Bitcoin Plummets To $59,000, On-Chain Data Reveals Why

Bitcoin has observed a plunge to the $59,000 level during the past day. Here’s what could be behind it, according to on-chain data. Bitcoin Exchange Inflow Spiked Just Before The Crash In a new post on X, CryptoQuant Head of Research Julio Moreno discussed the latest trend in Bitcoin Exchange Inflow. Exchange Inflow is an on-chain metric that tracks the total amount of assets being transferred into the wallets of centralized exchanges. Investors deposit many coins on these platforms when this indicator’s value is high. One of the main reasons holders may transfer to exchanges is for selling-related purposes so this trend can have bearish consequences for BTC’s value. Related Reading: Litecoin Sees Sudden Exodus Of Retail Investors: Why This Can Be Bullish On the other hand, the low metric implies holders aren’t moving that many coins from self-custody into exchanges, which, depending on whether outflows are also occurring, can potentially be bullish for the cryptocurrency. Now, here is the chart shared by Moreno that shows the trend in the Bitcoin Exchange Inflow over the past few days: As displayed in the graph at the top, the Bitcoin Exchange Inflow saw some notable spikes in the lead-up to the latest price plunge. The version of the indicator in the chart is specifically for the spot platforms, so selling was likely the goal of the investors making these deposits. The CryptoQuant head has also attached the data for another metric: the Spent Output Value Bands version of the Exchange Inflow, under the chart for the Exchange Inflow. This indicator shows how the Exchange Inflow breaks down according to the transactions’ size. In the graph, Moreno has specifically highlighted the 1,000 to 10,000 BTC value band, corresponding to addresses carrying between 1,000 and 10,000 tokens in their balance. Investors of this scale are popularly known as the whales and are considered among the market’s most influential entities. As the chart shows, the Exchange Inflow for these large Bitcoin holders also spiked alongside the spikes in the general metric, implying that the whales contributed to some of the deposits. Related Reading: Solana, Ethereum Attract Traders Amid Bitcoin Open Interest Plunge Given the timing of the inflows made by these humongous investors, it’s probable that this selling was partially responsible for the bearish price action the cryptocurrency witnessed during the past day. As such, the indicator could be worth monitoring shortly, as more large deposits could suggest that the Bitcoin sellers aren’t done yet. BTC Price At the time of writing, Bitcoin is floating around $59,900, down almost 4% over the last 24 hours. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Bitcoin Investors Again Show Extreme Fear As BTC Slips To $59,000

Data shows the Bitcoin market sentiment has taken to extreme fear again as the asset’s price has seen a retrace to the $59,000 mark. Bitcoin Fear & Greed Index Suggests Market Now Extremely Fearful The “Fear & Greed Index” is an indicator created by Alternative that tells us about the average sentiment that’s currently present in the Bitcoin and wider cryptocurrency markets. The index uses the following five factors to determine the sentiment: volatility, trading volume, social media sentiment, market cap dominance, and Google Trends. It then represents this estimation using a scale that runs from 0-100 Related Reading: Bitcoin Makes Sharp Recovery, But Watch Out For Resistance At $64,000 All values of the indicator beyond the 53 mark imply that investors are showing greed, while those below 47 suggest the presence of fear in the market. The region between these two cutoffs naturally corresponds to a neutral mentality. Besides these three territories, there are also two special sentiments called the extreme fear and the extreme greed. The former of these occurs at 25 and below, while the latter at 75 and above. Now, here is what the latest value of the Bitcoin Fear & Greed Index looks like: As is visible above, the indicator has a value of 25 at the moment, meaning that the market is just inside the extreme fear zone. This is a pretty significant change from how the metric was just yesterday. The below chart shows the trend in the Bitcoin Fear & Greed Index over the past month. From the graph, it’s apparent that the Fear & Greed Index had been at a high level near the end of July, but during the bearish momentum that had followed in the BTC price, the metric’s value had also gone through a notable drop. On the 29th, the index was at a value of 74, meaning it was right on the edge of extreme greed, but by the 6th of this month, it had gone into the extreme fear zone with a value of 17. The asset’s recent recovery did lead to an improvement to the sentiment, with the index traveling back up to 48. It would appear, though, that this growth couldn’t last, as the sentiment has again declined into extreme fear, as the BTC price has seen a retrace. Related Reading: Bitcoin NVT Golden Cross Gives Bottom Signal: What Happened Last 2 Times The fact that the sentiment has worsened, however, may not actually be a bad sign for the cryptocurrency. Historically, Bitcoin has tended to move against the expectations of the majority, and the extreme regions are where this expectation is perhaps the strongest. As such, tops and bottoms have tended to form whenever the market has been inside these zones. With the Fear & Greed Index now back inside extreme fear, It’s possible that a bottom could be likely to take place. It now remains to be seen if the asset’s decline ends with this drop, or if there is more to come. BTC Price Bitcoin appears to already be showing signs of a rebound as its price has climbed back up to $59,700 from its low of under $58,000 earlier in the day. Featured image from Dall-E, Alternative.me, chart from TradingView.com

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Social Media Screams Sell As Bitcoin Crashes To $54,000: Buy Signal?

Data shows users on social media platforms have been calling to sell Bitcoin after its latest crash, a signal that contrarian traders may be waiting for. Bitcoin Sentiment On Social Media Has Turned Quite Bearish According to data from the analytics firm Santiment, social media is showing historic levels of FUD amid the market drawdown. The indicator of interest here is the “Social Volume,” which basically tells us about the degree of discussion around a given topic or term that users on the major social media platforms are currently participating in. This metric works by going through posts/threads/messages on these platforms to look for mentions of the keyword. The indicator then counts up the number of posts that contain at least one such mention. Related Reading: Bitcoin Traders Sink Into Fear As Price Crashes Below $58,000 The reason the Social Volume doesn’t simply count up the mentions themselves is that mentions alone don’t contain any information about if the trend is being followed across social media as a whole. Sometimes, for example, mentions can be high for a topic, but most of them could be limited to niche circles (that is, inside a few posts). The Social Volume naturally wouldn’t spike in this case, but it would when users across the platforms are making posts about the term. Now, what the analytics firm has done here is that it has applied terms related to sentiment to Social Volume, to differentiate between discussions related to positive and negative sentiments. Here is the chart shared by Santiment that shows how the Social Volume for negative and positive sentiments has changed alongside the recent Bitcoin volatility: To discern the sentiment, the analytics firm has chosen terms such as buy, bottom, and bullish in the case of positive sentiment, and sell, top, and bearish for negative sentiment. From the graph, it’s visible that the Social Volume for the latter type of keywords has observed a huge spike alongside the plunge in the Bitcoin price. This would imply that a large amount of bearish posts have popped up on social media. The indicator has also spiked for terms pertaining to positive sentiment, but clearly, the scale has been lesser than the one for bearish terms. In fact, the latest ratio between sell and buy calls has actually been the largest observed in the year so far. Thus, it would appear that social media users as a whole are feeling FUD towards Bitcoin. This may actually be a positive development for the cryptocurrency, however, as its price has historically been more likely to move in the opposite direction to what the crowd expects. Related Reading: Why Did Bitcoin Plunge Under $58,000? On-Chain Data Says This As is apparent in the chart, buying calls had spiked on a few occasions following price plunges in the past month, but this optimism had only led to a continued decline for the asset. With the latest crash, sentiment appears to have finally flipped, with Bitcoin traders starting to give up. “For bold traders, this is a window that some may wish to be a true contrarian and buy into the crowd’s anger and frustration,” notes Santiment. BTC Price Bitcoin had briefly slipped under the $54,000 level during the plunge, but the asset appears to have bounced back to $55,400 since then. Featured image from Dall-E, Santiment.net, chart from TradingView.com

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Bitcoin Traders Sink Into Fear As Price Crashes Below $58,000

Data shows that Bitcoin traders’ sentiment has declined into ‘fear’ after the price crash the cryptocurrency has seen during the past 24 hours. Bitcoin Fear & Greed Index Is Now Suggesting A Fearful Market The “Fear & Greed Index” is an indicator created by Alternative that tells us about the average sentiment currently held by [...]

The post Bitcoin Traders Sink Into Fear As Price Crashes Below $58,000 appeared first on Crypto Breaking News.

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Why Did Bitcoin Plunge Under $58,000? On-Chain Data Says This

Bitcoin has observed a crash below the $58,000 level today. Here’s what could be a potential cause for it, according to on-chain data. Bitcoin Long-Term Holders Have Just Taken Large Profits As pointed out by an analyst in a CryptoQuant Quicktake post, the Bitcoin long-term holders harvested a large amount of profits during the latest price drawdown. Related Reading: These Are The Altcoins In Buy Zone, Analytics Firm Reveals The on-chain metric of interest here is the “Spent Output Profit Ratio” (SOPR), which basically tells about whether the BTC investors are selling/transferring their coins at a profit or loss. When the value of this indicator is greater than 1, it means the holders as a whole are realizing a net profit with their selling right now. On the other hand, the metric being under this threshold implies the dominance of loss-taking in the market. In the context of the current topic, the SOPR of a specific segment of the user base is of interest: the long-term holders (LTHs). This cohort includes the investors who have been holding onto their coins since more than 155 days ago. The LTHs are considered to be the resolute side of the market, as they rarely sell regardless of whatever may be going on in the wider market. As such, the times that they do sell can be all the more noteworthy. It would appear that the recent Bitcoin market conditions have managed to break even these diamond hands, as the below chart for their SOPR suggests. As is visible in the above graph, the Bitcoin LTH SOPR has seen a high density of spikes above the 1 mark during the past day. This would suggest that these HODLers have moved some coins that were previously carrying significant profits. More particularly, the indicator hit a value of more than 10 during a lot of these spikes, implying that this group realized profits equal to over ten times the losses during those transactions. As the LTH SOPR spikes came just before BTC’s descent towards the levels under $58,000, it would seem possible that this profit-taking push from these normally-resolute investors was at least in part behind the crash. Another indicator, the Bitcoin Spent Output Age Bands (SOAB), has revealed the breakdown of these LTH transactions. From the chart, it’s apparent that the most active LTH segment during this selloff was the 5-year to 7-year group, meaning that most of the coins sold were previously dormant between 5 and 7 years ago. Related Reading: Crypto Analyst Says Next Bitcoin Target Is $78,700 If BTC Breaks This Resistance It’s hard to say why these old entities have suddenly decided to sell after sitting out a whole cycle, but if this is the start of a selling spree from them, then things might get even worse for Bitcoin. BTC Price Bitcoin had very briefly slipped under the $57,000 level during the latest crash, but the asset appears to have made some recovery since then, as it’s back at $57,700. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Bitcoin will crash to $50K, 10x Research warns

According to 10x Research, Bitcoins potential drop below $50,000 is linked to dwindling buy flows and accelerating sell flows.

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Bitcoin Crash Forced Weak Hands Into Largest Loss-Taking Since 2022 Lows: Report

A new report from Glassnode has revealed that the Bitcoin short-term holders took part in the largest loss-taking event since 2022 in the recent crash. Bitcoin Short-Term Holders Have Realized Huge Losses Recently According to the latest weekly report from Glassnode, less than 1% of trading days in the cryptocurrency’s history have seen the short-term holders taking higher losses than during the latest event. The “short-term holders” (STHs) here refer to the Bitcoin investors who bought their coins within the past 155 days. This cohort makes up one of the two main market divisions based on holding time, with the other group being called the “long-term holders” (LTHs). Statistically, the longer an investor holds onto their coins, the less likely they become to sell them at any point. As such, the LTHs reflect the stubborn side of the market, which can weather through crashes and rallies, while the STHs include the weak hands that easily react to FUD or FOMO. Related Reading: Chainlink Traders Capitulate After 10% Plunge: Bottom Here? Given this fact, it’s not unexpected that this latter cohort has again shown a strong reaction to the recent volatility in the Bitcoin price. And since it’s been a crash, the STHs have been panic selling at a loss. The below chart shows the trend in the Bitcoin Realized Loss specifically for the STHs over the past few years: The Realized Loss here is an indicator that keeps track of the total loss the STHs realize through their selling. Also, note that the metric is “entity-adjusted,” meaning that the metric includes the data for entities instead of addresses. An entity refers to a cluster of addresses that Glassnode has determined to belong to the same investor through its analysis. Transactions made between the wallets of the same investor would naturally not correspond to any real “loss-taking,” so excluding them from the data makes sense. As is visible in the graph, the Bitcoin STH Realized Loss registered a spike during the latest market downturn, implying that these investors made large transactions at a loss. At the height of this capitulation event, the indicator’s value hit $595 million, the largest loss-taking the cohort has shown since the FTX collapse that led to the bottom of the 2022 bear market. Related Reading: Bitcoin Now Forming Pattern That Last Led To It Blasting Off “Furthermore, only 52 out of 5655 trading days (< 1%) have recorded a larger daily loss value, highlighting the severity of this correction in dollar terms,” reads the report. From the chart, it would appear that large spikes in the metric have come around at least local bottoms in the price, so this loss-taking event may have also formed another bottom for Bitcoin. BTC Price At the time of writing, Bitcoin is trading at around $58,800, up 3% over the past week. Featured image from Dall-E, Glassnode.com, chart from TradingView.com

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Bitcoin Whales Switching To Risk-Off Mode After $61,000 Crash

On-chain data shows the Bitcoin whales have been dialing back risk on derivatives exchanges following the latest downturn in the cryptocurrency. Bitcoin Inter-Exchange Flow Pulse Has Just Turned Red As explained by CryptoQuant founder and CEO Ki Young Ju in a new post on X, the Bitcoin Inter-Exchange Flow Pulse is now giving a red signal. The Inter-Exchange Flow Pulse (IFP) is an indicator that tracks the BTC movements between spot and derivatives exchanges. When the value of this metric rises, the amount of cryptocurrency going from spot to derivatives platforms goes up. Such a trend implies that large entities like the whales are potentially looking to open up new positions in the derivatives market. Related Reading: Bitcoin Slips Under $64,000: Heres Where The Next Support Is On the other hand, a decline in the indicator suggests investors are transferring fewer coins to the derivatives exchanges. This trend could signal a decreasing appetite for risk positions in the sector. Now, here is a chart that shows the trend in the Bitcoin IFP, as well as its 90-day simple moving average (SMA), over the past decade: As displayed in the above graph, the Bitcoin IFP had been climbing earlier, but the metric seems to have reversed its direction recently, as it’s now heading down instead. Following the latest decline, the indicator has crossed below its 90-day SMA. Historically, the IFP observing a cross with its 90-day SMA has signified a market sentiment shift. A breakout above this line suggests the whales are willing to take risks with the asset again, which can potentially be a bullish signal. The chart shows that such a cross occurred around both the 2018 and 2022 bear market lows. On the other hand, a plunge under the 90-day SMA usually takes place near tops, as it implies the whales are looking at derivative positions as too risky. Related Reading: PEPE Has 80% Of Holders In Profit: How It Compares To DOGE & BTC As the indicator has once more seen the latter type of crossover, it’s possible that the asset could end up facing some bearish momentum. This possible shift to a bearish sentiment, however, doesn’t have to last for too long. The previous instance of the IFP dropping below its 90-day SMA in January. This crossover coincided with Bitcoin’s downturn following the spot exchange-traded fund (ETF) approval. The bearish momentum ended up only temporary, though, as the cryptocurrency soon found a breakout that led to its new all-time high (ATH). The asset observed only a temporary effect from this crossover in 2016 before catching back an uptrend into the 2017 bull run. It remains to be seen where this bearish Bitcoin IFP crossover will lead to this time. BTC Price Bitcoin hasn’t seen an end to its recent decline, as its price has now dropped to $61,200. Featured image from Dall-E, CryptoQuant.com, chart form TradingView.com

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Bitcoin Slips Under $64,000: Heres Where The Next Support Is

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021. Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been [...]

The post Bitcoin Slips Under $64,000: Heres Where The Next Support Is appeared first on Crypto Breaking News.

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Bitcoin Slips Under $67,000: Can BTC Rely On This Historical Support Again?

Bitcoin has observed a plunge during the past day, taking the asset’s price under $67,000. Here’s the historical support level that the asset could visit next. Bitcoin Is Now Not Far From The Short-Term Holder Realized Price As analyst James Van Straten pointed out in a post on X, the Realized Price of the Bitcoin Short-Term Holders has been going up recently and currently sits around the $64,000 level. The “Realized Price” here refers to an on-chain metric that keeps track of the cost basis of the average investor in the BTC market. This indicator is based on the “Realized Cap” model for the cryptocurrency. Related Reading: Litecoin In Uphill Battle: Strong Resistance Might Block Recovery When the asset’s spot price is greater than the Realized Price, it means the investors are carrying some net unrealized profits right now. On the other hand, the coin’s value under the metric suggests the dominance of losses in the market. In the context of the current topic, the Realized Price of a specific sector segment is of interest: the Short-Term Holders (STHs). The STHs include all the investors who bought their coins within the past 155 days. Here is a chart that shows the trend in the Realized Price of the Bitcoin STHs over the last few years: As displayed in the above graph, the Bitcoin STH Realized Price rapidly climbed during the rally towards the all-time high price (ATH) earlier in the year. This trend naturally makes sense, as the STHs represent the new investors in the market, who would have had to buy at higher prices as the asset climbed up, thus pushing the cohort’s average up. Since BTC’s consolidation phase following the March ATH, the indicator’s uptrend has slowed, but its value is increasing nonetheless. After the latest increase, the metric has approached $64,000. Now, what significance does the Realized Price of the STHs have? Historically, this indicator has taken turns acting as a major support and resistance line for the cryptocurrency. During bullish periods, this metric can facilitate bottom formations for the cryptocurrency, thus keeping it above itself, while bearish trends generally witness the line acting as a barrier preventing the coin from escaping above it. Transitions beyond this level have generally reflected a flip trend for the coin. This apparent pattern has held up likely because the STHs, being the relatively inexperienced hands, can be quite reactive. The cost basis is an important level for any investor, but this cohort, in particular, can be more likely to panic when a retest of their cost basis takes place. When the sentiment in the market is bullish, the STHs could decide to buy more when the price drops to their average cost basis, believing the drawdown to be merely a “dip” opportunity. In bearish phases, though, they may react to such a retest by panic selling instead. Related Reading: Bitcoin Could See Next Top At $89,200, Crypto Analyst Suggests The chart shows that Bitcoin found support around this line during the crash at the end of April/start of May, potentially implying a bullish sentiment has continued to be dominant. With BTC seeing a drop below $67,000 in the past day and the STH Realized Price closing in at $64,000, it will be interesting to see how a potential retest would play out this time. BTC Price At the time of writing, Bitcoin is trading at around $66,800, down over 3% in the past week. Featured image from Dall-E, Glassnode.com, chart from TradingView.com

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Is Bitcoin price going to crash again?

Strong technical resistance levels and a high number of profitable traders pose the risk of modest pullbacks in the Bitcoin market.

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Bitcoin Greed No More: Sentiment Back At Neutral After $57,000 Plunge

Data shows that Bitcoin sentiment has cooled off to neutral from greed following the asset’s latest plunge to the $57,000 level. Bitcoin Fear & Greed Index Has Returned To Neutral Levels The “Fear & Greed Index” is an indicator created by Alternative that shows the average sentiment among investors in the Bitcoin and wider cryptocurrency market. This index estimates sentiment by considering five factors: volatility, trading volume, social media data, market cap dominance, and Google Trends. Related Reading: Bitcoin To $92,190: Crypto Analyst Reveals Path To ATH Target The metric uses a scale that runs from zero to 100 to represent this average sentiment. All values under 46 suggest that investors are fearful, while those above 54 imply a greedy market. The zone between these two cutoffs naturally corresponds to the territory of neutral mentality. Now, here is what the Bitcoin sentiment looks like right now, according to the Fear & Greed Index: The value of the metric appears to be 54 at the moment | Source: Alternative As displayed above, the Bitcoin Fear & Greed Index is at a value of 54, implying that investors share a neutral sentiment currently. However, the neutrality is only just, as the metric is right at the boundary of the greed region. This is a significant departure from yesterday’s sentiment: 67. The chart below shows how the indicator’s value has changed recently. The trend in the Fear & Greed Index over the past year | Source: Alternative As the graph shows, the Bitcoin Fear & Greed Index has been declining recently. For most of February and March, as well as the first half of April, the indicator was in or near a special zone called extreme greed. The market assumes this sentiment at values above 75. As the asset price struggled recently, the mentality cooled off from this extreme zone and entered the normal greed region. With the latest crash in BTC, the index has seen a sharp plunge, now exiting out of greed altogether. Historically, cryptocurrency has tended to move against the majority’s expectations. The stronger this expectation, the higher the probability of such a contrary move. This expectation is considered the strongest in extreme sentiment zones, as well as extreme fear and greed. As such, major bottoms and tops have often occurred in these territories. Related Reading: Bitcoin Dominance: Traders Preferring The OG To Dogecoin & Other Altcoins The all-time high (ATH) price last month, which continues to be the top of the rally so far, also occurred alongside extreme values of the Bitcoin Fear & Greed Index. With the sentiment now cooled to neutral, some investors may be watching for a fall into fear. This is natural because a rebound would become more probable the worse the sentiment gets now. BTC Price During Bitcoin’s latest plunge, its price briefly slipped below $57,000 before surging back to $57,300. Looks like the price of the asset has registered a sharp drop over the past two days | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, Alternative.me, chart from TradingView.com

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Bitcoin Crash Warning: CryptoQuant CEO Sees LUNA-Like Risks Ahead

Ethena Labs has revealed its latest strategic move: the inclusion of Bitcoin (BTC) as collateral for its synthetic dollar-pegged product, USDe. This decision, aimed at significantly scaling the product’s supply from its current $2 billion, capitalizes on the burgeoning BTC derivative markets for enhanced scalability and liquidity in delta hedging practices. Ethena Labs’ ambitious goal is to leverage the considerable growth of BTC open interest, which has seen a substantial rise from $10 billion to $25 billion in just one year, far outpacing Ethereum’s (ETH) growth rates. Ethena’s statement highlighted the strategic benefits of integrating BTC, emphasizing the superior liquidity and duration profile of Bitcoin compared to liquid staking tokens and the potential for USDe to achieve greater scalability as a result “With $25bn of BTC open interest readily available for Ethena to delta hedge, the capacity for USDe to scale has increased >2.5x,” the announcement noted, illustrating the robust backing that BTC provides. Excited to announce that Ethena has onboarded BTC as a backing asset to USDe This is a crucial unlock which will enable USDe to scale significantly from the current $2bn supply pic.twitter.com/FOZRWBrVZV — Ethena Labs (@ethena_labs) April 4, 2024 CryptoQuant CEO Issues Bitcoin Crash Warning This move has not been met without skepticism. Ki Young Ju, CEO of the analytics firm CryptoQuant, took to X to voice his concerns, drawing parallels to the infamous LUNA collapse and questioning the risk management strategies employed by Ethena Labs. “This isn’t good news for Bitcoin holdersit sounds like a potential contagion risk, like LUNA. How do they maintain a delta-neutral strategy for BTC in bear markets?” Ju queried, implying that the success of such strategies is largely contingent on market conditions that favor bull runs. Related Reading: Bitcoin Bulls Roar: Analysts Predict Surge To $82,000 Amid Bullish Pennant Formation He further elaborated on the complexities of shorting BTC in bear markets, suggesting that the market size for such operations could be smaller than the total value locked (TVL), potentially leading to significant market disruptions. The CryptoQuant CEO stated: How do they maintain a delta-neutral strategy for BTC in bear markets? In bull markets, they hold spot BTC and short BTC. If there’s a method to short BTC by holding some DeFi-wrapped BTC, the market size would be smaller than its TVL. This is a CeFi stablecoin run by a hedge fund, effective only in bull markets. Correct me if I’m wrong. Ju added that heS concerned about a repeat of a LUNA-like doom scenario: selling BTC to stabilize USDe’s peg if their algorithm fails during bear markets. Adding to the discourse, OMAKASE, a former advisor for Sushiswap, referenced historical challenges faced by delta-neutral strategies, highlighting their propensity to turn illiquid and the difficulty in unwinding such positions without causing market slippage. Related Reading: US Govt Moves $90 Million in Bitcoin, ETH From Estonian Scammers “Delta neutral strategies are usually never delta neutral. Post dot-com boom in Singapore, it took years for banks to unwind delta neutral books that had suddenly turned illiquid. Size begets slippage,” OMAKASE remarked, underscoring the inherent risks of such financial maneuvers. The industry’s reaction to Ethena Labs’ announcement has been mixed, with some lauding the potential for increased scalability and others cautioning against the risks of replicating past financial crises. A few days ago, Fantom founder Andre Cronje also questioned the stability of USDe. Amidst these concerns, Ethena Labs stands by its decision, pointing to the advantageous market conditions and the growing BTC derivative markets as key factors supporting their strategy. “While BTC does not possess a native staking yield like staked ETH, staking yields of 3-4% are less significant in a bull market when funding rates are >30%,” the company stated, indicating a strategic optimization for the current market environment. This move, according to Ethena, is not just about scaling but also about offering a safer and more robust product to its users. At press time, BTC traded at $67,018. Featured image created with DALL·E, chart from TradingView.com

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Bitcoin Takes a Hit as Geopolitical Tensions Rise, but TWO Possibilities Bring Traders Hope...

The price of Bitcoin has plummeted more than 7.5% in the last 24 hours, plunging to around $62,000 on several major exchanges.

At the time of this publication, Bitcoin is trading at approximately $64,300 per unit.

Bitcoin's downfall was not an isolated event. The S&P 500 index, which comprises the largest American companies, also experienced a significant decline in the past week, accentuated on the last business day. The same occurred with markets in other countries, indicating a global market reaction.

The primary apparent reason for these market movements is the escalating tensions in the Middle East, specifically the conflict in Israel and the potential for a larger-scale conflict brewing, as Iran has launched attacks.

What Could Reverse the Trend?

The imminent approval of Bitcoin ETFs in Hong Kong, one of the world's five largest financial markets, could be a turning point. The impact of such a measure would be substantial, as it could potentially influence the Chinese government to relax restrictions on the use of digital assets.

Additionally, the next Bitcoin halving event, which reduces the issuance of BTC per mined block by half, is just days away. This event typically generates significant media attention and visibility for Bitcoin, serving as a remarkable marketing opportunity.

Furthermore, each halving reminds the market that Bitcoin is a scarce asset and that the available quantity for acquisition will become increasingly limited, which has historically acted as an upward catalyst for its price in the medium and long term.

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Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News

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How Geopolitical Tensions Effect Maekets...

The price of Bitcoin has plummeted more than 7.5% in the last 24 hours, plunging to around $62,000 on several major exchanges.

At the time of this publication, Bitcoin is trading at approximately $64,300 per unit.

Bitcoin's downfall was not an isolated event. The S&P 500 index, which comprises the largest American companies, also experienced a significant decline in the past week, accentuated on the last business day. The same occurred with markets in other countries, indicating a global market reaction.

The primary apparent reason for these market movements is the escalating tensions in the Middle East, specifically the conflict in Israel and the potential for a larger-scale conflict brewing, as Iran has launched attacks.

What Could Reverse the Trend?

The imminent approval of Bitcoin ETFs in Hong Kong, one of the world's five largest financial markets, could be a turning point. The impact of such a measure would be substantial, as it could potentially influence the Chinese government to relax restrictions on the use of digital assets.

Additionally, the next Bitcoin halving event, which reduces the issuance of BTC per mined block by half, is just days away. This event typically generates significant media attention and visibility for Bitcoin, serving as a remarkable marketing opportunity.

Furthermore, each halving reminds the market that Bitcoin is a scarce asset and that the available quantity for acquisition will become increasingly limited, which has historically acted as an upward catalyst for its price in the medium and long term.

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Author: Mark Pippen
London Newsroom
GlobalCryptoPress | Breaking Crypto News

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Is Bitcoin Crashing soon due to Low Traded Volumes?

Bitcoin (BTC) currently faces a critical juncture, as demand for the digital currency wanes despite its recent ascent above the $28,000 mark.

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Why Did Bitcoin Price Crash 10% After Reaching $69,000 All-Time High?

The flagship crypto token, Bitcoin, finally hit a new all-time high (ATH) on March 5 but quickly dipped by over 10% after this price surge. As explained by this market analyst, this sharp correction was to be expected and could become a norm heading into the bull market. “Bull Markets Are Not Straight Lines Up” Alex Thorn, Head of Research at Galaxy Digital, noted in an X (formerly Twitter) post that the market doesn’t move to the upside unfettered, even in a bull market, and corrections are to be expected. He alluded to the 2021 bull run, where Bitcoin experienced around 13 corrections of 10% or more between 2020 and the peak when the crypto token hit its previous ATH. Related Reading: Analyst Predicts Massive Rally For Dogecoin Price With A $1 Target, Heres How Thorn also referenced the 2017 bull run, noting that the same thing occurred then as Bitcoin experienced 13 drawdowns of 12% or more. Therefore, what happened with Bitcoin recently isn’t unusual, and more corrections are likely to occur as the crypto token hits new highs on its way to the peak of this market cycle.  Meanwhile, as revealed by Thorn, something similar happened in December 2020 when BTC touched its prior ATH of $20,000, then traded 11.3% lower for the next 15 days before going on to definitively break its ATH. If the same thing happens now, the analyst believes that could be good for Bitcoin, stating that “some consolidation would be healthy after its year-to-date gains.  Moreover, it is worth mentioning that Bitcoin has been on a run since the end of last year (just before the Spot Bitcoin ETFs were approved) and hasn’t slowed since then. Therefore, a significant pullback for the flagship crypto token seems long overdue.  Profit Taking Is To Be Expected For Bitcoin Crypto analyst Guy Turner suggested in an X post that profit-taking could have been the cause of the pullback and that more profit-taking is likely to take place. Investors aggressively taking profit was to be expected considering that Bitcoin hitting a new ATH ultimately put all wallets holding the crypto token in profits.  Related Reading: Dogecoin Open Interest Surges To Record $1.49 Billion Turner also noted that these corrections are healthy for a sustainable long-term market. It also allows investors to position themselves and accumulate more BTC during the dip. On the bright side, the bull market is all but confirmed, with Bitcoin hitting a new ATH. According to crypto analyst Ali Martinez, this cycle is expected to continue until sometime in October 2025.  At the time of writing, Bitcoin is trading at around $65,900, down over 2% in the last 24 hours, according to data from CoinMarketCap.  BTC recovers from flash crash | Source: BTCUSD on Tradingview.com Featured image from BBC, chart from Tradingview.com

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Bitcoin Short-Term Holders Panic Capitulate $2.6 Billion In BTC Crash

On-chain data shows that Bitcoin short-term holders have panic sold $2.6 billion worth of coins in the crash following the new all-time high. Bitcoin Short-Term Holders Have Sent Huge Volume In Loss To Exchanges As analyst James V. Straten explained in a new post on X, Bitcoin short-term holders have shown signs of capitulation during the latest drop in the cryptocurrency’s price. The “short-term holders” (STHs) refer to the BTC investors who bought their coins within the past 155 days. The STHs make up one of the two main divisions of the market, the other one being the “long-term holders” (LTHs). Related Reading: Solana Open Interest Plunges 20%: What It Means For Price Statistically, the longer an investor holds onto their coins, the less likely they are to sell at any point. This means that the STHs, who are relatively new hands, generally sell quickly whenever an asset crash or rally occurs. The LTHs, on the other hand, usually show resilience, only selling at specific points. One way to track whether either of these groups is selling is through the transfer volume they are sending to exchanges. First, here is a chart that shows the trend in the Bitcoin exchange inflow volume precisely for the STHs in loss: The value of the metric appears to have shot up in recent days | Source: @jvs_btc on X As displayed in the above graph, the Bitcoin STHs have transferred around $2.6 billion worth of coins in loss to exchanges in the past day, implying that some members of this cohort have capitulated. This spike is huge, but it’s less than the loss-taking event that took place back during the price drawdown that followed the BTC spot exchange-traded fund (ETF) approval. These loss sellers would be those who FOMO’d into the rally that took BTC to a new all-time high beyond the $69,000 level, but their conviction wasn’t strong enough that they were able to hold past the sharp crash that BTC observed shortly after. The STHs aren’t the only ones who have exited the market in this latest price volatility; it would appear that the LTHs have also done some selling. The difference, however, is that these HODLers have made profits. The chart below shows how the exchange transfer volume for the LTHs in profit has looked like recently. Looks like the value of the metric has registered a sharp spike recently | Source: jvs_btc on X The graph shows that the Bitcoin LTHs have participated in their largest profit-taking event since July 2021, transferring tokens worth $1.5 billion to exchanges. Related Reading: Bitcoin Sets New All-Time High Above $69,000 As Institutionals Show FOMO Thus, it would appear that this recent volatility has shaken up the conviction of even some of the diamond hands, although these HODLers have at least still been rewarded with profits. BTC Price At the time of writing, Bitcoin is trading around the $65,800 mark, up 8% in the past week. BTC has gone through a rollercoaster in the past couple of days | Source: BTCUSD on TradingView Featured image from cdd20 on Unsplash.com, Glassnode.com, chart from TradingView.com

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Bitcoin Plunges Under $63,000, Heres Where Next On-Chain Support Is

Bitcoin has deepened its decline in the past day with its price now slipping below $63,000. Here’s where the next potential support is, according to on-chain data. Bitcoin Could Find Support At These Price Levels In a new post on X, analyst Ali has discussed how the Bitcoin support and resistance levels are looking like right now based on on-chain data from Glassnode. The indicator of relevance here is the “UTXO Realized Price Distribution” (URPD), which, in short, tells us about the amount of coins (or more precisely, UTXOs) that were last purchased at any given price level that the asset has visited in its history so far. Related Reading: Bitcoin Has Undergone This Bearish Structure Change, Analyst Explains Below is the chart shared by the analyst that shows the data for this distribution for the price levels around the recent spot value of the cryptocurrency: Looks like the $72,880 mark is the level with the richest amount of coins at the moment | Source: @ali_charts on X From the graph, it’s visible that there are a few price levels not far from the current one that particularly stands out in terms of the amount of buying that took place at them. In on-chain analysis, the potential for any level to act as support or resistance is based on the total number of coins that have their cost basis at the level in question. Levels thick with coins that are situated under the current price would be probable to act as points of support, while those above the spot value could prove to be resistance walls. As is apparent from the graph, the $61,100, $56,685, and $51,530 levels are the ones below the current price that hold the cost basis of a notable amount of the supply right now. Naturally, this means that should the decline continue further, these would be the levels to watch for a possible rebound. Two levels above, however, are even larger than all three of these support levels: the cost basis centers around $66,990 and $72,880. Interestingly, the latter of these is the single largest acquisition level out of all the price levels listed in the chart, implying that a large amount of FOMO buying has occurred at the asset’s all-time high levels. In the scenario that Bitcoin regains its upward momentum, these levels of high cost basis population would be where the asset could be most probable to find some trouble. Now, as for why acquisition centers are considered relevant for support and resistance in on-chain analysis is the fact that investors are likely to show some kind of reaction when a retest of their cost basis takes place. Related Reading: Bitcoin Sentiment Cools Off, Price Rebound Soon? When such a retest is from above, the holders may decide to accumulate more, believing that the price will go up again in the future. On the other hand, they may sell instead if the retest is from below, as they may think exiting at break-even is better than risking another drop. A large number of coins having their cost basis at the same level means a potentially large degree of one of these reactions happening and, hence, a strong support or resistance effect on the price. BTC Price Bitcoin is inching closer to the first major on-chain support level as it has now dropped to $62,700. The price of the asset appears to have plummeted over the last few days | Source: BTCUSD on TradingView Featured image from Shutterstock.com, Glassnode.com, chart from TradingView.com

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Is Bitcoin Price Going to Drop More After Monday?

What's in store for Bitcoin in the near future? Is the Bitcoin price going to drop more after Monday?

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