What’s going on with Bitcoin?

What Happened in the Cryptocurrency World Today: What’s Happening with Bitcoin?

After every bullish week, a bear lurks in the shadows.

But you’ve seen it before, right? The charts were green, your portfolio was soaring, and life was good. Then, suddenly, the cryptocurrency took a nosedive.

But hey, that’s how cryptocurrency works. One minute you’re on top of the world, the next minute you’re wondering if you should have stuck to your day job.

So what’s behind this latest drop? Is it just another blip on the radar, or should we batten down the hatches?

Let’s see things more clearly:

Why are prices falling?

Cryptocurrencies are clearly taking a breather after making some crazy moves over the past 10 days.

Bitcoin and Ethereum just fell, triggering $250 million in liquidations.

According to data from CoinMarketCap, there has been a decrease in the number of wallet addresses holding more than $100,000 worth of Bitcoin.

However, whale holdings (generally defined as addresses holding more than 1% of the circulating supply) have remained stable. This suggests that while some mid-level investors may be selling or redistributing their holdings, Bitcoin’s largest holders are maintaining their positions, indicating confidence in the cryptocurrency’s long-term prospects (you can track this and other on-chain metrics at CoinMarketCap Analysis Section (to integrate it into your broader analysis to make informed investment decisions).

Now, if you’re still panicked and confused, let’s take a step back.

This decline is not isolated. The US market as a whole has also been affected, with the Nasdaq Composite falling 3.65%, its biggest drop since October 2022.

So what’s going on?

It seems the tech sector is facing a reality check. Alphabet, Google’s parent company, and other tech giants have announced higher-than-expected spending, spooking investors.

Now, you might be wondering why cryptocurrency prices are taking a hit, just like stock prices.

It’s simple: cryptocurrencies and traditional markets are interconnected in this case. When big investors worry about tech stocks, that anxiety often spills over to cryptocurrencies.

Many institutional players view Bitcoin and Ethereum as part of their broader technology portfolio, so when they decide to de-risk, cryptocurrencies are often reduced, along with other high-growth assets.

But this is where things get interesting for cryptocurrencies. Despite the short-term turbulence, some analysts remain bullish on Ethereum. They draw parallels with Bitcoin’s performance after the ETF launched earlier this year.

ETH Could Soon Hit All-Time High If It Follows BTC’s Footsteps

Remember when Bitcoin hit its all-time high just two months after spot ETFs launched? Some believe Ethereum could follow a similar trajectory.

The story continues

Speaking of ETFs, the recently launched Ethereum spot ETFs are already making waves. While they saw some outflows on their second day, it’s worth noting that seven out of eight ETFs still saw net inflows.

The wild card here is Grayscale’s converted Ethereum Trust. It’s losing assets, which isn’t surprising given its previous six-month lockup period.

So what can we learn from history?

Well, when Bitcoin Spot ETFs were launched, we saw a similar pattern of initial volatility followed by substantial gains.

The key takeaway? Short-term pain doesn’t necessarily mean long-term doom. In fact, some traders are viewing this decline as a potential buying opportunity (NFA).

What you can do in this market

First, keep a close eye on on-chain metrics like wallet address distributions and whale holdings. You can do this here.

Pay attention to the interconnection between cryptocurrencies and traditional markets, especially tech stocks, as this relationship can influence price movements.

Finally, consider the historical pattern of volatility followed by gains after major events like ETF launches.

While this information should not be considered financial advice, it can help you gain a more comprehensive picture of current market dynamics.

Now that you understand why the charts look red, let’s take a break and catch up on the top crypto news stories of the day.

Here’s your roundup of today’s headlines:

• Ethereum ETFs start with $100 million, but only represent 10-20% of the first-day performance of Bitcoin ETFs. What exactly prevented the success of this ETF? 🤔

• Franklin Templeton hints at the Solana ETF, praising its adoption and architecture. Do they have already filed Any requests for the Solana ETF? Or are these just discussions? 🌞

• Bernstein analysts highlight 12 Bitcoin mining stocks with significant upside potential. But can minors very close the 90% valuation gap with data centers? ⛏️

• Base deploys proof of failures on the Sepolia testnet, targeting “Stage 1” decentralization. Could this be? Could the upgrade eventually make the Base a hub for future projects? 🌊

Ether ETF Launch: A Good Start, But Not Up to Bitcoin’s Standard

Ethereum ETFs are off to a flying start, but they’re not exactly breaking the sound barrier.

These new ETFs raised more than $100 million in their first day.

But let’s put that in perspective: That’s only 10-20% of what Bitcoin ETFs managed to achieve when they debuted in January.

But why?

Adrian Fritz of 21Shares has the answer. Bitcoin has this “digital gold” narrative that’s easy to sell. Ethereum? It’s like trying to cover quantum physics in 12 minutes. There’s a lot more education to be done.

So there is no hope for ETH ETFs? Or are we missing something? Read the full story!

Franklin Templeton Now Interested in Solana ETF

Franklin Templeton hinted on X that there would be “significant developments” beyond Bitcoin and Ethereum.

And guess who the star of the show is? Solana.

They welcome its adoption, maturity and high-speed architecture.

Have they filed applications for the Solana ETF yet? Or are these just discussions? Read the full story!

12 Bitcoin Mining Stocks in the Spotlight

Bernstein analysts have just published a research note on Bitcoin mining.

They put 12 Bitcoin mining companies under the microscope.

The main advantage of this approach? These miners could reduce their cost of ownership by 90% compared to traditional data centers. They just need to become smarter about energy usage and efficiency.

Analysts believe there is a “significant benefit” to upgrading to the latest mining chips.

Wondering which mining stocks are worth gold according to these analysts? Read the full story!

The base also makes movements!

Coinbase’s Layer 2 darling Base is making a big move.

It has just deployed evidence of outages on the Sepolia test network.

Currently, Base is still in what Vitalik Buterin calls “Stage 0” decentralization: only the centralized proposer of Base can submit the state of the network to Ethereum for validation.

But this new initiative? It aims for “level 1” decentralization. This means that anyone could propose or challenge the Basic State.

Base is very excited about this. They call it a “major milestone” and a “crucial launch.”

Could this upgrade make Base a hub for future projects? Read the full story!

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