PRESS RELEASE. B2Broker, an industry pioneer in technology and liquidity and the company behind B2Trader Brokerage Platform, a crypto spot brokerage solution, has announced a new update to its BBP solution. The new B2Trader v1.1 introduces BBP Prime and expands on its report feature with flexible layout customisation. B2Trader now has a dedicated BBP iOS […]
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Floki Name Service Is Live on BNB Chain
Floki Name Service, a decentralized domain name service by the popular meme coin, is now live exclusively on the BNB Chain mainnet. This service allows users to create a unique .floki domain name, which can be used as an on-chain identity and for other purposes such as launching a decentralized website, blog, or résumé. Built […]
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Ledger Live Enhances User Experience With Crypto.com Pay On-Ramp Integration
Ledger Live has announced a strategic partnership with Crypto.com Pay to integrate its on-ramp digital payments technology into Ledger’s software. This integration will enable Ledger Live app users to conveniently purchase over 300 cryptocurrencies using the Crypto.com Pay On-ramp payment gateway. The new feature, which offers a fast checkout experience for verified customers to buy […]
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When Spot Ethereum ETFs Go Live ‘Expect A Bloodbath’, Says Expert
Thomas Fahrer, co-founder of Apollo, a firm focused on Bitcoin adoption, has issued a stark warning regarding the potential market dynamics following the approval of spot Ethereum ETFs. As the market anticipates this new development, Fahrer suggests that the transition might not be smooth for Ethereum.
“The Grayscale Ethereum Trust launched in 2017 and accumulated most of its billion dollars worth of ETH well before staking existed. These funds will be unlocked now. Expect a bloodbath. It will accelerate the ETH -> BTC Trade. Hold me to account if I’m wrong. But I doubt it,” Fahrer declared via social media platform X.
Spot Ethereum ETFs – A “Sell The News” Event?
The imminent approval of spot Ethereum ETFs, similar to earlier this year’s launch of spot Bitcoin ETFs, is expected to convert the billion (approximately 2.94 million ETH) locked in Grayscale’s Ethereum Trust (ETHE) into one such ETF. Historical precedent with Bitcoin suggests potential volatility; after the approval of spot Bitcoin ETFs, Bitcoin experienced more than a 20% drop in value within 12 days amid significant sell-offs from similar conversions.
One of the main reasons the spot BTC ETF approval turned out to be a “sell the news” event was Grayscale’s transition from an Ethereum Trust to a spot ETF. Until now, Grayscale’s Bitcoin Trust (GBTC) saw outflows of more than 50% of its BTC holdings. And the ETHE could be reinforced by the fact that ETH staking is a lucrative option to earn an additional yield.
Currently, Grayscale holds over billion in locked Ethereum that cannot be sold or traded until the ETF is operational. Should the approval go through, this large amount of Ethereum will suddenly become liquid, potentially leading to substantial market sell-offs if initial demand does not meet the volume of outflows from Grayscale’s new ETF.
Julio Moreno, head of research at CryptoQuant, highlighted a critical market indicator that could suggest the market has already begun to react. “Seems like the market has already priced the Ethereum spot ETF approval. Grayscale’s ETHE discount to ETH has significantly narrowed in the last few days. The same happened between GBTC and Bitcoin as the Bitcoin Spot ETF approval was nearing,” Moreno noted via X.
While the short-term impact might mirror the turbulent times seen during the Bitcoin ETF launch, the long-term implications for Ethereum could be different. Observers note that despite the initial downturns seen in Bitcoin’s valuation post-ETF, the introduction of a spot ETF was eventually beneficial, leading to greater market acceptance and a price surge.
“BTC rallied 75% in 63 days after the spot ETF was approved. If ETH follows the same trend (if approved), this would take it to ,446 by July 23,” crypto analyst Miles Deutscher noted.
At press time, ETH traded at ,676.
Adaptive Blocksize Limit Algorithm Goes Live on Bitcoin Cash Network
The Bitcoin Cash network has completed its latest upgrade which essentially implemented the highly anticipated adaptive blocksize limit (ABL) algorithm. The new feature will make it much easier to change the block size limit in order to meet the demand of the network’s throughput. As of 9:24 a.m. Eastern Time on Wednesday, five blocks have […]
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Experience The Best Live Casinos at Bombastic
PRESS RELEASE. Desiring to enhance the online gaming experience? If yes, the live dealer games at Bombastic Casino are an imperative. With a wide range of genres, themes, and titles from leading software developers, the platform epitomizes premium gaming and is the preferred destination for those seeking top-notch live casino games. Exploring the prime options […]
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Why This Crypto Bull Run Might Not Live Up To The Past: Analyst
In a detailed analysis shared with his 788,000 followers on X (formerly Twitter), renowned analyst Pentoshi has forecasted a more restrained outlook for the current crypto bull run, suggesting that it may not mirror the explosive growth seen in previous cycles. His insights provide a deep dive into the underlying factors that could temper the market’s performance.
Why Crypto Investors Have To Expect Diminishing Returns
Pentoshi began his analysis by stating, “This cycle should have the largest diminishing returns of any cycle,” attributing this prediction to several key market conditions. Primarily, he noted that the base market capitalization for cryptocurrencies has increased significantly in each successive cycle, setting a higher starting point that makes further exponential growth increasingly challenging.
“Each cycle has set a floor about 10x the previous lows in terms of market cap,” Pentoshi explained. He provided a historical context, recounting that when he entered the crypto market in 2017, the market cap for altcoins was only around -15 billion, a figure that ballooned to over trillion during peak periods. He argued, “That growth isn’t repeatable,” pointing out that the decentralized finance (DeFi) sector, which was then nascent, played a significant role in driving previous cycles’ exceptional returns.
Another significant factor Pentoshi highlighted is the dramatic increase in the number of altcoins and the corresponding market dilution. “Today, however, there are a lot more alts, and a lot more dilution,” he remarked, indicating that the proliferation of new tokens spreads investment thinner across the market, reducing the potential for individual tokens to achieve substantial price increases.
Pentoshi also touched upon the demographic shifts in crypto ownership. He contrasted the early days of crypto adoption, when approximately 2% of Americans were involved in the market, to the present, where over 25% of Americans have some form of crypto investment. “It just requires more capital to move the markets, and there will continue to be a lot more alts, spreading it out further,” he noted, emphasizing the logistical and financial challenges of replicating past growth rates in a much more saturated market.
An often-overlooked aspect of market dynamics, according to Pentoshi, is the role of token liquidity and its impact on price stability. He detailed that recently, tokens amounting to about 0 million were unlocked daily, though not necessarily sold. “Assuming they all got sold, that is the inflows you’d need just to keep prices stable for 24 hours,” he explained, highlighting the delicate balance required to maintain current market levels, let alone drive prices upward.
Looking forward, Pentoshi was conservative in his expectations for the Total3 index, which tracks the top 125 altcoins (excludes Bitcoin and Ethereum). He estimated, “My best guess is that this cycle we don’t see Total 3 go 2x past the 21′ cycle ATH. So 2.2T max for Total3.” This projection underscores his broader thesis that while the market continues to offer daily opportunities, the era of “easy, outsized gains” might be behind us.
Pentoshi concluded his analysis with advice for investors, suggesting a more cautious approach to market participation. “If you believe the cycle is 50% over, you should be taking out more than you are putting in and building up some cash and buying other assets with lower risk in the meantime,” he advised, stressing the importance of securing gains and diversifying holdings to mitigate risk.
Reflecting on the psychological aspects of investing, he added, “Most people never really learn. Because if you can’t control your greed, and defeat it, you are destined to give back your gains repeatedly.” His parting words were a reminder of the cyclical and often predatory nature of financial markets, urging investors to secure profits and protect themselves from foreseeable downturns.
At press time, TOTAL3 stood at 5.565 billion, which is still more than -43 % below the last cycle high.
Etherland Tecra Space Crowdfunding Goes Live
PRESS RELEASE. The Etherland Tecra Space campaign has officially gone live, giving participants the opportunity to stake their claim in a real-world assets (RWA) blockchain project that approaches on-chain real estate with a unique angle. This campaign aims to accelerate the development of innovative RWA solutions powered by blockchain technology for the real estate industry. […]
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HanChain (HAN) Goes Live on Top 10 Crypto Exchange MEXC
PRESS RELEASE. HanChain (HAN) went live on MEXC, a top 10 global cryptocurrency exchange, at 5:00 AM UTC on April 3, 2024. In addition to the listing, the HanChain project also launched its mobile staking version, coinciding with LBANK’s Grid Trading Competition and Flexible Staking Service. HanChain is a dual cryptocurrency project designed for real-life […]
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House of Streams Presents First-Ever Live Interactive Reality Show With Bitcoin Prize, Global Streamers, and Live Fan Engagement Set to Redefine Reality TV
PRESS RELEASE. MALTA – March 28th, 2024 – At the forefront of entertainment innovation, Stream House Media Productions™, at https://www.shrimp.co/, announces the release date for its reality docuseries, slated to premiere in the spring of 2024. This production marks a one-of-a-kind venture, bringing together eight globally recognized streaming content creators for an unprecedented month of […]
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