Markets

Is Bitcoin About to Fail Again?

Published

8 months ago

18 May, 2024

Important information

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Bitcoin has had a strong 2024 so far, with the price reaching a new record high of over $70,000 in March.

The launch of a number of bitcoin exchange-traded funds (ETFs) and halving in April likely helped propel the original crypto asset higher.

The price has fluctuated between $60,000 and $70,000 since then, but will it continue to rise from here or will it fall back to lower levels?

In this article we explain:

What is happening to the price of bitcoin?

Since May 2024, the price of bitcoin has been in a consolidation pattern for several weeks. It traded in a range slightly below $60,000 to a peak around $70,000. The price started the year near $40,000, so current levels remain significantly higher.

A swing from $70,000 to $60,000 in a matter of days is much more than we would see in the stock market, for example, except in the most extreme circumstances, like the start of the pandemic.

View more: How high could the price of bitcoin go?

Will bitcoin crash?

It is impossible to predict Bitcoin price movements with certainty. Given Bitcoin’s volatility, it is likely that the price will again experience a dramatic drop at some point in the future, which could be defined as a crash.

When this will happen is very difficult to say. While past performance is not an indicator of future results, looking at historical patterns, bitcoin’s major declines did not occur in the year following the halving. In fact, the opposite has been true. The price of Bitcoin increased significantly during the year following the halving.

However, the price increase seen after previous halvings was not a smooth and steady uptrend. Day after day and week after week, the price moved up and down significantly, within a broad long-term uptrend.

Previous crashes have occurred more than a year after the last halving. If this pattern repeats, a breakout will occur in late 2025 or 2026, given that the last halving occurred in April 2024. However, there can be no certainty that the pattern will repeat. Events may occur that completely invalidate past patterns and investor expectations.

View more: Is cryptocurrency an investment to consider?

Is the price of bitcoin rising?

This is impossible to know for sure. Proponents expect its price to continue to rise in the long term, although it will remain volatile. The introduction of ETFs and the recent halving are probably two of the main reasons why many people believe the price will rise.

ETFs provide institutional investors and non-technical people with easier access to the asset. Institutions collectively have trillions of dollars in wealth to invest, so if just a small fraction of that money goes into bitcoin in the next few years, the price could increase significantly.

The halving means that the amount of new bitcoins created each day is now half of what it was before April 19th. This means that the supply is more restricted. Lower supply with equal or increasing demand typically increases the price over time.

What makes bitcoin so volatile?

Bitcoin is volatile for several reasons. Firstly, it is a new type of asset with no inherent value beyond what bitcoin investors are willing to pay for it, which makes its valuation more difficult. It was only invented in 2009, in the aftermath of the global financial crisis. Although 15 years may be a long period of time for an individual, it is very small relative to the lifespan of other investable assets such as stocks and gold.

Liquidity can be another volatility factor. The less asset is available for buying and selling on exchanges, the more volatile its price will be. Although bitcoin’s liquidity on exchanges is much higher than it was in its early years, it remains less liquid than traditional assets such as shares of large companies.

Another big reason for volatility is regulatory uncertainty. While this has eased to some extent with the approval of bitcoin ETFs, the regulatory framework for bitcoin and crypto in general remains unclear.

See more information: What are ETFs and are they a good investment?

What Caused Bitcoin’s Last Big Crash in 2021?

As of March 2021, the price of one bitcoin is around $46,000. But the market turmoil that followed caused this to fall by almost two-thirds.

In June 2022, bitcoin fell below $20,000 for the first time since 2020. This was driven in part by the decision by Celsius Network, a major U.S. cryptocurrency lending company, to freeze withdrawals and transfers, citing “extreme” conditions. ”. There have also been other crypto-related meltdowns, including crypto asset Luna and a crypto hedge fund called Three Arrows Capital. This helped fuel a crash in the cryptocurrency market.

However, the most significant blow to crypto in 2022 was likely triggered by the collapse of FTX in November. This was a major cryptocurrency exchange that handled around $1 billion in transactions per day. Its collapse had a knock-on effect on other cryptocurrency exchanges. In November 2022, the price of bitcoin fell to around $16,000, a far cry from its peak of around $65,000 a year earlier.

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Markets

Crypto Markets Rebound as Spot Bitcoin ETFs Attract Massive Inflows

Published

6 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

6 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

6 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

6 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