Following the release of lower-than-anticipated CPI data on June 12, U.S. equities climbed to record highs, with bitcoin exceeding ,000. However, Ryze Labs, a venture capital firm investing in blockchain and Web3 projects worldwide, particularly in emerging markets, stated that the Federal Reserve’s hawkish dot plot forecast and subsequent comments by Chair Jerome Powell led […]
Bitcoin News
Bitcoin Market Dynamics Still Positive Post-Halving – Bitfinex Analysis
In the midst of the dramatic changes that have occurred in the cryptocurrency space after the Bitcoin halving event, Bitfinex provides a perceptive analysis that reassures investors that the market dynamics of BTC have remained positive in the post-halving period. Bitfinex examines the on-chain data and finds encouraging signs for Bitcoin in spite of the United States economy’s current state of uncertainty in its most recent Alpha report, which was released on April 22.
Bitcoin Market Dynamics Remains Bullish
According to the Hong Kong-based crypto platform, exchange withdrawals of Bitcoin are currently at levels not seen since January 2023. This simply indicates that a lot of investors are putting their assets in cold storage in expectation of price rises.
Also, the exchange noted that long-term investors’ aggressive selling has not yet caused the usual pre-halving price decline, which suggests that new market participants are absorbing the selling pressure quite well, highlighting the tenacity of the present market structure of Bitcoin.
The Bitfinex Alpha report revealed that the average daily net inflow from spot Bitcoin Exchange-Traded Funds (ETFs) is 0 million. Given the ETFs’ inflows far exceeding the and million daily issuance rate of BTC following the halving, this significant supply and demand imbalance could encourage further price appreciation.
Bitfinex further claims the massive purchases of spot Bitcoin ETFs, which have dominated the entire year’s market narrative, may decline. However, recent ETF outflows have shown that ETF demand may be starting to stabilize.
It is important to note that the recently concluded Halving cut down miners’ reward from 6.25 BTC to 3.125 BTC. As a result, miners are now modifying their operating tactics in order to sustain their activities against the decline in reward following the Halving.
Thus, the amount of Bitcoin that miners are sending to exchanges has significantly decreased, which may indicate that they are selling ahead of time or collateralizing their holdings to upgrade infrastructure. Consequently, this could possibly lead to a gradual increase in selling pressure rather than a sudden drop in value at the Halving.
New BTC Whales Surpassed Old Whales
Since the conclusion of the fourth Halving, on-chain data shows a significant rise in new Bitcoin whales. CryptoQuant Chief Executive Officer (CEO) Ki Young Ju, reported the development, noting that the initial investment made by the new whales in Bitcoin is nearly twice that of the old whales combined.
According to the data, the total holding by these new whales, which are short-term holders, is valued at 0.6 billion. Meanwhile, the old whales, which are long-term holders, own a whopping billion worth of BTC. This change in whale demographics may impact Bitcoin’s future course and the dynamics of the cryptocurrency landscape as a whole.
Bitcoin Market Update: Post-Halving Price Dynamics and Market Movements
Bitcoin’s market value has experienced significant shifts following the recent halving event at block height 840,000, which saw onchain fees soar beyond 0 per transaction. This pivotal change coincides with a notable fluctuation in price, demonstrating a complex interplay of supply and demand forces at work. Currently, bitcoin is trading at ,488, down 4.5% this […]
Bitcoin News
Bitcoin Technical Analysis: BTC Faces Volatile Day of Trading and Complex Dynamics
As bitcoin navigates a tumultuous trading range between ,022 and ,430, market analysts scrutinize oscillators and moving averages for future price direction clues. The cryptocurrency’s price hovers at around ,110 on April 19, 2024, reflecting a volatile day for traders after the escalating conflict in the Middle East and ahead of the halving. Bitcoin Bitcoin’s […]
Bitcoin News
Bitcoin Halving RoadMap: Analyst Outlines 3 Phases For Market Dynamics
Bitcoin is now hovering around the ,000 threshold after a notable recovery it witnessed a few days ago. Due to the recent momentum, crypto enthusiasts are becoming less pessimistic about the digital asset’s growth prior to the halving event. With the fast approaching much-anticipated Bitcoin Halving, Rekt Capital, a well-recognized cryptocurrency analyst and aficionado, has offered his market insights mapping out three distinct stages of the event for investors.
3 Distinct Aspects Of The Bitcoin Halving
Rekt Capital’s analysis delves into Bitcoin‘s movement before and after the halving takes place, which is expected to happen this month. In the seven days leading up to the occurrence, the crypto analyst underscored three stages to observe for a successful outcome.
These three phases include the final pre-halving retrace, the re-accumulation phase, and the parabolic uptrend phase. Emphasizing on the first aspect, Rekt Capital noted that the pre-halving retrace is documented in the books and has already manifested.
During this period, Bitcoin experienced an 18% pullback compared to 2016 and 2020’s retracement of 38% and 19%, respectively. The expert believes that the concluded pre-halving Retrace was the last chance to purchase a deal during the pre-halving phase.
Following the conclusion of the retrace, Rekt Capital has confirmed the development has laid the groundwork for the Re-accumulation range. It is important to note that the aforementioned range occurs a few weeks ahead of the halving, and it ends with a breakout from it a few weeks later.
Specifically, the period could last for several weeks and up to 150 days or five months. Given the manifestation of the range, sideways movement through the halving and beyond is the major purpose of BTC.
Thus, the analyst has stressed the need to be patient around this phase, as many investors get frustrated, bored, and disappointed here because their Bitcoin investments lack significant returns. As a result, they lose confidence and get shaken out of the market before the event.
BTC’s Post-Halving Rally Might Mirror Previous Trend
As for the parabolic uptrend, Rekt Capital claims the phase will begin when Bitcoin breaks out from the re-accumulation range. He further stated that the price of BTC tends to grow more quickly and enters a parabolic upsurge during this stage.
According to the expert, this area has typically lasted about a year or a little more, particularly around 385 days in the past. However, with the possible accelerated cycle that is currently in development, the period could be halved within this bull market cycle.
Rekt Capital’s key perspectives came amidst Bitcoin demonstrating strength to revisit its current all-time high of ,000. BTC has managed to amass gains of more than 6% in the past few days.
It recovered to the ,000 level after plunging as low as ,000 on Wednesday and is getting close to ,000. At the time of writing, BTC was trading at ,854, indicating over 6% increase in the past week.
Its market capitalization is up by 1% and its trading volume has plummeted by more than 21% over the past day. Given the current trend in the coin market, BTC could be in a position to see even bigger gains in the months to come.
Is It Time for Altcoins to Shine? Analyst Predicts Shift in Crypto Dynamics
Throughout this week, while bitcoin and ethereum have been consolidating, vibrant discussions about the elusive ‘Altcoin Season’ have intensified across forums and social media platforms like X. Some anticipate that a rally among altcoins is on the horizon, even though the Altcoin Season Index still suggests it is “not Altcoin Season.” Altcoin Season Index Inches […]
Bitcoin News
With 1 Month to Go, Bitcoin Halving Poised to Shift Mining Dynamics
Per the most recent data, we are a month away, or precisely 30 days, from the fourth Bitcoin halving event. This significant milestone will cut the mining rewards from 6.25 bitcoins per block to 3.125 bitcoins per block after the halving. The summary below outlines the essentials to grasp the changes occurring during the halving, […]
Bitcoin News
Bitcoin’s Race To $50,000: Analyst Highlights Key Resistance And Market Dynamics
The crypto market is currently abuzz with discussions on Bitcoin (BTC), as it teeters on the brink of reaching the ,000 threshold. This is fueled by the fast-approaching halving as well as a “bullish divergence” observed over the past week, with Bitcoin breaking past the ,000 mark.
Analyst Analysis On Bitcoin
Michaël van de Poppe, a prominent figure in the realm of crypto analysis, recently shared insights on the bullish divergence. Van de Poppe pointed out the notable weekly candle that propelled Bitcoin’s value beyond ,000, signaling a potential challenge at the ,000 resistance level in the near term.
#Bitcoin looking at the resistance.
Massive weekly candle, through which Bitcoin is back above ,000.
I’m personally interested what price will do around ,000 in the upcoming 1-2 weeks. pic.twitter.com/6I927U20pg
— Michaël van de Poppe (@CryptoMichNL) February 12, 2024
Further echoing this challenge, IntoTheBlock highlighted a key obstacle Bitcoin faces on its path to ,000 in the latest post. The firm identified a crucial resistance level, noting that over 800,000 addresses have purchased nearly 270,000 BTC at an average price of ,491.
Currently, at a loss, these holders may exert selling pressure as Bitcoin approaches its break-even point, potentially impacting its ascent to the coveted ,000 mark.
Bitcoin has set its sights on k!
To get there, there is one important resistance level left. Over 800k addresses acquired nearly 270k $BTC at an average price of ,491. These addresses are currently in the red and might provide sell pressure as they break even on their… pic.twitter.com/nEw4tP8wUc— IntoTheBlock (@intotheblock) February 12, 2024
Over the past week alone, Bitcoin’s value has increased by more than 10%, igniting discussions among crypto enthusiasts and experts regarding its future trajectory. This bullish momentum and the impending halving event reinforce optimistic stances within the crypto sphere about Bitcoin’s value proposition.
Bullish Outlook On BTC And Market Sentiment
Amid this bullish phase, several crypto analysts and market observers have put forward their forecasts regarding Bitcoin’s potential price movement shortly. Crypto Rover, another analyst with a significant following, suggested that surpassing the ,500 resistance and reaching the 0.618 Fibonacci level could set Bitcoin on a path to the “official trend reversal to a bull market.”
Once #Bitcoin breaks the ,500 mark, better said, the 0.618 Fibonacci level,
that will mark the official trend reversal to a bull market. I’m keeping a close eye on this level! pic.twitter.com/ne2SvugHRp
— Crypto Rover (@rovercrc) February 10, 2024
Furthermore, data from IntoTheBlock indicates a positive trend regarding Bitcoin address profitability. Currently, 91% of Bitcoin addresses are profitable, with the total number of addresses in profit at 46.87 million, accounting for 90.53% of all addresses.
This is contrasted with 3.44 million addresses that are still at a loss. IntoTheBlock’s analysis also reveals that most addresses that purchased BTC within the ,919.92 to ,413.77 range are now profitable, underscoring a bullish sentiment among Bitcoin holders.
Featured image from Unsplash, Chart from TradingView
Report: Ethereum and Solana Showcase Unique Market Dynamics in Recent Altcoin Trends
In the dynamic world of crypto markets, recent trends have illuminated intriguing divergences in the altcoin market, particularly between ethereum and solana, relative to bitcoin. A comprehensive report published by Glassnode, an onchain analytics firm, delves into this phenomenon.
Altcoin Dynamics Altered: Ethereum and Solana Lead Post-ETF Era
In the latest edition of Glassnode’s “The Week Onchain,” Alice Kohn’s research, published on Jan. 23, 2024, highlights ethereum’s (ETH) standout performance, marked by a notable surge in derivatives market activity, and the impressive journey of solana (SOL), especially post-bitcoin exchange-traded fund (ETF) approval. Ether has recently outshone bitcoin, recording its strongest performance since late 2022. Kohn’s report notes a surge of over 20% in ethereum’s value relative to bitcoin, coinciding with a revitalized interest in ethereum’s derivatives market.
This resurgence, signaling a potential shift in capital flows, has led to increased speculation about a forthcoming spot-based ethereum ETF. However, despite these gains, ethereum still trails behind the broader altcoin market in terms of momentum, underperforming by 17%. Solana, on the other hand, has charted a different course, Glassnode’s report details. SOL witnessed exceptional price performance last year, despite setbacks linked to its association with FTX.
SOL has significantly outperformed ETH in this period, with the SOL/BTC ratio increasing by 290% since October 2023. Interestingly, unlike ETH, solana’s price did not experience a significant revaluation following the BTC ETF approvals, as Glassnode’s Kohn suggests a divergent market response to broader sector movements. The broader altcoin market, as a whole, has seen nearly a 69% increase in market cap since the filing of the Blackrock Bitcoin ETF.
On Jan. 14, 2024, Bitcoin.com News highlighted that blockchaincenter.net’s Altcoin Season Index indicated the commencement of altseason. The index continues to declare it is “altcoin season,” with the leading 50 coins outperforming BTC in the previous season (90 days). Glassnode’s Kohn emphasized that the trend is primarily driven by tokens related to ethereum scaling solutions such as Optimism, Arbitrum, and Polygon. Staking and Gamefi tokens also outperformed BTC in the early stages of 2023, indicating a varied appetite for risk across different altcoin sectors.
Kohn’s research stresses the importance of these developments: “The approval of the new bitcoin ETFs has become a classic sell-the-news event, leading to a tumultuous few weeks in the market.” Glassnode says that ethereum has emerged as the short-term winner, with investors recording a multi-year high in net realized profits. This suggests a growing willingness to engage in speculative activities, particularly concerning an ETH ETF and capital rotation.
What do you think about Glassnode’s report concerning altered altcoin dynamics in the crypto market? Let us know what you think about this subject in the comments section below.
NYSE’s Strategic Move — Bitcoin ETF Options Poised to Boost Market Dynamics
In a groundbreaking move, NYSE Arca Inc. has submitted a proposal to amend its rules to enable options trading on commodity-based trust shares, specifically targeting bitcoin-based ETFs. This initiative, detailed in the 19b-4 filing with the SEC, marks a significant advancement in the financial products available for crypto investors. The NYSE’s proposal aligns with the surging interest in bitcoin ETFs, which saw a trading volume of .6 billion within just three days of their introduction.
NYSE Arca Eyes Options Trading for Bitcoin ETFs in Finance Sector Breakthrough
The filing by the New York Stock Exchange (NYSE), under Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4, seeks to amend a rule to permit options trading on commodity-based trust shares such as the new BTC-based financial instruments. This move comes as the crypto market witnesses a rapid evolution, with spot bitcoin ETFs rapidly gaining traction among investors.
Notably, this development follows the soaring trading volumes experienced by spot bitcoin ETFs, which dramatically increased to .6 billion in a mere three days post-launch, highlighting the market’s strong appetite for these funds.
To understand the significance of this development, it’s essential to grasp what options trading entails. Options are financial derivatives that give buyers the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified time frame.
Essentially, options allow investors to speculate on the price movement of these bitcoin ETFs, without requiring them to own the actual asset. This form of trading provides flexibility and leverage, enabling traders to hedge against price fluctuations or bet on the future direction of an asset’s price.
The proposal by NYSE Arca to amend rule 5.3-O reflects a strategic move to accommodate the burgeoning interest in traditionalized applications toward crypto investments. Historically, rule 5.3-O has deemed ETFs appropriate for options trading. These ETFs, traded on national securities exchanges and defined as “NMS stock” under regulation NMS, typically represent interests in various financial instruments managed by investment companies.
The inclusion of the spot bitcoin ETFs in this category essentially signifies a major extension of traditional financial products into the realm of digital assets, offering investors new avenues for portfolio diversification and risk management. Concurrently, Grayscale Investments embarked on developing a covered call ETF anchored in its GBTC. Proshares took a significant step by recently applying for an array of five leveraged and inverse bitcoin ETFs on Tuesday.
The submissions from NYSE, Grayscale, and Proshares represent a steady progression in the integration of crypto assets within the broader financial markets. The decision of the U.S. securities authority on these proposals, however, remains an uncertain and separate matter.
What do you think about NYSE Arca’s latest proposal to offer options on the new spot bitcoin ETFs? Share your thoughts and opinions about this subject in the comments section below.