spot Bitcoin ETFs Archives - Page 2 of 3

29th March 2024

Bitcoin Ready To Rip? Indicator Prints Bullish Signal After 9 Years

One analyst on X thinks Bitcoin bulls may be in for a treat in the coming months after one key indicator printed a buy signal for the first time in nearly a decade. While pointing to a bullish crossover on the 2-month chart’s Golden Moment Indicator, the analyst said the signal is again flashing green in almost nine years.

Further cementing this outlook, this is forming as yet the Supertrend indicator, which has historically preceded every major Bitcoin uptrend, is also bullish.

BTC bull signals print | Source: Analyst on X

Bitcoin On A Bullish Path?

Though the analyst might be bullish on the world’s most valuable coin, the asset remains consolidated. Technically, reading from the formation in the daily chart, the coin is slowly losing the uptrend momentum. This week, Bitcoin failed to build on to late last week’s spike to push above $72,000 in a buy trend continuation.

In the daily chart, Bitcoin is trading above the 20-day moving average. However, prices have been moving horizontally below $72,000. Despite this, traders are hopeful.

Whether bulls will flow back and thrust the coin to fresh highs above $74,000 will depend on many other factors.

Inflows Into Spot BTC ETFs Pick Up Momentum

A key influencer on price and sentiment remains spot Bitcoin exchange-traded funds (ETFs) and their flow trend. Since launching, nine out of the ten spot Bitcoin ETFs have accumulated over 500,000 BTC, or roughly 2.5% of the total supply.

When Grayscale’s BTC holding is factored in, all spot Bitcoin ETF issuers in the United States control 830,000 BTC. Cumulatively, this figure translates to roughly 4% of the total supply.

Of note, after last week’s slowdown, inflows continued throughout this week, pushing their holdings even higher—a net positive for the price and, most importantly, investor confidence. By March 28, Lookonchain data shows that 21Shares led the charge, adding 2,924 BTC.

Spot Bitcoin ETF issuers accumulating | Source: Lookonchain via X

Despite the general lull in Bitcoin prices, the uptick in demand for these derivative products indicates growing interest among institutional and retail investors.

It remains to be seen how prices react going into April, an important month. In less than four weeks, the network will halve miner rewards from 6.25 BTC to 3.125 BTC, making the coin scarce. If the current level of demand remains, BTC prices will likely rise as market forces automatically adjust prices.

28th March 2024

Are Old Bitcoin Whales Selling Or Mitigating Risks Using Spot BTC ETFs?

Ki Young Ju, the founder of CryptoQuant, a blockchain analytics firm, has noticed a curious trend. In a post on X, the founder shared a snapshot suggesting that Bitcoin “old whales” might be shifting their holdings to “new whales,” mainly traditional finance heavyweights like Fidelity and BlackRock.

The United States Securities and Exchange Commission (SEC) recently approved these new whales to list spot Bitcoin exchange-traded funds (ETFs) for all investors.

Bitcoin old whales moving holding | Source: Analyst on X

“Old Whales” Moving Coins: Selling Or Risk Mitigation?

While a definitive sell-off isn’t confirmed, commentators replying to the founder’s post believe these “old whales” could be mitigating risk. In their assessment, moving their Bitcoin stash from self-custody to a regulated investment vehicle like spot Bitcoin ETFs is a better measure of covering unexpected eventualities.

If this is the approach, then it could prove strategic. Bitcoin holders can transact without depending on a third party. Notably, this development coincides with a significant drop in BTC inventory on major exchanges like Coinbase and Binance, as well as at GBTC.

The decline has accelerated since the introduction of spot Bitcoin ETFs, hinting at a potential departure from exchanges. Meanwhile, the operators of GBTC are unwinding the product and converting it to a spot Bitcoin ETF following a court decision.

Will Spot BTC ETFs Gain Traction?

Even so, that “old whales” are moving their coins to centralized products like ETFs contradicts the core philosophy of BTC as a tool for financial self-sovereignty. Whether more users, mainly retailers, will choose to own spot Bitcoin ETF shares rather than the underlying coins directly remains to be seen.

Institutions might be obliged by law to use a regulated product if they need to be exposed to BTC. However, retailers can choose to buy directly from exchanges or mine. This freedom might lead to more retailers opting to buy BTC.

This trend emerges ahead of the highly anticipated Bitcoin halving. This event is set for mid-April 2024 and will further reduce BTC’s circulating supply, potentially driving higher prices. Before then, BTC prices are firm, steady above $70,000 at the time of writing.

28th March 2024

Are Old Bitcoin Whales Selling Or Mitigating Risks Using Spot BTC ETFs?

The United States Securities and Exchange Commission (SEC) recently approved these new whales to list spot Bitcoin exchange-traded funds (ETFs) for all investors.

Bitcoin old whales moving holding | Source: Analyst on X

“Old Whales” Moving Coins: Selling Or Risk Mitigation?

Will Spot BTC ETFs Gain Traction?

28th March 2024

Bitcoin ETF Inflows Could Eclipse $1 Trillion, Predicts Bitwise CIO

Following a week of net outflows, the spot Bitcoin ETF market has rebounded with impressive net inflows this week, highlighting a growing investor confidence in Bitcoin and its associated financial products. This week’s market activities have shown a remarkable reversal from the previous 5-day net outflow streak, with Tuesday witnessing a substantial net inflow of $480 million, followed by $243.5 million on Wednesday.

Yesterday’s resurgence in investor interest was notably boosted by Blackrock’s massive inflow of $323.8 million, effectively offsetting Grayscale GBTC’s $299.8 million outflows. Moreover, Ark Invest’s ARKB reported its best day yet, with $200 million in inflows, despite Fidelity experiencing its worst day with a mere $1.5 million in outflows. Nevertheless, Fidelity managed to bounce back with significant inflows of $261 million and $279 million on Monday and Tuesday, respectively.

Yesterday's ETF flows were positive for $243.5 million.

Blackrock finally woke up again for $323.8 million completely cancelling out $GBTC's $299.8 million outflows.

Ark had their best day yet with $200 million. Fidelity had its worst day with $1.5 million.

Price dumped on… pic.twitter.com/LLChkITN7q

— WhalePanda (@WhalePanda) March 28, 2024

1% Down, 99% To Go For Bitcoin ETFs

However, according to Bitwise Chief Investment Officer (CIO) Matt Hougan, this is just the mere beginning of what is to come in the upcoming months. Hougan’s commentary, part of his weekly memo to investment professionals, sheds light on the current market dynamics and the colossal potential that lies ahead. “1% Down; 99% to Go,” Hougan wrote, highlighting the nascent yet promising journey of Bitcoin ETFs.

Lately, the market has been characterized by its volatility, with Bitcoin’s price oscillating between $60,000 and $70,000. Hougan advises a calm and long-term perspective amidst this fluctuation, especially as the sector anticipates the upcoming Bitcoin halving around April 20, the approval of Bitcoin ETFs on national account platforms, and the soon-to-come completion of due diligence by various investment committees.

Despite the current sideways movement of Bitcoin’s price, Hougan remains bullish about its long-term trajectory. “Bitcoin is in a raging bull market,” he asserts, noting a nearly 300% increase over the past 15 months. The launch of spot Bitcoin ETFs in January has marked a significant milestone, opening up the Bitcoin market to investment professionals on an unprecedented scale.

Hougan’s analysis points to a profound shift as global wealth managers, who collectively control over $100 trillion, begin to explore investments in the “digital gold.” He suggests that even a conservative allocation of 1% of their portfolios to Bitcoin could result in approximately $1 trillion of inflows into the space.

This perspective is backed by historical data showing that even a 2.5% allocation to Bitcoin has enhanced the risk-adjusted returns of traditional 60/40 portfolios in every three-year period of Bitcoin’s history.

The recent inflows into Bitcoin ETFs, though impressive, are seen by Hougan as merely the beginning of a much larger movement. “We are all excited about the $12 billion that has flowed into ETFs since January. And it is exciting: Collectively, the most successful ETF launch of all time..But imagine global wealth managers allocate just 1% of their portfolios to bitcoin on average,” Hougan elaborates, emphasizing the scale of potential growth awaiting the cryptocurrency market. He concludes:

Think about the implications. […] A 1% allocation across the board would mean ~$1 trillion of inflows into the space. Against this, $12 billion is barely a down payment. 1% down, 99% to go.

At press time, BTC traded at $70,644.

Bitcoin price

27th March 2024

Will Bitcoin Break $74,000 Driven By TradFi FOMO?

Willy Woo, an on-chain analyst, believes the Bitcoin upswing is far from over. Citing the development in the Bitcoin Macro Oscillator and the possibility of traditional finance jumping on the bandwagon (FOMO), the odds of BTC rallying in at least two strong legs up in the coming session could not be discounted.

On-Chain Data Signals More Upside For Bitcoin

In a post on X, Woo remains confident about what lies ahead for the world’s most valuable cryptocurrency. Based on on-chain development, there are indicators that the coin may firmly push higher, breaking above the current lull.

Bitcoin remains mostly range-bound when writing, trading within a tight zone capped by $73,800 on the upper end and $69,000 as immediate support. Even with analysts being confident of what lies ahead, the coin has failed to overcome strong selling momentum from sellers to breach all-time highs in a buy-trend continuation.

From how the coin is set up, the current sideways movement may be accumulation or distribution, depending on the breakout direction. For instance, any upswing above $72,400 might spur demand, lifting the coin towards $73,800. Conversely, losses below $69,000 and the middle BB might see BTC slump to March 5 lows or even lower.

Will TradFi FOMO And Short Squeeze Lift BTC?

Even with the slowdown in upside momentum, Woo says there is strong potential for “another solid leg up.” The analyst also added that there could be two surges if TradFi investors “FOMO” into Bitcoin. In the 2017 bull run, the rally to $20,000 was primarily due to retailers jumping in and FOMOing on the coin.

With spot Bitcoin exchange-traded funds (ETFs) available in the United States, speculation is that more institutions and high-net-worth individuals are buying the coin. If BTC rips higher, breaking $74,000, more inflow will likely be into the multiple spot Bitcoin ETFs, fueling demand.

This bullish outlook comes when other analysts expect Bitcoin to surge in the sessions ahead. In a post on X, one analyst says the incoming short squeeze will likely propel the coin above March highs. Whenever a short squeeze happens, prices rise, forcing sellers to buy back at higher prices, accelerating the uptrend.

The assessment is behind a record-breaking gap between institutional investors betting on price increases and hedge funds selling the coin.

21st March 2024

US Spot Bitcoin ETFs Experience Record Outflows, Losing $740 Million In Three Days

The 10 spot Bitcoin ETFs experienced their biggest three-day outflow since their debut in January, as reported by Bloomberg. This shift in investor sentiment comes after heightened interest that propelled the largest cryptocurrency in the market to a record high of $73,700.

Bitcoin ETFs See Record Outflows

Between Monday and Wednesday, a net total of $742 million exited the Bitcoin ETFs, reflecting outflows from the Grayscale Bitcoin Trust (GBTC) and a moderation in subscriptions for similar offerings from prominent firms like BlackRock (IBIT) and Fidelity Investments (FBTC).

According to Bloomberg ETF expert Eric Balchunas, the Grayscale Bitcoin Trust has experienced a notable outflow surge. This recent development indicates a “second wind” of investor withdrawals, with a substantial $1.4 billion leaving the trust just this week.

Bitcoin ETFs

Notably, these withdrawals have surpassed all other ETFs in year-to-date outflows and set a new record for cumulative outflows in ETF history, as shown in the chart above.

Nevertheless, GBTC continues to hold a prominent position in terms of revenue generation. It currently ranks third out of the 3,400 ETFs available, demonstrating its continued financial success.

Despite the recent outflows, the overall performance of these funds remains noteworthy, with net inflows of $11.4 billion recorded since their launch, according to data compiled by Bloomberg. This signifies one of the most successful debuts for an ETF category.

Crypto Analyst Predicts “Massive Bounce” For BTC

Bitcoin experienced a significant surge of over 5% in the United States on Wednesday, propelled by signals from the Federal Reserve (Fed) hinting at potential interest-rate cuts.

However, the Asian market painted a different picture on Thursday, with Bitcoin losing momentum compared to continued gains in global stocks and gold. According to Bloomberg, the news of outflows from Bitcoin ETFs permeated markets, contributing to the contrasting performance.

Nonetheless, renowned crypto analyst Michael van de Poppe shared a bold prediction on social media platform X (formerly Twitter). In his post, he expressed optimism about a “massive bounce” for Bitcoin, suggesting the potential for a continuation of its upward trajectory.

Van de Poppe also predicted that Bitcoin could consolidate in the near term before embarking on another rally towards the all-time high it reached before the halving event, which is expected to begin sometime in April.

Bitcoin ETFs

Currently, BTC is trading at $66,200, reflecting a 4% increase in the past 24 hours despite ongoing outflows in the ETF market. Over longer time frames, Bitcoin has shown consistent gains, with a 27% increase over the past thirty days and an impressive 136% gain year-to-date.

Featured image from Shutterstock, chart from TradingView.com

13th March 2024

Bitcoin Whale Books $217 Million Profit After BTC Broke $73,000

The ongoing Bitcoin surge is proving lucrative for a crypto whale. According to Lookonchain data on March 13, one large BTC address has raked in $217 million in profits after prices rose above $73,000 earlier today. Profits would have even been higher because, over the past, the whale has been unloading large amounts via Binance, the world’s largest crypto exchange.

Crypto whale accumulating BTC | Source: Lookonchain via X

This development follows Bitcoin’s solid growth. Since October 2023, the coin has been steadily rising, fueled by supportive fundamental events, including interest rate expectations from the United States Federal Reserve and the approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC).

BTC Is Rallying, Whale Books $217 Million Profit

Coupled by bullish holders, expecting more gains ahead and after halving, the coin has been rapidly inching higher, exceeding expectations. The previous all-time high of around $72,800 was broken on March 13 when the coin broke higher, rallying above $73,000.

This expansion comes after a strong price correction in the New York session on March 12. However, with confidence still in the market, prices rallied strongly during the Asian market, pushing prices above $72,800 to as high as $73,700.

While traders clipped fluctuations, the anonymous whale took full advantage of the rally after months of HODLing. Lookonchain data shows that the whale began accumulating Bitcoin on August 24, 2023, at an average price of $32,854, before withdrawing and depositing 4,300 BTC at an average price of $3,534.

BTC whale booking profits | Source: Lookonchain via X

The address currently controls 4,300 BTC worth over $313 million and is $217 million in profits. The whale withdrew 100 BTC worth $7.22 million via Binance on March 13, possible to book profits.

BlackRock And Wall Street Driving Bitcoin Demand

Whether the whale will withdraw more and consolidate profits remains to be seen. However, considering the overall optimism across the market, the address could register more gains.

The crypto community expects the deluge of capital from institutions to continue in the weeks ahead. So far, BlackRock, through its IBIT spot Bitcoin exchange-traded fund (ETF) product, controls over 205,000 BTC. There is more demand from other issuers like Fidelity and Ark Invest.

Beyond that, the rising demand from pension funds, mainly in the United States, would further drive prices higher, lifting HODLers’ valuation. This week, the business intelligence firm MicroStrategy said it was also buying more coins after raising $800 million from investors.

13th March 2024

Bitcoin ETFs See Record $1 Billion Inflows, Pushing Price Over $73,500

Yesterday, the Bitcoin price journey resembled a high-intensity rollercoaster ride, initially soaring past the $73,000 mark before encountering a tumultuous liquidation event. This event saw over $361 million worth of leveraged trades unwound, compelling the BTC price to retract sharply to below $68,300.

The drastic price fluctuation primarily affected long position holders—investors who speculated on a continued price rise—with a staggering $258 million wiped out. Subsequently, Bitcoin’s price staged a remarkable V-shaped recovery, during which short sellers found themselves on the losing end, with just over $103 million in positions liquidated.

This data by Coinglass marks the event as the most significant purge of long positions since March 5. At that time, Bitcoin experienced a decline to $60,800 following its climb to a then all-time high of approximately $69,000.

Bitcoin ETFs Register Record $1 Billion Inflows

Perhaps spurred by the opportunity presented by the price dip, investors in spot Bitcoin Exchange-Traded Funds (ETFs) engaged in a buying spree, unprecedented in its intensity. For the first time, spot Bitcoin ETFs witnessed a daily inflow surpassing $1 billion on Tuesday, March 12, primarily driven by an inflow of $849 million to BlackRock’s IBIT. According to detailed data released by Farside Investors, the total net inflows across all Bitcoin ETFs were at $1045 million (or $1.045 billion).

The second largest Bitcoin ETF to date, Fidelity, saw a rather quiet day with FBTC taking in only $51.6 million, while Ark Invest ($93 million), Bitwise ($24.6 million), Valkyrie ($39.6 million) and VanEck ($82.9 million) saw relatively strong capital inflows. Notably, Grayscale‘s GBTC saw a waning outflow of just $79 million.

Bitcoin analyst Alessandro Ottaviani shared his insights on X, underscoring the magnitude of these inflows, “1 Billy of Total net Inflow! ONE BILLION DOLLARS! […] In the last twelve trading days, The Nine inflow has been $9.2b, with an average of $768m per day. Just imagine if we keep this pace and it is confirmed that GBCT outflow is almost exhausted.”

Crypto Quant analyst Maartunn provided additional context to the inflow’s impact, revealing, “JUST IN: The Bitcoin Exchange-Traded Fund (ETF) has experienced its highest inflows ever, with an additional 14,706.2 BTC.” This statement further emphasizes the substantial increase in Bitcoin’s demand, potentially setting it up for a major supply squeeze.

JUST IN: The Bitcoin Exchange-Traded Fund (ETF) has experienced its highest inflows ever, with an additional 14,706.2 BTC. https://t.co/xg7wADbRzy pic.twitter.com/IUAyt1jzGE

— Maartunn (@JA_Maartun) March 13, 2024

Adding to the conversation, crypto analyst @venturefounder suggested potential future price movements based on the current trend, “Absolute Bitcoin madness […] The 5-day moving average net inflow has fully recovered to peak. So… probably HIGHER. If this continues, $80-90k by the end of month is not far fetched. No correction has lasted longer than 24 hours on the weekdays. Interestingly, the first major correction of the 2021 cycle came when price went 2x previous ATH. So could we see no major correction until $120k?”

At press time, BTC already surpassed the $73,500 mark and traded at $73,392.

Bitcoin price

12th March 2024

Expect A Bitcoin Scarcity Crisis In 6 Months, BTC To $100,000?

Ki Young Ju, the founder of CryptoQuant, a crypto analytics platform, predicts a severe Bitcoin “sell-side liquidity crisis” in the next six months. In this event, the founder thinks that not only will prices erupt to new levels, surpassing expectations, but the crisis will likely lead to a market disruption.

Bitcoin Records New All-Time Highs

Bitcoin is trading at around new all-time highs following sharp price gains on March 11. The coin roared to print new all-time highs of $72,800 before cooling off to spot levels.

Even though the upside momentum has waned as prices move horizontally when writing, the uptrend remains. Accordingly, more traders expect BTC to ease above yesterday’s highs as bulls target seven digits at $100,000. If bulls break above this psychological number, technical and fundamental analysts say it will be a crucial inflection point for Bitcoin.

The founder expects Bitcoin prices to explode in the next six months primarily because of two factors. The first, Ju notes, is the massive influx of demand from institutions via spot Bitcoin exchange-traded funds (ETFs). So far, analysts have linked the current upswing in Bitcoin to institutional demand.

BTC held by entities | Source: Ki Young Ju on X

Last week, Ju observed a net inflow of over 30,000 BTC. This means that institutions are taking away more coins from circulation at an unprecedented level, contributing to scarcity. Institutions and wealthy individuals can gain exposure to BTC through spot ETFs without necessarily owning it directly.

Beyond this, the concern lies in the limited number of coins held across centralized exchanges and known entities, especially miners. The founder estimates that exchanges and miners own roughly 3 million BTC. Ju explains in the post that entities in the United States hold 1.5 million BTC.

BTC accumulation addresses | Source: Kin Young Ju on X

BTC Scarcity Crisis Expected

The founder notes that rising demand from spot ETFs and a constrained supply will create a “sell-side liquidity crisis” within six months. This scenario could lead to a situation where there aren’t enough sellers to meet the high buyer demand, further lifting prices to fresh levels.

The Bitcoin network will slash miner rewards by half in April from the current 6.125 BTC. Because of this, BTC’s emissions will drop, meaning only small amounts of coins will be released into circulation, further worsening the situation.

As such, if the current level of demand remains and institutions continue to double down, the expected scarcity crisis may likely cause a major disruption in the market, benefiting coin holders.

12th March 2024

Bitcoin ETF ‘Floodgates’ Are Just Opening, Says Bitwise CIO Amid $72,000 Surge

In a recent appearance on CNBC’s ‘Halftime Report,’ Matt Hougan, Chief Investment Officer (CIO) of Bitwise Asset Management, shared insights into the burgeoning interest and adoption of spot Bitcoin Exchange-Traded Funds (ETFs). This discussion comes at a time when BTC has shattered expectations, reaching a new all-time high of nearly $72,500.

Bitcoin ETF ‘Floodgates’ Are Just Opening

Bob Pisani of CNBC highlighted the unprecedented influx of approximately $20 billion into the market following the mid-January launch of 10 new spot Bitcoin ETFs, including $1.3 Billion in Bitwise‘s own BITB. This move has significantly broadened the investor base for Bitcoin, attracting a diverse group ranging from retail investors and registered investment advisors to hedge funds and venture capital funds.

According to Hougan, “It’s sort of everyone everywhere all at once,” indicating a widespread and multifaceted demand for BTC exposure through these ETFs. He further revealed that “right out of the gate, the initial buyers are retail investors, registered investment advisors, but we’re also seeing hedge funds, venture capital funds, and others lining up.”

Crucially, Hougan pinpointed the near-future potential for a significant expansion in the investor base for Bitcoin ETFs. He foresees major wealth management platforms — the likes of Morgan Stanley and Wells Fargo — opening up to these ETFs, which would mark a pivotal moment in cryptocurrency investment.

“Soon, we think we’ll unlock major wealth management platforms, the Morgan Stanley‘s and Wells Fargo’s, and we’re even seeing corporations lining up to get into these funds. So a lot of the floodgates are open, not all of them,” he explained. This anticipated shift is expected to unlock “massive flows” into Bitcoin ETFs, as advisors on these platforms may soon begin recommending Bitcoin exposure to their clients.

“But we think in the next weeks or months, and it could be as soon as weeks, you’ll start to see these major wirehouses allow solicited investing into these Bitcoin ETFs means that the advisors can suggest to their clients that it might be helpful for their overall portfolio to add a small amount of Bitcoin exposure,” Hougan added.

ETF Buyers Are Long-Term Investors

Hougan’s statements underline a critical evolution in the perception and accessibility of Bitcoin as an investment vehicle. The broadening investor base, initially dominated by retail and institutional investors, is on the cusp of welcoming major wealth management platforms and their clientele into the fold.

This transition, according to Hougan, could significantly amplify the capital flowing into Bitcoin ETFs, thereby increasing BTC’s integration into mainstream investment portfolios.

Addressing concerns about the notorious volatility of BTC, Hougan argued that Bitcoin is “its own asset” currently in a phase of price discovery. He stressed the maturity of investors in this space, saying, “if you strip out GBTC…investors added exposure when the price went from $50,000 down to $39,000, and they’ve added exposure as it’s gone up to $72,000.”

This steady investment behavior, even in the face of volatility, indicates a strong belief in the long-term value of Bitcoin. “They’re just steadily adding to Bitcoin exposure and that gives me confidence that they’re here to stay. I think most of them are long-term investors in the space,” Hougan concluded.

At press time, BTC traded at $71,597.

Bitcoin price

5th March 2024

If Bitcoin Clears $70,000, How Fast Will Ethereum Ease Past $5,000?

As Bitcoin surges towards its all-time high (ATH) of nearly $70,000, analysts are closely watching Ethereum, the world’s second-largest cryptocurrency, wondering how quickly it will follow suit and break its record ATHs of approximately $5,000 printed in late 2021.

How Will Ethereum React When Bitcoin Breaks Above $70,000?

One analyst, posting on platform X, highlights the difference in the two coins’ positions compared to the last time Bitcoin broke above 2017 highs of $20,000 in December 2020. Then, Ethereum was trading at $600, a full 57% below its previous ATH of about $1,400.

As Bitcoin nears its record peak of around $70,000 registered in December 2021, Ethereum is approaching $4,000. However, the difference between then and now is that ETH is about 36% shy of its ATH of around $5,000.

The question in the analyst’s mind is, considering historical performance, how fast ETH will ease past $5,000. When Bitcoin broke above $20,000 in late December 2020, the analyst notes that it took approximately two months for ETH to sweep past $1,400 and record new highs.

The boom after this breakout lifted ETH to around $5,000, accelerated mainly by retail activities cycling around decentralized finance (DeFi) and non-fungible token (NFT) minting.

Looking at the Ethereum price action in the daily chart, it is clear that buyers are in control. ETH prices, CoinMarketCap data reveals, are up roughly 7% in the past 24 hours and 15% in the previous week. However, how quickly ETH might repeat the prior 2020-2021 feat remains to be seen.

Exploring ETH’s Chances

Like in the past, the Ethereum price action benefits from the Bitcoin expansion. The revival in Bitcoin prices has seen capital flow to Ethereum, priming its broader ecosystem comprising DeFi and NFT protocols. DeFiLlama data shows that Ethereum manages over $56 billion worth of assets.

Notably, almost all top DeFi protocols in Ethereum, including Lido, Maker, Uniswap, and EigenLayer, have posted strong inflows in the past day, week, and month.

Ethereum DeFi protocols pulling in capital | Source: DeFiLlama

Aside from market-related factors, Ethereum prices are also steadied by hopes around the eventual approval of a spot Ethereum exchange-traded fund (ETF). BlackRock is among the leading asset managers to file with the United States Securities and Exchange Commission (SEC).

However, the agency postponed a ruling on BlackRock’s application for a spot Ethereum ETF, citing concerns about the network’s new proof-of-stake consensus mechanism. The SEC expressed worries that staking, a core aspect of proof-of-stake, could create opportunities for manipulation.

The clear reservation regarding proof-of-stake cast a shadow on Ethereum’s near-term outlook despite the current uptick in prices. Still, the community finds relief realizing that the Commission rejected approving a spot Bitcoin ETF for roughly ten years before January 2024.

28th February 2024

Altcoin Market Cap Break From “Wyckoff Accumulation Phase”: Will Ethereum, XRP Fly?

In a post on X, one analyst observes that the altcoin market capitalization has broken from the Wyckoff accumulation phase. With this upswing, the trader expects altcoin prices to move higher.

This refreshing breakout coincides with Bitcoin’s (BTC) stellar performance when writing on February 28. At spot rates, the coin is trading above $60,000, a psychological round number- now supported- and is closely approaching $70,000.

The Altcoin Breakout From Accumulation

The “Wyckoff accumulation pattern” is a concept developed by technical analysts to pick out potential buying opportunities, in this case, altcoins. Whenever prices are in this phase, it is widely believed that the so-called “smart money” or large institutional players are accumulating at low prices.

Altcoin market cap breaking out | Source: Analyst on X

Currently, prices consolidate at tight ranges and with low trading volumes. A signal marking the end of this accumulation is a sharp breakout, lifting prices above the defined range. Often, this upswing is with rising trading volume.

Looking at the chart, the altcoin market cap has broken above the accumulation phase. With previous resistance and support, the altcoin market cap will likely continue floating higher. As such, top altcoins, including Ethereum (ETH), Solana (SOL), and XRP, will follow suit, posting fresh 2024 highs.

Why Spot Bitcoin ETFs Give BTC Edge In This Bull Run

So far, Bitcoin is leading the way, posting over $10,000 in less than a week. However, with the coin trading above $60,000, its demand-side drivers differ entirely from what’s influencing altcoins. The approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) has seen billions of dollars flow to the world’s first cryptocurrency.

Therefore, while altcoins have historically outperformed BTC when crypto prices rally, there is an edge with spot Bitcoin ETFs. As such, this bull run will likely differ from 2017 and 2021. This forecast is because institutions will likely favor a regulated asset over altcoins whose status remains undefined.

As of late February 2024, the United States SEC has not approved spot ETFs of any altcoin, including that of Ethereum. Additionally, the agency has labeled several top altcoins, including Cardano (ADA), unregistered securities. The agency even filed lawsuits against major exchanges like Binance and Coinbase, accusing them of facilitating the trading of what the commission described as “unregistered securities.”

It is not immediately clear whether the United States SEC will change their preview of leading altcoins, especially Ethereum (ETH), which has a market of over $400 billion. Wall Street heavyweights like BlackRock and Fidelity remain interested in launching spot Ethereum ETFs.

27th February 2024

Bitcoin Approaching “Escape Velocity” That Will Take Prices Past $70,000: Analyst

With the Bitcoin price rallying, one analyst has taken to X, highlighting the current state of bullish affairs. In a post, the analyst thinks the world’s most valuable coin is approaching “escape velocity,” with price action deviating from candlestick arrangements in the past. This is usually the case, especially when prices are approaching all-time highs.

BTC approaching a key price level | Source: Analyst on X

Will Bitcoin Rip Past $70,000 In Coming Days?

The analyst notes that a normal BTC cycle would, at current prices and considering how the coin has been rallying in the past few weeks, typically have seen a pullback. The correction would then be followed by an extended period of consolidation, often stretching at least six months.

However, since there is a clear deviation, looking at price action in the monthly chart, the analyst is convinced that Bitcoin is about to lift off. The resulting rally would be at “escape velocity,” the coin would easily extend gains, easing past all-time highs.

Bitcoin is firmly in an uptrend at spot rates, looking at events in the daily chart. Specifically, Bitcoin trades above $57,200 when writing, registering new 2024 highs. Over the past day, the coin has broken above key resistance levels, easily breaking $53,000 and later $55,000 in a buy trend continuation formation.

Rising Funding Rates And Open Interest As Institutions Double Down

With soaring interest, exchange data shows that there has been a spike in annualized funding rates and open interest across multiple platforms, enabling the trading of Bitcoin perpetual futures. Data from Coinglass shows that the funding rate in Binance is now at over 0.0686%. The same has been observed with open interest, which now stands at over $6.2 billion on Binance.

BTC funding rate | Source: Coinglass

Changes in open interest and funding rates are leading indicators that can be used to gauge market sentiment. Usually, rising open interest and funding rates suggest increasing bullish sentiment, especially among leverage traders. In this scenario, the possibility of prices maintaining the uptrend remains high.

Confidence among traders is exceptionally high. It is fueled by recent institutional developments, macro factors, and the expectations ahead of the incoming halving event. For context, the ten approved spot Bitcoin exchange-traded funds (ETFs) in the United States have since received billions.

Observers now worry that at this pace, and ahead of the Bitcoin halving event, there would be a supply shock crisis. The concern is that after April, the number of coins released will be way less than those being gobbled by institutions. BTC prices will likely rally out of this, which will be out of reach for ordinary folks.

23rd February 2024

Crypto CEO Drops Bombshell Discovery Why Bitcoin Price Is Muted Post-ETFs

Despite the landmark launch of spot Bitcoin Exchange-Traded Funds (ETFs) spearheaded by industry behemoths BlackRock and Fidelity—ranking among the top five ETF launches in their initial month of all time—BTC’s price response has been notably subdued. Prior to the launch of these EFTs, BTC soared to a peak of $49,040 on January 11.

Fast forward to today and BTC is currently settling at $51,000, marking a modest appreciation of 4.3%. This tepid performance has puzzled market observers, particularly in light of massive net inflows of $5.278 billion into all Bitcoin ETFs within a mere six-week span. These could have been even significantly higher if there would have been $7.398 billion in outflows from Grayscale’s GBTC.

The Bombshell Discovery

Yet, CryptoQuant CEO Ki Young Ju may now have found the “real” reason that has had an even bigger impact on Bitcoin’s price action in recent weeks. Ju’s analysis highlights the transfer of over 700,000 BTC to Over-The-Counter (OTC) desks predominantly utilized by miners in the weeks succeeding the spot Bitcoin ETF approvals—an equivalent of approximately $35.6 billion at current prices.

He shared the below chart and stated: “700K BTC has moved to OTC desks used by miners over the past three weeks following spot Bitcoin ETF approval.” This revelation has sparked a reevaluation of the impact of such substantial transfers on the market dynamics of Bitcoin.

BTC OTC transactions

Ju later corrected his statement slightly and explained, “Got some questions about the data accuracy. These OTC addresses are not only used by miners. It could be used by other whales. We’ll let you know what addresses caused this spike,”acknowledging the complexity and multifaceted nature of these transactions.

The Bitcoin OTC Mechanism Explained

OTC desks facilitate direct transactions between two parties, unlike open exchanges where orders are matched among various participants. This method of trading can handle large volumes of Bitcoin without immediately affecting the market price.

When substantial amounts of BTC are bought or sold on public exchanges, the sudden increase in supply or demand can lead to significant price volatility. By opting for OTC transactions, large buyers, such as ETF issuers, can accumulate Bitcoin in vast quantities without triggering a steep price increase that would inevitably follow if these purchases were made on spot markets.

Thus, Ju theorizes that the issuers behind the newly launched Bitcoin ETFs are strategically purchasing Bitcoin via OTC desks. This approach serves a dual purpose: it allows these entities to fulfill the demand from ETF investors by securing enough Bitcoin to back the ETF shares while simultaneously mitigating the immediate price impact that such large-scale purchases would have if conducted on open exchanges.

The essence of Ju’s claim is that if the 700,000 BTC had been bought on the spot market instead of through OTC channels, the influx of demand would have likely propelled Bitcoin’s price significantly higher than the observed 4.3% increase. This subdued price action, therefore, could be attributed to the strategic use of OTC transactions by ETF issuers and other large-scale buyers.

However, there is also a silver lining. What will happen if the miners can only sell half of the current supply following the upcoming BTC halving in April, but the demand remains? Moreover, this constraint isn’t limited to miners alone.

Given that the OTC supply is finite and likely depleting rapidly, it appears inevitable that a supply shock could impact the market once the OTC reserves are fully tapped. When entities like BlackRock and others are compelled to purchase Bitcoin on the open market to back up their ETFs, the BTC price could react swiftly.

At press time, BTC traded at $51,030.

Bitcoin price

21st February 2024

Is Ethereum Overvalued, Similar ‘To Meme Coins Like Shiba Inu’?

A crypto investor, Fred Krueger, thinks Ethereum is overvalued at spot rates. Referring to X, Krueger added that Ethereum supporters are “detached from reality” after ETH, the native currency, recently broke above $3,000.

The investor pointed to the general declining on-chain activity, fierce competition from alternatives like Solana and Avalanche, for instance, and regulatory uncertainty that makes holding the coin risky.

Ethereum Is Slow And Usage Is Shrinking

Krueger argues that Ethereum’s on-chain transactions could be faster and cheaper. In the current landscape marked with scalable and low-fee alternatives, either built on Ethereum or existing as independent chains, the chain’s challenges no longer justify ETH trading at spot rates of about $3,000.

Beyond scaling and throughput challenges, the investor also refers to the sharp decline in daily active users (DAUs) on the mainnet. Since 2021, Ethereum and altcoin prices have peaked, and active DAUs have fallen from around 120,000 to approximately 66,000 in February 2024.

Ethereum DAU falling | Source: Fred Krueger on X

Though network supporters said there had been developments like layer-2 platforms like Arbitrum pinning their security on Ethereum, Krueger notes that even the most active and largest protocols by total value locked (TVL) have seen user losses.

To illustrate, Uniswap V3, the third version of one of Ethereum’s largest decentralized exchanges, Uniswap, now records around 16,000 daily active users, significantly lower than previous years.

Alternatives Like Solana Offer Better: Is ETH Expensive?

The investor argues that the decline in DAUs, pointing to active usage, sharply contrasts with Ethereum’s rising market capitalization and spot rates. In Krueger’s opinion, this emerging state of affairs is why Ethereum has become a bloated “meme coin like Shiba Inu,” looking at its high market cap.

It in the investor’s assessment that faster and cheaper alternatives like Solana, Avalanche, and Near Protocol offer better value for specific use cases like decentralized finance (DeFi) and games.

Krueger also took issue with the lack of regulatory clarity on Ethereum. The United States Securities and Exchange Commission (SEC) recently approved the first spot Bitcoin exchange-traded funds (ETF) batch. Primarily, this is because SEC officials recognize Bitcoin as a commodity.

Gary Gensler and the SEC have failed to classify ETH in the same category as BTC. Accordingly, though the broader crypto community is optimistic about the eventual authorization of a spot Ethereum ETF, Krueger thinks it is unlikely.

Still, time will only tell how Ethereum and its market valuation will evolve in the coming months. Supporters are optimistic, despite criticism, that rising adoption and ETH’s deflationary nature will lift prices towards 2021 highs of $5,000.

20th February 2024

The Bitcoin “Big Money Algos” Are Here: Will BTC Breach $70,000?

Mike Alfred, a Bitcoin investor and crypto commentator, thinks the “big money algos” are back and predicts the world’s most valuable cryptocurrency will rally to record fresh February 2024 highs but retest all-time highs. This uptick, Alfred says, is before the network finally halves its miner rewards.

The “Big Money Algos” As BTC Retests $53,000

Taking to X on February 20, the investor notes that “big money algos just flipped on” and that the uptrend remains. By the time Alfred posted on X, BTC was headed towards the $53,000 before slipping back slightly to around the $59,000 level.

However, the uptrend remains when looking at the candlestick arrangement in the daily chart. Bitcoin has been increasing, defying gravity for the better part of February. At spot rates, analysts, including Alfred, expect the coin to push higher, breaking above $53,000, a stubborn resistance level. If this happens, and considering the sharp breakout, it is likely that buyers will push prices higher towards $60,000 and potentially towards $70,000, as the investor predicts.

Even so, it remains to be seen whether the uptrend will be sustained. When writing, the breakout has been met with solid rejection. Notably, there appear to be “sell walls,” which are large sell orders parked at around $53,000. Still, optimistic bulls expect a triumph, marked by a comprehensive close above this psychological round number.

The crypto community, including the investors, is bullish on Bitcoin. So far, anticipation has been building up for even more gains ahead of halving. Bitcoin halving, an event set at the protocol level, will half miner rewards, possibly inducing a supply shock, assuming the current demand increases.

Presently, Bitcoin supporters believe the network will continue to find more adoption as a medium of exchange and a store of value. With the coin becoming deflationary after halving, the consensus is that prices, guided by historical performance, will rise.

Bitcoin Traders Are Bullish As Billions Flow To The Industry

While optimism reigns, Bitcoin remains volatile despite recent institutional participation. Through the spot Bitcoin exchange-traded funds (ETFs), Wall Street players have found a regulated product to channel billions into Bitcoin, reading from the amount of coins scooped in the recent past.

Still, whether the uptrend will continue depends on other macro factors, including monetary policy status in the United States. In March, the United States Federal Reserve (Fed) will guide the interest rate regime. It is a decision that may lift BTC to new levels as a store-of-value asset or force prices lower as capital rotates that to the greenback.

Feature image from Shutterstock, chart from TradingView

16th February 2024

Altcoins Like Solana And Ethereum Are About To Explode: Analyst

A technical indicator shift has sparked predictions of an imminent altcoin surge, with one analyst on X forecasting gains as sharp as those posted in 2017 and 2021.

This Technical Indicator Just Shifted To Green

Taking to X, the analyst said this optimism follows a change in the Gaussian Channel, a technical indicator used to assess market momentum. On X, the trader notes that the Gaussian Channel has, after weeks, flipped from red to green.

Reading from historical performance and indicator changes suggests that there could be a bullish shift for leading altcoins like Ethereum, Solana, and even Dogecoin in the days ahead.

Altcoins about to explode | Source: Analyst on X

However, from a technical standpoint, this upswing would be better confirmed once there is a comprehensive breakout above the immediate resistance. If this happens, the altcoin market could have a “parabolic” rally.

The broader crypto market is bullish, sparked by the encouraging Bitcoin rally. The world’s most valuable coin trades above $50,000, trending at December 2021 levels. Supporters are optimistic that not only will Bitcoin register more gains in the days ahead but will likely float to break November 2021 highs.

This uptick in demand follows institutions and investors leveraging spot Bitcoin exchange-traded funds (ETFs) to hold Bitcoin.

Surging Bitcoin prices have immensely benefited coins like Solana and Ethereum and meme coins like BONK, which continue to trend. To illustrate, SOL is now trading above $100 despite a recent network outage that questioned the platform’s reliability. In January, SOL peaked at over $125.

On the other hand, Ethereum continues to rally but remains below $3,000. Rising decentralized finance (DeFi) activity and optimism of the United States Securities and Exchange Commission (SEC) approving a spot Ethereum exchange-traded funds (ETF) continue to fuel demand. Recently, Franklin Templeton applied with the regulator for a spot in Ethereum ETF, joining BlackRock and Fidelity.

Altcoin Market Cap Approaches $1 Trillion

It is unclear how strongly altcoins will rally should buyers take over. Gauging from how leading altcoins like Solana and Cardano have performed in Q1 2024, it is likely that prices will explode to register new 2024 highs, breaking above 2023 resistance levels.

Altcoins market cap | Source: CoinMarketCap

Based on CoinMarketCap data, the altcoin market cap has nearly doubled. It is up from around $475 billion in late 2022 to over $910 billion when writing in mid-February. When altcoins peaked in November 2021, their cumulative market cap exceeded $1.6 trillion.

14th February 2024

Bitcoin Open Interest Surges To A 2-Year High, BTC Breaks Above $51,000

Bitcoin’s open interest has surged past $11 billion for the first time in over two years. This uptick comes when the world’s most valuable coin surges, recently easing past $51,000, the highest level since December 2021.

Bitcoin open interest | Source: Kaiko on X

Surging Open Interest And Order Book Imbalance

According to Kaiko, a leading crypto analytics provider, this upswing in open interest comes at a critical time for the coin. When prices zoomed past $48,000 on February 11, there was an order book imbalance. Then, Kaiko observed there were $100 million more bids than asks.

BTC ask-bid imbalance | Source: Kaiko on X

Technically, whenever there is an order book imbalance with more bids than asks, it suggests that buyers are more willing and enthusiastic to purchase at spot rates than sellers are willing to liquidate. Following this imbalance, prices shot higher the following days, breaking above the $50,000 psychological number to over $51,500 when writing on February 14.

Surging open interest, especially as the market trends higher, is bullish. It means that more people are willing to participate in the market, hopeful of riding the trend. Subsequently, their participation translates to a more liquid market, charging the upside momentum.

Bitcoin is racing higher at the back of strong inflows into spot Bitcoin exchange-traded funds (ETFs). Over the past few weeks, spot Bitcoin ETF issuers have been rapidly accumulating the coin. The largest so far is BlackRock’s IBIT, owning over 70,000 BTC.

As a result, prices are edging higher, reflecting the high demand pinned directly to institutional participation. This positive sentiment and expectations of even more price gains, translating to higher open interest, is despite the continued liquidation of the Grayscale Bitcoin Trust (GBTC). Following court approval, GBTC is converted into an ETF, joining others like Fidelity, who also offer a similar product.

Genesis Looking To Sell GBTC; Will Bitcoin Rally In March?

Even with the high optimism, a potential cloud hangs over the Bitcoin market. Genesis, a crypto lender under bankruptcy protection, wants the court to allow them to sell over $1.4 billion of GBTC.

If the court green-lights this move, BTC could have more liquidation pressure, possibly unwinding recent gains. So far, the FTX estate sold their GBTC, estimated to be worth over $1 billion, coinciding with Bitcoin dropping to as low as $39,500 in January.

Besides these Bitcoin-specific events, the market is closely watching how the monetary policy scene in the United States will evolve in the next few weeks. The United States Federal Reserve is expected to slash rates in March, a potentially beneficial move for BTC.

9th February 2024

Analyst: After Bitcoin Hits $50,000, Expect Another 100% to 200% Rally

David Krueger, a crypto analyst on X, thinks Bitcoin (BTC) will tear higher, surging by 100% to 200% within five months, fueled primarily by fear of missing out (FOMO) once the coin breaks above $50,000.

Will Bitcoin Break Above $50,000 And Rally To $100,000?

Citing Tom Lee’s historical analysis, Krueger believes FOMO typically kicks in when Bitcoin trades above a price level “exceeding 97% of its historical days.” Lee is the co-founder and researcher at Fundstrat.

Zooming at the development in the monthly chart, the analyst notes that this price point sits at $50,000, a key psychological level that bulls have failed to overcome since the bull run from mid-November 2023.

BTC "buy" trigger at $50,000 | Source: Fred Krueger on X

Accordingly, if Lee’s analysis and the analyst’s assertion come true, BTC prices will likely float higher in the sessions ahead. However, what’s unclear is when BTC will clear this $50,000 level, paving the way for $100,000 and even $200,000 five months after the decisive breakout.

When writing, BTC prices are firm and rallying. The coin is trending above $46,500 and will likely clear above January 2024 highs of around $48,700. Even so, whether the current uptrend will cause excitement, possibly creating FOMO, is yet to be seen.

Looking at Google Trends data and organic search related to Bitcoin, interest is fizzling out. Data shows that the number of people searching for Bitcoin in the United States has dropped and is at around early 2021 levels. Even so, around that time, Bitcoin prices began trending higher, eventually rising to as high as $69,000.

Bitcoin organic search in United States | Source: Google Trends

Halving And Spot ETF Issuers Loading Up More Coins

While FOMO appears elusive at spot rates, another analyst offers a different perspective. In response to Krueger’s outlook, the analyst notes that sharp interest in Bitcoin historically arrives around six months after halving, lasting up to 18 months. This event and steady or increasing demand create a supply-demand imbalance that may pump prices.

Bitcoin will halve its miner rewards in early April 2024. It is an event that may anchor bulls, setting the base for more gains as projected by analysts.

The coin might also edge higher considering the pace at which spot Bitcoin exchange-traded fund (ETF) issuers have been buying BTC in the past few weeks since the product was approved in mid-January 2024.

With Wall Street players like Fidelity, BlackRock, and other crypto firms like Bitwise loading up more coins, BTC will likely be more scarce than it has been after past halving events.

8th February 2024

Bitcoin Price Jumps Above $44,000, Here Are The Factors Driving It

Bitcoin is back above $44,000 for the first time since the Spot Bitcoin ETFs were approved for trading in January. This price surge is believed to be due to several factors that have played out in favor of the bulls in recent times.

BTC Whales Accumulate More Bitcoin

Citing data from Glassnode, crypto analyst Ali Martinez revealed recently that Bitcoin whales have been accumulating more BTC, with around 73 new addresses now holding 1,000 BTC or more. This figure is said to mark a 3.66% increase in the last two weeks, thereby continuing the accumulation trend.

NewsBTC had previously reported how Bitcoin whales had gone on a buying spree following Bitcoin’s decline to below $40,000. The flagship crypto token is believed to have dropped to that level due to the significant selling pressure from Grayscale, the issuer of the GBTC Spot Bitcoin ETF.

The asset manager has, however, cooled off on its BTC sell-offs recently as outflows from the fund continue to decline. This is another factor that could have contributed to Bitcoin’s recent price surge. Data from the on-chain analytics platform Arkham Intelligence shows that other whales like FTX and Alameda Research have also eased off on offloading their crypto tokens.

Spot Bitcoin ETFs Doing Their Bit

There has been increased institutional demand for Bitcoin thanks to the Spot Bitcoin ETFs. This is evident in the success which these funds have achieved since their launch. As a result, the issuers of these funds, like the world’s largest asset manager, BlackRock, have had to accumulate a significant amount of Bitcoin.

Recently, these asset managers were reported to hold over 657,000 BTC, thereby accounting for more than 3% of Bitcoin’s circulating supply. The newly listed Spot Bitcoin ETFs (excluding Grayscale) alone hold about 187,000 BTC. Interestingly, these funds are well on their way to surpassing MicroStrategy, which has a BTC holding of 190,000.

Meanwhile, Spot Bitcoin ETFs could launch soon in Hong Kong with 10 applications already made to the country’s financial regulators. This is another narrative that could be driving Bitcoin’s current price surge, seeing the impact that the approval rumors in the US had on Bitcoin’s price towards the end of last year.

Hong Kong isn’t the only country in Asia showing crypto enthusiasm as Thailand was recently reported to have removed VAT (Value Added Tax) on crypto trading.

At the time of writing, Bitcoin was trading at around $44,800, up over 4.4% in the last 24 hours, according to data from CoinMarketCap.

Bitcoin price chart from Tradingview.com