2024-03-22 20:04:52
Bitcoin exchange-traded funds (Bitcoin ETFs) experienced aggregate outflows for the fourth day in a row. Meanwhile, the price of the underlying asset continues to slide downwards.
However, it doesn’t hurt to put the numbers in context. On March 21, there were net outflows of $94 million from the ten newly launched instant Bitcoin ETF products. Although the nearly 100 million dollars seems a lot at first, there is no cause for concern for now. In the past, billions of dollars poured into these products in a single day.
The week’s most important cryptocurrency news in one place
This week, trading app Robinhood announced the launch of its own Bitcoin and cryptocurrency wallet. Robinhood Bitcoin Wallet (Robinhood Wallet) is a new app for keeping cryptocurrencies. It is a completely separate app from the Robinhood app and is decoupled from the central trading platform to allow you to hold your tokens independently. This is a non-escrow wallet, i.e. you own your private key, including your Bitcoins.
According to the crypto exchange Coinbase, Dogecoin’s long-standing stable popularity shows that it is no longer a memecoin, but a defining element of the crypto markets. Therefore, now the exchange is planning to launch futures trading products related to the cryptocurrency. Coinbase Derivatives, the exchange’s derivatives business, announced in three separate letters to the U.S. Commodity Futures Trading Commission (CFTC) on March 7 its plan to launch futures contracts for the cryptocurrencies Dogecoin, Litecoin, and Bitcoin Cash on April 1. related.
Toncoin launches a competition: 115 million dollars of TON tokens will be distributed. The million-dollar raffle contest of the Telegram-related TON project has been named “The Open League” and will begin on April 1. The event offers a total of 30 million Toncoins with a current value of over $115 million. Through the success of the trial version of the event, TON has seen around 70% increase in TVL and around 370% increase in daily active wallets. The announcement of the competition caused such optimism and increased interest from the community that the price of the TON token rose by 10% since the announcement.
Bitcoin is on a 7-month winning streak
Bitcoin’s chart could produce its seventh consecutive monthly green candle in late March if Bitcoin’s BTC Price can stay above the February $61,130 threshold.
This would be the first time that the price of Bitcoin has risen continuously for seven months. The last time we saw a six-month green candle on Bitcoin’s chart was between October 2020 and March 2021, when BTC rose 445% from $10,781 to $58,783. However, after the sixth green monthly close, the price of Bitcoin suffered a 40% drop, during which the price of BTC fell from $58,790 to $35,037 over the next three months.
Bitcoin has experienced a correction in the pre-halving period in previous cycles. However, capital inflows from bitcoin exchange-traded funds (Bitcoin ETFs) have risen in recent months.
However, based on historical chart patterns, Bitcoin remains in the pre-halving correction zone, according to crypto analyst Rekt Capital.
“Bitcoin has remained in the “danger zone” for the time being, where pre-halving retracements were typical (orange zone). As a result, anything can happen in the next four weeks, right up to the halving.”
Dumb money vs smart money: can small investors be smarter than big ones?
Spot Bitcoin exchange-traded funds saw aggregate outflows for the fourth day in a row as the price of the underlying asset trickled down.
On March 21, there were net outflows of $94 million from the ten newly launched instant Bitcoin ETF products. Although the figure is lower than the previous three days, it represents another day when funds were withdrawn from institutional Bitcoin investment products.
Fund outflows on March 18, 19, and 20 were $154 million, $326 million, and $261 million, respectively, according to Farside Investors. Total net outflows for the week currently stand at $836 million, excluding Friday’s figures.
This suggests that the Bitcoin ETF hype has temporarily stopped over the past two months as investors have taken profits.
Crypto analyst Willy Woo pointed out in an X post that despite more selling of spot Bitcoin ETFs, investors are actually buying dips.
“ETF investors show that they don’t know what’s going on in the market. During the first drop, ETFs registered an outflow of $1.6 billion, while the Bitcoin network immediately absorbed $1.1 billion of the total net turnover. This means that many investors who keep their cryptocurrency in their own wallets have bought up the Bitcoins available at a lower price.”
Is the Bitcoin price being manipulated?
Analyzing the current BTC exchange rate trend, the popular Skew trader suspects deliberate moves that are trying to undermine the bull market momentum.
“Looks like someone is once again trying to force a process during the weak price action that could lead to a sudden avalanche-like collapse of the Bitcoin price,” commented the world’s largest exchange in a post on X. Binance by analyzing the data of the instant offer book.
Skew added that it is quite clear that certain traders sold their assets at TWAP. In other words, they were “knocked” out of the market based on the average price established over the time horizon.
Ethereum ETF: rejection or just stalling?
May approval prospects for spot Ethereum exchange-traded funds (ETFs) have dropped significantly.
The US Securities and Exchange Commission (SEC) has postponed decisions on the Hashdex and Ark 21Shares ETFs until the end of May. This happened shortly after he also postponed his decision on the VanEck ETF until May 23.
These delays, while expected, are starting to dash the hopes of industry experts. A growing number of people now believe that spot Ethereum ETFs are unlikely to receive approval in May. Analysts at Bloomberg are expressing skepticism about the chances of approval, with one analyst cutting the probability of approval to 35% from 70% in January. Meanwhile, Ethereum prices fell 7.7% on the week amid uncertainty surrounding ETF approval.
However, there are still optimistic scenarios. For example, on a technical basis.
ETH ETH Price may exceed $5,400 according to the Mayer Multiple Oscillator indicator, which compares the current price of Ether to its 200-day moving average (MA).
The price of Ether could reach the upper band of the indicator, and it could be much higher than $5,400, said the Bitfinex analysts.
Analysts expect ETH to reach oversold status this year. The reason for this is that the cyclical behavior of the instrument fluctuates between the overbought and oversold bands of the indicator. However, this is a dynamic moving average based divergence and the upper band could be well above the $5,400 level by the time the price reaches these levels.
Ether is currently trading above $3,500, about 27% away from its all-time high of $4,891 reached on November 16, 2021, according to data from CoinMarketCap.
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