Cloud Hosting

The Bitcoin market is experiencing a seismic shift, with recent data revealing fascinating trends that shed light on the evolving dynamics. From a significant decline in Bitcoin inflows to a historic drop in supply on exchanges, coupled with a surge in institutional fund accumulation, these developments highlight a maturing market and changing investor sentiment.

The on-chain analytics service CryptoQuant has today published extremely interesting data on the behavior and cohorts of Bitcoin hodlers via Twitter.

Over the past 612 days, Bitcoin has witnessed an 80% decline in the number of addresses recording inflows, which can be interpreted as selling activity. This decline reaches an even higher figure of 84% when measured from the peak in May 2021. These numbers even surpass the previous record set during the 2017 parabolic top, demonstrating the magnitude of the current trend.

Both narrowly beat the second highest decline in addresses associated with inflows between the 2017 parabolic top into 2018 bear, at 78.5%.

It is important to note that these figures do not account for addresses that have moved to self-custody or differentiate between miner activity and retail investors. This suggests that the decline in addresses associated with inflows may be even more significant than the data implies, potentially indicating a shift towards long-term holding strategies or alternative custodial methods.

In a parallel trend, the overall supply of Bitcoin on exchanges has been steadily shrinking since March 2020, marking a period of consistent decline that had not been witnessed before in Bitcoins history. This decline is not only significant in its duration but also in its depth, as Bitcoin reserves on exchanges have dropped by over 30%. CryptoQuants experts further note:

March 2020 was the highest ever supply recorded on exchanges, and preceded by consistent ten years of supply growth. The 1200 days since, are the first period of consistent decline in Bitcoins history. [] Retail traders and institutions are holding more Bitcoin than ever.

This also indicates a major potential shift from active trading and speculative behavior towards long-term holding strategies.

As the decline in inflows and supply unfolds, another intriguing trend emerges: institutional fund accumulation, as observed by CryptoQuant. Institutional investors, including hedge funds, investment firms, and cryptocurrency private funds, are currently actively increasing their holdings of Bitcoin.

This exponential increase in fund holdings demonstrates a strong interest in acquiring Bitcoin, even at its current price level. Institutional investors often take a more patient and long-term approach compared to short-term traders who closely monitor price fluctuations.

By closely monitoring fund holdings, investors can gain valuable insights into market sentiment and the confidence that institutional investors have in Bitcoin as a long-term asset. And the following chart by CryptoQuant is showing just that, an ultra bullish stance by institutions.

The positive evolution of Bitcoins perception is probably further reinforced by recent developments in the regulatory landscape and the introduction of exchange-traded funds (ETFs). Regulatory frameworks, especially those being implemented by countries in the European Union with MiCA, are beneficial for the institutional Bitcoin adoption.

Moreover, the filings and re-filings of Bitcoin spot ETFs by major financial institutions, including BlackRock and Fidelity, indicate a growing recognition of Bitcoins potential as a legitimate investment. These ETFs provide a more accessible and regulated way for investors to gain exposure to Bitcoin, potentially driving further institutional adoption and market growth.

At press time, the BTC price stood at $30,716, remaining in its range between $29,800 and $31,000.

Featured image from iStock, chart from TradingView.com

Read more here:
Institutional Investors Flock To Bitcoin: Are We Witnessing A Paradigm Shift? - NewsBTC

Bitcoin (BTC) price continues to move sideways for the eleventh day, confusing short-term traders. Despite the Exchange Traded Fund (ETF) mania, the big crypto continues to remain lull.

Read more: Why approving a Bitcoin ETF might unleash $18 billion in sell-pressure

Unexpectedly, altcoins seem to be enjoying the enhanced interest in crypto due to the ETF hype. Bitcoin Cash has risen a whopping 212% in 10 days, STORJ has climbed 67% in the last two weeks, and many other altcoins have also skyrocketed.

But will this altcoin mania continue? Unlikely, especially if Bitcoin price finds its footing and kickstarts a rally, irrespective of the direction.

Also read: Top 3 altcoins to buy for next alt season: PEPE, OP, BNB

Last year proved that the United States Federal Reserves monetary policy decision does affect Bitcoin and the larger crypto markets. But this connection between the Feds decision, the stock market and the cryptocurrency market seems to have dried up.

However, worsening macroeconomic conditions and erosion of trust in the US banking system has clearly given Bitcoin the upper hand, knocking the aforementioned correlation down. As a result, Bitcoin price has returned year-to-date gains of nearly 85%.

But Fed Chairman Jerome Powell is hinting at two more rate hikes by the end of 2023. If Powell follows through on his commitments, the US Dollar could see a massive rally, causing risk-on assets like the stock markets or Bitcoin to take a hit.

Read more: Fed Chair Jerome Powell expects two more rate hikes in 2023

The effects of these rate hikes on Bitcoin price are usually ephemeral or short-lived. In addition to the rate hikes, if the correlation between BTC and the stock market remains low, Bitcoin price will continue to move depending on supply and demand dynamics, aka capital flow.

From a big-picture perspective, Bitcoin price remains bullish and can scale to highs last seen in late 2021.

Read more: Three reasons why Bitcoins 2023 rally is just starting

See the original post here:
Will Bitcoin price face negative effects from Federal Reserves two rate hikes? - FXStreet

WisdomTree is attempting to launch a spot bitcoin exchange-traded fund even though its peers have failed.

The firm filed with the U.S. Securities and Exchange Commission last week, making it its second bitcoin ETF application after an initial rejection two years ago.

However, WisdomTree's Jeremy Schwartz believes this time could be different.

"We've been able to successfully launch products in Europe," the firm's global chief investment officer said on CNBC's "ETF Edge" this week. "The European regulators have been more friendly, and they've been able to get comfortable with the mechanisms, the custodians [and] how the markets work."

The SEC rejected WisdomTree's previous applications in 2021 and 2022 on the notion they came in short to protect investors and the public interest.

Schwartz hopes the changes made in the firm's updated filing will satisfy regulators.

"Some of the new filings have these data sharing agreements, surveillance sharing, new ways of doing it," he said. "Now the question is: Will that address the SEC's concern on market manipulation? But that is one of the things I think we're all trying to address."

WisdomTree's latest launch effort comes during an increased appetite for bitcoin. As of late Friday, prices are up almost 84% so far this year.

"It's hard for me to comment too much about all the details while you're in these [filing] periods," Schwartz said when "ETF Edge" host Bob Pisani asked him why he thinks the SEC will approve the spot bitcoin ETF this time. "But I think the key is, will the exchanges share data and [will the SEC] have more comfort than what was previously done before? I think the data sharing agreements are the key element for that."

It appears interest is climbing.

According to an SEC filing this week, Fidelity Investments is also trying to launch a spot bitcoin ETF despite its prior failures. It joins WisdomTree, BlackRock, VanEck and Invesco.

Read the original post:
WisdomTree takes new crack at Bitcoin ETF despite prior rejections. Why this time may be different - CNBC

The price of Bitcoin has experienced a notable increase of 0.8%, prompting speculation on whether it is an opportune moment to enter the market. However, it is important to consider various factors that might impact Bitcoin's performance.

Recent news reveals that asset managers plan to refile their spot Bitcoin ETF applications after the Securities and Exchange Commission (SEC) deemed the previous filings inadequate.

Additionally, renowned investor Tim Draper has adjusted the timeframe for his prediction of a $250,000 Bitcoin price.

Moreover, a challenging macroeconomic environment could potentially limit gains for Bitcoin in the third quarter.

These factors should be considered when evaluating the potential for buying Bitcoin at this time.

The exchanges were required by the SEC to specify the details of their "surveillance-sharing agreement" with a specific Bitcoin exchange or provide sufficient information about the arrangement.

Asset managers can revise and resubmit their applications after making the necessary amendments.

Following the SEC's announcement, the price of Bitcoin (BTC) briefly dropped by over 3% and dipped below $30,000.

However, it quickly recovered and is currently trading at around $30,600.

In the revised filing, Cboe intends to establish a "surveillance-sharing agreement" with Coinbase, a prominent cryptocurrency exchange.

According to previous statements from the SEC, a regulated market with substantial trading volume would require a surveillance-sharing agreement between the sponsor of a Bitcoin trust and the market.

The Commodity Futures Trading Commission has long advocated for regulating spot Bitcoin markets, which currently lack government oversight.

As issuers work on resubmitting their applications for Bitcoin ETFs, the price of Bitcoin continues to climb

Tim Draper, a venture entrepreneur, has updated his prediction for the timeline of Bitcoin reaching the price of $250,000.

Draper maintains his belief that the leading cryptocurrency will eventually reach the projected price level, but acknowledges that it may take slightly longer than initially anticipated.

Draper had initially predicted that the price of Bitcoin would reach $250,000 by the end of 2022.

However, on December 31, 2022, he admitted that his forecast was slightly inaccurate, stating that it was "off by a bit."

Nonetheless, Draper remains confident that Bitcoin will still reach the anticipated price level before the next halving event in 2024.

In addition to his price predictions, Draper has expressed concerns about cryptocurrency regulation and has criticized the enforcement approach of the Securities and Exchange Commission (SEC).

In a June 12 interview with Fox Business, he voiced his discontent with the SEC's focus on enforcement, believing it has led to fear among innovators and prompted some to relocate elsewhere. He described the enforcement regulation as absurd.

Despite these concerns, Draper's unwavering belief in Bitcoin's long-term potential has instilled optimism among investors.

This optimism has translated into increased buying activity and upward price movement in the market.

With major institutions expressing confidence in the future of cryptocurrencies and even in their American regulators, Bitcoin appears to be well-positioned for the upcoming quarter.

However, it is important to exercise caution as the cryptocurrency market operates within the larger macroeconomic environment, which continues to face challenges.

Historically, the third quarter has been the weakest for Bitcoin, with an average increase of just 4.67% since 2014, and only four out of the nine third quarters have seen positive gains.

The second quarter was disappointing for traders until the recent surge in applications for US spot Bitcoin ETFs brought renewed optimism to the cryptocurrency market.

Regulatory pressures significantly impacted market sentiment between the conclusion of the financial crisis in May and the BlackRock Bitcoin ETF registration on June 15, resulting in a sideways movement for Bitcoin.

As macro and industry factors continue to intersect in the next three months, a similar period of calm may ensue.

According to Christopher Ferraro, President and Chief Investment Officer of Galaxy Digital, the Federal Reserve is still cautious about the direction of headline inflation numbers, as they have not fully committed to a long-term freeze or rate reduction, despite temporarily halting interest rate hikes.

Analyzing the technical analysis, Bitcoin's present situation shows little alteration as it encounters a notable obstacle around the $31,000 mark.

A successful breakthrough at this level has the potential to unlock additional targets at $32,500 and $34,000.

On the flip side, failure to maintain the critical support level of $30,000 could lead to downward pressure, potentially pushing Bitcoin towards the 38.2% Fibonacci retracement level at $28,700 or even the 50% retracement level at $28,000.

Furthermore, the 50-day exponential moving average near the $28,000 level may serve as a significant point of resistance if Bitcoin experiences a decline in price.

Stay up-to-date with the latest initial coin offering (ICO) projects and alternative cryptocurrencies by regularly exploring our handpicked selection of the top 15 digital assets to watch in 2023.

This meticulously curated list has been assembled by industry experts from Industry Talk and Cryptonews, guaranteeing professional recommendations and valuable insights.

Stay ahead of the curve and uncover the potential of these cryptocurrencies as you navigate the ever-evolving landscape of digital assets.

Disclaimer: Cryptocurrency projects endorsed in this article are not the financial advice of the publishing author or publication - cryptocurrencies are highly volatile investments with considerable risk, always do your own research.

See more here:
Bitcoin Price Prediction as BTC Spikes Up 0.8% Time to Buy? - Cryptonews