s potential buying power and selling pressure. Past data shows that whenever the ESR falls sharply during market volatility, BTC’s price tends to surge.
Essentially, a declining ESR means that stablecoin reserves are growing in comparison to BTC reserves on exchanges. This shows an increase in available “dry powder” on exchanges, which can quickly be used to buy more BTC and initiate another bull rally.
Conversely, when the ESR rises, it means that stablecoin reserves are falling while BTC supply on exchanges is increasing. This points toward an increase in short-term selling pressure as traders deposit BTC to exchanges to sell.
Currently, the ESR has fallen to historically low levels, implying that Binance holds relatively large stablecoin reserves compared to BTC reserves. According to PelinayPA, such a setup can have two interpretations:
In a positive scenario, the abundance of stablecoins suggests significant latent buying power. If market confidence returns, this could trigger a strong wave of buying pressure and mark the start of a new bullish phase.
Meanwhile, the negative scenario assumes that this liquidity would remain inactive, reflecting investor hesitation and a market in standby mode after the recent bloodbath that resulted in liquidations worth $19 billion.
Following the crypto market crash earlier this month, which sent BTC from an ATH of more than $126,000 all the way down to $102,000, several whales faced liquidations. Despite the crash, some analysts are confident that the BTC top is not in yet.
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One of the factors that can significantly benefit BTC in the near term is the capital rotation from gold to the digital asset. In a new report, Bitwise predicted that capital rotation from gold into BTC could propel it to $242,000.
That said, veteran trader Peter Brandt recently forecasted that BTC could crash 50% from current price levels. At press time, BTC trades at $108,268, down 0.3% in the past 24 hours.
After the massive crash on October 10 – which saw Bitcoin (BTC) touch $102,000 before recovering some losses – some analysts now predict that the top cryptocurrency may be on the verge of another bullish rally as it enters the ‘disbelief phase.’
Bitcoin In Disbelief Phase – Trouble For Bears?
According to a CryptoQuant Quicktake post by contributor Darkfost, Bitcoin appears to be entering the disbelief phase, which increases the possibility of a rebound to the upside. The contributor emphasized the slightly negative funding rate to support their analysis.
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For the uninitiated, the Bitcoin disbelief phase occurs when a new uptrend begins, but most investors remain skeptical after a recent correction, doubting that the recovery is real. During this phase, lingering bearish sentiment and short positions often act as fuel for a stronger rally once confidence returns.
Darkfost stated that investors’ skepticism toward BTC returning to bullish mode can be gauged through BTC funding rates in the derivatives market. Funding rates remained negative at -0.004% on the exchange for six out of seven days over the past week, indicating traders are still slightly bearish.
The likely reason behind traders’ short bias is the October 10 crypto market crash that led to a liquidation worth $19 billion. Since then, traders have consistently chosen to short the market instead of getting trapped in another price pullback.
However, the longer BTC remains in the disbelief phase, the stronger the potential for an explosive upside move becomes. Darkfost added:
If the current uptrend continues to establish itself, the growing pile of short positions against it could become a powerful fuel for the next leg higher. As these shorts get liquidated, it would drive prices upward, triggering a short squeeze.
If a short squeeze happens, then BTC could quickly rally to major liquidity zones around $113,000 level, and even as high as $126,000 region, where significant short orders liquidations are clustered.
The analyst shared two previous instance where such a pattern played out. In September 2024, BTC fell to $54,000 before surging to a new all-time high beyond $100,000.
Similarly, in April 2025, the flagship digital asset rallied from $85,000 to $111,000, before climbing even higher to $123,000. To conclude, the Bitcoin market may be on the verge of another short squeeze, fueled by investors’ skepticism.
BTC Investors Need To Be Cautious
Although BTC is giving hints of a looming short squeeze, investors should still exercise some caution before entering the market in hopes of an instant turnaround in sentiment. For example, Bitcoin activity recently slumped below its 365-day average, raising fears of a loss of momentum.
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That said, some crypto analysts forecast that BTC is likely done with the price correction and is set to surge in the coming days. At press time, BTC trades at $110,814, up 2.8% in the past 24 hours.
As Bitcoin (BTC) tries to recover from its weekend sell-off that saw it almost crash to $100,000, some crypto analysts think that the BTC market likely “lost its pulse.” As a result, the leading cryptocurrency may be on the cusp of losing its bullish momentum.
Bitcoin At The Risk Of Losing Momentum?
According to a CryptoQuant Quicktake post by contributor TeddyVision, Bitcoin’s Inter-Exchange Flow Pulse (IFP) has been trending lower, confirming that inter-exchange activity is slowly fading.
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For the uninitiated, the IFP measures liquidity as it moves between crypto exchanges. In essence, it can be considered a proxy to determine how active arbitrage and market-making really are.
To explain, arbitrage refers to the practice of buying an asset for a lower price on one platform and selling it at a higher price on another, thus benefiting from the price differential. In simple terms, arbitrage refers to profiting from inefficiencies.
When such inefficiencies exist in the market and are actually executable, liquidity tends to start moving fast. At the same time, trading bots begin shuttling funds across platforms, market spreads begin to realign again, and the market starts to feel “alive.”
This is when the IFP rises. Although there is greater market volatility due to a rising IFP, it is generally considered healthy for the market as it confirms that BTC is likely experiencing a bullish momentum.
However, since the IFP reading has turned lower in recent weeks, traders are finding it harder to arbitrage price discrepancies even though they might still be appearing. TeddyVision noted:
Price discrepancies still appear, but they’re harder to arbitrage – liquidity is thinner, latency is higher, and risk-adjusted opportunities are drying up. Traders find fewer setups worth taking, and less capital circulates between venues.
The analyst emphasized that liquidity is not leaving the market, it is just not circulating like earlier. While such a slowdown in liquidity does not crash the market, it does drain the energy out of it.
To conclude, the market is not collapsing, it is just “too efficient” at the moment for traders to find any meaningful arbitrage opportunities that they can benefit from. When inefficiencies leave the market, the underlying asset is likely at risk of losing its momentum.
A Healthy Correction For BTC?
The market crash on October 9 led to the largest single-day liquidation ever in the history of the crypto industry, totalling a mammoth $19 billion. While the overall optimism has receded, some analysts are still hopeful of a quick sentiment turnaround.
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Fellow crypto analyst EtherNasyonaL stated that BTC has maintained its upward trajectory despite the recent market crash, and that a move to a new all-time high (ATH) may be on the horizon. At press time, BTC trades at $111,731, down 2.3% in the past 24 hours.
Bitcoin (BTC) witnessed a slight surge earlier today, climbing from $113,000 to around $117,000 at the time of writing, in contrast to expectations of several crypto analysts who were predicting a decline in risk-on assets due to the US government shutdown.
Bitcoin Rises Despite US Government Shutdown
The US federal government shut down at midnight on September 30, as President Donald Trump and Congress failed to reach a deal on funding. Specifically, the two camps were at odds over enhanced Obamacare subsidies, with neither party willing to take the blame.
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However, Bitcoin made a surprise move to the upside despite the uncertain environment created by the US government shutdown, recording strong gains earlier today. CryptoQuant analyst Kripto Mevsimi stated that September saw deeper losses among short-term holders (STH), as their Spent Output Profit Ratio (SOPR) fell as low as 0.992.
As a result, most of September was marked by STH continuing to sell their BTC holdings at a loss. However, the metric recovered slightly to 0.995, although it is still below August’s reading of 0.998.
The current STH-SOPR reading is showing signs of stabilization after a period of depression. It is interesting to note the timing of this recovery, as it occurred at a time when BTC is trading in the high $110,000 range, slightly below a heavy resistance zone.
Past data shows two potential scenarios that can happen following such a reset in the STH-SOPR. First, it could be early warning signs of a weakening momentum for BTC, as extended loss realization can precede corrective phases where weak hands capitulate.
The other, more bullish scenario, is that it could be a healthy reset. Quick absorption of realized losses often paves the way for more sustainable rallies, which could catapult BTC to new all-time highs (ATH) in the near term. The CryptoQuant analyst added:
With BTC consolidating under resistance, this rebound in STH-SOPR is a key barometer of market health. If buyers continue to absorb weak-hand selling, it could mirror past resets that paved the way for the next leg higher.
Will BTC Decline In Q4 2025?
While the dwindling active circulating supply of Bitcoin offers some hope to the bulls, others are not as optimistic. According to recent analysis by fellow CryptoQuant contributor Axel Adler, demand for BTC cooled after it failed to hold above $115,000.
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Meanwhile, crypto analyst Doctor Profit recently remarked that BTC is likely to experience another 20% decline from its current price, reaching his projected target range between $90,000 – $94,000. At press time, BTC trades at $117,226, up 3.5% in the past 24 hours.
Financial advisors seeking to diversify client portfolios with cryptocurrencies—without stepping away from traditional equities—may soon have a new vehicle to do so.
On September 26, asset manager Cyber Hornet submitted filings to the US Securities and Exchange Commission (SEC) for three crypto-linked exchange-traded funds (ETFs). Each fund is designed to blend exposure to the S&P 500 Index with Ethereum (ETH), Solana (SOL), and XRP.
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According to the filing, each fund will allocate 75% of its portfolio to companies within the S&P 500. The remaining 25% will be dedicated to its respective digital asset or its associated futures market.
Cyber Hornet has proposed the ticker symbols EEE for Ethereum, SSS for Solana, and XXX for XRP. Each fund will carry a 0.95% management fee.
Market observers said the Cyber Hornet funds aim to give investors a middle ground between the resilience of large-cap US equities and the growth potential of digital assets.
They believe this structure helps investors capture crypto’s upside while staying anchored in traditional markets. This approach reflects a growing recognition of digital currencies as viable portfolio components, not speculative outliers.
Cyber Hornet’s move builds on its earlier success with a Bitcoin 75/25 fund, which delivered a 39% return in 2024. The crypto ETF ranked among Morningstar’s top performers in the Large-Blend category.
That success may help justify expanding the strategy to other tokens like ETH, SOL, and XRP. Notably, investor interest in diversified crypto exposure has grown substantially over the past year, reinforcing the case for broader adoption.
Earlier today, Ethereum (ETH) slid below the psychologically important $4,000 level for the first time since August 8. The fall in ETH’s price can be attributed to a mix of macroeconomic, structural, and crypto-specific factors.
Ethereum Dips Below $4,000, Analyst Explains Why
According to a CryptoQuant Quicktake post by contributor Arab Chain, ETH’s latest descent below $4,000 can be blamed on a complex mix of factors. First, a strong US dollar, coupled with the Federal Reserve’s (Fed) cautious stance following its September rate cut, dampened risk appetite.
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Furthermore, rising bond yields and the increasing risk of a US government shutdown have spooked investors, discouraging them from investing in risk-on assets, including cryptocurrencies like ETH.
Second, the analyst points to the role of leverage in ETH’s latest dip. On September 22, more than $500 million in ETH longs were wiped out within 24 hours, resulting in the unwinding of high leverage that was building up in Q2 2025. During the sell-off, ETH whales faced close to $45 million in forced sales.
In addition, low weekend trading volume and shallow order books enhanced ETH’s price swings. Notably, institutional investors turned to OTC redemptions, following the Fed meeting to reduce their exposure to ETH.
From a technical perspective, ETH failed to decisively break through the stiff resistance near $4,500 – $4,600. Failure to defend the $4,200 support worsened things for ETH, turning the momentum sharply bearish.
The fifth reason was regulatory headwinds surrounding digital assets, especially the uncertainty around MiCA in the EU and US crypto legislation. ETH exchange-traded fund (ETF) outflows worth $76 million weighed on investor sentiment.
Finally, a surge in validator exit queues and reduced staking inflows weakened natural buy-side support. Other factors, such as seasonal weakness and Bitcoin’s (BTC) rising dominance in the market, contributed to ETH’s sell-off. Arab Chain concluded:
While this correction reflects structural positioning and macro forces rather than a broken thesis, volatility may persist until liquidity returns and regulatory clarity improves.
Will ETH Stage A Recovery?
While the momentum is against ETH currently, some analysts are optimistic about a turnaround in ETH’s fortunes in the coming months. For instance, ETH’s CME futures open interest is inching closer to new highs, setting a new potential target for ETH of $6,800 by the end of 2025.
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Similarly, the surge in ETH contracts throughout the year has some analysts convinced that the digital asset may soon embark on a rally to $5,000. ETH’s illiquid supply could further propel it to new highs.
In his latest analysis, crypto commentator Ted Pillows predicted that the increase in global M2 money supply could pave the way for $20,000 ETH. At press time, ETH trades at $3,959, down 3.6% in the past 24 hours.
Australia has released draft legislation to regulate digital asset platforms, proposing a framework that extends financial services laws to crypto businesses in an effort to bolster consumer protections and provide clarity for the industry.
Assistant Treasurer Daniel Mulino announced the reforms on Wednesday at the Digital Economy Council of Australia’s Global Digital Asset Regulatory Summit.
He described the bill as the “cornerstone” of the government’s digital asset roadmap, published in March, and said it would align Australia with international peers.
“This is about legitimizing the good actors and shutting out the bad,” Mulino said. “It is about giving businesses certainty and consumers confidence.”
The draft introduces two new categories under the Corporations Act: digital asset platforms and tokenized custody platforms.
Operators would need an Australian financial services license and be required to manage conflicts of interest, provide dispute resolution systems, and meet minimum custody and settlement standards.
Mulino said recent failures in the sector had exposed gaps in consumer safeguards, particularly when operators pooled and held client assets.
“We are addressing this by extending well-understood and time-tested Australian financial services frameworks to target the riskiest parts of these businesses,” he said.
The bill also sets out rules for wrapped tokens, public token infrastructure, and staking—areas Mulino said had struggled to fit within frameworks built for traditional intermediaries.
“This means they will no longer have to be forced into frameworks that were never designed for them,” he said.
Acknowledging the pace of technological change, the legislation provides regulators with the flexibility to adapt their obligations.
“Rigid rules could leave gaps or stifle new businesses,” Mulino said. “That is why the framework includes tools to adjust as technologies and services develop.”
The government is working with the Australian Securities and Investments Commission on transitional arrangements prior to the reforms taking effect.
Mulino said the consultation process would ensure the final law is workable. “Above all, we’ve heard that what you need is clarity,” he said.
Speaking to Decrypt, Tom Matthews, Head of Corporate Affairs at Australian crypto exchange Swyftx, a sponsor of Wednesday’s event, told Decrypt that Australia needs to improve its regulatory environment so that it’s “good enough for our industry to support national productivity.”
“We look forward to seeing the draft legislation and welcome the fact that the government has prioritized crypto so early in its new term,” he added. “This is the start of a long process, but it is an imperative that we have proper consumer protections that are balanced against the need for innovation.”
Bitcoin (BTC) is holding near $117,500, up about 6.1% over the past two weeks. However, recent data from Binance shows that BTC’s current price action is largely supported by retail investors, while whales have been noticeably absent.
Bitcoin Holds $117,500 Amid High Retail Inflows
According to a CryptoQuant Quicktake post by contributor Arab Chain, Bitcoin is hovering around the $117,500 price level, supported by active inflows from retail investors. Notably, large whale inflows have been completely absent, indicating that the current market is being driven by individuals more than by large wallets.
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Inflows ranging from 0 to 0.001 BTC recorded approximately 97,000 BTC. Similarly, inflows from the 0.001 to 0.01 BTC segment totaled nearly 719,000 BTC.
The distribution above suggests that Bitcoin’s current rally is largely driven by retail investors. These investors conduct numerous but small-volume transactions, confirming that individual investors are shaping the market dynamics. Arab Chain added:
The figures reveal that the bulk of inflows are concentrated in small and medium-sized transactions, reflecting the dominance of retail activity in Bitcoin trading. This liquidity, despite its limited scale, has helped keep the market balanced at current levels.
It is worth emphasizing that there has been almost no whale pressure during the current market rally. Specifically, no significant surges in inflows of more than 100 BTC were observed, mitigating the likelihood of a sharp short-term price correction.
To conclude, the current market situation shows that Bitcoin is experiencing a state of equilibrium, largely due to heightened retail investor participation. Such a scenario gives the market an opportunity to steadily surge toward the important $120,000 resistance level.
That said, it would be wise to keep an eye on any whale activity, as it could quickly alter the market’s direction. Any sudden entry of whale inflows could trigger a rapid price correction, similar to previous market tops.
Experts Divided On BTC Price Action
As Bitcoin trades about 5.4% below its all-time high (ATH), there are signs that the top cryptocurrency by market cap may be on the cusp of a fresh rally. For instance, BTC recently broke above the mid-term holder breakeven, reducing the likelihood of an immediate sell-off.
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Recent positive developments – such as the US Federal Reserve (Fed) reducing interest rates by 25 basis points – could reinvigorate the crypto market. Against that backdrop, crypto entrepreneur Arthur Hayes recently reiterated his ambitious $1 million BTC prediction.
That said, gold bug Peter Schiff opines that BTC has likely already peaked for this market cycle. At press time, BTC trades at $117,523, up 1.8% in the past 24 hours.
After hitting a new all-time high (ATH) of $124,474 on Binance on August 13, Bitcoin (BTC) has tumbled toward $113,000, with the next major support zone around $110,000. Analysts warn that more downside could still be ahead for the top cryptocurrency.
Bitcoin To Fall More? Crowded Long Trade Gives Hint
According to a CryptoQuant Quicktake post by contributor XWIN Research Japan, Bitcoin open interest across all exchanges has surged past $40 billion, nearing ATH territory. This rise shows both whales and short-term traders are piling into leveraged positions.
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The chart below highlights the recent spike in BTC open interest, now hovering at $40.6 billion. Compared to August 2024 levels of $15 billion, open interest has grown by more than 150%.
Bitcoin open interest has surged past $6 billion | Source: CryptoQuant
The CryptoQuant contributor added that despite this surge, the funding rate has remained positive, showing a strong long bias. While this reflects market optimism, it also signals a crowded trade, with most participants betting on further BTC appreciation.
Bitcoin funding rates across all exchanges continue to be positive since the beginning of August | Source: CryptoQuant
As a result, the risk of a long squeeze – forced liquidations of long positions due to aggressive leverage – has risen. XWIN Research Japan explained in their analysis:
A sudden price drop can trigger a cascade of forced selling, amplifying volatility. In other words, Bitcoin’s short-term moves remain at the mercy of speculative flows.
BTC Fund Holding By Institutions Rises
Despite speculative froth from excessive leverage in the market, BTC fund holdings by Bitcoin exchange-traded funds (ETFs) and institutional investors continue to surge, exceeding 1.3 million according to latest data.
Bitcoin fund holdings currently hover around 1.3 million | Source: CryptoQuant
Spot ETFs and corporate treasuries absorbing BTC provides the digital asset a structural bid that steadily reduces its available supply. According to data from SoSoValue, US-based spot Bitcoin ETFs currently hold $146 billion in net assets – representing 6.47% of BTC’s market cap.
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That said, this week alone has seen more than $645 million in outflows from spot Bitcoin ETFs, following two consecutive weeks of inflows totaling nearly $800 million. Among the ETFs, BlackRock’s IBIT leads with $84.78 billion in net assets as of August 19.
Still, not all signals are bearish. For instance, while BTC slipped below $115,000, its spot trading volume surged past $6 billion, giving bulls hope for a potential rebound.
Similarly, technical analyst AO recently suggested that BTC could be mirroring gold’s trajectory, with an ambitious target of $600,000 by early 2026. At press time, BTC trades at $113,845, down 1.5% in the past 24 hours.
Bitcoin (BTC) looks poised to record its best September in a decade, surging past $65,000. This uncharacteristic price appreciation could be attributed to several key factors.
Reasons Behind Bitcoin’s Impressive September Gains
Historically, September has consistently been the worst month for BTC in terms of price performance. However, the apex cryptocurrency is now on track to post its best September in at least a decade, driven by several macroeconomic developments.
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On September 18, the US Federal Reserve (Fed) initiated its interest rate cut cycle for the first time in four years, slashing rates by 50 basis points (bps) in response to slowing inflation and rising unemployment.
The rate cut immediately impacted risk-on assets, including BTC, which has appreciated by over 10% since the cut. In comparison, Bitcoin’s average price decline in September over the past decade has been 3.45%, according to the chart below from CoinGlass.
September has typically been the worst month for BTC price | Source: CoinGlass.com
According to the Fed’s decision, the European Central Bank (ECB) and the People’s Bank of China (PBoC) lowered borrowing costs to stimulate their respective economies. This further propelled BTC’s price towards its previous highs.
Bitcoin halving is another key factor that could now be starting to show its effect on the digital asset’s price action. Bitcoin underwent its halving earlier this year in April, reducing block confirmation rewards for miners from 6.25 BTC to 3.125 BTC.
Past data indicates that halving has typically been a bullish trigger for Bitcoin due to the resulting supply scarcity. For instance, in May 2020, BTC price rose from roughly $8,900 before the halving to more than $64,000 by April 2021 – an 8x price surge in less than a year.
Meanwhile, US spot Bitcoin exchange-traded funds (ETFs) continue to witness rising interest from retail and institutional investors alike, as they recorded $365.57 million in total net daily inflows on September 26, the largest since late July. Since their launch, the cumulative net inflow for Bitcoin ETFs now totals $18.31 billion.
Cautious Optimism Key To Riding The BTC Wave
While BTC appears to have shaken off its typical September slump, it’s worth highlighting that the leading digital asset still needs to overcome certain important price levels before hitting a new all-time-high (ATH).
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As previously reported, Bitcoin’s relative strength index (RSI) fell below 80 on the monthly chart, signaling that the cryptocurrency’s bullish momentum might fade after an enthusiastic buying spree.
In addition, a recent report by crypto exchange Bitfinex noted that despite Bitcoin’s recent upward movement, it must decisively overcome a strong resistance level of $65,200 to continue its positive momentum. The good news for bulls is that BTC is holding steady at $65,674, up 2% in the last 24 hours.
Travis Hill, vice chairman of the FDIC, criticized the U.S. banking restrictions on handling digital assets for clients.
On Monday, Hill urged a proactive approach to blockchain technology, indicating that current regulatory stances hinder innovation.
He emphasized the need for clarity in policies regarding permissible actions and standards for safety and soundness. Hill, who previously worked as a Republican Senate staffer, pointed out the challenges in policy-making due to the rapid evolution of technology.
In 2022, top U.S. bank regulators, including the FDIC, Federal Reserve, and Office of the Comptroller of the Currency, warned banks about the risks of engaging with cryptocurrencies, highlighting concerns over volatility. The agencies stressed the importance of preventing uncontrollable risks from affecting the banking system.
Hill criticized the FDIC’s apparent reluctance to collaborate with industry entities interested in exploring blockchain or distributed ledger technologies for purposes beyond cryptocurrency, such as tokenized deposits.
“The confidential nature of the existing process means there is little public information on what types of activities the FDIC might be open to, if any,” Hill said.
He called for more precise distinctions between crypto and tokenization, the latter referring to digital representations of physical assets often utilizing blockchain technology.
Additionally, Hill commented on the SEC’s guidance requiring firms to treat crypto assets as liabilities on balance sheets, diverging from traditional custodian accounting practices.
The vice chairman argued that this guidance, Staff Accounting Bulletin No. 121, hampers banks’ ability to expand digital asset services for customers by increasing costs. Since its publication in 2022, this has sparked criticism from the banking sector.
Bitcoin has come a long way since its inception, transforming from a digital curiosity into a formidable currency that you can use for a surprising variety of purchases.
Whether you’re an enthusiast looking to spend your stash or a newbie curious about the practical uses of Bitcoin, you’ll find this guide packed with fascinating insights. Let’s explore 14 unexpected ways to use Bitcoin in 2024.
Can You Buy Anything with Bitcoin?
Absolutely! While direct cryptocurrency payments might not be ubiquitous yet, services like the BitPay Card bridge the gap, making almost any purchase possible. Here’s how you can splurge your digital coins.
1. High-Tech Gadgets and Electronics
Fancy the latest iPhone or need a new gaming laptop? Retailers like Newegg accept Bitcoin directly for all your electronic needs, from smartphones by Apple, Samsung, and Google to gaming accessories.
Alternatively, Walmart and Amazon gift cards can be bought through the BitPay app, opening a vast inventory of tech goodies.
2. Betting
For those interested in the evolving world of crypto betting, bitedge.com offers a comprehensive guide to navigating this dynamic landscape, ensuring you’re well-equipped for your next wager.
3. Fashion Finds with a Digital Wallet
Revamp your wardrobe with Bitcoin. Various brands and retailers allow you to purchase clothing directly with Bitcoin or through gift cards. Imagine walking into a store, scanning a QR code, and walking out with a brand-new outfit paid for with digital currency.
4. From Daily Brew to Luxury Yachts
Yes, you read that right. Your morning coffee can now be bought with Bitcoin using the BitPay Card at any MasterCard-accepting coffee shop.
And for those dreaming bigger, luxurious yachts and boats are available for purchase with Bitcoin through Denison Yachting.
5. Real Estate and Precious Metals
Bitcoin is not just for small-ticket items; it’s making waves in big investments too. Through BitPay-partnered brands like Pacaso and Condos.com, you can invest in real estate.
Precious metals like gold and silver are also accessible through Bitcoin transactions, offering a secure way to diversify your investment portfolio.
6. Diamonds Are Forever, and So Is Bitcoin
Add sparkle to your life with diamonds and jewelry from trusted retailers like Idoneus and Icebox, paying with Bitcoin. It’s a modern twist on investing in timeless treasures.
7. Video Games and In-Game Purchases
Gamers rejoice! Video games, in-game purchases, and gaming accessories can be bought with Bitcoin.
Platforms like Steam and Xbox offer gift cards through the BitPay app, ensuring you’re always ready for the next virtual adventure.
8. Booking Your Next Getaway
Thinking of a holiday? Hotels, boutique stays, and even flights can be booked with Bitcoin.
Use gift cards for Airbnb or book directly at crypto-friendly hospitality groups, making travel easier and more secure.
9. Groceries and Dining Out
Bitcoin extends to your daily necessities too. Grocery shopping can be done using the BitPay Card at local stores or by purchasing gift cards for Amazon Fresh and Whole Foods.
Dining out? Use your BitPay Card at local restaurants or buy gift cards for your favorite food delivery apps.
10. Home Sweet Home
Furnishing a home or tackling a DIY project? Furniture and home improvement items can be bought with Bitcoin through gift cards for stores like Pottery Barn and Home Depot.
It’s a seamless way to use digital currency for tangible home enhancements.
11. Donations to Nonprofits
Bitcoin makes it easy to support causes close to your heart. Donating to nonprofits and charities with Bitcoin not only simplifies the process but also offers tax benefits, making generosity more rewarding.
12. Education and Web Services
Investing in knowledge and online presence has never been easier. Web services like domain names, web hosting, VPNs, and servers can be paid for with Bitcoin through providers like NameCheap and ExpressVPN.
This shift towards cryptocurrency payments in the digital sphere highlights Bitcoin’s growing influence beyond just physical goods.
13. Entertainment on Demand
Your leisure time can also benefit from Bitcoin. Pay for your TV service subscriptions through Dish TV and Sling TV using BitPay.
Moreover, movie buffs will be thrilled to know that AMC theaters now welcome crypto payments, making your next movie outing a bit more futuristic.
14. Timepieces and High-End Vehicles
Luxury purchases including high-end cars like Lamborghinis and Ferraris, as well as luxury watches from brands like Jomashop and CRM Jewelers, are now within the Bitcoin spender’s reach.
Dealerships and retailers partnered with BitPay facilitate these extravagant buys, offering a seamless blend of luxury and technology.
The Social Impact of Bitcoin Spending
Empowering Nonprofits
Bitcoin’s role in philanthropy is growing. Many nonprofits now accept Bitcoin, recognizing its potential to streamline donations and maximize the impact of each contribution. This shift not only benefits the organizations but also encourages a culture of giving within the Bitcoin community.
The Convenience of Prepaid Cards
Prepaid debit cards, purchasable with Bitcoin, offer another layer of convenience, making it easier to manage finances and spend digital currency. These cards function just like any other debit card, bridging the gap between digital and fiat currency for everyday use.
The Evolution of Gift Giving
Bitcoin has transformed the way we think about gift-giving. With the ability to purchase gift cards for a wide array of retailers, from Amazon to Foot Locker, Bitcoin makes it easy to find the perfect gift for any occasion, all without the need for a traditional bank account.
FAQs
Can I pay for my gym membership with Bitcoin?
Yes, some gyms have started accepting Bitcoin payments directly or through third-party payment processors like BitPay, allowing you to use Bitcoin for your fitness expenses.
Is it possible to use Bitcoin for educational tuition fees?
While not universally accepted, a growing number of educational institutions around the world are beginning to accept Bitcoin as payment for tuition fees, especially for online courses and digital learning platforms.
Can I buy pet supplies with Bitcoin?
Yes, you can buy pet supplies with Bitcoin either directly from online retailers that accept cryptocurrency or by purchasing gift cards for pet supply stores through the BitPay app.
Are there any Bitcoin-friendly cities where I can use Bitcoin for public transport?
Some cities have started experimenting with accepting Bitcoin for public transport services.
However, this is still quite rare and often facilitated through specific apps or payment systems designed to convert Bitcoin to local currency.
Can I use Bitcoin to purchase insurance policies?
A few insurance companies are beginning to accept Bitcoin for premium payments, particularly for digital and tech-related insurance products, though this practice is not yet widespread.
Is it possible to pay taxes with Bitcoin?
Some jurisdictions and local governments have started to explore the possibility of accepting Bitcoin for tax payments through third-party payment processors. However, this is still not a common practice and varies significantly by region.
Final Thoughts
Bitcoin’s versatility is expanding, bridging the gap between digital currency and everyday transactions. From the simplicity of buying a cup of coffee to the complexity of purchasing a yacht or real estate, Bitcoin is proving to be more than just an investment—it’s a currency for all facets of life.
As we move further into 2024, the possibilities for using Bitcoin continue to grow, making it an exciting time to explore what else you can do with your digital coins.
HSBC Holdings Plc, one of the world’s leading bullion banks, has launched a blockchain-based platform to modernize the traditional and manual processes of the London gold market. The new platform tokenizes ownership of physical gold housed in HSBC’s London vault, offering a digital representation of gold bars for trading.
A Modern Twist to Gold Trading: HSBC Tokenizes Physical Gold
In an interview, Mark Williamson, the Global Head of FX and Commodities Partnerships and Propositions at HSBC, disclosed that their innovative system employs distributed ledger technology. This “cutting-edge” system uses digital tokens to represent gold bars, facilitating seamless trade through HSBC’s single-dealer platform.
However, HSBC is not the first to venture into using blockchain for simplifying gold investment. In 2016, crypto startup Paxos collaborated with Euroclear to create a blockchain-based settlement service for the London bullion market trades. Although their partnership dissolved a year later, Paxos continued to provide Pax Gold, a digital token backed by physical gold, currently holding a market value of $479 million, according to recent data.
HSBC stands out in this field due to its substantial footprint and impact on the bullion market. Being one of the biggest custodians of precious metals and one of the four clearing members in the London gold market, HSBC plays a crucial role in a sector that witnesses over $30 billion worth of gold transactions daily.
Bringing Blockchain to the Bullion: A Step Towards Modernization
Despite the London gold market’s vast size, with approximately 698,000 gold bars valued at $525 billion stored in the Greater London area, it remains heavily reliant on outdated manual record-keeping and operates entirely over the counter. HSBC’s blockchain platform aims to simplify and streamline this process, providing clients with an easier way to track their gold ownership down to the serial number of each bar.
HSBC’s tokenized system is designed to enhance accessibility and efficiency, with one token equivalent to 0.001 troy ounces, compared to the standard 400 troy ounces for a London gold bar. While the initial focus is on institutional investors, the platform has the potential for future adaptation to enable direct investment in physical gold by retail investors, subject to local regulatory approval.
This initiative is part of HSBC’s broader efforts to integrate blockchain technology across its operations, including HSBC Orion, an existing platform for issuing and storing digital bonds. As the financial industry witnesses an uptick in blockchain-based applications from major institutions like JPMorgan Chase & Co., Euroclear, and Goldman Sachs Group Inc., the market is poised to see whether these innovations will be embraced at scale and deliver the promised enhancements to the traditional financial infrastructure.
As Bitcoinist reported, HSBC’s integration of blockchain technology for gold trading taps into the burgeoning tokenized assets industry, which is predicted to reach a staggering $16 trillion by 2030. The industry’s rapid evolution and promise have positioned certain cryptocurrencies for potentially astronomical growth.
The XRP Ledger ecosystem is pioneering in the tokenized assets space, aiming to transform real-world assets, including real estate, into digital form. Ripple’s ongoing collaborations with global banks to explore practical applications for central bank digital currencies (CBDCs) further solidify XRP’s presence in this domain.
On another front, TrueFi and Pendle Finance are emerging as significant players, innovatively bridging traditional finance and the blockchain. TrueFi is changing the lending sector with its TRU token, offering crypto loans without collateral instead of relying on a user’s creditworthiness.
Pendle Finance, with a current $65 million market cap, is not only making strides in real-world assets but also inviting institutional investors to the blockchain, offering a suite of financial products. As the tokenized assets industry grows, these cryptocurrencies are well-positioned to reap the benefits.
As of this writing, Bitcoin trades at $34,500 with sideways movement on low timeframes.
Bitcoin (BTC) ATMs have become both convenient and worrying, with scammers taking advantage of unsuspecting victims. Authorities in the US and other jurisdictions are now waging a war against crypto-ATM-based scams.
California takes a stance on new cryptocurrency laws
The state of California has introduced rules for cryptocurrency transactions. Senate Bill 401, signed by Governor Gavin Newsom, means you can only make $1,000 worth of cryptocurrency transactions at ATMs each day, and starting in 2025, the maximum they can charge you is $5, or 15% of the transaction. Whichever is higher.
Initially, some Bitcoin ATMs allowed up to $50,000 in transactions with fees ranging between 12% and 25% above the value of the digital asset. These changes are intended to protect people from scams and high fees, explained Sen. Monique Lemon, one of the co-authors.
Scammers taking advantage of the convenience of Bitcoin ATMs have been a growing concern, with the Federal Trade Commission reporting that more than 46,000 people have lost more than $1 billion to cryptocurrency scams since 2021. New transaction limits give victims more time to spot scams before loss of money. But Charles Bell of the Blockchain Advocacy Coalition worries that these rules could hurt the cryptocurrency industry and small businesses.
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FBI Alerts About Bitcoin ATM and QR Code Scams
The Federal Bureau of Investigation (FBI) has raised the alarm about fraudulent schemes exploiting ATMs for cryptocurrencies and quick response (QR) codes for payments. These schemes take various forms, including online impersonation, romance scams, and lottery fraud, all using cryptocurrency ATMs and QR codes as tools.
QR codes, which smartphone cameras can scan, simplify cryptocurrency payments. However, criminals are now using it to trick victims into paying money. Victims are often asked to withdraw money from their accounts and use a QR code provided by scammers to complete transactions at physical cryptocurrency ATMs.
Once the victim makes the payment, the cryptocurrency is transferred to the scammer’s wallet, making recovery nearly impossible due to the decentralized nature of cryptocurrencies. The FBI offers several tips to protect against these schemes, focusing on caution, verification, and avoiding cryptocurrency ATM transactions that promise anonymity using only a phone number or email.
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Cryptocurrency regulation efforts in California
The passage of Senate Bill 401 in California is part of a broader effort to regulate the cryptocurrency industry while protecting consumers. Another law, scheduled to take effect in July 2025, will require digital financial asset companies to obtain licenses from the California Department of Financial Protection and Innovation. This represents a clear shift towards tightening government regulation and oversight in the world of digital finance.
Gavin Newsom’s decision to sign these bills into law demonstrates California’s commitment to strengthening the cryptocurrency industry and protecting its citizens. Balancing innovation and security remains a challenge, especially in a rapidly evolving digital landscape.
Bitcoin Depot’s historic debut on the NASDAQ
In July, Bitcoin Depot, a leading bitcoin ATM operator, went public on the Nasdaq. This milestone comes after Bitcoin Depot merged with GSR II Meteora, a blank check company.
The move to go public demonstrates the growing legitimacy and acceptance of cryptocurrencies in major financial markets.
Authorities vs. illegal crypto ATMs
The UK Financial Conduct Authority (FCA) is taking a strong stance against illegal cryptocurrency ATM operators. Using its power under money laundering regulations, the Financial Conduct Authority (FCA) has carried out raids on cryptocurrency ATMs suspected of illegal activities across England.
The measures, which follow previous operations in east London and Leeds, are part of the Financial Conduct Authority’s (FCA) efforts to crack down on unregulated cryptocurrency operations. This highlights global pressure for stronger cryptocurrency regulation, mirroring steps taken in California. The balance between innovation and security remains a fundamental concern for regulatory bodies around the world.
Bitcoin prices bounced back today, after falling below $25,500 yesterday.
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Bitcoin prices have bounced back lately, climbing more than 20% in under 48 hours after approaching the $25,000 level.
The digital currency, which is the largest when measured in terms of total market value, climbed to nearly $31,000 earlier today, CoinDesk figures show.
At this point, it was up 21.9% from the price of $25,402.04 it reached early the day before, additional CoinDesk data reveals.
While the digital currency did manage to recover some of the gains it has lost recently, it is still down more than 50% from its all-time high of nearly $69,000 reached in November.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Several analysts offered explanations for these latest price movements, in addition to helping describe them relative to broader market trends.
Investor Sentiment
When clarifying these latest price movements, several analysts emphasized the key role of market sentiment.
Ben Tsai, president and managing partner of Wave Financial Group, commented on this situation.
“As there are more investors and traders in crypto, especially a large overlap between the tech/meme stock and crypto traders, the risk on/off sentiments are driving the market more as these are the marginal buyers/sellers,” he stated.
“With sentiments recovering overall, people are buying into everything including Bitcoin,” Tsai added.
He noted that previously, “the crypto market was oversold as there was a domino effect of unwinding and liquidation stemming from the UST/LUNA unwind. That was over 10bn of UST being unwound to LUNA, then liquidated, and a lot of Bitcoin collateral also getting liquidated in trying to defend the pair.”
“This created a very negative sentiment and drove the whole market down,” said Tsai.
Budd White, cofounder and chief product officer of Tacen, a crypto regulatory software firm, spoke to similar matters, emphasizing the important role played by the terra luna situation and how it affected the mindset of global market participants.
He also pointed to the latest inflation figures released by the U.S. Bureau of Labor Statistics, in which the all items index rose at an annualized rate of 8.3% in April.
This figure surpassed the estimate provided by a Dow Jones poll, according to CNBC.
“The recent sell-off had to do with negative sentiment coming from the recent CPI numbers, which were higher than expected, coupled with the enormous pressure from the collapse of the Terra ecosystem,” stated White.
“The latter event was nearly unprecedented for the crypto industry more generally. After all, it’s not every day that a top-ten crypto asset worth many billions of dollars in market capitalization suddenly goes to zero, or at least near zero,” he noted.
“If anything, when you step back and examine the broader picture, it’s pretty remarkable to see how well Bitcoin has held up despite chaotic markets. It’s clearly on the path toward wider adoption and maturation.”
Broader Downtrend
While White provided an optimistic assessment for the digital currency’s prospects, not every analyst offered such a bullish perspective.
The digital currency has been following a broader downtrend for several months now, after reaching its record high late last year.
Julius de Kempenaer, senior technical analyst at StockCharts.com, commented on this situation.
He noted that “In any case the trend (daily time frame) is still down characterized by a series of lower highs and lower lows.”
“This sharp bounce is not changing that rhythm and therefore it is just that: a rally within an existing downtrend,” said de Kempenaer.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.
Cardano’s ada rallied to a more-than one-month high today.
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Cardano’s ada token has enjoyed some bullish activity lately, reaching its highest in over a month today.
The digital currency climbed to as much as $1.10 around 12:30 p.m. EDT, CoinDesk data shows.
At this point, it was trading at its loftiest value since February 16, additional CoinDesk figures show.
Since then, the cryptocurrency has pulled back slightly, but it has retained most of its recent gains by trading at $1.07 at the time of this writing.
[Ed note: Investing in cryptocoins or tokens is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Following ada’s latest price fluctuations, several market experts weighed in, pointing out key fundamentals affecting the digital asset’s price and important technical levels that traders should watch.
Ben McMillan, CIO at IDX Digital Assets, emphasized some important developments that have coincided with ada’s recent upside.
“After a long time in the making, Cardano has finally seen a massive uptick in projects being developed on its blockchain,” he stated.
“It’s also worth noting that Cardano has the highest allocation in Grayscale’s new ‘Smart Contract Platform Ex-Ethereum Fund,’” said McMillan, referring to the investment vehicle announced yesterday.
The fund will focus on digital assets tied to blockchain platforms, other than Ethereum, that leverage smart contracts.
However, he noted that “this recent bounce is on relatively low volume and is coming after Cardano started the year at over $1.50 (and peaked at over $3 in 2021).”
“So this looks to be a combination of technical bounce from oversold levels on the back of encouraging developments regarding the longer-term outlook.”
“The key will be if it can hold the psychological $1 level from here on,” McMillan concluded.
William Noble, the chief technical analyst of research platform Token Metrics, also chimed in, emphasizing some important technical levels.
“Cardano is making a long term bottom similar to the one it made in January of 2021. If Cardano holds above a support at 1.03, then ADA can easily travel to the next resistance point at 1.17,” he stated.
“Cardano seems to be shifting from base building to trending. If ADA continues to rally, 1.45 may be the next big-picture objective.”
“ADA maximalists would need to see ADA above that level in order to discuss an upside target above $3.”
Ben Armstrong, founder of BitBoy Crypto, also offered technical analysis, highlighting different levels.
“After finding support at .78 ADA/USD has risen almost 40% breaching the strong psychological resistance of 1.00,” he stated.
“ADA is finding resistance at 1.08 which is also a golden pocket from the lows of march 2020.”
Armstrong noted that if the digital asset can break through this accumulation of selling interest, it will probably encounter its next area of major resistance at $1.56.
However, should it fall back, it will encounter “key support at the .702 Fibonacci level coming in at .93.”
Mark Elenowitz, co-founder of Ethereum-powered exchange Upstream, spoke to key variables affecting ada’s price action and commented on the digital currency’s outlook.
“Cardano’s breakout today is reflective of bullish glimmers in the crypto market,” he stated.
“Cardano also has a base of supporters who are especially devoted to the project and therefore willing to risk significant amounts of capital to it,” said Elenowitz.
“The biggest factor driving this price movement is that Cardano just saw a big influx of tokens into staking pools,” he stated.
“Once traders saw this influx they appeared to have started buying in relatively large numbers. Naturally, the price surged and might continue to do so if this apparent micro rally continues.”
“That being said, there is always the question about the use cases available on the Cardano Network – after all, it’s been slow to implement smart-contract utility and so questions abound about whether it can keep up with such competitors as Solana, Avalanche and Terra,” Elenowitz noted.
“If Cardano Network doesn’t experience much demand because of a relative lack of utility, then it’s safe to say that price action for $ADA could easily go south – and quickly,” he warned.
Elenowitz identified some important technical levels that traders should watch.
“Cardano went up nearly $0.5 during its last big breakout, before crashing back down, and the current move upwards seems equally strong.”
“So it’s not beyond the realm of possibility that it could continue moving upwards, perhaps anywhere from $1.25 to $1.30, before hitting major resistance,” he stated.
“For the medium term, I think $ADA has strong support at $1 and is likely to hold there.”
“But in this volatile market, it seems like anything above this level is unsustainable.”
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and sol.
