Bitcoin’s price remains range-bound as equities, gold and U.S. Treasurys offer competitive rates with reduced risk. This week’s CPI report could shake things up.
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Bitcoin Funds Witness Largest Weekly Outflows Since March: Report
The latest weekly report from CoinShares reveals that crypto investment products, particularly Bitcoin funds, saw major outflows for the third consecutive week. As investors continue to take profit, a total of $107 million in outflows was recorded in the previous week.
Crypto investment products listed in the report are from various exchange-traded product (ETP) providers, including 21Shares, Grayscale Investments, Bitwise, and Proshares. However, it was found that a significant portion of the outflows came from Purpose Investments and ETC Issuance.
From a regional standpoint, CoinShares discovered that the outflows were mostly from Germany and Canada, which recorded $70.8 million and $28.5 million, respectively. Meanwhile, only Australia and the United States saw inflows, with $0.3 million and $0.2 million, respectively.
Bitcoin Funds Record $111 Million In Weekly Outflows
According to CoinShares’ head of research, James Butterfill, Bitcoin (BTC) was primarily responsible for the significant outflows registered by digital asset investment products in week 32 of 2023. The premier cryptocurrency saw total outflows of $111 million, its largest since March.
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It appears that investment in Bitcoin-related funds is slowing down, as institutional investors continue to sell for profit. This latest report represents the third consecutive week in which Bitcoin funds experienced outflows totaling $139 million.
Prior to this recent negative run, more than $742 million went into crypto funds over a four-week period, with Bitcoin receiving a huge chunk of that figure. This positive momentum is believed to have been spurred by Ripple’s partial victory over the United States Securities and Exchange Commission.
CoinShares’ weekly report revealed that outflows into short Bitcoin have stopped for the first time in over three months. While this may suggest that institutional investors are no longer betting against the BTC price, the weekly outflows indicate that they are not banking on its rise either.
For clarity, short products allow investors to profit when the price of a cryptocurrency – in this context, Bitcoin – falls. It typically involves borrowing Bitcoin, immediately selling it on the open market, and then buying it back at a lower price to repay the loan.
As of this writing, Bitcoin trades at $29,164, with a 0.5% price increase in the past day. According to CoinGecko data, the cryptocurrency continues to lead the market with a market cap of roughly $567.3 billion.
“Altcoins Sentiment Seems To Be Improving”
While institutional investors continue to take profit from various Bitcoin-related funds, the signs seem positive for most altcoin investment products. According to CoinShares, altcoins (except Ethereum) recorded $3 million in outflows in week 31 of 2023.
This trend appears to be gaining momentum, as Solana (SOL) particularly saw a substantial increase in buying pressure from institutions in Europe and the United States in week 32 of 2023. The cryptocurrency registered $9.5 million in weekly inflows, its highest figure since March 2020.
Ripple (XRP) and Litecoin (LTC) also saw weekly inflows, recording $0.5 million and $0.46 million, respectively. Uniswap and Cardano, on the other hand, witnessed outflows of $0.8 million and $0.3 million, respectively.
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Is Curve DAO (CRV) Price On Track To Reach Or Exceed $1 This Month?
Curve DAO (CRV) encountered notable obstacles in reestablishing its market equilibrium subsequent to a recent breach in its network security.
After a network intrusion that jeopardized a portion of Curve DAO’s (CRV) smart contracts and caused a monetary setback of $50 million, the value plummeted drastically.
This occurrence prompted numerous investors to bet against their CRV tokens, exacerbating the downward pressure on its valuation.
Based on a recent analysis of the price trends, the value of Curve DAO experienced a favorable support level close to the $0.56 threshold. On August 1st, there was an instance of rejection for the lower price, indicating that buyers are accumulating at this reduced price point.
Anticipated Curve DAO (CRV) Price Movement
In the face of ongoing security concerns, a separate analysis anticipates a substantial 42.1% surge in CRV’s price, propelling it to $0.81 once the security issues are effectively addressed and resolved.
Conversely, contrasting predictions foresee a potential 15.7% decline, bringing the value down to $0.48. This shift in sentiment is attributed to a significant number of investors diverting their attention toward competing options within the CRV ecosystem.
Examining the daily chart, a notable trend emerges as the CRV price experiences its second reversal from a horizontal support level, indicative of the emergence of a double bottom pattern. Presently, this bullish reversal has facilitated an 8% upsurge, driving the price to its current value of $0.614.
Within the framework of the double bottom pattern, an expectation arises for buyers to steer the prices upwards by 20%, seeking to challenge the upper trendline of the channel pattern.
The true confirmation of a trend reversal lies in a bullish breakout from this resistance level, which would fortify the validity of the emerging pattern.
A Potential Trend Reversal
The double bottom pattern is a technical chart pattern observed in financial markets, characterized by two consecutive troughs forming near a common horizontal support level.
This pattern suggests a potential trend reversal from a downtrend to an uptrend, as the initial downtrend exhausts itself and buyers regain control, leading to a bullish breakout when the price surpasses the pattern’s resistance level.
Should the CRV breakout materialize, a subsequent rally could ensue, targeting an initial goal of approximately $0.08. Following this milestone, a subsequent price objective of $1.1 might come into play, underscoring the potential magnitude of the trend reversal that the double bottom pattern could potentially signify.
With a CoinGecko listing of $0.603, the price of CRV demonstrated a 2% decline over the past 24 hours, while it managed a 1.7% increase over the last seven days.
(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 CCN.com
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Bitcoin Miners Show Accumulation Again, Bullish Sign?
On-chain data shows that Bitcoin miners have been expanding their reserves recently, a sign that could be bullish for the asset’s price.
Bitcoin Miner Reserve Has Been Trending Up Recently
As pointed out by an analyst in a CryptoQuant post, BTC miners have been accumulating during the past 48 days. The indicator of interest here is the “miner reserve,” which measures the total amount of Bitcoin that all miners are holding in their wallets right now.
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When the value of this metric goes down, it means that the miners are withdrawing coins from their wallets currently. Generally, these chain validators only transfer coins out of their reserve whenever they want to sell them, so this kind of trend can have bearish implications for the price.
On the other hand, the indicator increasing in value implies the miners are adding a net amount of BTC to their wallets. Such a trend can be a sign that these investors are accumulating at the moment, and hence, can be bullish for the cryptocurrency.
Now, here is a chart that shows the trend in the Bitcoin miner reserve over the last couple of months:
As shown in the above graph, the Bitcoin miner reserve had observed a large rise back in May, but soon after this increase, this cohort started selling as the asset’s price continued to show struggle.
After the rally had taken place in June, however, the indicator’s value had stabilized, meaning that these investors were selling the same amount as they were adding to their holdings.
In the last few weeks, this sideways trend has slowly turned into an uptrend, as the miners have been gradually expanding their reserves. In the past 48 days, these chain validators have added a total of around 4,060 BTC to their holdings.
This amount is worth around $118 million at the current exchange rate, which isn’t a ton given the scale of the total miner reserve, but it’s still nonetheless a positive sign that the miners have been accumulating despite the cryptocurrency’s price observing some decline recently.
A notable portion of this latest accumulation by the miners has come from one mining pool, AntPool, as the below chart displays.
In the past 52 days, the AntPool Bitcoin mining pool has added a total of about 1,020 BTC to their reserves, which is more than 25% of the total accumulation that all the miners have participated in during this period.
The quant has also attached the data for the exchange flows (as well the normal outflows/inflow) for this mining pool. Earlier, there was some concern around the market that these miners may have been selling as they were depositing to exchanges, but as it turned out, this cohort was merely transferring their coins back and forth from these platforms.
BTC Price
At the time of writing, Bitcoin is trading around $29,100, up 1% in the last week.
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