According to recent data, the ten spot bitcoin exchange-traded funds (ETFs), excluding Grayscale’s Bitcoin Trust (GBTC), acquired 548,556.62 BTC from the market over the last 128 days. This acquisition means the ten newly introduced spot bitcoin ETFs collectively hold 2.78% of the crypto asset’s current circulating supply. Besides Grayscale’s Pre-Existing Fund, Blackrock’s IBIT Leads New […]
Bitcoin News
Toncoin Tsunami: $1 Billion Whale Activity Shakes Up Price – What’s Next?
Despite a recent surge in activity from large investors, often referred to as “whales,” the price of Toncoin (TON) appears headed for choppier waters. This comes as analysts raise concerns about the cryptocurrency’s weakening technical indicators and its potential breach of a key support level.
Whales Make A Splash, But Can They Save The Day?
In a recent report, Joao Wedson, a crypto analyst at CryptoQuant, observed a significant spike in whale activity on the Toncoin network. Transactions exceeding 100,000 TON (roughly equivalent to 5,000 at current prices) surpassed a staggering billion in the past few weeks. This indicates that major holders have been actively moving large amounts of TON, but the purpose behind these movements remains unclear.
While the whales are certainly making a splash, Wedson said it’s not necessarily translating to smooth sailing for TON’s price. He pointed out that while large transactions dominate the network’s volume (over 50%), their impact on the price seems negligible. Conversely, smaller transactions, although constituting the majority of overall activity, contribute a much smaller share of the total volume.
Technical Indicators Flash Red
Toncoin’s price has been exhibiting signs of weakness despite the influx of whale activity. Notably, TON recently dipped below its 20-day Exponential Moving Average (EMA), a technical indicator used to gauge short-term trends. This suggests that the average price of TON over the past 20 days has been on a downward slope, signifying a shift towards selling pressure.
Adding to the bearish sentiment is the imminent crossover of the Moving Average Convergence Divergence (MACD) indicator. The MACD line appears poised to fall below its signal line, which traditionally indicates a loss of upward momentum and a potential price decline.
These technical indicators are flashing red flags for TON. If the price breaches the lower line of its ascending channel, which has been acting as a support level, a drop to .70 is a distinct possibility.
Is This A Buying Opportunity Or A Sinking Ship?
The current situation surrounding Toncoin presents a conundrum for investors. The substantial whale activity hints at potential bullish interest, but the technical indicators paint a bleak picture.
The key question remains: are the whales accumulating or distributing? If they’re accumulating, this could be a buying opportunity before the price rebounds. However, if they’re selling off their holdings, it could be a sign of a distressed ship.
Featured image from Vikks/Shutterstock, chart from TradingView
Coinbase Ventures Into Australia’s $600 Billion Pension Market With Tailored Crypto Services
Coinbase, the largest US crypto exchange, is planning to tap into Australia’s 0 billion self-managed pension sector, according to a Bloomberg report. The company is developing a service tailored for this sector, aiming to cater to the growing interest in crypto investments among self-managed funds. This move comes amidst a significant increase in crypto holdings […]
Bitcoin News
Court Approves Crypto Lender Genesis’ $3 Billion Payout to Customers
Crypto lender Genesis Global obtained court approval Friday to return approximately billion to its customers as part of its bankruptcy liquidation. U.S. Bankruptcy Judge Sean Lane approved Genesis’ Chapter 11 plan, overruling an objection from its equity owner, Digital Currency Group (DCG), which argued that repayments should be based on January 2023 cryptocurrency values. […]
Bitcoin News
Tether Adds Fresh $1 Billion USDT To Supply – Bitcoin To Rally Again?
According to data from CoinMarketCap, Bitcoin rose by 2.9% on Friday to trade above ,000 for the first time since April 24. This positive price performance by the maiden cryptocurrency has been attributed to the low inflation levels reported in the latest Consumer Price Index (CPI) data.
However, Bitcoin is an asset subject to the influence of several forces. According to a report by blockchain analysis platform LookonChain, BTC may soon experience another price rally following an increase in the supply of a specific stablecoin.
Can USDT Replicate Surging Effect On Bitcoin?
In an X post on Friday, LookonChain reported that the Tether Treasury has minted an additional 1 billion USDT indicating a consistent rising demand for the stablecoin. USDT which ranks as the third largest cryptocurrency doubles as the most dominant stablecoin in the crypto space with a market cap value of 1.25 billion.
The USDT token has famously recorded much growth in the last year with over 31 billion new tokens minted on the Tron and Ethereum network. Interestingly, LookonChain reveals that this rise in USDT market share contributed significantly to Bitcoin’s ascent from ,000 to ,000 in the past fifteen months.
The theory behind this relationship stems from an increase in traders’ liquidity provided by investments in USDT. This increased market liquidity can alter the status of Bitcoin’s supply and demand and oftentimes lead to a rise in BTC’s price.
Following the most recent 1 billion USDT minted by the Tether Treasury, most investors and spectators could be expecting a similar boosting effect on Bitcoin’s price, especially with the crypto bull season in play.
However, Bitcoin’s price in the coming months is still likely to be influenced by other factors such as the BTC spot exchange-traded fund (ETF) market. According to data from SoSoValue, net inflows on Friday reached 7.01 million bringing the total value of the Bitcoin spot ETF market to .58 billion. As more major traditional finance players gain a piece of this novel market, Bitcoin is expected to experience monumental levels of demand which will translate into weighty price gains.
BTC Price Overview
At the time of writing, Bitcoin was trading at ,853, reflecting a 9.64% gain in the last week. The crypto market leader is currently in a consolidation state as it gathers momentum to break past the 67,000 resistance zone.
Bitcoin is likely to remain the “diamond” of the crypto bull season for many investors based on historical price data. However, there remains a need for proper research by all investors and traders before engaging the market.
Bitcoin Bulls “Warming Up” As Spot ETF Inflows Exceeds $1.3 Billion In 2 Weeks
Even after the upswing mid-this week, Bitcoin prices remain wavy, considering price action in lower time frames. The coin is retesting ,000 at spot rates, but traders expect the breakout to have been confirmed, pushing BTC prices toward ,000.
Since the surge to all-time highs in March, the coin has been on a steady downtrend, as shown in the formation on the daily chart.
BTC Liquidity Is High Despite Accumulation: Analyst
Therefore, as doubt creeps in, Willy Woo, a Bitcoin on-chain analyst, is calming down market participants, saying the coin is preparing for sharp gains in the days ahead.
Though prices are flat-lining in the daily chart, what’s important to note, Woo says, is the level of liquidity.
Sharing a chart on X, Woo emphasized Bitcoin’s position within its liquidity cycle. The Bitcoin liquidity cycle is simply a chart showing the boom and bust periods of the world’s most valuable coin. Every cycle in history is highly influenced by the availability and flow of capital in and out of the asset.
The analyst is upbeat, arguing that though prices are down from all-time highs and appear stuck in a consolidation, the coin is still in a “warm-up” phase. Woo adds that the current consolidation period means the long-term risk is low in light of the relatively high liquidity.
Comparing the current state of affairs to past price action, the analyst predicts that Bitcoin prices will likely surge. When “the floodgates open” and new capital enters the market, prices will shoot higher, but so will risk.
Bitcoin Uptrend Just Getting Started?
Ki Young Ju, the founder of CryptoQuant, a crypto analytics platform, has supported Woo’s position. To X, Ju said Bitcoin is in the middle of a bull cycle.
To explain this view, the founder noted that Bitcoin’s capitalization has been growing faster than the realized cap. The realized cap is a metric that aims to gauge the total value of all coins in circulation based on the price at which they were last moved.
This trend has persisted for roughly two years historically. If this pattern holds, the bull cycle could end by April 2025.
Amid this, interest in spot Bitcoin exchange-traded funds (ETFs) appears to be swelling. An ETF analyst, Eric Balchunas, said these derivative products have attracted a net inflow of over .3 billion in the last two weeks alone. This uptick effectively offset the negative flows seen in April.
$291 Billion Asset Manager Founder Predicts Bitcoin Will Hit $420,000
In an interview with Yahoo Finance’s “Wealth,” Ric Edelman, founder of the Digital Assets Council of Financial Professionals and 1 billion asset manager Edelman Financial Services, provided a striking forecast for the Bitcoin price. Edelman argued that Bitcoin’s price could surge to 0,000, attributing this potential rise to a modest global asset allocation towards Bitcoin.
Why Bitcoin Price Will Reach 0,000
During the interview, Edelman delved into the advantages of investing in Spot Bitcoin ETFs. He noted that these instruments make Bitcoin accessible in the same way as traditional ETFs, which are commonplace and familiar to investors using ordinary brokerage accounts.
“They’re incredibly inexpensive, 20-25 basis points cheaper than going to say Coinbase or other crypto exchange and being in a brokerage account, you can rebalance, you can dollar cost average, you can tax loss harvest,” Edelman highlighted. This setup simplifies the investment process, making it akin to managing any other asset class, thus broadening its appeal to a wider audience.
However, Edelman was also candid about the challenges and risks associated with Bitcoin. Despite the advantages offered by ETFs, the inherent nature of Bitcoin as a volatile and risky investment persists. “It’s still Bitcoin, which means it’s still very volatile, it’s still very risky. You could still lose everything,” he cautioned.
Edelman pointed to ongoing regulatory uncertainty, potential lawsuits, and prevalent fraud as significant risks that investors need to manage cautiously. He also criticized the trend of investing due to fear of missing out (FOMO), labeling it as a poor investment rationale.
Looking ahead, Edelman discussed the regulatory landscape, particularly concerning other cryptocurrencies like Ethereum. He noted that there are several applications pending for Ethereum ETFs, and while he anticipates initial rejections, approvals could follow by year’s end.
“After you have the Bitcoin ETFs and the Ethereum ETFs, I’m not sure how quickly you’ll see anything else after that, but these two will kind of open the doors long term. Five years from now, there will be dozens, perhaps even hundreds of crypto ETFs,” Edelman speculated. This perspective underscores a significant shift towards mainstream acceptance and integration of cryptocurrencies into traditional financial products.
Edelman’s prediction of Bitcoin reaching 0,000 is based on an assumption of global asset diversification. By his calculations, if all global asset holders allocated just 1% of their assets to Bitcoin, this would translate to a market cap of .4 trillion for Bitcoin alone.
“It’s remarkably simple. If you take a look at the world’s global assets, the value of the stock market, globally, the bond market, the real estate market, the gold market, you just look at all the assets everybody in the world owns, it’s about 0 trillion,” he explained. Such an allocation would dramatically increase Bitcoin’s market cap, driving its price up significantly.
Moreover, Edelman highlighted a shift in the perception of Bitcoin from a transactional currency to a store of value, similar to gold. “The use case of Bitcoin, although it’s strong for transmittal, is not the strongest argument. It’s now like gold, a store of value,” he stated. This perception shift has attracted more institutional investors, who view Bitcoin as a hedge or an alternative asset class, akin to other non-traditional investments like artwork or collectibles.
At press time, BTC traded at ,909.
Despite $250 Billion Worth of Transactions, Digital Yuan Users Prefer Physical Cash
Some participants of China’s Central Bank Digital Currency (CBDC) pilot program, specifically state workers paid in digital yuan (e-CNY), are quickly converting their digital currency to physical cash due to concerns over its utility and lack of incentives like interest on savings. Despite China’s advancement towards becoming a cashless society, the digital yuan faces skepticism […]
Bitcoin News
Stablecoin Market Stabilizes at $160 Billion; FDUSD and PYUSD Lead Growth
Over the past 19 days, the stablecoin economy has stabilized with negligible growth after reaching the 0 billion threshold at April’s end. Out of the top five, FDUSD is currently the frontrunner in terms of 30-day growth, showing a 15.3% increase in supply. Stablecoin Valuation Holds Steady With Little Growth Following a period of rapid […]
Bitcoin News
EigenLayer’s Exclusive $15 Billion Token Launch: Who’s In And Who’s Out?
The crypto world is currently abuzz with the launch of EigenLayer’s new token, EIGEN, which has quickly become one of the year’s most anticipated digital asset events.
According to Bloomberg, the project has attracted significant attention for its approach to decentralized finance (DeFi) and its “controversial” decision to exclude users from certain jurisdictions, including the US, China, and Canada, from participating in the token distribution.
EigenLayer Challenges And Opportunities in Token Distribution
EigenLayer, a DeFi protocol based in Seattle, has made waves in the industry by introducing a concept known as restaking. This method aims to increase rewards on the Ethereum blockchain by allowing users to deposit ETH to help operate the network.
According to data from DeFiLlama, since its debut in 2023, EigenLayer has attracted over billion in assets, demonstrating the significant interest and potential of this new approach.
The launch of the EIGEN token is set to commence with an airdrop, a process where tokens are distributed to users based on certain criteria, including a points system that rewards early service adopters.
Kunal Goel, an analyst at Messari, noted that anticipating this airdrop was a “primary incentive” for users to place funds in EigenLayer’s service.
However, the excitement has been tempered by the fact that many participants who accumulated points are now barred from claiming their tokens due to using virtual private networks or residing in excluded countries.
Robert Drost, executive director at the Eigen Foundation, explained that the exclusions were a necessary step to adhere to regulatory guidelines, which are often unclear and challenging to navigate, noting:
It’s not possible to operate in the space without following regulatory guidelines and being responsible, and the challenging part is that there is not a lot of clarity.
This sentiment was echoed by Nick Cote, co-founder of Secondlane, who noted:
Issuers not being upfront with jurisdictional restrictions leaves a sour taste in people’s mouth when it comes time to receiving your rewards, and then you find out you’re disqualified for X, Y, Z reason.
Impact On The Broader DeFi Ecosystem
EigenLayer’s restaking service is not just a new feature in the Ethereum ecosystem; it represents a shift in how applications can leverage the deep pool of transaction validators that underpin Ethereum.
This service increases the yield from staking ETH – from a baseline of around 3% to higher rates, albeit with additional risks.
As a result, EigenLayer has risen to become the “second most popular DeFi application,” as reported by Bloomberg, partly at the expense of liquid staking protocols like Lido and Rocket Pool, which have seen significant outflows in recent months.
According to DeFiLlama, liquid staking protocols have experienced a more than 20% decline in total value locked since their notable high above billion in March.
Meanwhile, according to a recent report from IntoTheblock, nearly 4% of all ETH is now restaked using EigenLayer, showcasing the project’s growing popularity.
EigenLayer recently surpassed B in TVL.
Nearly 4% of all ETH, and 40% of liquid staking tokens (LSTs) supply is currently being restaked into EigenLayer pic.twitter.com/LZ0vbp3L3z
— IntoTheBlock (@intotheblock) April 26, 2024
Featured image from Unsplash, Chart from TradingView