Blackrock’s chief investment officer of ETF and Index Investments discussed the cautious approach financial advisors take toward spot bitcoin exchange-traded funds (ETFs) due to price volatility and regulatory concerns. “Their job is really to construct portfolios and do the risk analysis and due diligence,” the executive stressed. “They’re doing that right now.” ‘This Journey That […]
Bitcoin News
As UK Elections Approach, Crypto Industry Leaders Turn Attention to Keir Starmer, Labour Party
With U.K. opinion polls indicating a strong performance by the Labour Party in the July 4 elections, crypto executives and lobbyists are reportedly focusing their attention on party leader Keir Starmer. The crypto industry has also prioritized two other pro-tech Labour Party leaders in its ongoing effort to influence the U.K. government’s policy on digital […]
Bitcoin News
European Central Bank Cuts Rates by 0.25%, Confirms Data-Driven Approach for Path Ahead
The European Central Bank announced cuts of 0.25% (or 25 basis points) on three of its main interest rates: the main refinancing operations, the marginal lending facility, and the deposit facility. President Christine Lagarde emphasized that future decisions regarding additional cuts will depend on market reactions and evolving data. European Central Bank Cuts Interest Rates […]
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Indian Regulator Advocates Multi-Agency Approach for Crypto
The Securities and Exchange Board of India (SEBI) has submitted its recommendations for regulating crypto assets to a government panel. SEBI suggests multiple regulators for different aspects of cryptocurrency trade. India’s central bank, the Reserve Bank of India (RBI), however, views crypto as a macroeconomic risk, highlighting concerns about tax evasion and fiscal stability. SEBI […]
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Optimism Network Activity Metrics Approach Record Levels, Propelling OP 9% Higher
Layer 2 (L2) scaling solution Optimism reported a series of strong network metrics in the first quarter (Q1) 2024, with its native OP token surging 9% on the back of this bullish momentum.
Optimism Sees Higher Activity And Rising Transaction Fees
According to a recent Messari report, Optimism’s circulating market cap increased 11% quarter-over-quarter (QoQ) to .7 billion, while its fully diluted market cap rose 1% to .7 billion.
Despite the broader crypto market rally, with Bitcoin (BTC) and Ethereum (ETH) gaining 69% and 53% QoQ, respectively, OP’s market cap ranking slipped from 26th to 39th among all blockchain networks. However, within the Ethereum ecosystem, OP remains one of the top four rollups by market capitalization.
Driving this growth was a significant uptick in Optimism network activity. Daily active addresses reached 89,000 in Q1 2024, a 23% QoQ increase, while daily transactions surged 39% to 470,000 over the same period. These metrics approached, but did not quite reach, their all-time highs in Q3 2023.
The network’s revenue also saw a substantial 78% QoQ increase to million, driven by higher activity and a 48% rise in the average transaction fee to .42. However, this average fee dropped significantly in the latter half of March due to the implementation of Ethereum Improvement Proposal (EIP) 4844, which reduced L1 submission costs by 99%.
Total Value Locked Jumps 18% In Q1
Despite the fee reduction, Optimism’s on-chain profit for Q1 2024 increased 14% QoQ to million. The network’s Total Value Locked (TVL) also grew by 18% to .2 billion, though its TVL ranking among all networks fell to 11th place.
Within Optimism’s TVL, the DeFi sector dominated, accounting for 86% of active addresses. According to Messari, non-fungible token (NFT) applications and gaming followed with 6.9% and 6.7%, respectively.
TVL’s leading protocols included Synthetix (7 million, +4% QoQ), Aave (0 million, +52% QoQ), and Velodrome (1 million, +10% QoQ).
Optimism’s stablecoin market capitalization also grew significantly, reaching 9 million (+32% QoQ) by the end of Q1 2024. Circle’s USDC stablecoin and Tether’s USDT made up most of this, with USDT seeing a 64% QoQ surge to 2 million, or 63% of the total stablecoin market cap on Optimism.
OP Rebounds Alongside Crypto Market Resurgence
Despite Optimism’s strong performance across key metrics in Q1 2024, the network’s native token, OP, did not see a corresponding price increase at the end of Q1. Instead, OP followed the broader market downtrend, hitting an annual low of .80 just one month after hitting an all-time high of .84 in March.
However, OP has followed suit as the overall cryptocurrency market has seen a resurgence of bullish momentum in the past few days. In the past 24 hours, the token has recorded a 9% price increase and a 3% uptick in the past week, currently trading at .56.
Furthermore, CoinGecko data shows a 19% increase in OP’s trading volume over the past 48 hours, reaching 0 million.
While this renewed bullish sentiment is encouraging, OP still trades 46% below its all-time high and faces significant resistance levels soon before a potential retest of this milestone.
The first key resistance is at .65, followed by .90, which must be overcome before the token can push towards the .00 level. Conversely, the .34 support level has proven crucial and must be monitored closely in case of any bearish resurgence.
Featured image from Shutterstock, chart from TradingView.com
Mark Cuban Blasts SEC’s Crypto Regulation, Advocates for Japan’s Approach
Billionaire investor and “Shark Tank” star, Mark Cuban, has taken to social media to voice his concerns about the U.S. Securities and Exchange Commission’s (SEC) approach to cryptocurrency regulation. In a series of posts, Cuban criticizes the SEC for stifling innovation and causing harm to businesses in the crypto industry. He contrasts the U.S. regulatory […]
Bitcoin News
FTX Bankruptcy Claims Surge in Value: Bids Now Approach 93 Cents on the Dollar
Half a year ago, firms specializing in acquiring troubled companies and their debts were actively accumulating FTX bankruptcy claims worth millions, offering .33 for every dollar of claim. Presently, the valuation of these claims has significantly appreciated, with buyers now prepared to offer .93 on the dollar for each claim. FTX Bankruptcy Claims Now Worth […]
Bitcoin News
High-Stakes Week For Bitcoin And Ethereum As Central Bank Decisions Approach: Key Predictions
This week could mark a pivotal moment in the first quarter of 2024 for the entire crypto market and the two largest cryptocurrencies, Bitcoin (BTC) and Ethereum (ETH), as major central banks, led by the Bank of Japan and the US Federal Reserve (Fed), prepare to announce their interest rate decisions.
According to crypto futures exchange Blofin, these announcements will set the tone for monetary policy in the coming months. The impact of safe-haven sentiment has led to a pullback in both BTC and ETH prices, with traders expressing greater optimism for BTC.
Bitcoin Price Movement Range Projected At 9.78%
As per a recent on-chain analysis report released by the exchange, crypto traders are expecting BTC’s price movement range to reach 9.78% over the next seven days, with a projected 30-day range of 20.33%.
However, despite the expected volatility, the report indicates that traders remain bullish on BTC in the medium to long term.
Skewness analysis suggests that price declines and pullbacks are expected to induce volatility, but the duration of this round of pullback is expected to be relatively short. Risk aversion to macro uncertainty is seen as the primary trigger.
The latest dealers’ gamma distribution supports the expected wide range of BTC price fluctuations, with gamma peaks around ,000 and ,000. With the quarterly settlement approaching, market makers’ influence on BTC price movement is gradually recovering, providing support during price drops but making it challenging to surpass the ,000 level.
In addition, on-chain data shows a decline in spot investors’ enthusiasm for buying BTC, although the number of addresses holding more than 100 BTC continues to increase, as seen in the chart above. The reduced number of addresses holding over 1,000 BTC suggests that significant holders have decided to sell at BTC’s new highs.
Despite caution over potential price fluctuations, the hedging effect contributes to the increasing possibility of BTC price stabilization, making holding BTC a favorable choice.
Bearish Sentiment Dominates Front-Month Options For Ethereum
According to the report, similar to BTC, traders expect relatively high volatility levels for ETH in the short term, with projected price movement ranges of 10% over seven days and 20.32% over 30 days. However, the report suggests that traders are less optimistic about ETH’s future performance compared to Bitcoin.
Furthermore, Blofin finds that bearish sentiment dominates the front-month options, while bullish sentiment remains favorable in the back-months. Blofin emphasizes that expectations of rate cuts may support the ETH price, but the pricing of Ethereum tail risk indicates “increased pessimism” regarding significant events impacting the ETH price, with spot Ethereum ETFs seen as a potential trigger.
Finally, Blofin explains that the high leverage of altcoins has long been a “source of risk” in the cryptocurrency market. The recent price decline has led to the liquidation of many highly leveraged altcoin positions, resulting in lower annualized funding rates for perpetual contracts.
This deleveraging of altcoins, coupled with their relatively small market share of less than 20%, has helped to mitigate risk and contribute to market stability, according to the report. However, despite the overall decline in altcoin leverage, speculation in meme coins continues.
At present, the price of Bitcoin stands at ,500, reflecting a significant decline of 7.5% within the last 24 hours. Similarly, Ethereum is trading at ,276, experiencing a 6.8% drop during the same period.
Featured image from Shutterstock, chart from TradingView.com
The Innovative Approach to Address Demand for ZKBase in the Market
PRESS RELEASE. In the Bitcoin ecosystem, projects typically fall into two categories: ‘Asset Issuance Protocols’ and ‘Scalability Solutions’. Project teams usually focus on developing products and solving issues within one of these domains. ZKBase is introducing a comprehensive scalability solution tailored for asset issuance protocols, aimed at addressing two major challenges currently faced by the […]
Bitcoin News
Bitcoin Technical Analysis: BTC’s Consolidation Phase Signals Cautious Market Approach
As of Dec. 15, 2023, bitcoin’s price dynamics present a compelling narrative, marked by a blend of bullish trends and nuanced fluctuations. Following the U.S. Federal Reserve meeting on Wednesday, BTC’s price improved but has been in a tight consolidated pattern ever since.
Bitcoin
On Friday, bitcoin (BTC) exhibits a price of ,696, with a 24-hour range stretching from ,067 to ,329, signaling moderate volatility. The market capitalization stands at 5 billion, underpinned by a substantial 24-hour trading volume of .86 billion. While BTC is down 2.2% this past week over the fortnight, the leading crypto asset is up 10.7% against the U.S. dollar.
Oscillators, essential tools for gauging market momentum, present a mixed but generally neutral stance. The relative strength index (RSI) at 51 indicates a balanced market sentiment, which is neither overbought nor oversold at the moment. Meanwhile, the Stochastic stands at 65, aligning with the neutral perspective. Interestingly, the commodity channel index (CCI) dips to -71, suggesting a bearish undercurrent, yet remaining within the neutral zone.
The moving averages, critical for understanding market trends over short and long term time frames, offer a nuanced view. Shorter-term exponential (EMA) and simple moving averages (SMA) for 10 and 20-day periods lean towards a bearish signal, highlighting the recent downtrend. However, the longer-term EMAs and SMAs for 30, 50, 100, and 200-day periods mostly reflect a bullish undertone over an extended period. The current dichotomy between short and long-term perspectives highlights the complexity of current market dynamics.
The daily chart analysis still underscores a bullish trend, characterized by higher highs and lows, albeit with intermittent pullbacks. Support and resistance levels are discerned at approximately ,651 and ,729, respectively. These levels, coupled with significant trading volumes during substantial price movements, validate the current trend and provide key insights for potential entry and exit points.
Contrastingly, the 4-hour chart presents a more granular and fluctuating scenario. Despite the overall uptrend, this timeframe shows increased sideways movement, with the recent large red candle hinting at potential selling pressure. Short-term support and resistance levels are identified around ,181 and ,440. This chart offers a more immediate view of the market, essential for intra-day traders and those seeking to capitalize on short-term price movements.
Bull Verdict:
The data and trends observed on Dec. 15, 2023, lean toward a bullish outlook for Bitcoin. The daily chart’s pattern of higher highs and lows, reinforced by the prevailing ‘Buy’ signals from longer-term moving averages, suggests a solid underlying strength and optimism in the market. The moderate volatility and substantial trading volume further support a positive sentiment, indicating a likelihood of sustained upward momentum in the near future.
Bear Verdict:
Conversely, the bearish verdict is grounded in the short-term signals and potential vulnerabilities in the Bitcoin market as of Dec. 15, 2023. The 4-hour chart’s increased sideways movement and the recent large red candle, coupled with ‘Sell’ signals from the shorter-term moving averages, point to potential selling pressure and short-term bearishness
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