Two U.S. senators have criticized the Department of Justice (DOJ)’s new interpretation of “money transmission,” which extends requirements to non-custodial software, citing concerns over its impact on crypto networks and financial innovation. “I’m concerned the DOJ’s interpretation would treat software developers as criminals for merely writing and publishing code used by others,” one of the […]
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Andrew Tate Plans to Invest Big in Bitcoin, Leaving Fiat Completely
Andrew Tate, a British-American social media personality and former professional kickboxer, has announced a plan to invest significantly in bitcoin, expressing frustration with banks and their scams. “I’m about to leave fiat completely,” he stressed. “I’m done with the banks. I’m done with their money. Done with the scams.” Andrew Tate Plans to Shift ‘100M’ […]
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QCP Capital Sees Bitcoin Reclaiming $74K Highs – Here’s Why BTC Could Continue Its Rally
QCP Capital, a prominent institutional-focused firm, has recently projected that Bitcoin could revisit its peak price levels, potentially reaching up to ,000 shortly.
This prediction follows the latest United States Consumer Price Index (CPI) data, which has significantly boosted risk assets.
The firm noted that the positive surge in the market is partly due to the renewed buy-side demand, as evidenced by the buying patterns that resemble those of Exchange-Traded Fund (ETF) market makers.
Institutional Inflows And Market Indicators Point To A Bitcoin Bullish Trend
In a detailed analysis shared through their Telegram channel, QCP Broadcast, the firm stated: “We expect bullish momentum here that could take us back to the highs of 74k.”
Substantial institutional interest in Bitcoin supports this sentiment, as large asset managers like Millennium and Schonfeld have allocated about 3% and 2% of their Assets Under Management (AUM), respectively, to spot BTC ETFs.
The optimism surrounding Bitcoin is not just theoretical but backed by significant market activity. For instance, inflows into spot Bitcoin ETFs in the US reached a two-week high of 3 million as of May 15th, signaling a robust renewal of institutional confidence.
Fidelity’s FBTC fund led this influx with 1 million, followed by Bitwise’s BITB fund, which saw million, marking its highest since early March. Grayscale’s GBTC, which had experienced outflows for four months, reversed this trend with a million inflow.
Yesterday, May 15, the total net inflow of Bitcoin spot ETFs was 3 million. Grayscale ETF GBTC had a single-day net inflow of .0466 million, Fidelity ETF FBTC had an inflow of 1 million, and Bitwise ETF BITB had an inflow of .2578 million. https://t.co/npjWVH3bMi
— Wu Blockchain (@WuBlockchain) May 16, 2024
Further underlining this bullish sentiment, Millennium Management holds a roughly billion Bitcoin ETF portfolio, making it the largest holder of specific Bitcoin ETFs like BlackRock’s IBIT and Fidelity’s FBTC.
Other hedge funds, including Paul Singer’s Elliott Capital and Apollo Management Holdings, have also disclosed significant holdings in Bitcoin ETFs, showcasing the growing institutional interest in Bitcoin.
Market Performance And Future Outlook
Bitcoin’s market performance has been quite notable. It has increased nearly 10% over the past week, including a 2.7% rise in the last 24 hours alone.
QCP Capital attributes this trend to several factors, including significant “sovereign and institutional adoption, easing inflation concerns, and the upcoming US elections,” all of which contribute to a favorable market outlook.
The positive sentiment is also partly due to the CPI data released on May 15th, which met expectations and eased concerns about inflation.
This is crucial as lower inflation rates influence the Federal Reserve’s decisions on interest rates, making riskier assets like Bitcoin more attractive to investors seeking higher yields.
James Coutts, Chief Crypto Analyst at Realvision, also cited the Global Money Supply (M2) index as a critical indicator of Bitcoin’s price movements.
According to Coutts, the M2 money aggregates, which include cash and checking deposits and are easily convertible near money, are central to understanding liquidity flows within the global financial system.
He noted, “The money stock often moves in one direction, with significant drops like those seen in 2022 being rare and typically brief.”
Coutts predicts that any significant break above Bitcoin’s all-time highs could pave the way for it to reach around 0,000 in this cycle. He remarked, “Watch the 101/102 level on DXY. If that breaks, then we should see ~0k BTC this cycle,” emphasizing the interplay between liquidity and market cycles.
Featured image from Unsplash, Chart from TradingView
Bitcoin Magazine CEO: A Trump Victory Will Trigger a Bitcoin ‘Space Race’
David Bailey, CEO of Bitcoin Magazine and crypto aide for the Trump campaign, believes that Trump’s victory in the upcoming election could trigger a bitcoin ‘space race,’ as countries rush to accommodate their policies to align with the U.S. Bailey also stated that they have secured several 7-figure commitments for Trump’s pro-crypto 0 million war […]
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Bitcoin Lightning Payments Service Provider, Ibex Pay, to Suspend US Operations
Ibex Pay, a payment rail that accepts Bitcoin payments via the Lightning Network, announced on May 15 that it will cease operations in the U.S. The payment firm stated that the suspension of services for the U.S. market will take effect on May 31, but did not provide reasons for the decision. The company is […]
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Millennium Management and Morgan Stanley Report Significant Spot Bitcoin ETF Holdings
According to 13F filings with the U.S. Securities and Exchange Commission (SEC), Millennium Management, a highly successful hedge fund, holds nearly billion in spot bitcoin exchange-traded fund (ETF) shares. This week, it was further revealed that Morgan Stanley, a giant multinational investment and financial services firm, also has exposure to spot bitcoin ETFs. Top […]
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Red Alert For Bitcoin: Network Hashrate Takes A 20% Dive
The post-halving world of Bitcoin continues to throw curveballs. After a hashrate surge to celebrate the block reward reduction in April, Bitcoin’s computational power has taken a nosedive, dropping 20% in recent weeks.
This unexpected decline has ignited a debate among analysts, with some sniffing out a fire sale and others urging caution.
Bitcoin: Hashrate Hiccup Or Miner Exodus?
Hashrate, a measure of the combined processing power dedicated to securing the Bitcoin network, typically climbs after a halving event as miners invest in more powerful rigs to compete for the reduced rewards.
However, this time around, the trend defied expectations. Experts like Maartunn, a pseudonymous analyst at CryptoQuant, believe this signals a potential “miner capitulation.”
Less efficient miners are now likely throwing in the towel. The halving, which cut block rewards in half, squeezed profit margins for miners using older equipment. As these miners shut down their operations, the hashrate dips.
Hash Ribbons Flash Warning Sign
Supporting Maartunn’s theory is a technical indicator called Hash Ribbons. This metric tracks the difference between short-term and long-term hashrate averages. When the gap widens, it suggests a decline in mining activity, potentially due to less efficient miners dropping off.
The recent hashrate plunge has triggered a spike in Hash Ribbons, historically a sign of miner capitulation that has often coincided with price lows for Bitcoin.
Bitcoin Miners Selling Off?
Further fueling the capitulation theory is a decrease in Bitcoin’s Miner Reserve. This metric tracks the amount of Bitcoin held in wallets associated with miners. A decline in the reserve suggests miners might be offloading their mined coins, potentially to cover operational costs or to exit the market altogether.
Undervaluation Signal Or Cyclical Dip?
Maartunn interprets these signs as a bullish indicator. Hash Ribbons often point to opportune moments to buy, he argues. Backing his claim is the Market Value to Realized Value (MVRV) ratio, which suggests Bitcoin might be undervalued.
This metric compares the current market price to the average price at which all Bitcoins were acquired. A negative MVRV, like the one Bitcoin currently has, suggests the asset is trading below its historical cost basis, potentially indicating a buying opportunity.
Related Reading: Buckle Up, XRP Fans: Analyst Eyes Price Explosion To .65 In Next 5 Days
Not Everyone On The Capitulation Train
However, not all analysts are convinced. Some argue that the hashrate decline could be temporary, perhaps due to factors like extreme weather events disrupting mining operations in certain regions.
Additionally, the post-halving period is typically one of adjustment for miners, and a short-term hashrate fluctuation might not necessarily signal a mass exodus.
The post-halving Bitcoin landscape is still unfolding. While the hashrate decline and other signs suggest a potential buying opportunity, particularly for long-term investors, the situation remains fluid.
Featured image from Shutterstock, chart from TradingView
US Bitcoin ETFs Achieve 3-Day Inflow Streak, Netting $303M on Wednesday
U.S. spot bitcoin exchange-traded funds (ETFs) performed well on Wednesday, completing a three-day streak of inflows and accumulating 3 million in gains on May 15. Data indicates Blackrock’s IBIT inflows have been minimal, recording zero inflows over the past few trading sessions. In contrast, Grayscale’s Bitcoin Trust (GBTC) saw inflows of approximately million during […]
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Why Did The Bitcoin Price Rise Above $66,000 Today?
Bitcoin recently rose above ,000 for the first time since April. This recent price rally from the flagship crypto is believed to be due to several factors, including the recently released inflation data.
Inflation Data Comes In Lower Than Expectations
The Consumer Price Index (CPI) inflation data was announced on May 15 and came in lower than expected. The CPI rose by 0.3% in April, against forecasts of 0.4%. The CPI data was also lower than those recorded in March and February, when inflation rose by 0.4%.
Therefore, the latest inflation data suggests that inflation in the US might be slowing down. This development has provided some relief for investors, as the Fed is likely to maintain a dovish stance and consider rate cuts as inflation looks to decline. Lower interest rates mean investors will be more confident investing in risk assets like Bitcoin.
Another factor contributing to Bitcoin’s rally is recent reports showing that some notable institutions are heavily invested in the flagship crypto. Bitcoinist reported that the State of Wisconsin has invested almost million in BlackRock’s Spot Bitcoin ETF. Hedge Fund Millenium Management is also reported to hold .94 billion across five different Spot Bitcoin ETF products.
This presents a bullish outlook for Bitcoin as it suggests that institutional investors are interested in the crypto token for the long term. Meanwhile, from a technical analysis perspective, Bitcoin also looked primed for this rally, with crypto analyst Rekt Capital revealing that the flagship crypto was out of the post-halving “Danger Zone.”
Crypto analyst Mikybull Crypto also noted that Bitcoin was displaying a cup and reversal pattern on the weekly chart and added that the “breakout will be explosive and will send it to a cycle top.”
What Next For Bitcoin?
In a Telegram update, crypto trading firm QCP Capital stated that they expect this bullish momentum to take Bitcoin’s price to the previous highs of ,000. They highlighted activity in the derivatives market and growing institutional demand as factors that could contribute to Bitcoin’s rise to this price level.
They also raised the possibility of this being the resumption of the bull market, stating that “the stars seem to be aligning on this breakout with significant sovereign and institutional adoption, abating inflation and upcoming US elections.” The trading firm added, “If this is indeed the start of the bull trend again, then this move could take us past all-time highs.”
Rekt Capital suggested that this might be the beginning of an upward trend for the flagship crypto as he revealed that the daily downtrend for Bitcoin is over. In another X post, the crypto analyst also noted that the Bitcoin bull market is not yet over.
Enegix Global Launches New Bitcoin Mining Brand 21pool After Halving
PRESS RELEASE. Dubai, UAE – Enegix Global, a leading player in the digital mining infrastructure industry based in the UAE, is excited toannounce the launch of its new brand, 21pool. The brand’s flagship product is a bitcoin mining pool that specializes in aggregating the computational power of miners to increase payouts. 21pool utilizes the most […]
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