Markets

Cryptocurrency Market Trends as Traders Anticipate Spot Ether ETFs | Video

Published

6 months ago

17 July, 2024

Good morning everyone. Welcome to another episode of Markets Daily. It’s Wednesday, July 17th and it’s been an eventful week so far in the cryptocurrency space, we found out on Monday that the Ethereum S spot ETF will most likely launch next Tuesday. Later that day, former President Donald Trump announced his pick for Vice President of Ohio, Senator J.D. Vance, who has tried to push for clearer legislation on cryptocurrencies in the past. He also owns Bitcoin. So I think crypto leaders are pretty happy with that pick. He is expected to address the Republican Party later today at the Republican National Convention. So we’ll see if he voices his views on digital assets. Speaking of digital assets, Bitcoin is up about 2.2% over the past 24 hours. Partly in reaction to Trump’s pick for Vice President, Ethereum is up 1.8% trading at $3,471 as of 10:00 AM Eastern time. Bit wise Chief Investment Officer Matt Hogan wrote in a note this morning that the launch of the Ether ETF S next week will push the price above $5000. So something to watch out for. But let’s invite our guests and make sense of all this. As always, I’m joined now by Michael Anderson, co-founder of Framework Ventures. Good morning, Michael. It’s great to be here. Thanks for having me. Thanks for coming this morning, Michael. Let’s stick with the ETF talk for a second. The spot. Bitcoin ETF S crossed $16 billion in inflows yesterday after receiving, I believe, 300 million on Monday. How do you think the inflows and volume will change or, or not change at all? Once the spot Ether ETF S is out, do you expect any changes? Well, I think there will be changes just in the fact that there will be a relative market cap discrepancy between Bitcoin and Ethereum. Some of the experts, including Matt Hogan, who you mentioned earlier, have talked about what the percentage A um of the SE ETF will be compared to the Bitcoin S ETF. They both have an excess of G BT C and C respectively. Uh, I think the excess is different. It’s, it’s a little bit less uh in percentage terms than you saw with G BT C. Um And the other factor, also uh, that I think will start to play out and we’ll start to see with the E ETF S is that there’s over 40% of all the eo staked or used in DFI in a bridge in a collateralized protocol of assets uh DI uh. And I think overall, it’s going to take over as, as a major narrative because it’s going to take less value in these ETS, less spot buying to start to drive some of the price appreciation that you would expect. And as we’ve seen with most of these price moves, um, price follows narrative and narrative follows price. Um, so I would expect there to be a lot more activity around the ETF and, and I think we, we kind of pick up the narrative as soon as it launches. So with those ETFs most likely launching less than a week from now, I’m sure Stratify will definitely start, you know, paying more attention to the Ethereum ecosystem. If they’re looking to invest in it through one or more funds, what are some potential pain points in the ecosystem that traders should be watching over the next couple of months? Well, maybe to touch on the first point, which is, I think it’s an important time where in most of the institutional conversations that we’re having, we’re, we’re talking to people who are saying, hey, I want some exposure to cryptocurrencies um Bitcoin. I can understand that being digital gold. Um, the narrative with Ethereum is really OK. It’s the App Store for financial services and you know, being able to understand that growth mindset, that growth, uh asset class, uh they can mentally model uh how an App Store would behave or how it would behave if it were any other category. And so I think most investors want to have both um in, in terms of, in terms of, you know, what we’re looking for um with the ecosystem uh is we’re starting to see more assets grow on the, on the platform, we’re starting to see more layer two launches. Um you know, gas fees have been the lowest they’ve ever been uh because of some of the upgrades that have been done recently. But those are some of the metrics that we track in terms of cost of business um and number of applications that are relying on it. Now, let’s step back for a second. How do you expect the cluttered environment in the second half of the year to impact cryptocurrencies, especially now that, you know, we’re very likely going to see a rate cut in September from the Fed. Yeah, rate cuts, you know, people are pricing in 90% plus in September, uh potentially two by the end of the year. I think we’re about to enter, you know, a classic rate cut season. Eh And, and what that ultimately means is, uh I think last week was the highest number. Eh we hit an all-time high in terms of liquidity in money market accounts. And what I kind of liken that to is basically money sitting on the sidelines waiting for interest rates to change so that money can go and find a better rate of return. Eh And what I would expect is that when we start to see some of these rate cuts, uh a couple of things will happen. The first is, you know, the valuation models for these different assets are going to change, you know, when you’re able to change, what’s the discount rate, what’s that interest rate? And it goes down, the valuation goes up? Uh So for growth assets, are we going to see price appreciation? But then we’re also going to start to see money move off the sidelines into some of the higher risk, higher return asset classes like cryptocurrencies. And so I would expect that that won’t necessarily happen with that first rate cut, but it will start to happen as we see more and more rate cuts over the next 12 months. Now, do you have a price target for Bitcoin and Ethereum for let’s say 2025? No, no price target? Um, I think there’s so many variables, it’s impossible for us to predict. Um, but we continue to see inflows, we continue to see activity. Um, I would say that’s definitely something that we’re excited about for the next 12 months. Now, when you say the Fed has cut several rates, if you know, they actually started cutting rates in September, what will the Fed have to see to cut rates further over the next let’s say 12 months. Well, I, I think the same activity that would lead to a cut in September will lead to further cuts over the next 12 months. And, and looking at the dot charts, the expectations are that we’re probably going to see another 1.5 to 2% rate cuts over the next couple of years leading to interest rates of 3 to 3.5% by the end of 2026. And what that really means is that we’re probably going to see rate cuts of 8 to 1025 basis points over that time period. And you know, the classic signals are going to be, are going to be the main determinant of whether, you know, we go higher or whether, we go even further. But it’s going to be inflation and we expect inflation to continue to, to continue to decline. We expect, you know, the labor market to look like it’s recovering at least from the latest employment and unemployment numbers that we’ve seen. Um, those are the two mandates from the Fed and, and those are the metrics that I’m sure, you know, everyone is tracking very closely. Now, we don’t talk a lot about gaming here on this podcast, but I know that the framework initiatives are investing heavily in crypto gaming among other branches. Obviously. So for all of our players out there. What does the crypto gaming landscape look like right now? And what are some other areas that you’re looking to invest in over the next year or so? Yeah. I, I think the crypto landscape, if I could attribute it to kind of a market narrative right now, is that it’s just getting started. Um, what we’ve seen in the last six months is we’ve seen our first multi-million dollar monthly active game in the form of pixels. Um, in the last 30 days, they’ve had over 1.5 million active players in that gaming ecosystem. Um, we’re also seeing platforms like immutable, reaching 2 million individual signups on their passport, their wallet product. Um, there are over 275 games coming out on immutable in the next 18 months. And I’m sure for every single gamer out there, you’re going to be able to find a game in those 275 that you find interesting or, or something that you, you really like. Um, so I imagine this trend really becomes a pretty big narrative just based on the numbers. Um, you can imagine some of these games are going to be wildly successful, tens of millions of actives per month, some of them are not going to be as successful, but that’s kind of the, the nature of the beast. Um, but I guess if we were talking about games this time next year. Um, it’s probably one of the top categories, just like DI has been for the last few years. Um, and some of the market narratives that we’re, we’re continuing to see. We’ve announced a couple of investments in the AI space. Um, really, really talented founders are coming into the space right now. Um, whether they’re from Google, um, or Tesla or any of the other notable AI ecosystems from traditional tech companies. Um, they’re starting to get into the crypto space because they recognize that blockchains are going to be the monetization layer for, for AI. Um, it’s not necessarily going to be the compute layer, but it’s going to be the monetization layer and, and I think we can, um, work collaboratively with the rest of the AI ecosystem to build that out. Um, yeah, although those are the main things, you know, that we’ve been looking at over the last couple of months and, um, I’m always thrilled to be surprised whenever we meet a new founder working on something completely different. Great, Michael. Well, I think we need to stop there, but um, thank you so much for joining us this morning and sharing your insights. Yeah. Thank you for having me.

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Markets

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin, Ethereum See Red as Markets Crash on Volatility

Bitcoin AND Etherealalong with the rest of the top 10 cryptocurrencies by market cap, appear to be in hibernation on Thursday morning.

At the time of writing, the Bitcoin Price is still below $65,000 and 2.2% lower than it was this time yesterday, according to CoinGecko data. Things are worse for the Ethereum Pricewhich is 3.7% lower than 24 hours ago at $3,185.22. The drop in ETH’s price is identical to that of Lido Staked Ethereum (stETH), a liquid staking token for Ethereum.

In recent days, falling prices have led to the liquidation of derivative contracts worth $225 million, according to Coin glassAnd about half of that, about $100 million, was liquidated in the last 12 hours.

When a trader is liquidated, it means that their position in the market has been forcibly closed by an exchange or brokerage due to a margin call or insufficient collateral. Margin is especially important when it comes to leveraged positions, which allow traders to control a multiple of their deposit, such as opening a $10,000 position with only $1,000 in their account.

Now that Bitcoin has been in the red for three days in a row, there is a chance that the world’s oldest and largest cryptocurrency could sink even further, BRN analyst Valentin Fournier said in a note shared with Decrypt.

“Bitcoin has closed in the red for three days in a row, with one-way trading showing limited resistance from bulls. Ethereum had a slightly positive Monday with strong resistance from bears who have won the last two days,” he wrote. “This momentum could take BTC to the $62,500 resistance or even the $58,000 territories.”

Looking ahead, Fournier said BRN’s strategy will be to “reduce exposure to Bitcoin and Ethereum and find a better entry point after the dip.”

This is despite Federal Reserve Chairman Jerome Powell’s comments yesterday on interest rates being widely regarded as accommodating and indicative of FOMC rate cuts in September.

Singapore-based cryptocurrency trading firm QCP Capital said the rally in stocks, which sent the S&P 500 up 1.6% from Wednesday’s close, was not felt in cryptocurrency markets.

“Cryptocurrencies have seen a broad sell-off overnight and into this morning,” the firm wrote in a trading note. “The market remains poised as traders pay close attention to daily ETH ETF outflows and further supply pressure from Mt Gox and the US government.”

Meanwhile, the other top-ranking coins are showing mixed performance.

Solana (SOL) is down 7.2% since yesterday to $169.13. Things are even worse for its most popular meme coins. In the past 24 hours, the most popular meme coins Dogwifhat (WIF) are down 12% and BONK (BONK) is down 9%, according to CoinGecko data.

Their dog-themed competitor, Ethereum OG Dogecoin (DOGE), the only meme coin in Coingecko’s top 10, is down nearly 4% since yesterday and is currently trading at $0.1205.

XRP (XRP) dropped to $0.608, which is 7% lower than it was at this time yesterday.

Binance’s BNB Coin (BNB) has kept pace with BTC and is currently trading at $571, down 2.4% from yesterday. Toncoin (TON), the native token of The Open Network, is down just 0.4% over the past day.

This leaves the stablecoins USDC (USDC) and Tether (USDT), both of which are stable as they maintain their 1:1 ratio with the US dollar.

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Markets

XRP Market Activity Drops During Ripple-SEC Talks: Price Steady

Published

6 months ago

1 August, 2024

Financial Block Staff

Ripple (XRP) Market Witnesses Calm During SEC-Ripple Meeting

The Securities and Exchange Commission (SEC) will hold another closed-door meeting with Ripple on Thursday, as the market hopes for a possible resolution to the legal battle between the two entities.

However, the cryptocurrency market remains relatively bearish, with the price and trading volume of XRP down in the last 24 hours.

Ripple holders take no risk

At press time, XRP is trading at $0.60. The altcoin’s price has dropped 6% over the past 24 hours. During that time, trading volume was $27 million, down 27%.

The SEC met before with the digital payment company on July 25. While the outcome of that meeting remains unknown, the Sunshine Act Notice for Thursday’s meeting includes one additional topic of discussion from the July 25 closed meeting: the instituting and resolving injunctive relief. That has market participants speculating whether a settlement is imminent.

In an exclusive interview with BeinCrypto, Ryan Lee, Lead Analyst at Bitget Research, noted that:

“This meeting will discuss possible resolution options for the Ripple Lawsuit. The founder of Ripple Labs said that a legal settlement could be announced soon. If an official settlement plan is released, it could positively impact XRP’s price movement.”

However, an assessment of XRP’s price movements on a 4-hour chart shows a spike in bearish bias as the market awaits the outcome of this crucial meeting. Its Moving Average Convergence/Divergence (MACD) indicator readings show that its MACD line (blue) has crossed below its signal line (orange).

XRP 4 Hours Analysis. Source: Trading View

Traders use this indicator to gauge price trends, momentum, and potential buying and selling opportunities in the market. When an asset’s MACD is set this way, it is a bearish signal that suggests selling activity is outweighing buying momentum.

Additionally, the altcoin relative strength index (RSI), at 46.08, is currently below its neutral 50 line and in a downtrend. This indicator measures overbought and oversold market conditions for an asset.

To know more: How to Buy XRP and Everything You Need to Know

xrp rsi XRP 4 Hours Analysis. Source: Trading View

At 43.83 at the time of writing, XRP’s RSI suggests a growing preference among the market participants for tok in distribution.

XRP Price Prediction: Derivatives Traders Exit Market

The XRP derivatives market has also seen a decline in trading activity over the past 24 hours. According to Coinglass, derivatives trading volume has plummeted 18% and open interest has dropped 10% during that period.

Open interest refers to the total number of outstanding derivative contracts, such as options or futurethat have not yet been resolved. When it drops, traders close their positions without opening new ones. This is a bearish signal that reflects a lack of confidence in any potential positive price movement.

According to Lee, the outcome of the meeting with the SEC “would have a significant impact on the price movement of the token.” If the outcome is favorable, the price of the token could rise towards $0.75 in August.

To know more: Ripple (XRP) Price Prediction 2024/2025/2030

XRP Price Prediction XRP 4 Hours Analysis. Source: Trading View

On the other hand, if no favorable resolutions are reached, the price could plummet to $0.50.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto strives to provide accurate and unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult a professional before making any financial decisions. Please note that our Terms and conditions, Privacy PolicyAND Disclaimers They have been updated.

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Markets

Bitcoin’s Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin's Dominance Hits Three-Year High, But Analysts Say Altcoins Are Ready to Rebound

Bitcoin is now the dominant force in the cryptocurrency market, surpassing 53% of the total cryptocurrency market, a stronger share than it has been in the past three years.

Bitcoin’s market cap now stands at $1.27 trillion, second according to CoinGecko data. In contrast, the total cryptocurrency market cap is $2.43 trillion, with Ethereum occupying 15.9% of the market, worth $389 billion.

Bitcoin’s rise to dominance this year is unusual, as altcoins typically do better than Bitcoin in a bull market. While meme coins made a strong comeback during Bitcoin’s rally to all-time highs earlier this year, the so-called “wealth effect” It has not been appreciated as much by mid-range coins, such as Ethereum and Cardano.

“ETF flows fundamentally alter market dynamics,” he wrote Meltem Demirors, former chief strategy officer at CoinShares, tweeted Wednesday: “BTC gains no longer translate to alts and the longer tail of crypto.”

Bitcoin’s takeover has continued even as the market cap of Tether (USDT) continues to grow, the world’s largest stablecoin and the third-largest cryptocurrency after BTC and ETH. Stablecoins are backed by fiat currencies and are excluded from some measures of Bitcoin dominance due to fundamentally different value models.

The surge continued to pace even after the launch of Ethereum spot ETFs last week, which ironically culminated in a news sell-off event, and net outflows from new investment products since they were launched. This went against the predictions of K33 Search so far, which predicted that ETFs would catalyze ETH’s growth over the next five months.

Despite the poorer performance of the alts, there is reason to believe that they are ready to bounce back very soon.

CryptoQuant CEO Ki Young Ju said Tuesday that whales are “preparing for the next altcoin rally,” as limit buy orders for assets other than BTC and ETH are on the rise.

The executive shared a chart showing how the “cumulative difference between purchase volume and sales volume” has increased in recent months.

“The indicator measures the difference between buy and sell orders over a year,” CryptoQuant told Decrypt. A buy/sell order is a pre-set request to buy or sell a cryptocurrency if it hits a certain price level, which creates resistance and support levels.

“If the trend is up, it means that more people are placing buy orders, showing strong interest in buying,” CryptoQuant said.

By Ryan-Ozawa.

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Markets

XRP and SOL Retrace as BTC Price Drops to 2-Week Lows (Market Watch)

Published

6 months ago

1 August, 2024

Financial Block Staff

Bitcoin Returns Toward $60K, XRP Defy Negative Sentiment (Market Watch)

After Monday’s crash, in which BTC fell by several thousand dollars, the scenario has repeated itself once again in the last 12 hours, with the asset falling to a 2-week low of $63,300.

Alt coins followed suit, with most of the market in the red today. SOL and XRP lead the way from the higher cap alts.

BTC Drops To $63.3K

After a violent Thursday last week, when BTC crashed to $63,400, the asset went on the offensive over the weekend and surged above $69,000 on Saturday, as the community prepared for Donald Trump’s appearance at the 2024 Bitcoin Conference in Nashville.

His speech was followed by more volatility before the cryptocurrency settled around $67,500 on Sunday. Monday started off rather optimistically for the bulls as bitcoin hit a 7-week high of $70,000.

However, he failed to maintain his run and conquer that level decisively. On the contrary, he was rejected bad and dropped to $66,400 by the end of Monday. Tuesday and Wednesday were less eventful as BTC remained still around $66,500.

The last 12 hours or so have brought another crash. Bears have pushed the leading digital asset down hard, which has fallen to a 2-week low of $63,300 (on Bitstamp), leaving over $200 million in liquidations.

Despite the current rebound to $64,500, BTC’s market cap has fallen to $1.270 trillion, but its dominance over alts is recovering and has reached 52.6%.

Bitcoin/Price/Chart 01.08.2024. Source: TradingView

The Alts are back in red

Ripple’s native token has been at the forefront of the market challenge in recent days as pumped up to a multi-month high of over $0.66. However, its run was also interrupted and XPR fell by more than 6% in the last day to $0.6.

The other big loser among the larger-cap alternatives is SOL, which has lost 8% of its value and is now struggling to get below $170.

The rest of this altcoin cohort is also in the red, with ETH, DOGE, BNB, AVAX, ADA, SHIB, and LINK all seeing drops between 2 and 5%.

The total cryptocurrency market cap lost another $70 billion overnight, falling below $2.4 trillion today on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto SPECIAL OFFER (sponsored)
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