On Wednesday, the U.S. spot bitcoin exchange-traded funds (ETFs) saw a modest uptick in positive inflows, amassing a total of 3.5 million across a trading volume of .31 billion. The group of ten spot bitcoin ETFs, excluding Grayscale’s Bitcoin Trust GBTC, now encompasses 507,472.89 BTC or 2.57% of the total circulating supply of 19.67 million […]
Bitcoin News
Fantom Supply On Exchanges See Drastic Increase, A Cause For Alarm?
The Fantom (FTM) supply on exchanges has been rising in recent times, leading to speculations for what this might mean for the price of the cryptocurrency. Going by trends in the crypto market of when the exchange balances of a particular coin goes up, there might be some pain ahead for FTM investors.
Fantom Supply On Exchanges Rise By 16 Million
The Fantom price had increased over the last month to reach a new three-year high above .2. However, this rally was only short-lived and the altcoin has begun to eliminate its gains from the month of March gradually in the past week.
One culprit for this decline in price is the high level of selling that have been taken place among FTM holders, majority of which have been holding their coins for a rather long time. As a result, the available supply of Fantom on centralized exchanges continued to balloon as investors rush to sell off their tokens and capitalize on gains.
Data from the on-chain tracking website Santiment shows that in the last week of March, there was a considerable number of FTM flowing into centralized exchanges. This saw their available balance go from around 654 million to over 670 million in the space of a week, with over 16 million flowing into exchanges.
This inflow trend coincides with the drop in the Fantom price from above .1 to .84, suggesting that it is indeed the selling pressure from these FTM investors that is responsible for the price decline. Given this, there would have to be a reversal in this selling trend is the FTM price is to recover from here.
Bullishness On FTM Not Dead
The inflow of millions of FTM into centralized exchanges is bearish, but this could only last for the short term. As a rule of crypto, eventually, these sellers will run out of coins to sell, leaving room for demand to catch up with the available supply. At this point, the FTM price will begin to see a reversal in the trend.
There is also the fact that adoption has been increasing on the Fantom chain as founder Andre Conje has been actively talking about it on X (formerly Twitter). Santiment’s data shows that the FTM holder base also grew alongside the price in March. In the week of March 17 and 28 alone, the chain’s holder BASE jumped from 109,000 to over 111,000.
This shows that while the trends are bearish right now, there could be a change soon as the price could resume another leg up. The Fantom price has also established support at .8 which could serve as the bounce point for another rally.
Presently, the FTM price is sitting at .84, with a 5.48% and 18.2% decline on the daily and weekly charts, respectively. Its market cap is at .37 billion, making it the 51st largest cryptocurrency in the space.
Bitcoin Supply In Loss Hits 10% After Crash: What Happened Last Time
On-chain data shows the Bitcoin supply in profit has plunged following the latest crash in the asset’s price towards the ,000 level.
Bitcoin Supply In Profit Is Now Down To Around 90%
As analyst James Van Straten pointed out in a post on X, around 10% of the BTC supply is now in a state of loss. The on-chain indicator of interest here is the “Percent Supply in Profit,” which tracks the percentage of the total circulating Bitcoin supply holding an unrealized gain.
This metric works by going through the blockchain history of each coin in circulation to see the price at which it was last transferred. Assuming that this previous transaction involved a change of hands, the price at its moment would serve as the cost basis for the coin.
The coins with a cost basis that is less than the current spot price of the cryptocurrency would naturally be considered to be holding a profit, and as such, they would be counted under the supply in profit.
The Percent Supply in Profit adds up all such coins and calculates what part of the total supply they make up for. The opposite metric, the Percent Supply in Loss, adds up the coins not satisfying this condition.
Since the total circulating supply must add up to 100%, the Percent Supply in Loss can be deduced from the Percent Supply in Profit by subtracting its value from 100.
Now, here is a chart that shows the trend in the Percent Supply in Profit for Bitcoin over the last few months:
As displayed in the above graph, the Bitcoin Percent Supply in Profit has seen a sharp drop recently as the cryptocurrency price has gone through a significant drawdown.
The indicator’s value has dropped to around the 90% mark, which means that about 10% of the supply is currently carrying a loss. The chart shows that the last time the metric touched these levels was back on 22 March. Interestingly, the asset also found its bottom around then.
Earlier, the Percent Supply In Profit had pushed towards the 100% mark, which was a natural consequence of the price setting a new all-time high (ATH), since at fresh highs, all of the supply must be out of the red.
Generally, the investors in profit are more likely to sell their coins, so if many come into gains, the possibility of a mass selloff rises. Due to this reason, high levels of the Percent Supply In Profit have often led to tops.
Similarly, bottoms become more likely when investor profitability levels drop relatively low. The current value of 90% is still quite high, but this isn’t unusual during bull runs, as there is strong demand and ATHs are being explored.
The fact that the profitability has cooled off compared to earlier levels may be constructive for the rally’s chances to see a continuation, just like it did last month.
BTC Price
At the time of writing, Bitcoin has been trading at around the ,700 level, down more than 5% over the past week.
Peter Schiff Warns of Severe Economic Repercussions, Highlights Inflation and Money Supply Concerns
In a recent analysis, economist Peter Schiff draws stark comparisons between the current U.S. economic optimism and the prelude to the 2008 financial crisis. Schiff, leveraging his expertise, warns of impending financial turmoil, emphasizing the critical role of money supply in understanding economic health. Peter Schiff Warns: U.S. Economy on the Brink, Echoes of 2008 […]
Bitcoin News
Bitwise CEO Predicts $11 Billion Drop In Bitcoin Supply Post Halving
Over the last week, Bitcoin (BTC) investors enjoyed much profit as the crypto asset gained 9.34% to trade above ,000 based on data from CoinMarketCap. Currently, most of the BTC market is highly expectant of the potential large price gains that the current bull cycle could present.
However, commenting on the immediate future, Bitwise CEO Hunter Horsley has stated that the upcoming halving event – a key part of the bull cycle – could be the most significant in Bitcoin’s trading history as a result of an impending massive decline in the token’s supply.
Bitcoin Price To Impact Supply Reduction And Token Demand – Bitwise CEO
In a post on X on March 29, Hunter Horsley shared that the Bitcoin Halving event slated for April 2024 could have the most profound supply and demand effects recorded ever in the asset’s history. For context, Bitcoin halving is a phenomenon that occurs every four years in which the block reward for BTC miners is reduced by half.
The April 2024 Bitcoin halving may be the most impactful we’ve seen. Why?
The last Bitcoin halving, 2020, Bitcoin was at ~,000. So the supply reduction in $ terms was ~M a day, and ~B a year.
This halving with Bitcoin ~,000, it will be >3x greater in $ terms: ~M a…
— Hunter Horsley (@HHorsley) March 29, 2024
Horsley began his prediction by referencing the last Halving in 2020, during which BTC’s price was ~,000. The Bitwise CEO stated that Bitcoin experienced a significant decline in token supply following the Halving effect, to the tune of ~ million per day and ~ billion per year.
Considering that Bitcoin’s price currently hovers around ,000, Horsley believes that the expected supply reduction will likely be at least three times larger in dollars and is estimated to be million per day and billion.
With a higher Bitcoin price, Horsley predicts that the expected massive decline in Bitcoin’s supply will be accompanied by a greater decrease in natural selling pressure by miners. In addition, the Bitwise CEO notes this development will concise with the current rise in institutional demand.
Generally, all factors highlighted by Hunter Horsley indicate that Bitcoin will likely experience a magnanimous price surge following the Halving event. Earlier in February, the Bitwise boss predicted BTC could attain 0,000 sooner as a result of investor demand driven by the introduction of the Bitcoin spot ETF.
BTC Price Overview
At the time of writing, BTC is exchanging hands at ,000 with a 0.65% loss on the last day. The widely acclaimed “digital gold” is up now by 10.45% on its monthly chart following the price correction in February,
Meanwhile, the BTC’s trading volume has declined by 23.16% and is valued at .67 billion. With a market of .1 trillion, Bitcoin ranks as the largest cryptocurrency in the world.
BTC trading at 960 on the hourly chart | Source: BTCUSDT chart on Tradingview.com
Featured image from Forbes, chart from Tradingview
TUSD’s Supply Halves as It Drops to 8th Rank Among Stablecoins
Over the past week, the stablecoin trueusd (TUSD) experienced a notable decrease in its supply. As of March 19, 2024, the circulation was approximately 1.1 billion TUSD, which then plummeted to just 612 million. Supply Slash Sees TUSD Fall From Top 5 Stablecoin Rankings to 8th Position Previously ranked among the top five dollar-pegged cryptocurrencies […]
Bitcoin News
This Bitcoin Halving May Not Result In Supply Squeeze: Glassnode
Glassnode has suggested that the upcoming Bitcoin halving might not result in a supply squeeze that the market may have anticipated.
Bitcoin Halving May Not Carry Same Impact Due To Spot ETFs
In a new report, the on-chain analytics firm Glassnode has discussed the impact the next Bitcoin halving may have on the economics of the cryptocurrency.
The “halving” is a periodic event for BTC where its block rewards (the rewards the miners receive for adding blocks on the network) are permanently cut in half.
This event is built into the coin’s code, meaning it happens automatically. The halving kicks in after every 210,000 blocks, or approximately every four years.
The next such event will take place sometime in the coming month. Historically, the halving has been considered an important event for the asset due to how it influences its supply dynamics.
The block rewards the miners receive are the only way to introduce new BTC tokens into circulation. Since they get tightened during these events, the cryptocurrency’s production rate slows down following them.
As such, halvings are considered bullish events, with the price increasing following them due to the constrained supply, as supply-demand dynamics would dictate.
“However, the current market conditions differ from historical norms,” says Glassnode. The reason behind that is simple; there is something now that was never there in the past: the spot exchange-traded funds (ETFs).
Spot ETFs are investment vehicles that buy and hold Bitcoin and allow their users to gain indirect exposure to the cryptocurrency’s price action through them. Since the spot ETFs are available on traditional exchanges, they can be preferable for those not looking to dabble with digital asset platforms and wallets.
Thus, the ETFs have introduced a notable amount of fresh demand for the asset, with supply rapidly leaving the market and entering these funds. To put this demand into perspective, the analytics firm has compared it against the BTC amount miners issue on the chain daily.
As the above chart shows, the Bitcoin ETF flows have generally been much higher than what the miners have been introducing into circulation. Based on this, Glassnode believes “the upcoming halving might not result in the supply squeeze once anticipated.”
The report further says:
The ETFs are, in essence, preempting the halving’s impact by already tightening the available supply through their substantial and continuous buying activity. In other words, the supply squeeze usually expected from halvings may already be in effect due to ETFs’ large-scale bitcoin acquisitions.
Something to note, however, is that the ETFs aren’t certain to always be a bullish influence for the market. Should the current inflow-heavy regime flip to one dominated by outflows, the cryptocurrency could naturally witness extraordinary selling pressure.
In fact, the spot ETF netflows have been negative for Bitcoin for four straight days now, so such a trend shift may already be in action.
BTC Price
Bitcoin had recovered beyond the ,000 level yesterday, but the coin has since declined again, falling back towards ,200.
Bitcoin Supply On Exchanges Hit 4-Year Low, But Why Is Price Crashing?
Certain Bitcoin fundamentals suggest the flagship crypto token is well primed for further growth in this bull market. However, its recent price decline has sparked concerns about the reason for this downward trend despite everything pointing to a sustained upward movement.
Bitcoin Supply On Exchanges Hit 4-Year Low
Data from the on-chain analysis platform CryptoQuant highlighted that the supply of Bitcoin on exchanges has seen nearly a 40% drop in 4 years and is reducing ahead of the Bitcoin halving. This underscores the bullish sentiment around the Bitcoin ecosystem as the decreasing supply on supply suggests that most investors have no plans to sell their holdings anytime soon.
The CryptoQuant data also noted that Bitcoin’s demand is outpacing its supply, which is said to have been the prevailing trend since 2020. This development offers a bullish narrative as it can continue to increase Bitcoin’s value since “scarcity boosts perceived value.” This trend is also expected to be sustained once the Halving occurs since miners’ supply will be cut in half.
Interestingly, the imbalance between Bitcoin’s demand and supply has led crypto analysts like MacronautBTC to believe that BTC’s price could rise to as high as 7,000. As such, there are still high expectations for Bitcoin despite the crypto token hitting a new all-time high (ATH) of ,750.
Why Bitcoin’s Price Is Crashing
Crypto analyst Alex Kruger has outlined different reasons why Bitcoin’s price is crashing despite its strong fundamentals. The first reason he alluded to was the fact that crypto traders in the derivatives market look to be overleveraged, possibly because greed seems set to be setting in with traders deploying more capital in anticipation of further price surges.
Kruger mentioned that the ETH could also be dragging the market down with the hopes of the SEC (Securities and Exchange Commission) approving the Spot Ethereum ETFs waning. Bitcoinist recently reported that the approval odds for these investment funds have plummeted immensely in the past few months, dropping to an alarming 35%.
The third reason that Kruger mentioned is the negative Bitcoin ETF inflows, which have become a trend lately. Interest in these Bitcoin funds has cooled off, with investors opting to take profit instead. On March 19, BitMEX Research revealed that these ETFs saw a record net outflow of 6m.
Crypto trader and analyst Rekt Capital also suggested that Bitcoin is already in the ‘Final Pre-Halving Retrace.’ Therefore, significant price corrections can be expected ahead of the Halving event, which is set to take place in April.
At the time of writing, Bitcoin is trading at around ,000, down in the last 24 hours, according to data from CoinMarketCap.
Robert Kiyosaki Highlights ‘Problem’ With Gold, Silver, and Oil — Praises Bitcoin’s Limited Supply
Rich Dad Poor Dad author Robert Kiyosaki has pointed out “the problem” with gold, silver, and oil, while confirming his ownership of gold, silver mines, and oil wells. Touting bitcoin’s limited supply, the famous author emphasized that no matter how high the price of bitcoin rises, there can only be 21 million coins. “That’s why […]
Bitcoin News
Stablecoin Sector Expands by $4.95B in 12 Days, USDE Sees 376% Supply Increase, Tether Hits $103B
In the past 12 days, the stablecoin sector has experienced a growth of .95 billion, reaching a new 2024 high of 9.03 billion in market valuation. Among various dollar-tied tokens that have seen their supply numbers go up over the last 30 days, Ethena’s USDE stands out with a 376% increase in its supply during […]
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