Bitcoin has fallen more than 20% from its record-breaking high last month. Yesterday, US bitcoin exchange-traded funds (ETFs) saw record outflows.
Casey has recently covered the stock markets and pointed out that other countries have also seen a lot of red.
That doesn’t necessarily indicate that there won’t be a bounce, do you think? Though BTC had dropped further Wednesday ($84,200 at 2 pm ET), the S&P 500 and Nasdaq Composite indexes were each basically flat.
“Bull markets peak amid excessive leverage, retail euphoria and falling BTC
dominance — not compressed funding rates,” Matt Mena is the 21Shares research strategist for crypto.
“Liquidations reset overleveraged positions, creating healthier uptrends as traders
re-enter post-shakeout,” Adding to his remarks, he said:
This memecoin token frenzy is a result of the recent surge in popularity. Mena notes that $TRUMP suggests mid-cycle speculative speculation aligned with 2020-2021 pattern. Blockworks Katherine Ross noted in a blog post today that the recent token launch has indeed been successful. “contributed to the larger exhaustion.”
Ryan Rasmussen, Bitwise Research Head and spokesman for the company, responded with:
Money supply M2 has grown since January and the quantitative tightening may soon reach “a natural end,” Mena writes in his report.
One more thing the 21Shares exec points out: The Pi Cycle Top Indicator — tracking bitcoin’s 111-day simple moving average against a 2x multiple of the 350-day SMA — hasn’t yet signaled a market peak.
Joel Kruger, of LMAX Group, called out the traditional markets where there is a cooling in risk appetite due to global trade tensions and an increasingly hawkish Fed outlook.
“We believe correlations between bitcoin and traditional risk assets can be misleading, with bitcoin easily capable of generating sizable demand as an attractive portfolio diversification asset given properties that align more with that of a store of value,” He was arguing.
There’s “formidable support” BTC to be in the $75,000-$70,000 range. That, Kruger believes, “should serve as an attractive higher low ahead of the next major upside extension and bullish continuation to a fresh record high beyond $110,000.”
Ruslan LIENKA, YouHodler Markets Chief Ruslan spoke on how Bybit’s hacking last week may have affected institutional confidence.
The security breach will not have much of an impact on retail traders. They rely more heavily on CEXs to trade and store assets.
“Institutions typically adhere to strict treasury management rules and allocate only the necessary liquidity to CEXs for routine transactions,” He said this in an email. “Large-scale institutional trades are often conducted through OTC markets, while long-term holdings are kept in secure, self-custodied solutions.”
In case you’ve missed it, SEC has closed their multi-year investigation of Uniswap Labs. The company announced that it won’t take any enforcement actions.
The securities regulator told Coinbase (but has not yet finalized) that it was dropping its case against Coinbase. The SEC also announced this week that it was closing its investigations into Robinhood, OpenSea and other companies.
There are some things that don’t look good. There are some places you can hang your hat.
You’ll be able to see our thoughts after the Nvidia earnings today, initial unemployment claims tomorrow and Friday’s PCE data.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
