Markets

Bitcoin Falls Below $68K as Interest Rate Fears Rise, Ether Soars on ETF Hopes

Published

11 months ago

23 May, 2024

Bitcoin Falls Below $68K as Interest Rate Fears Rise, Ether Soars on ETF Hopes

(Kitco News) –Bitcoin (Bitcoin) and the broader crypto market trended lower in early trading Thursday after the latest unemployment claims report came in below expectations.

The US economy registered 215,000 new unemployment insurance claims, falling below the 220,000 expected and the 222,0000 from the previous week.

While the number of people losing their jobs is considered a good thing by many, in the eyes of investors, it is a sign that the economy has become stronger, which lessens the chances of an interest rate cut coming soon.

Adding to the concern of “higher interest rates over longer periods” was the release on Wednesday of the minutes of the most recent Federal Open Market Committee (FOMC) meeting; Several Fed officials indicated they were ready to keep rates high for as long as necessary to reduce inflation, with some even signaling a willingness to raise rates.

Both the DXY and 10-year US Treasury yields spiked on Thursday due to the threat of interest rate hikes, which pressured every financial market from cryptocurrencies to gold and silver.

“Bitcoin retreated more than 3% towards an intraday support level of 67,700, as predicted,” said analysts at Secure Digital Markets. “If support around 67,000 does not hold, we could see a decline to 65,000, which aligns with the 50-day moving average.”

BTC/USD Chart by TradingView

But behind the scenes, the outlook for BTC from an exchange-traded fund (ETF) perspective continues to improve as US ETF holdings hit a new record of over 850,000 BTC in custody, surpassing the all-time high previous 845,000 BTC from early April. ,” analysts said. “Just yesterday, the market saw another inflow totaling $154 million.”

The main story catching the attention of crypto watchers is the Ethereum spot (ETH) ETFs, with industry experts now expecting imminent approval from the Securities and Exchange Commission (SEC), after most analysts gave the changes less than 25% approval on Monday.

“The potential approval of an Ether spot ETF would be groundbreaking as it would mark the first non-bitcoin digital asset to be classified as a commodity,” said Secure Digital Markets. “This raises the possibility that Solana will follow a similar path. While ETH spot ETF 19b-4 filings will likely receive approval this week, S-1 filings are not expected to go into effect for several weeks or months, indicating that there are no ETH spot vehicles until this summer.”

As a result of the enthusiasm and focus on Ether, “ETH has outperformed BTC by 5% in the last 24 hours,” they added.

EthereumBTC Chart by TradingView

Although cryptocurrency prices are struggling in the face of growing economic headwinds, the industry has seen a number of positive developments, the most recent being the approval of the Financial Innovation and Technology Law for the 21st Century (FIT21) in the US House of Representatives.

“The crypto industry achieved its most significant political victory in the US on Wednesday when the House of Representatives approved a sweeping bill to regulate digital asset markets with 279 votes to 136, gaining bipartisan support,” said Secure Digital Markets. “FIT21 marks the first major crypto bill to pass either chamber of Congress. The bill now heads to the U.S. Senate, where its future remains uncertain due to the lack of a counterpart bill.”

As for the stock market, “stock futures rose on Thursday as Wall Street digested the latest quarterly results from market leader Nvidia,” analysts noted. “Nvidia shares soared 6% in extended trading, surpassing $1,000 for the first time, reflecting strong demand for AI, as its revenue more than tripled in the fiscal first quarter, with its data center business growing more than 400% year after year.”

But the positive developments for Nvidia were overshadowed by comments from JPMorgan Chase Chairman and CEO Jamie Dimon, who warned that a “hard landing” for the US economy cannot be ruled out.

“He told CNBC that the worst outcome could be a ‘stagflation’ scenario, characterized by rising inflation and slowing growth amid high unemployment,” the analyst said. “Dimon also noted that interest rates could still rise ‘a little’.”

At the time of writing, Bitcoin is trading at $67,960, down 3.5% on the 24-hour chart. The S&P and Nasdaq rose 0.27% and 0.85%, respectively, while the Dow fell 0.64%.

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.

Source

Up Next

Ether price could rise 60% after ETF approval: QCP Capital

Don't Miss

3 Crypto Stocks to Watch Closely as Bitcoin Rises

FinCrypt Staff

We are the editorial team of FinCrypt, 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 FinCrypt, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

Click to comment

Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

9 months ago

17 July, 2024

FinCrypt Staff

Crypto Markets Rebound Ahead of Early Ethereum ETF Approval

This week saw $722 million worth of Bitcoin spot ETF inflows, including the largest daily inflow in a month.

Cryptocurrency markets rallied on Wednesday, driven by inflows into spot Bitcoin exchange-traded funds (ETFs).

The price of Bitcoin (BTC) is up 3% over the past 24 hours to last change hands at $65,200, according to CoinGecko. Ethereum (ETH) is up 2% and is trading at $3,471. Solana (SUN) and Polkadot (POINT) increased by 4%.

Bitcoin spot ETFs saw $422 million in daily inflows on Tuesday, the highest in the past 30 days, according to Far side data, . The all-time record for a single day was $1.05 billion on March 12.

Among Tuesday’s top contributors, BlackRock’s IBIT led with $260 million in inflows, followed by Fidelity’s FBTC with $61 million. This week has already seen more than $722 million in inflows.

Among the top 100 cryptocurrencies by market cap, Worldcoin (WLD) led with a 28% increase, followed by Helium (HNT) with 20% and Lido DAO (LDO) with 15%.

Worldcoin, a decentralized identity project led by OpenAI CEO Sam Altman, announced is extending the lockups for early investors and team members. This means that tokens will be gradually released through 2029, instead of the original 2027 plan. Token unlocks are generally seen as a negative because they increase supply and early investors can sell their tokens for profit.

Meanwhile, XRP, the token of the XRP Ledger network, jumped 8% after the CME and CF benchmarks introduced new indices and reference rates for XRP.

U.S. stocks faced a downturn on Wednesday. The S&P 500 fell 1%, while the Nasdaq Composite and Dow Jones Industrial Average both fell 2%.

Source

Markets

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Published

9 months ago

17 July, 2024

FinCrypt Staff

Altcoins on the cusp of a major breakout – WLD, AR, and INJ prices could surge by 20% in the coming days

Crypto markets appear to have been taken over by the bulls as major tokens have surged above their crucial resistance zone. Bitcoin surged above $65,000 while Ethereum was above $3,500, and XRP, which had remained passive for quite some time, surged over 40% in the past few days to hit $0.6. The uptrend has been captured in most altcoins, with Worldcoin (WLD), Arweave (AR), and Injective (INJ) leading the rally. Here’s what to expect for these tokens in the coming days.

Worldcoin (WLD) Price Analysis

O Worldcoin Price has been trading inside a descending wedge since it marked a new ATH near $12 in the final days of Q1 2024. The recent price action helped the price break out of the upper resistance of the wedge, breaking above the crucial resistance zone between $2.21 and $2.39. Market sentiments have changed, but technicals suggest that the bulls may remain passive for a while, which could offer some room for a bearish pullback.

The price broke out of the wedge with a significant increase in volume, but the current volume suggests that the bulls have taken a step back. Meanwhile, the RSI is about to reach the upper boundary, which could attract bearish forces. Additionally, the DMI has undergone a bullish crossover, but the decline in the ADX suggests that the rally may remain consolidated above the gains. Therefore, the WLD price is expected to maintain a horizontal consolidation between $3 and $3.3 and trigger a fresh rally to $4.4 during the next bullish rally.

Arweave (AR) Price Analysis

Arweave formed a strong base around $25, which helped the rally trigger a recovery during the bearish attack. Mt. Gox and German terror forced the price to fall below $20. However, the recent price action has brought the altcoin within the bullish range and raised expectations of maintaining a decent uptrend for a few more days.

AR price has hit one of the major resistances around $30 to $31.5, which could act as a strong base once overcome. The buying volume is slowly increasing, which could keep the bullish hopes for the rally high. Moreover, the supertrend has just flashed a buy signal, indicating a clean reversal of the trend. Therefore, AR price seems primed to maintain a healthy uptrend and rally above $40. However, if the bulls maintain a similar trend, making new highs above $50 may not be a tedious task for the bulls.

Price Analysis of Injective (INJ)

Injective price has been showing sharp strength since the beginning of the year and hence, the recent turnaround is expected to revive a good uptrend going forward. The bears engulfed the rally to a large extent, but the recent price action suggests that the bulls have regained their dominance. Therefore, INJ price is expected to maintain a strong uptrend with a bearish interference on the way down.

INJ price has surged above the lower support zone and has registered consecutive bullish candles. Although the volume is below the required levels, the OBV is maintaining a sharp uptrend. Furthermore, the Ichimoku cloud lead span B is heading towards the lead span A and a healthy crossover indicates the start of a new uptrend. However, INJ price may be out of the bears’ reach once it secures the resistance zone between $30.77 and $32.12, which seems to be on the horizon.

Source

Markets

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Published

9 months ago

17 July, 2024

FinCrypt Staff

Ethereum at $3.5K, Exchange Supply Hits 34-Month High

Ethereum (ETH) supply on exchanges has hit a 34-month high as the asset’s price surpassed the $3,500 mark.

ETH has risen 2.3% over the past 24 hours and is trading at $3,490 at the time of writing. The second-largest cryptocurrency — with a market cap of $419 billion — briefly touched an intraday high of $3,517 earlier today.

ETH Price, Whale Activity, RSI, and Exchange Supply – July 17 | Source: Santiment

Ethereum’s daily trading volume also increased by 7.6% to reach $19.8 billion.

According to data provided by Santiment, the supply of Ethereum on exchanges has reached $19.52 million ETH. This level was last seen in September 2021, when the asset was trading around the same price.

On the other hand, data from the market intelligence platform shows that the number of whale transactions has fallen by 12% in the last day — falling from 8,730 to 7,629 unique transactions per day.

The move shows that the supply of Ethereum on exchanges has been increasing with small deposits rather than large transactions from whales.

Additionally, the ETH Relative Strength Index (RSI) is currently hovering at the 60-mark, per Santiment. The indicator shows that Ethereum is slightly overbought at this price point, but it may not be in a critical position due to its large market cap.

One of the main drivers of Ethereum price increase is ETH spot expectations ETFs in the US Investment products are scheduled to start trading on July 23rd.

Source

Markets

Bits + Beeps: How to Play the ‘Trump Trade’ in Cryptocurrencies After the Assassination Attempt

Published

9 months ago

17 July, 2024

FinCrypt Staff

Bits + Bips: How to Play the ‘Trump Trade’ in Crypto After the Assassination Attempt

Also, how much will the Fed cut rates (and when)? What will be the inflows into ETH ETFs? And what is the near future for Bitcoin?

Posted on July 17, 2024 at 12:00 PM EST.

Listen to the episode at Apple Podcasts, Spotify, Capsules, Source, Podcast Addict, Pocket molds, Amazon Musicor on your favorite podcast platform.

In this episode of Bits + Bips, hosts James Seyffart, Alex Kruger and Joe McCann, joined by guest Jack Platts, dive into the market reaction to the recent assassination attempt on former President Donald Trump, analyzing how this event will influence the 2024 US presidential election and the cryptocurrency markets.

They also cover potential rate cuts: Could there be a cut in July? How big could the September rate cut be? Could the decision be influenced by the upcoming election?

They also give their predictions on what percentage of BTC ETF inflows the ETH ETFs will reach, and James talks about what he expects for Grayscale’s ETHE (hint: his outlook would be positive for ETH).

Finally, they delve into what’s next for Bitcoin as the German government runs out of BTC and Mt. Gox distributions begin. Just now?

Program Highlights:

Whether Trump’s shooting decided the election and whether the event caused a “flight to safety”
How election markets are becoming a place to watch election probabilities and whether cryptocurrencies “lean right”
Whether rate cuts will occur in July or September and by how much they will cut: 25 bps or 50 bps
How Joe sees the relationship between global liquidity cycles, rate cuts, and the potential rise of Bitcoin
What are the new updates about Ethereum ETFs and their expected launch?
Why Solana Hasn’t Performed Significantly Better Since Trump News
What Market Breadth Indicates About the Current Market Rally and the Impact of Rates on Small Caps
Everyone’s predictions on ETH ETF inflows and how much outflow we’ll see on Grayscale’s ETHE
What’s Next for BTC After German Government Exits Bitcoin and Mt. Gox Giveaways Starting This Week