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Bitcoin News
Spot Bitcoin ETFs Rocked By Outflows, BTC Price Succumbs To Bears
The Spot Bitcoin ETFs have seen their demand drop since the start of this month, and this was again evident in the considerable outflows recorded on April 26. This poor run has had far-reaching effects on the broader crypto market as Bitcoin’s price has succumbed to unfavorable market conditions.
Spot Bitcoin ETFS Record 7 Million Of Outflows
Farside Investors revealed in an X (formerly Twitter) post that the Spot Bitcoin ETFs recorded 7 million of net outflows on April 25, one of their largest this month. Grayscale’s Bitcoin Trust (GBTC) accounted for most of these outflows, with investors moving 9.4 million out of the fund.
Related Reading: Why Is The Dogecoin Price Down Today?
Some other funds also recorded individual outflows. Ark Invest’s Spot Bitcoin ETF recorded .3 million in outflows, while Valkyrie and Bitwise’s ETFs saw million and million in daily outflows, respectively. Notably, Fidelity’s Wise Origin Bitcoin Fund (FBTC) recorded a net daily outflow for the first time since these funds were approved, with .6 being moved out of the fund on Thursday.
Meanwhile, BlackRock’s dry spell continued with its iShares Bitcoin Trust (IBIT) recording zero inflows for the second consecutive day. Although the fund has yet to record net daily outflows since launching, this undoubtedly represents a setback, considering that it had, before April 24, recorded 71 consecutive days of daily inflows.
These Spot Bitcoin ETFs’ outflows have led to a wave of sell-offs from the fund issuers to fulfill redemptions. As a result, Bitcoin’s price action has been rather unimpressive as of late, with the flagship crypto experiencing significant price declines due to the heightened selling pressure. This development has put the bears firmly in control, with data from Coinglass showing that more Bitcoin longs than shorts have been liquidated in the last 24 hours.
Macro Economic Factors Also Affecting Bitcoin’s Price
An initial estimate released by the Bureau of Economic Analysis on April 25 showed that the US Gross Domestic Product (GDP) grew at an annual rate of 1.6% in the first quarter, which was way below expectations. This data report further diminishes hopes of rate cuts this year and looks to have played out in investors’ minds as Bitcoin briefly dropped below ,000 following the report’s release.
Meanwhile, the Personal Consumption Expenditures (PCE) inflation data is set to be released on April 26. This PCE report could come in higher than expectations, adding to the growing concerns about the unlikelihood of rate cuts this year.
Interest rates have significant implications on risk assets, including crypto, and if the Federal Reserve decides to take a hawkish stance, it could negatively impact the crypto market.
Ethereum Technical Analysis: ETH Succumbs to Bearish Pressure and Upper Resistance
As of Dec. 18, 2023, ethereum exhibits a complex interplay of bearish and bullish signals across various technical indicators. The second-leading crypto asset, currently priced at ,125 to ,165, faces a critical juncture in its market trajectory, as revealed by the 4-hour and daily charts, oscillators, and moving averages.
Ethereum
The 4-hour chart analysis for ethereum (ETH) paints a predominantly bearish picture, characterized by a distinct downtrend. This trend is evident through the formation of lower highs and lower lows, a classic indicator of bearish momentum. Despite a recent uptrend at a potential short-term reversal, the overarching downward trend suggests this could be a mere temporary pause. For investors considering short positions, the ,235 per ETH price level emerges as a key resistance point to watch.
In contrast, the daily chart provides a more expansive view of ether’s price movements, encompassing a broader historical context. Previously, ethereum enjoyed an uptrend, peaking around ,407, before succumbing to the current downtrend. The break below the crucial support level of ,100 underscores a strong bearish sentiment. This longer-term perspective is essential for investors seeking to identify potential entry points for both short and long-term positions.
Oscillators, often used to gauge market momentum and potential reversals, present a mixed outlook. The relative strength index (RSI) at 47.6, along with the Stochastic, commodity channel index (CCI), average directional index (ADI), and awesome oscillator, all hover in neutral to bearish territory. These indicators suggest a market in flux, with no clear directional bias, adding complexity to investment decision-making.
Moving averages (MAs), which help identify trends and potential reversals over various timeframes, also exhibit a dichotomy. Short-term moving averages, like the 10-day and 20-day exponential and simple moving averages (EMAs and SMAs), signal negative sentiment, indicative of immediate bearish pressure. Conversely, longer-term averages, such as the 50-day, 100-day, and 200-day EMAs and SMAs, advise a positive outlook, reflecting a potential shift in the longer-term trend.
The confluence of these indicators suggests that ether’s market is in a delicate balance. The bearish signals from the 4-hour chart and short-term moving averages are counterbalanced by the bullish outlook in the longer-term moving averages. This situation calls for a cautious approach, particularly for those considering long positions, as the market’s bearish tilt remains a significant factor.
Bull Verdict:
Despite the current bearish indicators on the 4-hour chart and short-term moving averages, the bull verdict for ethereum as of Dec. 18, 2023, hinges on the strength of the longer-term moving averages and the historical resilience of the asset. The neutral positioning of oscillators like the RSI and ADI suggests a potential for trend reversal — if the market can sustain above key support levels and breach the resistance near.
Bear Verdict:
The bearish verdict for ether, based on the same data from Dec. 18, 2023, is primarily driven by the persisting downward trend on the 4-hour chart and the bearish indications from short-term moving averages. The failure to break above the key resistance level of ,235 and the recent trend of lower highs and lower lows point towards continued bearish dominance. Unless there’s a significant shift in market sentiment or a breakout above crucial resistance levels, the bearish trend is likely to prevail.
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What do you think about ether’s market action on Monday morning? Share your thoughts and opinions about this subject in the comments section below.
Ripple Succumbs To Community Pressure To Halt XRP Dumping
Ripple bows to pressure from the XRP community and pauses “programmatic sales.” Following the much-publicized practice of XRP dumping, Ripple finally halts its monthly sales of escrow released tokens.
Ripple Sales Have Sunk
San Francisco based fintech firm, Ripple, has released its Q4 2019 report. And total sales have sunk to .08 million, down 80% from the previous quarter.
The company attributes this to a shift towards more cautionary accounting methods. Which, they say, is a move designed to address concerns over fake XRP volume on exchanges that allow wash trading.
“Ripple shifted to a more conservative volume benchmark for XRP sales, away from CoinMarketCap and to CryptoCompare Top Tier (CCTT) and significantly reduced XRP sales.”
Latest quarterly sales and volume report. (Source: Ripple.com)
Indeed, in a report filed with the SEC last year, Bitwise Asset Management claimed that as much as 95% of the reported volume on exchanges is fake.
1/ New Research from us @BitwiseInvest.
As part of 226 slides presented to the SEC on our ETF filing, we did a first-of-its-kind analysis of *order book data* from all 81 exchanges reporting >M in BTC volume on CMC.
TLDR: 95% of reported volume is fake but LOTS of good news! pic.twitter.com/TuXLlDCRyP
— Bitwise (@BitwiseInvest) March 22, 2019
Other researchers have disputed the extremity of this claim, for example, Alameda Research, who believe 68% is a more accurate figure.
All the same, any percentage of fake volume, regardless of the percentage, still taints the concept of cryptocurrency. And so, is it any wonder that regulators are wary of green-lighting Bitcoin ETFs?
That being so, fake volume and wash trading are still industry-wide problems. And for that reason, Ripple deserves credit for tackling this issue head-on.
“There is still much progress to be made, and Ripple will continue to evaluate its benchmarks and work proactively with industry participants toward addressing the persistence of fake volumes in industry volume data.”
XRP Dumping Is Out
Another hit to total sales comes by way of programmatic sales. This refers to the practice of selling escrow released XRP each month.
In Q4 2019, programmatic sales totaled zero. And the pause in this practice began partway through Q3.
A comparison of the last quarterly report shows that Ripple netted a staggering 5 million from the sale of escrow released XRP in Q2.
“Every month, the escrow releases a total of one billion XRP to Ripple. The portion of XRP leftover each month is placed into a new escrow to be released in the following months.”
It was during the summer of last year when XRP dumping gaining widespread public attention. Twitter user crypto_bitlord, who was frustrated with stagnant XRP price action, launched a change.org petition to “Stop Ripple dumping.”
Such was the strength of his feelings, when that failed to gain any traction, he suggested the community hard fork XRP.
I’m thinking about forking $XRP so we don’t have to deal with the founders dumping.
-This will be a community effort.
Retweet if you’re in
— (MOON) BITLORD (@Crypto_Bitlord) August 26, 2019
As drastic and nonsensical as that sounds, the consistent pressure from crypto_bitlord, and many others in the XRP Army, looks to have paid off.
And it seems as though Ripple is finally taking heed of what token holders are saying, for now at least. All the same, the big question is, will this move spur XRP back above the much-fabled .50 mark?
Image from Shutterstock The post appeared first on NewsBTC.
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Alabama County Succumbs to Bitcoin Ransomware Demands
Yet another incident of hackers using Bitcoin as a payment method for ransomware attacks has surfaced. One of the largest counties in Alabama was the victims this time, and the security breach and subsequent encrypting of sensitive information cost the local government a not-inconsequential ,000. The figure sounds a lot, but when you consider that … Continue reading Alabama County Succumbs to Bitcoin Ransomware Demands
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