Category: Cryptocurrency News

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HEADS UP – anyone who comments will be entered into our raffle to win one of the five CCmoons memberships! Go to RCCMarketCap.com RCCMarketCap.com (check it out) My fellow Hodlers, Hi, I’m u/ConeDesk. And I’ll be your MC for this AMA! 👋 We’ll be answering questions LIVE on X about our new website and preparing…
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Bloomberg ETF analyst James Seyffart called for freedom of information access (FOIA) requests regarding the SEC’s approval of spot Ethereum ETFs. In a June 5 KITCO interview, Seyffart said that public requests should search for “emails, calls, [and] anyone that had conversations with [SEC chair] Gary Gensler” to determine what happened during the SEC’s decision-making…
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The on-chain analytics firm CryptoQuant has explained why Bitcoin and Ethereum have recently appeared to be on a path towards acceleration. Bitcoin & Ethereum Are Looking Bullish In On-Chain Metrics In a new thread on X, the official CryptoQuant handle discussed how some important on-chain indicators are looking for Bitcoin and Ethereum right now. Related Reading: Bitcoin Investors Beware: Extreme Greed Has Returned In Crypto The first two metrics of interest here keep track of the demand from the permanent holders and the whales. First, here are the relevant charts for BTC: As is visible above, demand from the permanent holders, or the HODLers, had been going down after peaking in March, but recently, the metric has seen a turnaround. These investors have added 70,000 BTC to their wallets in the past month. A similar trend has also been witnessed in the whales’ holdings, typically defined as addresses carrying more than 1,000 BTC. According to the analytics firm, the monthly demand from these large investors is up 4.4%. CryptoQuant has also revealed that the sector is experiencing an influx of potentially new capital, as the “new whales” have seen their Realized Cap shoot up recently. The Realized Cap measures the amount of capital a particular investor group uses to purchase their Bitcoin. Thus, the increase in the Realized Cap of the new whales, which are whale entities that have entered within the past 155 days, would represent the fresh demand from large investors coming into BTC. As the charts above showcase, the pattern in this metric has looked similar this year to what was observed back in 2020. The demand that year led to the 2021 bull run. Now, here is what the trend in the permanent holder inflows and whale balance has looked like for Ethereum: As the graphs show, demand for Ethereum from these investor groups has shot up since the spot exchange-traded fund (ETF) approvals last month. The permanent holders are now making inflows of 40,000 ETH per day on average, while whales, the investors holding 10,000 to 100,000 ETH, have increased their holdings to record highs of around 16 million ETH. While signs have been positive for Bitcoin and Ethereum in terms of direct demand, there is a development that may be detrimental to the cryptocurrency sector as a whole. It is the slowdown in the growth of the stablecoins. The chart shows that the Tether (USDT) market cap grew sharply during the rally towards the Bitcoin all-time high. While the largest stablecoin still receives capital injections, its demand has slowed. Related Reading: Shiba Inu, Cardano Seeing Explosive Whale Activity, Santiment Reveals Historically, stablecoins have been one of the gateways for capital into the sector, so consistent demand for them can be required for sustainable rallies. BTC Price At the time of writing, Bitcoin is trading at around $70,200, up more than 4% over the past week. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Bitcoin continues to be the market leader. However, despite significant developments, such as the introduction of spot Bitcoin Exchange-Traded Funds (ETFs), the anticipated price surge to $100,000 remains ‘unrealized.’ Charles Edwards, founder of Capriole Investments, commented on this and took to Elon Musk’s social media platform X to explain the hurdles preventing Bitcoin from achieving this milestone. Related Reading: Is $100K Bitcoin Inevitable? This Expert Say ‘Yes’—Find Out When Examining Bitcoin’s Stagnation Below $100k According to Edwards, one of the primary factors is the sale of Bitcoin by long-term holders. His analysis shows a decline in wallets holding Bitcoin for over two years, from an all-time high of 57% in December 2023 to 54%. Although this 3% drop might seem minor, it represents about 630,000 BTC—far exceeding the quantity purchased by US Bitcoin ETFs since January. This sell-off by long-standing investors is exerting downward pressure on the price. Edwards also pointed out that the market has yet to fully feel the impact of Bitcoin’s halving event in April, which reduced the daily issuance of Bitcoin by 50%. We haven’t seen the impacts of the Halving yet. With the daily Bitcoin issuance dropping by 50% in April, we will likely see the delta between ETF consumption and Bitcoin mined widen a lot over the next year. It also takes full quarters for institutions to review, sign-off and… pic.twitter.com/bAxfFzv6L8 — Charles Edwards (@caprioleio) June 7, 2024 He believes that the gap between the amount of Bitcoin purchased by spot ETFs and the reduced output from mining will widen significantly, underscoring the need for financial institutions to adjust their strategies and continue leading in Bitcoin acquisitions. Meanwhile, Edwards identified three key factors that he believes are essential for a sharp rise in Bitcoin’s price: increased daily ETF purchases, reduced selling by long-term holders, and an expansion in U.S. market liquidity. BTC Price Slow Amid Record ETF Inflows Bitcoin trades at $71,926, showing modest movements as it struggles to mark any price increase over the past 24 hours, despite a 4.9% rise in the last 7 days. While Charles Edwards has detailed reasons behind Bitcoin not reaching the $100,000 milestone, other experts are analyzing why substantial inflows into spot BTC ETFs have not translated into a corresponding price surge. Experts believe that various factors muffle ETFs’ influence on Bitcoin’s price. Seasoned crypto trader Christopher Inks points out that a complex interplay of spot trading, futures, options, and ETFs influences the Bitcoin market. Inks stresses that an exclusive focus on ETF activities does not provide a complete view of the market dynamics. Responding to a user query on X about the stagnant price despite ETF purchases, Inks remarked, “You do realize the market is made up of spot, futures, ETFs, and options, right? Price at any point in time is a product of all of these, not just one of them..” Further discussions among financial experts illuminate the multifaceted nature of the BTC market. Analyst Eric Balchunas suggests that the lack of price movement despite ETF purchases might be due to existing Bitcoin holders selling their holdings, which balances out the buying pressure from ETFs. I’ve said it before and I’ll say it again, the call is coming from inside the house holmes. This is not ETFs doing, obv bc they buying like crazy lately, it’s bitcoin holders selling or leveraged flushers or whatever. Time and again ETFs go on flow-a-thons and its met with… https://t.co/iuGNayrLgd — Eric Balchunas (@EricBalchunas) June 6, 2024 Another expert, Jimie, explains that while ETFs contribute to market activity, they represent a small portion of the total Bitcoin circulation. Related Reading: Buckle Up: Bitcoin’s Ride to $74K Could Start Any Minute – Here’s Why Jimie added that the majority is controlled by large holders (“whales”), whose trading activities could overpower the influence of ETF buying. This dynamic indicates that significant buying by ETFs often meets with heavy selling, maintaining price equilibrium. Featured image created with DALL-E, Chart from TradingView

New York Attorney General Letitia James has sued Novatechfx, AWS Mining, and their founders for orchestrating crypto pyramid schemes that defrauded over 11,000 New Yorkers out of more than a billion dollars in cryptocurrency. These companies targeted vulnerable immigrant communities, particularly Haitians, with false promises of high returns. NYAG Letitia James Takes Action Against Crypto […]