Bitcoin

Bitcoin price stagnates amid lull in ETF flows, but on-chain data suggests 300% rally

Published

12 months ago

9 May, 2024

Bitcoin price stagnates amid lull in ETF flows, but on-chain data suggests 300% rally

(Kitco News) –Bitcoin (Bitcoin) finds itself struggling to hold support at $61,000 in early trading Thursday as the absence of any major catalyst left traders disheartened, while the threat of higher interest rates for longer dampened demand for risky assets.

Data provided by TradingView shows that a late bear effort on Wednesday broke support at $62,000, with Bitcoin hitting a low of $60,605 in the early morning hours of Thursday before bulls managed to halt the drop and push it back above $62,000.

BTC/USD Chart by TradingView

At the time of writing, BTC is trading at $62,220, up 0.28% on the 24-hour chart.

With the absence of any major catalyst on the horizon and halving in the rearview mirror, exchange-traded fund (ETF) flows are the main focus for investors and the data leaves a lot to be desired.

According to For Farside, flows into US-listed ETFs were nearly flat on Wednesday, with ten of the eleven products recording zero net flows, while the Bitwise Bitcoin ETF (BITB) recorded $11.5 million in inflows. .

Overall, the week was positive from a net flow perspective, as on Monday there were inflows of US$217 million, while a net outflow of US$15.7 million was recorded on Tuesday. This brings the current weekly total to $212.8 million in inflows, indicating that flows are beginning to stabilize.

At the global level, a report provided by Fineqia International shows that cryptocurrency-related exchange-traded products (ETPs) have seen “64% growth in total assets under management (AUM) year-to-date (YTD) amid continued interest of investors.”

But it wasn’t just an increase, as “on a monthly basis, total AUM fell to $81 billion from $94.4 billion at the end of March, marking a 14.2% reduction,” the report said.

“The total market value of digital assets decreased by 18.8% to around US$2.29 trillion from US$2.82 trillion in April,” Finequia analysts said. “Even amid the market decline, digital asset-backed financial products maintained a 24.5% premium over the digital asset market, consistent with the trend observed in the first quarter. Year-to-date, ETPs holding digital assets have increased by 64% in AUM, while the market capitalization of digital assets has increased by 29.2%. This highlights premium growth for ETPs of approximately 117% compared to the relative underlying.”

They noted that the increase in premium is largely attributed to the launch of spot BTC ETFs in the US, which “stimulated capital flows into financial products featuring digital assets as underlying assets throughout the first quarter.”

“It is now fully prepared,” said Bundeep Singh Rangar, CEO of Fineqia. “With the initial rise of the SEC yeast effect having cooled, the loaves are ready and being served on ETF and ETN shelves around the world.”

Last week I saw the launch of three Bitcoin and three Ether (ETH) ETFs in Hong Kong, and “the UK is poised to follow suit soon,” the report states. “Countries such as Singapore, Japan, South Korea and Thailand are actively building more enabling regulatory environments. These efforts align with those of some other countries, such as Australia, Brazil, Canada, Germany, Liechtenstein and Switzerland, which have previously permitted such products.”

“During April, BTC price fell 13.6% to $60,150 from $69,650 at the end of March,” the analysts noted. “Simultaneously, the AUM of ETPs with BTC as the underlying asset suffered a 13.2% reduction, falling to $63.2 billion from the $72.8 billion recorded at the end of March.”

“These numbers emphasize a neutral flow throughout April, with the reduction in AUM perfectly reflecting the decline in the price of the underlying asset,” they stated. “YTD, ETPs holding BTC have seen an increase of 77.7%, while the price of BTC has increased by 42.2%. This highlights an 84% premium growth for financial products with BTC as the underlying asset in 2024.”

It was a similar story for Ether, which fell 14.9% in value in April, coinciding with “the AUM of ETH-denominated ETPs [decreasing] by 16.4%, falling to 12 billion dollars from the 14.3 billion registered at the end of March”, added the report. “YTD, ETPs holding ETH have seen an increase of 26.6%, while the price of ETH has grown by 31.1%.”

“This emphasizes how the growing expectation among market participants of the SEC rejecting approval of ETH Spot ETFs in May has led to a decrease in institutional exposure to ETH in favor of BTC,” the analysts said.

ETPs representing a diversified basket of cryptocurrencies, along with those representing an index of alternative currencies, also saw significant declines in April, highlighting the extent of the pullback following the bull market recovery that began in January 2023.

While ETF inflows are underwhelming and suggest sideways price action for now, crypto investor Elija has provided a reason to be bullish from a network perspective, noting that Bitcoin network fundamentals “indicate a 300% gain over at the current level,” meaning Bitcoin’s top for this cycle “could be somewhere between $250,000 and $275,000.”

AND #Bitcoin Severely undervalued?

The current fundamentals of the Bitcoin network indicate a 300% gain from the current level.

This means BTC’s top could be somewhere between $250,000 and $275,000.

The cycle is not over yet. pic.twitter.com/j2tW6v68sH

-Elja (@Eljaboom) May 8, 2024

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes. This is not a request to carry out any exchange of goods, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage arising from the use of this publication.

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We are the editorial team of SatoshiTimes, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on SatoshiTimes, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Bitcoin

What to watch for in the markets

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Photo: Andrew Harnik (Getty Images)

After witnessing one of the largest global IT outages on record, affecting the travel, finance and healthcare sectors worldwideThis week is set to see more political drama, events, and earnings reports from tech giants.

Donald Trump’s ‘Lovefest’ Sets Jamie Dimon Up for Consideration for Treasury Secretary Job

Let’s take a look at what awaits us:

Major companies will release their earnings reports

Major tech companies and others will release their earnings reports this week, paving the way for what the second half of 2024 will look like.

Monday

Verizon will report earnings before the start of operations.

Tuesday

Coca-Cola, Comcast and UPS are all set to report earnings before the market opens.
Tesla will report earnings in the morning, while General Motors will report earnings in the evening.
Alphabet and Visa will report results after the market closes.

Wednesday

AT&T will release its report before the market opens.
Ford and Chipotle will report earnings after the market closes.

Thursday

Earnings reports from AstraZeneca, American Airlines and Southwest Airlines will be released before the market opens.

Trump to speak at Bitcoin conference

Presumptive Republican presidential nominee Donald Trump will speak at the next Bitcoin Conference in Nashville, Tennesseewhich is scheduled for July 25-27. While this is the first time a presidential candidate will attend the conference, it has sparked a debate over whether the crypto-friendly Trump will receive support from the crypto community in the upcoming election.

In addition to Trump, independent presidential candidate Robert F. Kennedy Jr. will also discuss crypto during the conference. Crypto advocates such as ARK Investment’s Cathie Wood, MicroStrategy’s Michael Saylor, and whistleblower Edward Snowden are among some prominent names who will be participating in the conference.

Ether ETFs are on the way

New Ether Spot ETFs are set to begin trading on Tuesday, July 23. Much like the spot Bitcoin ETFs, these ETFs will allow investors to buy the second most popular cryptocurrency like stocks. BlackRock, Ark Invest/21Shares, VanEck, Grayscale, Fidelity, Bitwise, Franklin Templeton, and Invesco/Galaxy Digital are all set to offer Ether ETFs. Crypto asset manager Bitwise predict that trading in the Ether ETF will drive the price of Ether higher, potentially surpassing $5,000.

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Bitcoin

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Cryptocurrency’s Biggest Winners and Losers in a Second Trump Presidency

Bitcoin miners and cryptocurrency companies that have been blocked from going public in the U.S. could ultimately be the biggest winners in the digital asset world under a second Donald Trump presidency. Foreign companies at risk of losing market share could end up being the biggest losers.

That’s the view that’s taking hold among market participants and observers in the wake of the former president’s growing embrace of cryptocurrency as his chances of election grow. survey released Thursday by CBS News showed Trump with the majority — 52 percent — of likely voters in his likely November rematch with President Joe Biden.

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Bitcoin

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Bitcoin, Ethereum, Solana and Cryptocurrency Markets Look Ready to ‘Send’ as Stars Align, According to Investor Chris Burniske

Cryptocurrency investor Chris Burniske says Bitcoin (BTC), Ethereum (ETH), Solana (SUN) and the cryptocurrency market in general seem poised for a run.

Former Head of Cryptocurrency at ARK Invest account his 292,200 followers on social media platform X that several catalysts are aligning, suggesting that digital asset markets are on the verge of a bull run.

According to Burniske, a partner at venture capital firm Placeholder, the highly anticipated launch of Ethereum-based exchange-traded funds (ETFs), Republican presidential candidate Donald Trump speaking at an upcoming Bitcoin event, and the current state of the BTC, ETH, and SOL charts all suggest significant optimism for the cryptocurrency markets.

“With ETH ETFs set to go live, Trump speaking at The Bitcoin Conference, and BTC, ETH, and SOL charts looking [they do] (while stocks are weak), it’s hard to imagine a world where we don’t ship next week.”

Reuters recently reported that preliminary approval for ETH ETFs has been granted as the Bitcoin Conference is scheduled to take place from July 25-27.

BTC, ETH, and SOL are trading at $67,333, $3,528, and $174 at the time of writing, respectively.

The venture capitalist too provides an update on his prediction that the total crypto market cap will eventually hit $10 trillion. According to his chart, the path to $10 trillion is currently “23%” complete, as it sits around $2.2 trillion.

Source: Chris BurniskeX

Earlier this month, Burniske he said in an interview with Real Vision CEO Raoul Paul that he has his eye on the Move ecosystem, which was originally built by social media giant Meta and then used to develop layer 1 blockchains Sui (IUE) and Apts (APT).

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Bitcoin

Here’s the next target for BTC before bulls can hold out for $70K

Published

9 months ago

21 July, 2024

SatoshiTimes Staff

Here’s the next target for BTC before bulls can hold out for $70K

Bitcoin’s recovery is going well, and the market is seemingly poised to create a new all-time high in the near term.

Technical analysis

Per NegotiationRage

The daily chart

As the daily chart shows, the price of Bitcoin has been rising since it broke above the 200-day moving average.

The market has also reclaimed the $60K and $65K levels and is moving towards the $68K resistance zone, which could be the last hurdle before creating a new all-time high. With the RSI also indicating that the price has clear bullish momentum, it could be just a matter of time.

Source: TradingView

The 4-hour chart

Looking at the 4-hour chart, it is evident that the price has been rising rapidly since breaking the downtrend line to the upside. The market also broke the $65K resistance level with momentum, turning it into a support.

While almost everything points to a new record high in the coming weeks, there is one worrying sign. The RSI is showing a clear bearish divergence between recent price highs, which could indicate a correction or even a reversal in the near term.

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Cryptocurrency Charts by TradingView.

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