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These Developments Show That The Bitcoin Bullish Momentum Is Far From Over

Crypto analyst Ali Martinez has provided insights suggesting that the Bitcoin bullish momentum is just starting. Based on this, the flagship crypto token is still likely to keep hitting new highs before the peak of the imminent bull run. 

Market Sentiment Suggests More Gains Ahead For Bitcoin

In an X (formerly Twitter) post, Martinez revealed how long-term BTC holders go through a “cycle of emotions” during a bullish period. These investors usually start with capitulation before “progressing through hope, optimism, and belief.” This capitulation phase is when these BTC bulls succumb to the bears, with the Bitcoin bottom coming at some point.  

The crypto analyst also noted that these BTC holders experience “a brief period of anxiety” even after the belief phase, which leads to a price correction. However, the market again re-enters a phase of belief after then, which signals potential further gains ahead, Martinez added. 

The crypto analyst claims the market has “just merged from a period of anxiety and has re-entered a new phase of belief.” He further stated that this suggests the market will likely witness more momentum for Bitcoin before reaching the “peak of euphoria that characterizes the end of the bullish cycle.”

Going by Martinez’s analysis, there are still new highs for BTC. There is also every likelihood that Bitcoin will surpass its all-time high (ATH) of $68,000. The crypto token has consistently surpassed its previous ATH in every bull run. Interestingly, this always happens months after the Bitcoin Halving takes place. 

That is why it is no surprise that the BTC Halving is again predicted to be the event that will fully kickstart the next bull run. 

BTC Expected To See Influx Of New Investors

In a subsequent X post, Ali Martinez highlighted how Bitcoin is far from obtaining peak popularity among the general populace. This is based on a Google Search Trends metric, which shows how popular a term like ‘Bitcoin’ is. Currently, BTC is said to have a score of 18, meaning that it hasn’t even reached “mid-popularity.”

The silver lining in this data is that it shows how much more investors Bitcoin could see in the next bull run. Moreover, introducing the Spot Bitcoin ETFs is believed to be perfect timing as these funds could contribute to onboarding the next generation of Bitcoin holders into the crypto space. 

A search engine like Google could also have a role to play when these investors become interested in the flagship crypto token. Thankfully, the platform has already blessed the advertisement of crypto-related funds, meaning it will be easy for these users to invest when the time comes.  

At the time of writing, BTC trades at around $51,400, up over 2% in the last 24 hours, according to data from CoinMarketCap. 

bitcoin btc btcusdt ark ceo spot etf sec gary gensler

Cover image from Dall-E, Chart from Tradingview

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Can Bitcoin Overcome Past Trends? Examining The Pre-Halving Rally And Resistance Levels

Bitcoin (BTC), the largest cryptocurrency in the market by trading volume and capitalization, has embarked on a renewed bullish uptrend, reclaiming previously lost territories and surpassing resistance levels, igniting optimism among investors. 

Currently trading just below its 25-month high of $49,000 at $47,900, Bitcoin has experienced a remarkable price increase of over 6% within 24 hours and a significant 11% surge over the past seven days. 

Mapping BTC’s Path Amidst Pre-Halving Rally

However, amidst the market’s excitement, it is crucial to consider historical tendencies and their potential impact on Bitcoin’s trajectory leading up to the upcoming halving event. Market expert and analyst Rekt Capital highlights two noteworthy historical patterns:

Firstly, the “Pre-Halving Rally” phase appears to be commencing. This phase refers to a period where Bitcoin experiences a surge in price before the halving event takes place. 

Secondly, historical data reveals that Bitcoin has struggled to break beyond the macro diagonal resistance before the halving, which Rekt places at $47,000. Additionally, it has encountered difficulty surpassing its Four Year Cycle resistance, which is approximately $46,000 in the current cycle.

It is worth noting that even though the price has surpassed these resistance levels, a consolidation or continuation of the uptrend must be seen, as a retracement could take place and leave the BTC price stuck between these resistances.

Bitcoin

Given these historical trends, exploring how Bitcoin could potentially reconcile these patterns is interesting. Rekt Capital offers insights into one possible path that Bitcoin could take:

During the pre-halving rally phase, Bitcoin may produce limited upside, resulting in an upside wick at the end of February. This pattern has been observed in previous months and 2019. 

Following this, Bitcoin might establish another range at higher price levels in March, potentially allowing altcoin rallies to take center stage. Finally, a few weeks before the halving event, Bitcoin could experience a pullback, creating a pre-halving retrace.

This proposed path suggests that Bitcoin could surpass the Macro Diagonal resistance with an upside wick but remain below it in terms of end-of-month monthly candle closes during this gradually concluding pre-halving period.

Bitcoin Bull Run Indicator Flashing Buy Signal

Crypto analyst Ali Martinez has added to the growing bullish sentiment surrounding Bitcoin by highlighting a key indicator that suggests potential upside movement. 

According to Martinez, the Super Trend indicator flashed a buy signal on the BTC monthly chart. This tool is renowned for its precision in predicting bullish trends in Bitcoin markets.

The indicator’s track record underscores the significance of this buy signal. Martinez points out that the Super Trend has issued four buy signals since Bitcoin’s inception, and all four have been validated, leading to substantial gains. These gains amount to an impressive 169,172%, 9,900%, 3,680%, and 828%, respectively.

Bitcoin

However, amidst the bullish outlook, Martinez also highlights a potential strategy that may soon impact Bitcoin’s price.

According to the Bitcoin liquidation heatmap, a scenario is unfolding where liquidity hunters could drive the price of Bitcoin down to $45,810. The intention behind this move would be to trigger liquidations amounting to a substantial $54.73 million.

It is important to understand that liquidity hunters aim to exploit price movements to trigger forced liquidations among overleveraged traders. By strategically driving the price down, they can force these traders to sell their positions, resulting in cascading liquidations that potentially amplify price downward movements.

Bitcoin

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin Crash Ahead: Expert Predicts Testing $20K Before Rebound

Bitcoin, the largest cryptocurrency in the market, experienced a price recovery on Friday; however, industry experts anticipate a further test of sub-$30,000 levels in the near term. 

The prolonged downtrend observed over the past fourteen days, coupled with mounting selling pressure, has raised concerns about the sustainability of the recent rebound.

BTC’s Local Bottom Predicted

Chris Burniske, co-founder of a New York-based venture crypto firm, highlights several factors contributing to the anticipated downward movement of Bitcoin. 

Burniske suggests that the consolidation phase may extend longer than expected due to many variables, including crypto-market dynamics, macroeconomic conditions, adoption trends, and new product developments. 

Burniske offers his outlook on Bitcoin, stating that a local bottom could be reached in the $30,000 to $36,000 range. However, he wouldn’t be surprised if the cryptocurrency tests the mid-to-high $20,000 before recovery occurs, leading to a renewed push toward previous all-time highs. 

Burniske cautions that the path to such a recovery will likely be volatile, marked by potential fakeouts, and may span several months.

The market expert advises investors to exercise patience during this period of uncertainty. Burniske suggests that other cryptocurrencies may experience more significant percentage declines if his predictions hold Bitcoin. Burniske further stated:

Before you get mad with, “We’re just getting this cycle started, Chris!!!” Mostly agree, ~called the cycle bottom in Nov 2022 and continue to believe the long-term trend remains robust. Have also seen a lot of crypto volatility over the last decade+…. recently, I’ve specifically been discussing a local top and local low, not a cycle-wide top and low. 

Buy Signal For Bitcoin

Crypto analyst Ali Martinez has provided insights into potential price movements for Bitcoin in its latest analysis conducted on the social media platform X (formerly Twitter). 

Martinez’s assessment indicates that the TD Sequential indicator recently flashed a buy signal on the daily chart, coinciding with Bitcoin’s current position above the 100-day Simple Moving Average (SMA) at approximately the $40,000 level. 

Bitcoin

According to Martinez, if Bitcoin surpasses the $40,550 resistance level, it may trigger an upswing with a target price of $43,000. This bullish scenario implies a potential price rally for Bitcoin soon. 

However, the analyst also highlights the importance of closely monitoring the 100SMA support level, as a breach of this level could have significant implications for the cryptocurrency’s price trajectory.

Martinez cautions that if the 100SMA support level is breached, it might result in Bitcoin experiencing a downward move toward the $33,300 level. This potential downside scenario indicates a critical support level that, if broken, could lead to increased selling pressure and a bearish sentiment in the market.

Bitcoin

At the time of writing, BTC’s price has recovered 3.8% over the past 24 hours, resulting in a current trading price of $41,400.

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Goes To The Doctor: 5 Key Metrics For BTC In 2024

The Bitcoin network and its underlying assets have evolved since its launch in 2009, and keeping up with the changes and updates can be challenging. In a post, financial strategist Lyn Alden broke down five key metrics to help BTC investors assess the network’s current state.   

Beyond Price: A Look At The Bitcoin Network Vitality

As Lyn Alden suggests, a deeper dive into the Bitcoin network is essential for any investor. This approach offers a more nuanced understanding of Bitcoin’s status, moving past the “superficialities of price fluctuations” to gauge its true potential and challenges.

Alden claims that price may not capture the complete story but remains a critical signal of adoption and market positioning. Bitcoin competes not just with other cryptocurrencies but also with traditional assets like gold and fiat currencies.

Its fluctuating price reflects its relative youth and volatility compared to more established currencies. However, its fixed supply of 21 million Bitcoin provides an alternative to the constantly inflated supply of fiat currencies, such as the US dollar. The analyst stated:

The Bitcoin network itself might be serving as a heartbeat of clockwork order in a world of chaos, but price is nonetheless a measure of its adoption.

Bitcoin has consistently shown an upward trend, historically making it one of the best-performing assets, as seen in the chart below. The uptrend in the BTC price shows that the project has successfully operated as an alternative to traditional forms of money.

Bitcoin BTC BTCUSDT chart 1

A key aspect to consider is liquidity – how much daily trading volume occurs and how much transaction value is circulated on-chain. High liquidity indicates a robust, widely used network. On the latter, Alden pointed out:

(…) now that bitcoin has billions of dollars of trading volume, there are trillion-dollar pools of capital that can’t put meaningful percentages into it; it’s still too small and illiquid for them. If they start putting a few hundred million dollars or a couple billions of dollars per day into it, that’s enough to tilt the supply/demand toward the buy side and seriously inflect the price upward. Since inception, the Bitcoin ecosystem has had to achieve certain levels of liquidity before it even gets on the radar of bigger pools of capital. It’s like leveling up.

The narrative surrounding Bitcoin is ever-evolving. It’s been viewed as both a payment method and a savings tool, reflecting its multifaceted utility. The balance between these functions – being able to execute transactions globally while serving as a reliable store of value – is vital.

The growing number of conversion points, where Bitcoin can be exchanged for goods, services, or fiat currencies, plays a crucial role in its adoption and practical use.

Bitcoin’s fundamental value proposition lies in its security and decentralization. The network must remain resilient against attacks and maintain its decentralized nature to continue being a credible and valuable digital asset. Despite facing technical challenges and bugs in its history, Bitcoin has demonstrated remarkable robustness, maintaining 100% uptime since 2013.

bitcoin btc btcusdt

What About The Bitcoin User?

As Bitcoin evolves, so does the ease of its use. Developing user-friendly hardware wallets, improved software interfaces, and increased Bitcoin ATMs have significantly enhanced the user experience. This evolution is critical for Bitcoin’s wider adoption beyond tech-savvy individuals to the general public.

On this key metric, Alden points to the progress in BTC hardware wallets, which allow people to store their private keys while maintaining the usability of their coins. Setting up a BTC wallet is becoming easier and will likely continue moving in that direction.

The legal landscape surrounding Bitcoin varies significantly across different jurisdictions. While some governments have embraced it, others remain skeptical. However, Bitcoin’s global nature offers a kind of resilience to localized regulatory challenges. Its decentralized nature makes it a formidable entity to regulate or ban effectively.

In conclusion, while challenges in miner decentralization and user experience persist, the overall trend is positive. Alden believes the network continues to grow in liquidity, technical robustness, and global acceptance.

For investors and enthusiasts alike, Bitcoin remains a “dynamic and promising field, ripe with opportunities for growth and innovation.” As Alden points out, Bitcoin’s open-source nature invites continuous refinement and enhancement, making it a “resilient and adaptive digital asset.”

Cover image from Unsplash, chart from Tradingview

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

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

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

bitcoin price btc btcusdt

Bitcoin Price Loses Steam, How Low Can BTC Go?

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

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

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

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

On the above, the BitMEX founder stated:

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

bitcoin price btc btcusdt

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

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

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

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

Bitcoin price BTC BTCUSDT chart 3

Cover image from Unsplash, chart from Tradingview

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Bloodbath For Bitcoin: Grayscale’s $529 Million BTC Move To Coinbase Pushes Price Below $41,000

Bitcoin (BTC), the largest cryptocurrency in the market, has experienced a sharp drop below the $41,000 mark as exchange-traded funds (ETFs) for Bitcoin went live on January 12. 

The subsequent profit-taking, selling pressure, and outflows from Grayscale’s Bitcoin Trust ETF (GBTC) played a significant role in the downward trend.

Grayscale’s Bitcoin Transfers To Coinbase Intensify

On Tuesday, NewsBTC reported that six days ago, Grayscale initiated the first batch of BTC outflows from their holdings to a Coinbase, totaling 4,000 BTC (approximately $183 million) over six days. 

However, the asset manager resumed outflows from the Trust to the exchange on Tuesday, sending an additional 11,700 BTC (equivalent to $491.4 million) to Coinbase. 

Furthermore, on Friday, data from Arkham Intelligence revealed that 12,865 BTC ($529 million) were transferred from the Grayscale Trust address to Coinbase Prime. 

Bitcoin

In total, the Grayscale Trust address has transferred 54,343 BTC ($2.313 billion) to Coinbase Prime during the opening hours of the US stock market over five consecutive trading days since January 12, which has undoubtedly contributed to the downtrend in Bitcoin’s price.

Selling Frenzy Among BTC Miners

In addition to Grayscale’s selling spree, there has been increased selling activity by Bitcoin miners ahead of the upcoming Bitcoin halving. 

Crypto analyst Ali Martinez highlights that on-chain data from CryptoQuant indicates a substantial increase in selling activity by BTC miners. In the past 24 hours, miners offloaded nearly 10,600 BTC, with a value of approximately $455.8 million.

The persistent selling pressure has caused BTC to trade at $40,900, reflecting a slight 0.2% decrease over the past 24 hours. 

Bitcoin

The downtrend has been evident across various time frames, with declines of 5%, 6%, and 7% over the seven, fourteen, and thirty-day periods, respectively. However, despite these recent setbacks, Bitcoin remains remarkably positive year-to-date, with an impressive 98% gain.

Overall, the combined impact of Grayscale’s Bitcoin Trust ETF outflows and increased selling activity by miners has intensified the downward pressure on Bitcoin’s price, breaching the critical support level of $41,000. 

The focus now turns to how Bitcoin bulls will defend the crucial $40,000 support level, which stands as the last line of defense before a potential dip toward the $37,700 mark.

Bitcoin

Should this support level fail to hold, the Bitcoin market could witness further price declines, potentially pushing the price down to the $35,800 mark. However, with the Bitcoin halving scheduled for April, bullish investors are hopeful that this event will catalyze a significant bull run.

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Price Suffers Post-Spot ETF Blues, Drops 7% To $43,200

The introduction of Bitcoin (BTC) exchange-traded funds (ETFs) has triggered a significant sell-off, leading to a sharp decline in the Bitcoin price.

After gaining approval and commencing trading on Thursday, the ETFs have prompted a “sell the news” event, causing Bitcoin’s value to plummet from its initial trading price of $46,500 at the time of approval to a low of $43,200 within a matter of hours on Friday.

Over the past 24 hours, Bitcoin, the largest cryptocurrency by market capitalization, has experienced a 7% drop. Its gains over the past 30 days have been limited to a mere 4%, erasing much of the progress made during that period. 

Additionally, as selling pressure continues to mount following the approval, there are indications that the Bitcoin price may face further downward pressure.

Bitcoin Price Under Pressure

CryptoQuant analyst J.A. Maartunn observed significant sell orders in Bitcoin’s two-week chart on Wednesday. Notably, three clusters of sell orders were positioned between $46,100 and $48,000, comprising stacks of 755, 1,031, and 794 BTC, respectively.

According to the CryptoQuant analyst, such patterns are typically associated with market tops, unless these orders are later withdrawn or executed.

This influx of sell orders may help explain the lackluster response to the ETF approvals until now, as it appears that selling pressure has been building up. However, the situation has intensified even further. 

According to Maartunn, additional sell orders were detected on Friday, indicating that the seller is not yet finished. Two substantial sell orders have been placed just above the current Bitcoin price: one for 894 BTC at $44,000 and another for 1,071 BTC at $45,100.

Bitcoin price

These developments suggest that market participants are taking advantage of the ETF news to offload their Bitcoin holdings, leading to increased selling pressure and a subsequent price decline. 

The market’s stabilization following this period of heightened selling pressure remains uncertain. The introduction of ETFs was believed to bring about heightened institutional interest and potentially drive up the Bitcoin price. 

However, it is important to note that the impact of these ETFs is expected to unfold over the long term, rather than being evident within days, weeks, or even months. It will likely take years to fully gauge the effects and consequences of ETF integration on the Bitcoin market.

Bitcoin’s Bullish Structure Remains Intact

Amidst the ongoing selling pressure, several support lines may potentially halt the downtrend and bring positive news for the Bitcoin price and BTC bulls.

Although Bitcoin has already lost its $44,000 support level, there is another crucial threshold at $42,700 that could prevent further decline. If this level holds, there is a chance for Bitcoin to regain the $43,000 mark and reverse the downward momentum.

Bitcoin price

If the $42,700 support is breached, additional support lines come into play. These include $42,300, $41,700, and $41,200, which act as the last barriers before a potential test of the $40,000 support level. The $40,000 mark holds significance as it represents the final support before a potential dip towards $38,000.

However, there is a positive aspect for Bitcoin bulls to consider. The current bullish structure of the cryptocurrency remains intact as long as the dip does not breach the $29,900 mark.

This level marked the beginning of the current bullish uptrend, and its preservation would ensure the maintenance of the overall positive market structure.

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin ETF Approval Triggers $1.2 Billion Trading Volume And New Highs For BTC Price

In a highly anticipated move, the United States Securities and Exchange Commission (SEC) approved all 11 Bitcoin ETF applications, and the market response has been nothing short of remarkable. The approval has led to significant trading volume and propelled Bitcoin to a new 22-month high.

Within minutes of the Bitcoin ETFs going live, Bitcoin surged over 8% to reach $48,400, representing a new record since the end of the crypto bear market. The early price movement aligns with the predictions made by the majority of experts in the crypto industry.

Bitcoin ETF Trading Makes Spectacular Debut

Bloomberg ETF expert James Seyffart reported an astonishing $1.2 billion in trading volume for spot Bitcoin ETFs within 30 minutes of trading. Seyffart captured the excitement with his “Cointucky Derby” analogy, highlighting the performance of different ETFs.

Grayscale’s GBTC Bitcoin Trust took the lead in the “Cointucky Derby,” recording an impressive trading volume of $446 million in the initial minutes. It was closely followed by BlackRock’s Bitcoin Trust, which achieved a trading volume of $388 million within the first half-hour.

Bitcoin ETF

Fidelity secured the third spot with a trading volume of $230 million, outperforming Hashdex and Wisdom Tree, which recorded $1 million and $1.1 million in trading volume, respectively.

While the exact breakdown of the trading volume remains uncertain, Seyffart noted that the evening’s data might provide more insights. 

However, the Bloomberg ETF expert speculated that a significant portion of the trading volume could be attributed to new flows into the ETFs. Additionally, he suggested that a notable portion of GBTC’s trading volume might be due to outflows.

Is Bitcoin On A Clear Path To $50,000?

With the Bitcoin ETF race in full throttle, Bitcoin appears to be on a promising trajectory toward the $50,000 milestone, which could serve as a significant catalyst for Bitcoin bulls and the broader crypto industry.

Currently, having surpassed the $48,000 mark, Bitcoin’s price has reached a level where minimal resistance levels are hindering its ascent to $50,000. 

The next notable hurdle lies well above $50,700, followed by potential attempts to reach $53,000. Given the expected spot buys in the Bitcoin market following the approval of Bitcoin ETFs, combined with a considerable separation between major resistance lines, these price levels may be easily breached.

Once beyond the $50,000 threshold, Bitcoin could potentially progress to $51,000, then $53,000, and subsequently $56,000, before ultimately setting its sights on the highly anticipated $60,000 milestone. 

This series of price targets may be readily attainable for the largest cryptocurrency in the market, as it navigates through the anticipated market dynamics.

Ultimately, the SEC’s approval of the Bitcoin ETFs has brought renewed optimism to the market, with investors and industry experts closely monitoring the impact of these ETFs on the broader cryptocurrency landscape. 

The surge in trading volume and Bitcoin’s impressive price movement signify growing interest from investors seeking regulated and traditional investment avenues in the cryptocurrency market.

Bitcoin ETF

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin ETF Approval Triggers $1.2 Billion Trading Volume And New Highs For BTC Price

In a highly anticipated move, the United States Securities and Exchange Commission (SEC) approved all 11 Bitcoin ETF applications, and the market response has been nothing short of remarkable. The approval has led to significant trading volume and propelled Bitcoin to a new 22-month high.

Within minutes of the Bitcoin ETFs going live, Bitcoin surged over 8% to reach $48,400, representing a new record since the end of the crypto bear market. The early price movement aligns with the predictions made by the majority of experts in the crypto industry.

Bitcoin ETF Trading Makes Spectacular Debut

Bloomberg ETF expert James Seyffart reported an astonishing $1.2 billion in trading volume for spot Bitcoin ETFs within 30 minutes of trading. Seyffart captured the excitement with his “Cointucky Derby” analogy, highlighting the performance of different ETFs.

Grayscale’s GBTC Bitcoin Trust took the lead in the “Cointucky Derby,” recording an impressive trading volume of $446 million in the initial minutes. It was closely followed by BlackRock’s Bitcoin Trust, which achieved a trading volume of $388 million within the first half-hour.

Bitcoin ETF

Fidelity secured the third spot with a trading volume of $230 million, outperforming Hashdex and Wisdom Tree, which recorded $1 million and $1.1 million in trading volume, respectively.

While the exact breakdown of the trading volume remains uncertain, Seyffart noted that the evening’s data might provide more insights. 

However, the Bloomberg ETF expert speculated that a significant portion of the trading volume could be attributed to new flows into the ETFs. Additionally, he suggested that a notable portion of GBTC’s trading volume might be due to outflows.

Is Bitcoin On A Clear Path To $50,000?

With the Bitcoin ETF race in full throttle, Bitcoin appears to be on a promising trajectory toward the $50,000 milestone, which could serve as a significant catalyst for Bitcoin bulls and the broader crypto industry.

Currently, having surpassed the $48,000 mark, Bitcoin’s price has reached a level where minimal resistance levels are hindering its ascent to $50,000. 

The next notable hurdle lies well above $50,700, followed by potential attempts to reach $53,000. Given the expected spot buys in the Bitcoin market following the approval of Bitcoin ETFs, combined with a considerable separation between major resistance lines, these price levels may be easily breached.

Once beyond the $50,000 threshold, Bitcoin could potentially progress to $51,000, then $53,000, and subsequently $56,000, before ultimately setting its sights on the highly anticipated $60,000 milestone. 

This series of price targets may be readily attainable for the largest cryptocurrency in the market, as it navigates through the anticipated market dynamics.

Ultimately, the SEC’s approval of the Bitcoin ETFs has brought renewed optimism to the market, with investors and industry experts closely monitoring the impact of these ETFs on the broader cryptocurrency landscape. 

The surge in trading volume and Bitcoin’s impressive price movement signify growing interest from investors seeking regulated and traditional investment avenues in the cryptocurrency market.

Bitcoin ETF

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Price Analysis: Ascending Parallel Channel Pattern Points To $57,000 Target

As anticipation builds around the potential approval or rejection of spot Bitcoin (BTC) exchange-traded funds (ETFs) by the US Securities and Exchange Commission (SEC) on January 5, the Bitcoin price has witnessed a notable 2.7% recovery in the past 24 hours. 

This development comes amidst growing speculation about the patterns that could drive the Bitcoin price to reclaim the highs lost during the bear market in 2022. 

Notably, crypto analyst Ali Martinez has identified an ascending parallel channel as the governing pattern behind the Bitcoin price action since September 2023.

Bitcoin Price Faces Crucial Test At $48,000

According to Ali Martinez’s analysis, Bitcoin prices have exhibited a consistent pattern known as an ascending parallel channel. 

This technical formation suggests that the BTC’s price has been trading within the confines of a channel characterized by an upper and lower boundary, as seen in the chart below.

Bitcoin price

BTC could experience further price movement within the defined boundaries if the ascending parallel channel pattern holds. 

The price is expected to advance toward the upper boundary, which currently resides around $48,000. However, the Bitcoin price is anticipated to face resistance at this level and retrace towards the lower boundary at approximately $34,000. 

Following the retracement, a rebound toward the upper boundary, potentially reaching around $57,000, could be expected.

The upcoming decision by the SEC regarding spot Bitcoin ETF applications adds a layer of significance to Bitcoin’s price movement. The approval of Bitcoin ETFs has been a subject of great interest within the cryptocurrency community, as it can enhance liquidity and provide greater legitimacy to the cryptocurrency market. 

While the outcome of the SEC decision remains uncertain, the ascending parallel channel pattern reveals a compelling technical perspective that could impact Bitcoin’s price trajectory.

Critical Moment For BTC? 

Supporting the upside potential of the Bitcoin price in Martinez’s analysis, crypto analyst Rekt Capital highlights the importance of BTC’s ability to establish a strong support level at $43,900.

According to Rekt Capital’s analysis, Bitcoin is exhibiting promising signs as it strives to reclaim the top of the pattern at $43,900 as a support level. 

Bitcoin

This level holds importance in determining the cryptocurrency’s ability to sustain upward momentum. Rekt Capital suggests that a daily candle close above this resistance is essential for Bitcoin to make another attempt at moving higher.

The successful establishment of $43,900 as a support level and a daily candle close above this resistance would signify a positive development for Bitcoin’s upside potential. 

It would indicate a renewed bullish sentiment and potentially pave the way for further price appreciation. However, failure to overcome this resistance level and ending up as an upside wick could hinder Bitcoin’s ability to sustain upward momentum in the short term.

Bitcoin price

On Wednesday, Bitcoin trades at $44,000, followed by a news-driven dip toward the $40,800 level.

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin Price Targets: MVRV Points To $52,000 And $70,000 Levels For BTC, Expert Suggests

In a recent development, the Bitcoin price witnessed a remarkable surge of 7% within 24 hours, reaching a high point of $45,300. This significant price increase coincides with the anticipation surrounding the potential approval of a Bitcoin spot exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). 

In addition, market experts, backed by multiple models aligning to indicate increased price action and bullish momentum, suggest that Bitcoin could soon reach the $50,000 level and potentially establish a new all-time high (ATH).

Bitcoin Price Poised To Reach New All-Time High? 

At the forefront of this analysis is Ali Martinez, a renowned crypto analyst, who emphasizes the valuable insights provided by the Bitcoin Market Value to Realized Value (MVRV) pricing bands. 

These bands serve as a metric to analyze the price movement and potential levels of Bitcoin, or any other cryptocurrency, by comparing the market value to the average value at which coins were last moved on-chain. The MVRV ratio assesses whether Bitcoin is overvalued or undervalued relative to its historical on-chain activity. 

A high MVRV ratio suggests that the market value of Bitcoin has surpassed the average value at which coins were last moved, indicating a potential overvaluation. Conversely, a low MVRV ratio may indicate that Bitcoin is undervalued.

Bitcoin price

Considering these factors, Martinez highlights the significance of the MVRV pricing bands, which reveal key price targets for Bitcoin at $52,680 and $70,250, surpassing its previous ATH of $69,000. 

This analysis presents an optimistic outlook for Bitcoin’s future performance and reinforces the belief among investors that the cryptocurrency’s upward momentum is likely to continue.

However, despite these Bitcoin price projections that could propel the largest cryptocurrency on the market into uncharted waters, another analyst points to a more prudent prediction.

Cooling Period For BTC? 

According to renowned crypto analyst Crypto Con, despite a year-long bullish stance, he believes it is time for a cooldown as the new year, 2024, begins.

Crypto Con predicts a 30% correction from the directional movement index (DMI) overheat zone, projecting prices around $30,000. The overheat zone mentioned by Crypto Con suggests that the price of Bitcoin has experienced a significant upward movement and may be due to a correction or cooling period. 

Bitcoin price

As seen in the chart above, when the price enters this zone, it is seen as a signal that the trend may have become overextended and could potentially reverse or experience a pullback.

Drawing parallels to the example in 2019, characterized by a double peak in red, Crypto Con anticipates a drawdown that is both smaller in magnitude and shorter in duration. 

Furthermore, the analyst points to the consistent support offered by diagonal green zones throughout each cycle, suggesting a pattern that has been held thus far.

While some analysts project a new all-time high for the Bitcoin price, reaching uncharted waters above $70,000, others, such as Crypto Con, advocate for a cooling period and anticipate a correction in the near term.

Bitcoin price

Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Price Prediction: ETC Group Anticipates Surpassing $100,000 By End 2024

Numerous price predictions have emerged as the Bitcoin price continues to demonstrate significant growth throughout the year, fueled by factors such as the upcoming halving event and potential approval of a spot Bitcoin exchange-traded fund (ETF) by the US Securities and Exchange Commission (SEC). 

Notably, the ETC Group has released a comprehensive report shedding light on the potential for new all-time highs in 2024 and an impressive milestone of $100,000 by year-end.

Bitcoin Price Recovery Sets The Stage For A Promising 2024

According to the ETC Group’s recent report, 2023 served as a recovery year for Bitcoin and crypto assets, with pivotal catalysts setting the stage for the following year. 

Per the report, BlackRock’s spot Bitcoin ETF filing in June 2023 laid the groundwork for increased adoption of this emerging asset class in 2024 and beyond. 

Despite the progress made, the report highlights that Bitcoin and other cryptocurrencies are still in their infancy in terms of adoption in most developed countries. 

Global surveys indicate an adoption rate of approximately 18%, suggesting that roughly one in five individuals worldwide holds some crypto asset.

One of the highly anticipated events expected to drive Bitcoin price appreciation is the BTC Halving scheduled for the end of April 2024. While some argue that the halving is already priced in due to its public knowledge, historical data demonstrates significant price increases following previous halvings. 

Notably, the ETC Group’s base case prediction forecasts that Bitcoin’s price will reach new all-time highs in 2024 and surpass $100,000 by the year’s end.

On-Chain Metrics Signal Bullish Outlook For BTC In 2024

Several on-chain metrics indicate that Bitcoin’s supply is scarcer this cycle than the previous one.  According to the report, key indicators such as the percentage of exchange supply at a 5-year low and the all-time high percentage of supply in the last 1+ years suggest a potential bull market with increased distribution of accumulated coins to new investors. 

Additionally, macro factors, including the potential approval of a spot Bitcoin ETF in the US, a likely US recession, a reversal of monetary policy, and geopolitical risks, contribute to a favorable outlook for the Bitcoin price in 2024.

A major point of discussion among investors revolves around the potential price impact if a spot Bitcoin ETF gets approved in the US. The report highlights that variations in global Bitcoin ETP flows have explained approximately 40% of Bitcoin’s price variation over the past six months. 

Assuming that 20% of investors would consider such an investment and allocate 3% of their assets under management (AuM) to Bitcoin, an estimated $33.5 billion of new capital could enter the market. 

This influx of funds, almost doubling the global Bitcoin ETP AuM, could lead to a price impact of around 98%.

Overall, the ETC Group’s in-depth analysis and predictions suggest an auspicious year for Bitcoin price 2024. With anticipated new all-time highs and the possibility of surpassing $100,000 by year-end, Bitcoin’s growth trajectory shows no signs of slowing down. 

Bitcoin price

Featured image from Shutterstock, chart from TradingView.com 

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Countdown To Bitcoin ETF 2024 Decision: Traders Employ Hedging Tactics, Bloomberg Unveils

As the long-awaited deadline for a positive or negative decision on spot Bitcoin ETF applications approaches, Bloomberg reports that the BTC options market is seeing increased hedging activity as traders prepare for a crucial decision on January 10th.

The report indicates a surge in open interest for put options expiring on Jan. 12, suggesting that market participants are taking steps to mitigate potential losses in the event of a negative verdict by the US Securities and Exchange Commission (SEC) regarding these index funds holding the cryptocurrency. 

Market Readies For Bitcoin ETF Verdict

The Bloomberg report highlights that the open interest for put options, which allow holders to sell Bitcoin, has seen a significant increase for contracts expiring on January 12. 

This surge in open interest has resulted in a higher put-to-call ratio for these specific options compared to contracts with expiration dates further out from the January 10 deadline. 

As seen in the chart below, the most prominent strike prices for the put contracts are $44,000, $42,000, and $40,000, respectively, indicating that put holders could exercise their options to minimize losses in case of a negative market reaction to the SEC decision.

Bitcoin ETF

The put-to-call ratio, considered a measure of overall market sentiment, stands at 0.67 for the January 12 options contracts, indicating a more cautious approach among traders. 

Ryan Kim, head of derivatives at FalconX, suggests that leveraged/speculative traders are employing Bitcoin put options to protect their leveraged longs, anticipating significant price movements in either direction. 

The higher put-call ratio for January 12 options further reflects the market’s desire for protection against a potential negative decision.

The surge in open interest for put options expiring on January 12 indicates a growing need for protection in case of an unfavorable ruling. While Bitcoin’s rally has softened the impact of its 2022 decline, market expectations for ETF approval may already be priced in, posing potential risks for the market. 

BTC’s Price Resistance And Potential Dip 

Bitcoin has experienced a remarkable rally this year, with expectations for ETF approval driving its price up by more than 60% since mid-October. 

However, the Bloomberg report suggests that the surge in demand for the anticipated ETFs may already be factored into the token’s price, potentially exposing the market to a “sell the news” scenario in the second week of January. 

Furthermore, QCP Capital, a Singapore-based crypto asset trading firm, predicts topside resistance for Bitcoin in the range of $45,000 to $48,500 and a possible retracement to $36,000 levels before the uptrend resumes.

Bitcoin ETF

Bitcoin is currently trading at $43,400, experiencing a 1% decline over the past 24 hours. Over the past 14 days, the cryptocurrency has shown a sideways price movement with a slight decrease of 0.4%. 

Given Bitcoin’s well-known volatility, it remains uncertain how the market will react as the looming decision and potential catalysts draw near, and how these factors will impact its price dynamics.

However, the upcoming decision is not the sole catalyst that can potentially drive Bitcoin’s price in 2024. The cryptocurrency is also anticipated to experience a significant catalyst in April 2024, known as the halving event. 

This event has historically resulted in an upward surge in Bitcoin’s price, and it is predicted to propel the cryptocurrency beyond its previous all-time high (ATH) of $69,000 throughout the upcoming year.

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin Price Surges On Positive News: FASB’s Fair Value Recognition Reignites $42,000 Support Recovery

The Bitcoin price experienced a notable downturn as selling pressure intensified, resulting in a decline of over 4% from its annual peak of $44,500. This downturn was further exacerbated by the loss of the crucial $42,000 support level. 

However, the largest cryptocurrency in the market received a substantial uplift from the US Financial Accounting Standards Board (FASB), which has spurred a rapid 1.8% surge in BTC’s value within the past two hours. As a result, Bitcoin has successfully recovered the $42,000 support level.

FASB’s Fair Value Recognition Brings Clarity To BTC?

In a significant development for the cryptocurrency industry, the FASB has announced new accounting rules that require companies, including prominent entities like MicroStrategy, Tesla, and Block, to measure their cryptocurrency holdings at fair value. 

These rules, set to go into effect in 2025, allow businesses to capture the real-time highs and lows of their Bitcoin and Ethereum (ETH) assets, providing a more accurate representation of their holdings.

Under the previous accounting practices, companies were only allowed to record the lows, resulting in a one-sided accounting treatment that often led to reduced valuations and diminished earnings for businesses holding cryptocurrencies. The highly volatile nature of crypto values further exacerbated the issue.

The FASB’s new rules address these concerns by mandating the recording of cryptocurrencies at fair value, a measurement technique aimed at reflecting the most up-to-date value of these assets. 

Changes in fair value will now be recorded in net income, allowing companies to account for fluctuations in the value of their crypto holdings more comprehensively.

The positive news for BTC lies in the fact that the new FASB rules provide greater transparency and accuracy in assessing the true value of cryptocurrency assets. By capturing fluctuations in fair value, companies will have a more realistic representation of their holdings, enabling better decision-making and financial reporting.

Bitcoin, being the most widely recognized and valuable cryptocurrency, stands to benefit significantly from these changes. The recognition of its fair value allows companies to showcase the true worth of their BTC holdings, potentially boosting investor confidence and attracting further institutional interest.

Turbulent Times Ahead For Bitcoin Price

Following these recent developments, the Bitcoin price has successfully rebounded to previously lost levels, demonstrating heightened volatility after a brief consolidation phase just below $42,000.

However, according to CoinGlass’ liquidation heatmap, Bitcoin’s price may be facing further volatility that could lead to a significant amount of liquidation of both long and short positions. 

Bitcoin price

The liquidation heatmap from CoinGlass highlights substantial indications of liquidation leverage exceeding $200 million both above and below the current Bitcoin price. 

Of particular concern is the thick liquidation leverage below $41,000, as seen in the chart above, which, combined with the prevailing trend, could become a probable target for the Bitcoin price in the coming days.

Conversely, following BTC’s correction, additional liquidation leverage has emerged in CoinGlass’s heatmap, particularly in the $42,000 and $43,000 range of short positions. This added selling pressure has contributed to the retracement of the Bitcoin price.

This potential scenario suggests a potential price swing up and down before a stable continuation of either the downward or upward momentum. The outcome remains uncertain as to which side will give way first and what prevailing trend will shape the latter part of the year.

Bitcoin price

Featured image from Shutterstock, chart from TradingView.com

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SEC’s “Crypto Asset Securities” Alert Boosts Spot Bitcoin ETF Prospects – Here’s Why

As anticipation builds for the long-awaited approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC), an encouraging sign has emerged, further increasing the likelihood of approval. 

The SEC issued an investor alert regarding “crypto asset securities,” prompting speculation that the spot Bitcoin ETF may be closer than ever. 

Spot Bitcoin ETF Approval On The Horizon?

The recent investor alert issued by the SEC has garnered significant attention in the cryptocurrency community. While the alert does not explicitly mention the spot Bitcoin ETF, many market participants believe it is a positive indicator for its potential approval.

The parallel between the investor alert and the approval of Bitcoin Futures adds to the growing optimism surrounding the spot Bitcoin ETF. Before approving Bitcoin Futures, the SEC issued similar alerts and warnings, indicating their concern and engagement with the underlying asset class. 

Consequently, market observers, including Bloomberg’s ETF expert Erich Balchunas, are interpreting the investor alert on “crypto asset securities” as a potential precursor to the approval of a spot Bitcoin ETF. Balchunas stated: 

Oh snap, SEC tweeting out educational materials, warnings on crypto investing, which is something they also did ahead of $BITO

It is important to note that the SEC will evaluate various factors, including investor protection, market integrity, and compliance with existing regulations, before making a final determination on the spot Bitcoin ETF. 

However, given the increased attention and progress in cryptocurrency, the issuance of the investor alert signifies a step in the right direction.

Potential BTC Surge To $48,000 

Renowned crypto analyst, Crypto Con, has made interesting observations regarding BTC’s current market dynamics that shed light on the potential next steps for the largest cryptocurrency on the market.

According to Crypto Con, money has been pouring into BTC at a rate not witnessed since the last cycle’s peak, with historical data indicating similar patterns on only five prior occasions. 

This influx of funds has heightened the market’s sentiment and created anticipation for potential further price gains. Crypto Con highlights the significance of Bitcoin’s Money Flow Index (MFI), a technical indicator used to measure the strength and volume of funds flowing into or out of an asset, which reached a value of 91.57, historically indicating the presence of additional bullish momentum.

Bitcoin ETF

Furthermore, the analyst identifies the .618 cycle retrace of weekly candle bodies as a point of interest for potential target ranges. This level aligns with other significant price regions, further bolstering its importance. 

Crypto Con suggests that Bitcoin’s price could likely reach the range of $47,000-$48,000 based on these target ranges. However, the analyst also notes that significant price increases are often followed by retracements at this stage in the market cycle.

Crypto Con highlights the potential for a retracement after the completion of the current price rise. The analyst identifies the $31,000-$32,000 range as an area of interest for a potential retracement based on long-term data. 

Bitcoin ETF

As of the time of writing, Bitcoin (BTC) is being traded at $43,800, showcasing a noteworthy recovery within the past 24 hours following a retracement below $42,900 on Thursday. 

While this price rebound is encouraging, it remains uncertain whether the prevailing market dynamics possess sufficient strength to propel Bitcoin beyond its current yearly high of $44,500. There is a possibility that Bitcoin may experience another failed attempt to surpass this level, which could subsequently result in a deeper retracement before witnessing another upward movement.

Featured image from Shutterstock, chart from TradingView.com 

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Bitcoin Has Been In A Class Of Its Own For The Last 10 Years, Top Expert Says

Bitcoin has encountered a critical resistance level going into the weekend and could move sideways following a massive rally. According to an expert, the cryptocurrency has been breaching every major obstacle, making it one of the best-performing assets.

As of this writing, Bitcoin (BTC) trades at $43,600 with sideways movement in the last 24 hours. Over the previous seven days, BTC recorded a 14% increase, with Ethereum following its footsteps, recording a 13% rally.

Bitcoin BTC BTCUSDT Chart 1

Bitcoin vs. Gold: The Digital Currency’s Journey to $40,000

Jurrien Timmer, Director of Macro for Fidelity, offers insightful analysis of Bitcoin’s trajectory, likening it to “exponential gold.”

His thesis suggests that Bitcoin, much like its elder counterpart, gold, holds value in times of structural inflation, yet it boasts an added venture twist. In that sense, Timmer believes both assets are prime to capture attention from investors looking to protect themselves from “reckless monetary inflation.”

As seen in the chart below, if Bitcoin follows a similar trajectory to the previous, its price could target $100,000 and $1,000,000 by early 2025.

Bitcoin BTC BTCUSDT Chart 2

2020 was pivotal for Bitcoin and gold, with fiscal and monetary stimulus bolstering their appeal. However, Bitcoin differentiates itself with its capped supply of 21 million coins, contrasting gold’s continual but modest annual supply growth.

This limited supply has propelled Bitcoin’s “stock-to-flow” (S2F) ratio significantly higher than gold’s. Moreover, Bitcoin’s journey reflects the classic S-curve path of technological innovations. Its exponential growth trajectory mirrors historical trends in technology from railroads to cell phones.

However, predicting Bitcoin’s future based on these S-curves is complex, as slight deviations in these growth phases can “dramatically” alter outcomes, the expert claims.

SEC Deliberations And Institutional Interest Shape Bitcoin’s Future

Timmer’s observations include a potential impact of the SEC’s anticipated decisions on the Bitcoin spot Exchange Traded Fund (ETF). He theorizes that pending product applications could attract new investors, yet he remains cautious about whether this will trigger a “sell-the-news” event and a large drawdown.

Interestingly, a small percentage of Bitcoin is held for under three months, suggesting that the recent price surge is not merely “speculative,” offering support for a longer bullish trend.

The true believers in Bitcoin, as indicated by the growing percentage held for over five or ten years, are unlikely to be swayed by short-term news. However, there is notable activity in the Bitcoin futures market, particularly among asset managers, which could suggest anticipation of the SEC movement.

Bitcoin BTC BTCUSDT Chart 3

Any updates from the SEC would arrive in a transformed macroeconomic environment. Unlike the liquidity-rich period of 2020-21, the US Federal Reserve’s (Fed) recent policy shifts have reversed the surge in monetary inflation.

This shift aligns the current situation more with the post-World War II era than the inflationary 1970s, impacting the urgency of the value proposition for gold and Bitcoin.

As BTC matures, its relationship with traditional financial markets and global economic trends becomes increasingly intricate. With the SEC’s decision and a shift in the macro-arena, the coming months are poised to exercise influence over the premier cryptocurrency and the nascent sector.

Cover image from Unsplash, chart from Tradingview

Posted on

Bitcoin Has Been In A Class Of Its Own For The Last 10 Years, Top Expert Says

Bitcoin has encountered a critical resistance level going into the weekend and could move sideways following a massive rally. According to an expert, the cryptocurrency has been breaching every major obstacle, making it one of the best-performing assets.

As of this writing, Bitcoin (BTC) trades at $43,600 with sideways movement in the last 24 hours. Over the previous seven days, BTC recorded a 14% increase, with Ethereum following its footsteps, recording a 13% rally.

Bitcoin BTC BTCUSDT Chart 1

Bitcoin vs. Gold: The Digital Currency’s Journey to $40,000

Jurrien Timmer, Director of Macro for Fidelity, offers insightful analysis of Bitcoin’s trajectory, likening it to “exponential gold.”

His thesis suggests that Bitcoin, much like its elder counterpart, gold, holds value in times of structural inflation, yet it boasts an added venture twist. In that sense, Timmer believes both assets are prime to capture attention from investors looking to protect themselves from “reckless monetary inflation.”

As seen in the chart below, if Bitcoin follows a similar trajectory to the previous, its price could target $100,000 and $1,000,000 by early 2025.

Bitcoin BTC BTCUSDT Chart 2

2020 was pivotal for Bitcoin and gold, with fiscal and monetary stimulus bolstering their appeal. However, Bitcoin differentiates itself with its capped supply of 21 million coins, contrasting gold’s continual but modest annual supply growth.

This limited supply has propelled Bitcoin’s “stock-to-flow” (S2F) ratio significantly higher than gold’s. Moreover, Bitcoin’s journey reflects the classic S-curve path of technological innovations. Its exponential growth trajectory mirrors historical trends in technology from railroads to cell phones.

However, predicting Bitcoin’s future based on these S-curves is complex, as slight deviations in these growth phases can “dramatically” alter outcomes, the expert claims.

SEC Deliberations And Institutional Interest Shape Bitcoin’s Future

Timmer’s observations include a potential impact of the SEC’s anticipated decisions on the Bitcoin spot Exchange Traded Fund (ETF). He theorizes that pending product applications could attract new investors, yet he remains cautious about whether this will trigger a “sell-the-news” event and a large drawdown.

Interestingly, a small percentage of Bitcoin is held for under three months, suggesting that the recent price surge is not merely “speculative,” offering support for a longer bullish trend.

The true believers in Bitcoin, as indicated by the growing percentage held for over five or ten years, are unlikely to be swayed by short-term news. However, there is notable activity in the Bitcoin futures market, particularly among asset managers, which could suggest anticipation of the SEC movement.

Bitcoin BTC BTCUSDT Chart 3

Any updates from the SEC would arrive in a transformed macroeconomic environment. Unlike the liquidity-rich period of 2020-21, the US Federal Reserve’s (Fed) recent policy shifts have reversed the surge in monetary inflation.

This shift aligns the current situation more with the post-World War II era than the inflationary 1970s, impacting the urgency of the value proposition for gold and Bitcoin.

As BTC matures, its relationship with traditional financial markets and global economic trends becomes increasingly intricate. With the SEC’s decision and a shift in the macro-arena, the coming months are poised to exercise influence over the premier cryptocurrency and the nascent sector.

Cover image from Unsplash, chart from Tradingview

Posted on

Bitcoin Has Been In A Class Of Its Own For The Last 10 Years, Top Expert Says

Bitcoin has encountered a critical resistance level going into the weekend and could move sideways following a massive rally. According to an expert, the cryptocurrency has been breaching every major obstacle, making it one of the best-performing assets.

As of this writing, Bitcoin (BTC) trades at $43,600 with sideways movement in the last 24 hours. Over the previous seven days, BTC recorded a 14% increase, with Ethereum following its footsteps, recording a 13% rally.

Bitcoin BTC BTCUSDT Chart 1

Bitcoin vs. Gold: The Digital Currency’s Journey to $40,000

Jurrien Timmer, Director of Macro for Fidelity, offers insightful analysis of Bitcoin’s trajectory, likening it to “exponential gold.”

His thesis suggests that Bitcoin, much like its elder counterpart, gold, holds value in times of structural inflation, yet it boasts an added venture twist. In that sense, Timmer believes both assets are prime to capture attention from investors looking to protect themselves from “reckless monetary inflation.”

As seen in the chart below, if Bitcoin follows a similar trajectory to the previous, its price could target $100,000 and $1,000,000 by early 2025.

Bitcoin BTC BTCUSDT Chart 2

2020 was pivotal for Bitcoin and gold, with fiscal and monetary stimulus bolstering their appeal. However, Bitcoin differentiates itself with its capped supply of 21 million coins, contrasting gold’s continual but modest annual supply growth.

This limited supply has propelled Bitcoin’s “stock-to-flow” (S2F) ratio significantly higher than gold’s. Moreover, Bitcoin’s journey reflects the classic S-curve path of technological innovations. Its exponential growth trajectory mirrors historical trends in technology from railroads to cell phones.

However, predicting Bitcoin’s future based on these S-curves is complex, as slight deviations in these growth phases can “dramatically” alter outcomes, the expert claims.

SEC Deliberations And Institutional Interest Shape Bitcoin’s Future

Timmer’s observations include a potential impact of the SEC’s anticipated decisions on the Bitcoin spot Exchange Traded Fund (ETF). He theorizes that pending product applications could attract new investors, yet he remains cautious about whether this will trigger a “sell-the-news” event and a large drawdown.

Interestingly, a small percentage of Bitcoin is held for under three months, suggesting that the recent price surge is not merely “speculative,” offering support for a longer bullish trend.

The true believers in Bitcoin, as indicated by the growing percentage held for over five or ten years, are unlikely to be swayed by short-term news. However, there is notable activity in the Bitcoin futures market, particularly among asset managers, which could suggest anticipation of the SEC movement.

Bitcoin BTC BTCUSDT Chart 3

Any updates from the SEC would arrive in a transformed macroeconomic environment. Unlike the liquidity-rich period of 2020-21, the US Federal Reserve’s (Fed) recent policy shifts have reversed the surge in monetary inflation.

This shift aligns the current situation more with the post-World War II era than the inflationary 1970s, impacting the urgency of the value proposition for gold and Bitcoin.

As BTC matures, its relationship with traditional financial markets and global economic trends becomes increasingly intricate. With the SEC’s decision and a shift in the macro-arena, the coming months are poised to exercise influence over the premier cryptocurrency and the nascent sector.

Cover image from Unsplash, chart from Tradingview

Posted on

Bitcoin Has Been In A Class Of Its Own For The Last 10 Years, Top Expert Says

Bitcoin has encountered a critical resistance level going into the weekend and could move sideways following a massive rally. According to an expert, the cryptocurrency has been breaching every major obstacle, making it one of the best-performing assets.

As of this writing, Bitcoin (BTC) trades at $43,600 with sideways movement in the last 24 hours. Over the previous seven days, BTC recorded a 14% increase, with Ethereum following its footsteps, recording a 13% rally.

Bitcoin BTC BTCUSDT Chart 1

Bitcoin vs. Gold: The Digital Currency’s Journey to $40,000

Jurrien Timmer, Director of Macro for Fidelity, offers insightful analysis of Bitcoin’s trajectory, likening it to “exponential gold.”

His thesis suggests that Bitcoin, much like its elder counterpart, gold, holds value in times of structural inflation, yet it boasts an added venture twist. In that sense, Timmer believes both assets are prime to capture attention from investors looking to protect themselves from “reckless monetary inflation.”

As seen in the chart below, if Bitcoin follows a similar trajectory to the previous, its price could target $100,000 and $1,000,000 by early 2025.

Bitcoin BTC BTCUSDT Chart 2

2020 was pivotal for Bitcoin and gold, with fiscal and monetary stimulus bolstering their appeal. However, Bitcoin differentiates itself with its capped supply of 21 million coins, contrasting gold’s continual but modest annual supply growth.

This limited supply has propelled Bitcoin’s “stock-to-flow” (S2F) ratio significantly higher than gold’s. Moreover, Bitcoin’s journey reflects the classic S-curve path of technological innovations. Its exponential growth trajectory mirrors historical trends in technology from railroads to cell phones.

However, predicting Bitcoin’s future based on these S-curves is complex, as slight deviations in these growth phases can “dramatically” alter outcomes, the expert claims.

SEC Deliberations And Institutional Interest Shape Bitcoin’s Future

Timmer’s observations include a potential impact of the SEC’s anticipated decisions on the Bitcoin spot Exchange Traded Fund (ETF). He theorizes that pending product applications could attract new investors, yet he remains cautious about whether this will trigger a “sell-the-news” event and a large drawdown.

Interestingly, a small percentage of Bitcoin is held for under three months, suggesting that the recent price surge is not merely “speculative,” offering support for a longer bullish trend.

The true believers in Bitcoin, as indicated by the growing percentage held for over five or ten years, are unlikely to be swayed by short-term news. However, there is notable activity in the Bitcoin futures market, particularly among asset managers, which could suggest anticipation of the SEC movement.

Bitcoin BTC BTCUSDT Chart 3

Any updates from the SEC would arrive in a transformed macroeconomic environment. Unlike the liquidity-rich period of 2020-21, the US Federal Reserve’s (Fed) recent policy shifts have reversed the surge in monetary inflation.

This shift aligns the current situation more with the post-World War II era than the inflationary 1970s, impacting the urgency of the value proposition for gold and Bitcoin.

As BTC matures, its relationship with traditional financial markets and global economic trends becomes increasingly intricate. With the SEC’s decision and a shift in the macro-arena, the coming months are poised to exercise influence over the premier cryptocurrency and the nascent sector.

Cover image from Unsplash, chart from Tradingview

Posted on

Sam Altman-Backed Crypto Startup Looks To Secure $100 Million For Bitcoin Private Credit Fund

Meanwhile Advisors, a crypto startup backed by the American entrepreneur Sam Altman, has announced plans to raise $100 million for a Bitcoin (BTC) private credit fund. 

The fund, known as Meanwhile Private Credit Fund aims to provide institutional investors with access to BTC while targeting an additional 5% yield denominated in the cryptocurrency.

Bitcoin Rally Sparks Launch Of Meanwhile Advisors Fund

According to a report by The Block, Meanwhile Advisors has launched the fund as Bitcoin continues its recent rally, with prices currently falling from the $44,000 level down to the $43,200 mark. 

Zac Townsend, the co-founder and CEO of Meanwhile Group, stated that the belief is that Bitcoin will appreciate significantly in the future, and the fund offers investors a unique opportunity to increase their exposure to digital assets.

The Meanwhile BTC Private Credit Fund adopts a single-close, closed-end structure. Participating limited partners (LPs) will contribute US dollars to the fund, which will be immediately converted to Bitcoin following the single close. 

Meanwhile will lend this BTC to borrowers to generate the targeted 5% return in Bitcoin. This structure allows LPs to accumulate more Bitcoin if its price appreciates during the fund’s lifecycle without requiring additional principal investment.

Townsend mentioned that the minimum investment amount per LP is $250,000, with no maximum limit. The fund’s investment period spans three years, followed by a four-year harvest period, resulting in a total term of seven years. 

However, capital is returned to investors during harvest, meaning a significant portion of the invested capital may be returned well before the seven-year mark.

Innovative Fee Approach? 

Per the report, the Meanwhile BTC Private Credit Fund charges a 2% management fee and a 20% carried interest fee, both in Bitcoin. The carried interest fee only applies when the LP’s Bitcoin holdings are increased. 

This fee structure ensures that if Bitcoin experiences substantial price appreciation, Meanwhile does not benefit from the price appreciation itself but rather from generating more Bitcoin for the LPs.

Addressing concerns about risk management, Townsend highlighted that the closed structure of the fund eliminates the risk of a “bank run” scenario that can lead to insolvency. Moreover, the fund focuses on making conservative loans to “creditworthy institutional borrowers”, mitigating risks associated with lending to retail investors at higher rates.

The Block also reported that Anchorage Digital serves as the fund’s custodian. Meanwhile Group’s insurance unit has previously launched a Bitcoin-denominated life insurance policy, and Townsend mentioned plans to introduce an accidental death coverage policy in Bitcoin as well.

Bitcoin

When writing, the leading cryptocurrency in the market is trading at $43,200, marking a decrease of nearly 2% within the last 24 hours. This decline follows an unsuccessful attempt to solidify its position above the significant $44,000 milestone. 

Nevertheless, Bitcoin has managed to maintain a 14% increase over the past seven days and is currently holding strong at the support level of $43,000, as it sets its sights on achieving a new annual peak.

Featured image from iStock, chart from TradingView.com