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Can Bitcoin Continue Its Run? These Factors Could Suggest So

Bitcoin has observed a pullback in the past day, but these factors may imply that the cryptocurrency’s rally can continue.

These Factors Could Suggest A Bullish Outcome For Bitcoin

A couple of days back, Bitcoin had started observing some sharp upward momentum, and by yesterday, the cryptocurrency had managed to breach the $28,500 level. In the past day, however, the asset has registered a decline, falling below the $27,500 mark.

While it’s uncertain whether the rally is over or not, some signs can be optimistic for the investors. As explained by the on-chain analytics firm Santiment, two positive developments have occurred related to Tether (USDT), the largest stablecoin in the cryptocurrency sector.

The first indicator of relevance here is the “USDT supply on exchanges,” which measures the percentage of the total circulating supply of the stablecoin in the wallets of all centralized exchanges.

Here is a chart that shows the trend in this Tether metric over the past year:

Bitcoin & Tether

Usually, investors store their capital in the form of a stablecoin like USDT whenever they want to avoid the volatility associated with the other assets in the sector. Such investors generally plan to go back into the volatile side of the market eventually, though, as they would have instead gone for fiat if they didn’t.

Once these holders feel the time is right to dive into Bitcoin and other coins, they trade their stables for their desired cryptocurrencies. Naturally, such a shift provides a bullish boost to whatever assets they buy using their stablecoins.

Investors generally use exchanges for conversions like these, so the current supply on these platforms can be considered potential dry powder ready to be deployed into BTC and others.

The graph shows that the Tether supply on exchanges had plunged to a low of 17.6% a few months back, implying that the available buying pressure from the stablecoin had run out.

Interestingly, this low in June had occurred in the leadup to a sharp Bitcoin rally, implying that the plunge in the exchange reserve of the stablecoin was, in fact, because of it being converted into the asset, thus providing the fuel for the surge. However, the rally back then couldn’t be sustained, as BTC eventually faced a struggle.

In the months since this low, USDT reserves have slowly built back up on exchanges, as 24.7% of the stablecoin’s supply is now sitting on these platforms. Unlike that previous rally, it would appear that this latest surge has a store of potential buying power available that may be deployed at any time.

In the chart, Santiment has also attached the data for another metric: the combined supply of the ten largest Tether whales. It would appear that these humongous investors have also increased their holdings during this period, implying that they also carry significant dry powder now.

It now remains to be seen whether this stored-up USDT will be converted into the cryptocurrency to provide support to the surge in the coming days or not.

BTC Price

At the time of writing, Bitcoin is trading at around $27,400, up 5% in the last week.

Bitcoin Price Chart

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3 Reasons Why Shiba Inu Price Might See A Massive Surge Over 400%

Just like the rest of the crypto market, the Shiba Inu price saw an uptrend at the start of the week before correcting back downward on Tuesday morning. However, this decline may point to the meme coin gearing up for another rally that could see it rise more than 400% and there are reasons why.

The Blessings Of October

One of the first reasons that suggests a massive surge this month is how the asset has performed historically in the month of October. Looking back at previous years, the Shiba Inu price had shown incredible strength in October 2021 rising over 800%, which eventually led to its all-time high.

Then in October 2022, the altcoin marked a double-digit rise even amid the start of a very bearish market. Although this was much smaller than its 2021 figures, it was significant nonetheless and registered October as a bullish month for the altcoin. Going by the average of both of these figures, analytics platform CryptoRank posits that the Shiba Inu price could rise over 400% this month if it sticks to its historical performance.

Shibarium Continues To Grow

The Shiba Inu Layer 2 blockchain, Shibarium, built atop the Ethereum network debuted in August. Following this, there have been some notable milestones for the network. One of these is the total number of transactions that have been carried out.

Data from ShibariumScan shows that the network has now crossed 3 million transactions. Additionally, wallet addresses on the network are now more than 1.25 million. The total blocks produced are also inching closer to the 1 million mark with each passing day.

These metrics point to a growing rate of adoption which could significantly impact the Shiba Inu price. This is because SHIB serves as the governance token of Shibarium and participants who want to be involved in governance will need Shiba Inu tokens to do so, increasing demand.

Shiba Inu price chart from Tradingview.com (SHIB 400% rally)

Shiba Inu Price Trajectory

The Shiba Inu price has traded in a tight range between $0.0000071-$0.0000075, which suggests that the meme coin is finally finding a bottom. As a result, it could see a recovery using this point as a launch point and re-testing the resistance at $0.0000075.

If this resistance falls and bulls take control, it will be smooth sailing for Shiba Inu. Add in the recovering crypto market sentiment as shown by the Fear & Greed Index moving up into neutral. Shiba Inu will naturally follow the trajectory of Bitcoin and such a recovery would take it above $0.000008.

At the time of writing, SHIB is sitting at $0.000007279 after falling 3.33% in the last day. Its market cap of $4.2 billion makes it the 18-largest cryptocurrency in the industry.

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Ethereum ETFs Face Lackluster Debut From Small Investors: Is The Hype Fizzling Out?

Yesterday’s launch of futures-based Ethereum (ETH) exchange-traded funds (ETFs) delivered underwhelming results, with shallow trading volumes indicating a deficient demand for ETH exposure.

Furthermore, a recent report by The Wall Street Journal report by The Wall Street Journal, it was revealed that the launch of the first Ethereum exchange-traded funds on Monday generated little interest from small investors. 

These ETFs provided individual investors access to the second-largest cryptocurrency through brokerage accounts. However, per the report, most of the futures-based Ether ETFs ended the day in the red, with a combined trading volume of less than $2 million.

Red Flags For Ethereum ETFs?

The Ether ETFs, offered by prominent asset management firms such as ProShares, VanEck, and Bitwise Asset Management, are entering a highly competitive market. Experts believe these funds will have to compete fiercely in cost and marketing strategies to attract investors amidst the crowded landscape.

Eric Balchunas, senior ETF analyst at Bloomberg Intelligence, expressed his concerns regarding the funds, stating: 

A lot of these funds are going to struggle to get assets. There’s probably only room for one stud in this race.

During a Bloomberg TV appearance, Balchunas emphasized the relatively low trading volume of the Ethereum ETFs compared to BITO, a Bitcoin (BTC) ETF that tracks the price of BTC using Bitcoin Futures launched in 2021. 

Notably, the trading environment for the first futures-based Ether ETFs differs significantly from the first futures-based Bitcoin ETFs. ProShares’ initial Bitcoin ETF (BITO) debut, which took place during the peak of the crypto bull market, was one of the most highly traded ETF launches ever. 

Conversely, on the inaugural trading day of Ether future ETFs, the value traded amounted to nearly $1.9 million by noon, with Valkyrie emerging as the frontrunner in the race for Ether futures ETFs. Initially focused on Bitcoin futures and later expanded to include Ether, the fund experienced a 3.9% increase.

VanEck’s EFUT managed to generate some volume by launching ahead of its competitors. However, volumes quickly dwindled, with a staggering 49% of EFUT’s daily volume occurring within its first trading minute. 

Disappointing Launch Day For Futures-Based ETH

Senior analyst of k33 research, Vetle Lunde, suggests that this lackluster launch points to more choppy market conditions ahead. The highly anticipated launch day failed to meet market expectations, reminiscent of the underwhelming debut of Bakkt. 

This sheds light on a seemingly “non-existent” demand for additional crypto exposure, indicating a continuation of the current consolidation range in the market.

In defense of the lackluster ETF launch, it is worth noting that activity in crypto ETFs has been consistently shallow in recent months. BITO, for example, has witnessed consistent outflows since mid-July and experienced its third-lowest average daily volume (ADV) in September 2023, surpassed only by volumes in August and December 2022.

The Ethereum futures products launched on Monday, along with their respective net expense ratios, include:

  • BitWise Ethereum Strategy ETF (AETH) – 0.85%
  • Bitwise Bitcoin and Ether Equal Weight Strategy ETF (BTOP) – 0.85%
  • ProShares Ether Strategy ETF (EETH) – 0.95%
  • ProShares Bitcoin & Ether Equal Weight Strategy ETF (BETE) – 0.95%
  • Bitcoin & Ether Market Cap Weight Strategy ETF (BETH) – 0.95%
  • VanEck Ethereum Strategy ETF (EFUT) – 0.66%.

Ethereum

The disappointing debut of futures-based ETH ETFs underscores the challenges in generating substantial investor interest in crypto ETFs. As the crypto market continues to evolve, market participants will closely monitor developments and assess the impact on investor sentiment and the future of crypto ETFs.

Featured image from Shutterstock, chart from TradingView.com 

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Shiba Inu Investors Beware: 425 Billion Tokens On The Move – Is It A Sell-Out?

Shiba Inu (SHIB) tokens worth a staggering $3.2 million have made their way onto Coinbase, according to recent data on Etherscan. This substantial transaction, involving a jaw-dropping 425 billion SHIB tokens, has raised eyebrows within the cryptocurrency community. 

The timing of this move couldn’t be more intriguing, as Shiba Inu has been experiencing a rollercoaster ride alongside the broader crypto market.

Shiba Inu’s recent price action has been nothing short of dramatic. It surged in tandem with other cryptocurrencies but is now confronting significant resistance. The pivotal 50 EMA (Exponential Moving Average) level stands as a crucial test for the token’s short-term trajectory. 

Should SHIB fail to break through this resistance, a potential trend reversal could be on the horizon, possibly catalyzed by large-scale sell-offs, much like the mammoth transaction to Coinbase.

Although $3.2 million might not be a tidal wave in SHIB’s liquidity pool, it does invite some intriguing queries about the grand designs of prominent SHIB holders. Could this financial maneuver be a harbinger of a broader pattern in the making?

It’s entirely conceivable that these crypto behemoths are seizing the opportunity presented by recent profits, especially given SHIB’s impending clash with a pivotal resistance threshold.

This transaction could serve as an early indicator of a more extensive trend in the SHIB community. Cryptocurrency markets are known for their volatility, and major holders often wield considerable influence. Thus, when they make a move of this magnitude, it can trigger a domino effect, influencing other traders and shaping market sentiment.

Moreover, the timing of this transaction is noteworthy. SHIB is approaching a critical resistance level, a juncture where its price could either break through to new highs or face a substantial pullback.

SHIB’s Current State And Burn Program

As of now, Shiba Inu is trading at $0.00000730, as per CoinGecko data, reflecting a 3.8% decline in the past 24 hours. Over the course of the last seven days, SHIB has managed to eke out a marginal gain of 0.1%. These price fluctuations highlight the volatility that has become synonymous with meme tokens like SHIB.

Interestingly, amid these price swings, the Shiba Inu burn rate has returned to the green zone. Nearly 95 million SHIB tokens were burned in the last 24 hours, underscoring the unwavering commitment of the SHIB community to the burn program.

This program aims to reduce the substantial circulating supply, which has often been blamed for the token’s lackluster price performance.

According to a price report, the total number of SHIB tokens obliterated now stands at 410 trillion. This impressive feat has brought the total supply down from 999 trillion to 589 trillion SHIB. Currently, approximately 10 billion SHIB tokens are locked in staking contracts, leaving the circulating supply at around 580 trillion.

Shiba Inu: Potential Price Impact

The recent influx of SHIB tokens onto Coinbase and the ongoing burn program’s success are sure to keep investors and crypto enthusiasts on the edge of their seats. The question of whether SHIB can surmount its resistance and sustain its rally remains unanswered. 

As the crypto market continues to evolve, SHIB’s fate may well depend on the interplay between its passionate community, whale movements, and market sentiment.

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

Featured image from Pixabay

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Twitter IPO: Dogecoin Takes Center Stage In Elon Musk’s X IPO Rumors

The crypto community is buzzing with excitement as rumors spread about a possible collaboration between the CEO of Pershing Square Capital Management and Elon Musk’s X. Ackman’s desire to potentially work with X has grabbed the attention of investors, raising questions about the possible impact on the cryptocurrency market, specifically on digital coins like Dogecoin. 

Ackman Signals Willingness To Strike Deal With Musk’s X

According to reports from The Wall Street Journal, Bill Ackman, an American Billionaire hedge fund manager and founder and CEO of Pershing Square, has stated his interest in striking a deal with Elon Musk’s recently rebranded X social media platform. 

When asked by The WSJ if he would be interested in enacting a deal with X, Ackman responded by saying “Absolutely.” The American billionaire has been an avid user of X platform, amassing almost 800,000 followers and broadcasting his views on various global topics and issues. 

The Pershing Square CEO also recently disclosed the regulatory approval of its unique investment vehicle, SPARC by the United States Securities and Exchange Commission (SEC), allowing the financial vehicle to target and invest in privately held firms and move them into a public domain. 

Ackman announced in an X post, urging private companies looking to go public to consider Pershing Square as an investor. 

“If your large private growth company wants to go public without the risks and expenses of a typical IPO, with Pershing Square as your anchor shareholder, please call me. We promise a quick yes or no,” Ackman stated. 

Although Ackman has revealed his willingness to potentially collaborate with X, Musk has not released any acknowledgment or confirmation of Ackman’s statement. Investors, however, are curious about the potential influence the alleged collaboration would have on Dogecoin cryptocurrency. 

Dogecoin price chart from Tradingview.com (Twitter X IPO Elon Musk)

What Does This Mean For Dogecoin?

The speculation about X’s dealing with Ackman’s investment vehicle has led to whispers about potential market changes and possibilities for Dogecoin. 

Since Dogecoin is known to be highly favored by Musk, who is believed to be one of the largest investors of the cryptocurrency, industry investors see the possibility of cooperation between Ackman and X driving Dogecoin’s market price toward a $0.75 mark. 

There have also been previous speculations that Musk would implement DOGE payments as he deploys X bots in his new X payment plans.

Crypto enthusiasts and industry investors have seen Musk’s heavy influence on the price of Dogecoin over the years and are looking forward to the changes the cryptocurrency would have if rumors of Ackman’s alignment with X come to fruition. 

Currently, the price of Dogecoin is trading at $0.062 with a 24-hour trading volume of over $238 million. The cryptocurrency is presently facing a bullish uphill climb to the $0.07 mark, however, market metrics have revealed challenges in Dogecoin’s upsurge.