Bitcoin miners are experiencing a significant drop in stock prices as the upcoming halving is slated for later this week.

The fourth Bitcoin halving, around April 20, will slash mining rewards by half to 3.125 BTC, currently valued at approximately $200,000.

Bitcoin Miner Stocks Decline

The stock prices of Marathon Digital (MARA) and Riot Blockchain (RIOT), key players in Bitcoin mining, have experienced significant declines, dropping by approximately 53% and 54%, respectively, from their peak values earlier this year in February, as per data from Google Finance.

CleanSpark’s (CLSK) stock surged to a three-year high of $23.40 on March 25 but has since retreated by 38.1% to $14.48. Despite this decline, it remains up by almost 250% for the year.

The Valkyrie Bitcoin Miners exchange-traded fund (ETF) has also dropped around 28% this month alone.

Meanwhile, non-U.S. Bitcoin miners like Singapore’s Bitdeer Technologies (BTDR) and Australia’s Iris Energy (IRIS), both listed on the Nasdaq, have witnessed significant declines of 40.8% and 47.6%, respectively, since reaching year-to-date highs in mid-February.

The recent rise in geopolitical tensions over the weekend has further fueled a risk-off sentiment among investors.

Miners Optimistic About Bitcoin’s Long-Term Growth

Even with these challenges, the CEOs of Bitcoin mining companies are maintaining a positive outlook, as reported by Bloomberg. They point to factors such as low-cost operations, advancements in equipment efficiency, and increasing demand for crypto assets, which they believe can help offset the anticipated $10 billion annual revenue losses from the upcoming halving.

Miners are banking on increased demand from the new spot Bitcoin ETFs to drive BTC prices higher, helping to counteract the negative effects of the halving. Since the launch of traditional asset management firms’ ETFs in January, Bitcoin has seen significant growth. These funds have attracted substantial capital from a broader investor base beyond the crypto community.

Concerns about profitability arose in late January when Cantor Fitzgerald reported that 11 publicly-listed Bitcoin miners would face such challenges post-halving if Bitcoin’s price remained around $40,000, its value at the time.

Jaran Mellerud, founder and chief mining strategist of Hashlabs Mining, suggested that if Bitcoin’s price doesn’t continue to rise after the halving, some U.S. miners may need to relocate or expand operations offshore to access more affordable electricity costs.

The post Bitcoin Miner Stocks Decline Ahead of Halving, Miners Remain Optimistic appeared first on CryptoPotato.

Ethena is a synthetic dollar protocol on Ethereum that issues the stablecoin USDe. The asset aims to be a censorship-resistant and scalable form of digital money pegged to the US dollar.

On April 16, on-chain analytics firm CryptoQuant took a deep dive into the Ethena ecosystem revealing risks with the latest stablecoin, which has seen its market capitalization grow to more than $2 billion in a shorter time after launch than any other major counterpart.

USDe’s market cap peaked this week at just under $2.4 billion, following a surge of 900% following its launch in February, making it the fifth-largest stablecoin.

Ethena Risks Revealed

USDe is backed by crypto assets like ETH and BTC and maintains its peg by delta hedging using short positions on centralized exchanges.

To mint USDe, users deposit BTC, ETH, staked Ether (stETH), or USDT into the protocol, which then opens equivalent short perpetual positions with no expiration date.

However, the stablecoin faces risks in maintaining USDe’s peg, especially from “funding risks” having to pay negative funding rates when traders want to open more short than long positions.

Funding rates are used to maintain the balance between the price of perpetual futures and the price of the underlying asset.

CryptoQuant prepared an analysis on Ethena’s USDe.

– USDe is a recently launched stablecoin that has grown to a market capitalization of over $2 billion in a shorter time after launch than any other major stablecoin.

– We have had some investors requesting this analysis to… https://t.co/b0yfI6hgSL

— Julio Moreno (@jjcmoreno) April 16, 2024

CryptoQuant’s analysis shows that Ethena’s current $32.7 million reserve fund is enough to cover extremely negative funding rates if USDe’s market cap stays below $4 billion (it is currently $2.35 billion).

However, funding payments become larger as USDe market capitalization increases, as short positions also become bigger, noted CryptoQuant head of research Julio Moreno.

If the stablecoin market cap grows to $5 or $10 billion, the reserve fund would need to increase to $40 to $100 million to handle periods of extremely negative funding rates safely.

After crunching the numbers, Moreno concluded:

“Investors should monitor if Ethena’s reserve fund is appropriate for the market capitalization of USDe in order to handle periods of extremely large negative funding rates.”

Algorithmic Stablecoin Concerns

The analysis also noted that Ethena’s “keep rate,” which is the portion of yield sent to reserves, is crucial to growing the reserves appropriately based on USDe’s market cap to withstand bear market conditions.

Market participants have a right to be wary about algorithmic stablecoins, as most of them remember the astronomical rise and cataclysmic collapse of the Terra/Luna ecosystem in 2022.

Moreover, USDe’s attraction is yields as high as 17%, which has drawn comparisons with Terraform Lab’s UST, the much-hyped stablecoin that went up in flames causing the crypto contagions almost two years ago.

The post Ethena USDe Tops $2.3B Market Cap But Risks Identified appeared first on CryptoPotato.

The X account of famous actor Tom Holland, which has over 7 million followers, was recently hacked.

The attackers used his platform to promote a fake cryptocurrency and NFT scheme.

Fake ‘Spiderverse’ Partnership with Binance

The compromised account was used to announce a partnership with the global crypto exchange Binance, supposedly launching “Spiderverse” tokens.

A link to a fake website was attached, enticing users to gain early access to the fake SPIDER cryptocurrency and Spiderverse NFTs.

Tom Holland’s Twitter/X account has been hacked. pic.twitter.com/ZPRYI6GXgK

— Cosmic Marvel (@cosmic_marvel) April 16, 2024

Early screenshots captured by followers also revealed changes to Holland’s bio, including a link to a fake partnership website.

A mysterious selfie of a curly-haired individual, potentially the hacker, appeared on the actor’s profile, accompanied by a caption referencing an iconic scene from the original Spider-Man movie.

The post, initially pinned on his profile, has since been removed. The timing of the hack coinciding with the return of Sam Raimi’s 2002 Spider-Man film to select theaters on April 15 adds an extra layer of intrigue to the situation.

The incident caused various reactions from fans, ranging from relief that Holland hadn’t genuinely endorsed the crypto scheme to jokes about the events.

One user joked about the missed opportunity to fake tease “Spider-Man 4,” while another expressed relief at not losing their beloved web-slinger to a crypto scheme.

Marvel’s NFT Initiatives

While Tom Holland’s promotion of “Spiderverse” is fake, Marvel has previously ventured into the crypto space.

In late 2021, AMC partnered with Sony Pictures to offer NFTs to early ticket buyers of Holland’s “Spider-Man: No Way Home.” This initiative contributed to the movie’s big success, grossing over $1.9 billion. It led to AMC’s second-highest one-day ticket sales ever.

In 2022, AMC Theatres also made it possible for clients to make online ticket payments using popular meme coins such as Dogecoin and Shiba Inu.

VeVe, a New Zealand-based NFT company, has also collaborated with Marvel to release Spider-Man NFTs, including the first-ever Marvel book from 1939.

VeVe also recently launched NFT comics featuring Marvel superheroes like Spider-Man and the X-Men, powered by Ethereum technology.

The post Tom Holland’s Twitter Account Hacked to Promote Fake Crypto, Spider-Man Scam appeared first on CryptoPotato.

TL;DR

Despite a recent dip, VeChain (VET) has seen a nearly 60% increase in its value year-over-year, with speculation about reaching new highs soon.

Analyst predictions are varied, with some expecting short-term rises to $0.06, while others envision a whopping 2,500% rally to $1.

VET Price Gearing up for a Peak?

Despite plunging significantly in the past week, VeChain’s native cryptocurrency – VET – remains among the best performers on a yearly scale, with its price rising by almost 60% (per CoinGecko’s data).

VET Price, Source: CoinGecko

It currently hovers the $0.04 mark, while some analysts believe a new all-time high above $0.25 could be on the horizon. One example is the popular X user Ali, who thinks VET mimics its price trajectory from June to December 2020.

According to the analyst, the asset may retrace to the “upper boundary” at $0.032 in the following days and then start ascending to as high as $0.60.

#VeChain seems to mirror its price movements from June to December 2020. If this pattern holds, $VET might pull back to the channel’s upper boundary at $0.032, potentially setting the stage for a continued bull run! pic.twitter.com/PVkpJZXW34

— Ali (@ali_charts) April 16, 2024

Some of the Previous VeChain (VET) Price Predictions

Other analysts who recently envisioned a bright future for VET include the X users Clifton Fx and World of Charts. The former maintained the coin’s value could rise to $0.06 in the short term, while the latter assumed the $0.22 mark may be reached this summer.

The most optimistic prediction came from Flash, who believes VET is poised for a 2,500% rally toward the all-time high of $1.

Good Morning #Vechain $Vet 1d

Approaching $1 https://t.co/lC93xLRuEE pic.twitter.com/pic7N1WvvW

— FLASH (@THEFLASHTRADING) April 11, 2024

The post Here’s Why VeChain (VET) Seems Ready to Hit an ATH: Analyst appeared first on CryptoPotato.

While crypto has long been highly affected by the broader financial market, the price of Ethereum (ETH) appears especially impacted by its movements.

According to recently published data from IntoTheBlock, the correlation between ETH and several traditional market indexes is now far higher than those between its larger rival, Bitcoin (BTC), and the same markets.

Bitcoin, Ethereum, and Stocks

The firm’s figures show a correlation coefficient of 0.7 between ETH and the DAX – a stock index tracking 40 over the largest and most liquid German companies traded on the Frankfurt exchange. The equivalent correlation for BTC is 0.63.

A larger discrepancy is found with both the S&P 500 and tech-focused Nasdaq 100. ETH’s correlations to both indexes are 0.77 and 0.7 respectively, versus Bitcoin’s 0.56 and 0.44 correlations.

Meanwhile, both digital assets boast negative correlations with the US dollar Index, though ETH’s correlation is much stronger than BTC’s, boasting -0.61 and -0.33 correlations respectively.

“The correlation of ETH to traditional markets like the Nasdaq 100 is currently significantly higher than that of BTC,” wrote IntoTheBlock to Twitter on Wednesday.

What About Bitcoin ETFs?

The trend may seem ironic, given that its Bitcoin (BTC) that was recently approved to trade U.S. stock exchanges in the form of several spot ETFs in January.

The event has enabled roughly $12.5 billion worth of inflows to the asset through the new investment vehicles, which provide access to the asset previously unavailable to many institutional funds.

By contrast, Ethereum’s prospects of receiving approval for a U.S.-listed spot ETF in the near future grow bleaker by the day. Bloomberg ETF analyst Eric Balchunas now places the likelihood of a May approval at 25% and is uncertain that the crypto industry will even fight back against regulators if the product is rejected.

In comments shared with CryptoPotato, crypto fund manager Bitwise has revealed that financial advisors understand Bitcoin and Ethereum as having different roles in a portfolio.

“Advisors find it helpful when we explain that BTC can be contemplated as an allocation similar to gold and ETH as an allocation similar to a high-growth tech stock,” said Bitwise analyst Juan Leon in November.

Since the approvals, ETH has steadily lost ground against BTC, with the ETH/BTC ratio declining from 0.06 on January 13 to 0.049 today.

The post Ethereum Is More Correlated To Stocks Than Bitcoin: IntoTheBlock appeared first on CryptoPotato.

Bitcoin’s price crashed by over 5% below $60,000 on Wednesday amid a market selloff impacting the broader crypto and stock markets.

Bitcoin (BTC) began the day trading for roughly $63,700 per coin. Its price began sinking drastically starting at 1:40 PM UTC, and has plummeted to $59,950 as of 4:45 PM UTC. It trades for $60,475 at press time.

Meanwhile, the price of Ethereum (ETH) has slid back under $3000 to just $2950 at writing time. The S&P500 and Nasdaq 100 have declined 0.68% and 1.27%, respectively.

According to Coinglass, the selloff has triggered $216 million in liquidations across the crypto market in the past 24 hours. That includes over 67,000 affected traders, including one trader who lost $5.4 million on an ETH-USD swap.

Many suspect the market selloff has been triggered by escalating geopolitical tensions between Iran and Israel after the former launched a barrage of drones and missiles against the latter over the weekend.

In a Monday note, a CryptoQuant analyst predicted that Bitcoin could see more downside pressure given that funding rates remain elevated compared to historical averages.

Bitcoin / USD. Source: TradingView

The post Bitcoin Drops Below $60,000 Triggering $215 Million In Liquidations appeared first on CryptoPotato.

The cryptocurrency market endured massive volatility this week. Amidst geopolitical instability, this price action triggered billions in liquidation and left many wondering if Bitcoin could be used as a hedge against chaos. However, certain cohorts of Bitcoin holders remained unfazed.

This is evident by the fact that Bitcoin appears to be entering an accumulation phase as withdrawals from exchanges surged to levels not seen since January 2023.

Bitcoin Investors Prepare for Surge

The ongoing accumulation of BTC suggested a significant uptick in investor activity, coinciding with a recent cooldown in the market following a 10% price drop last week. The emergence of such a trend also points to the possibility of price hikes in the near future.

With the highly anticipated halving scheduled for April 20, CryptoQuant analysts speculate that the increased withdrawals may be indicative of preemptive steps taken by investors seeking to capitalize on potential gains.

In the meantime, a decrease in open interest on derivatives exchanges signified a shift away from leveraged trading, potentially fostering market stabilization.

Another analysis of the Short-Term Holder Spent Output Profit Ratio (STH SOPR) support zone highlighted a promising buying opportunity, as historically, such conditions precede upward price movements, indicating the potential for Bitcoin’s value to surge soon.

Markets Defy Crowd Expectations After Panic Selling

Santiment’s analysis reveals a prevailing negative sentiment among traders following Bitcoin’s descent to $61.5K and Ethereum’s drop to $2,890 over the weekend. The ratio of bullish to bearish comments regarding both cryptocurrencies reflects this downturn, indicating a surge in fear, uncertainty, and doubt (FUD) among investors.

Interestingly, despite initial panic selling, markets are now rebounding in a direction contrary to the crowd’s expectations.

The crypto analytic firm also suggests that this trend of market sentiment going against the crowd’s anticipation may continue until the fervor and hype surrounding the upcoming halving event start to dominate social media conversations once again, similar to the buzz observed one to two weeks prior.

The post Bitcoin (BTC) Bulls Await Halving: Accumulation Phase Signals Investor Confidence appeared first on CryptoPotato.

TL;DR

Shiba Inu investors have a long-term commitment compared to the shorter holding periods seen with other meme coins.

Despite a recent price decline, several positive developments, including an increased token burn rate and activity on the layer-2 blockchain solution Shibarium, hint at a potential upcoming rally for SHIB.

Diamond Hands

Investing in meme coins, notorious for their highly volatile nature, is typically popular among short-term traders seeking to make quick profits. However, it seems this is not the case with Shiba Inu.

According to data presented by IntoTheBlock, the average time of holding SHIB is over two years. The market intelligence platform also revealed that approximately 75% of those having exposure to the self-proclaimed Dogecoin-killer have hopped on the bandwagon more than a year ago. 

In comparison, Cardano (ADA) investors stay in the ecosystem for an average of one year, while Ethereum (ETH) and Dogecoin (DOGE) holders share the same span as those of Shiba Inu. Bitcoin (BTC) remains a leader in this ranking. The average time the asset is held exceeds four years.

Shiba Inu Price Outlook

The meme coin’s price retreat of around 20% on a weekly scale has resulted in a diminishing chunk of investors who currently sit on paper profits. Latest data shows that around 38% of SHIB holders are underwater. Still, the current trends look much better than the ones observed in September last year. As CryptoPotato reported, back then almost 90% of Shiba Inu investors were in the red.

Despite not performing quite well lately, several factors hint that a renewed SHIB bull run might be just around the corner. One such element is the asset’s burn rate, which exploded in the past week and throughout March.

The resurgence of Shibarium is also worth mentioning. Shiba Inu’s layer-2 scaling solution has witnessed a substantial revival in the last few days, with daily transactions on the network nearing the 1 million mark.

Last but not least, SHIB’s exchange netflow has turned predominantly negative on a weekly basis, indicating a shift from centralized platforms to self-custody methods. Such a move is considered bullish since it reduces the immediate selling pressure.

 

The post Shiba Inu Investors Enter the Ecosystem for the Long Run: Here’s the Average Period of Holding SHIB appeared first on CryptoPotato.

Polkadot’s price has seen a significant decline and found support around the critical $6 mark, exhibiting slight fluctuations indicative of low volatility.

However, it’s noteworthy that the cryptocurrency remains firmly within a pivotal range, hinting at an imminent breakout.

Polkadot Price Analysis: Technicals

By Shayan

The Daily Chart

An in-depth examination of the daily chart reveals a period of subdued price action and sideways consolidation near the $6 mark following a substantial drop below the 100 and 200-day moving averages. This pattern reflects an overall bearish market sentiment, with sellers currently in control.

However, Polkadot is presently contained within a decisive range, marked by the support at $6 and the significant 200-day moving average at $6.93.

A bullish surge above the 200-day moving average could pave the way for sustained upward momentum, targeting the pivotal $10 mark. Conversely, if the bearish momentum persists, a continuation of the downtrend toward the substantial $5 support level becomes increasingly likely.

Source: TradingView The 4-Hour Chart

A detailed analysis of the 4-hour timeframe indicates that following a notable drop triggered by a significant long-squeeze event, the downward momentum was met with intensified demand, leading to a modest rebound near the critical $6 level.

Moreover, a visible bullish divergence between the price and the RSI indicator on the 4-hour chart also suggests the potential for corrective retracements in the short term. In this scenario, DOT will be more likely to continue its corrective movement, with the next targets lying within the price range between the 0.5 ($7.4) and 0.618 ($7.8) Fibonacci levels.

In summary, Polkadot remains within a pivotal range, bounded by $6 and $9 in the broader perspective, and is expected to oscillate within this range until a breakout occurs.

Source: TradingView Sentiment Analysis

By Shayan

During the recent movements, the perpetual futures segment has exerted considerable influence over crypto prices. When this market becomes overheated, characterized by aggressive long and short positions, it tends to spur heightened volatility and sudden price shifts. Thus, gauging the futures market’s state is a valuable tool for predicting incoming dynamics.

A relevant metric in this evaluation is Polkadot’s Open Interest (OI) chart, which tracks the sentiment within the futures market alongside price movements. It quantifies the number of open perpetual futures contracts across various crypto exchanges. Typically, higher OI values correlate with increased volatility, and conversely, lower values signify calmer market conditions.

Examining the following chart reveals a notable downturn in both the OI metric and the price of Polkadot. This decline coincides with recent geopolitical tensions in the Middle East, which have exerted downward pressure on market sentiment. The substantial drop in Open Interest primarily stems from the liquidation of a significant number of long positions in the perpetual markets.

Consequently, the market appears to be undergoing a period of cooling off, potentially setting the stage for a renewed influx of both long and short positions in the futures market. This, in turn, could catalyze a fresh surge in market activity and raise the possibility of intensified volatility.

Source: CryptoQuant

 

This post is powered by Polkadot. 

The post DOT Price Analysis: Is Polkadot Due for Massive Volatility Around $6? appeared first on CryptoPotato.

Bitcoin’s price has been consolidating above the $60K mark, failing to continue its upward trajectory. Yet, soon, it will become evident whether the market will pull back further or make a new all-time high.

Bitcoin Price Analysis: Technicals

By TradingRage

The Daily Chart

On the daily chart, the price has been rejected from the $70K resistance level and is on its way to retesting the $60K support zone.

If Bitcoin breaks below $60K, a massive drop toward the $52K area becomes much more likelier. Yet, if the price successfully reclaims the $68K level, creating a new all-time high would likely only be a matter of time.

Source: TradingView The 4-Hour Chart

Looking at the 4-hour chart, the price has been creating a consolidation pattern over the last few weeks. The lower boundary of the pattern has recently held the price from dropping lower, but the market is once again approaching the same area.

With the Relative Strength Index showing values below 50%, a breakdown of the pattern could be probable this time and could be somewhat disastrous as it can result in a much deeper decline.

Source: TradingView Sentiment Analysis

By TradingRage

Bitcoin Funding Rates

Amid Bitcoin’s recent price drop, investors wonder whether the bull market is over or a natural price correction is occurring. Analyzing the futures market metrics can offer valuable insight into the market’s overall sentiment.

This chart presents the Bitcoin funding rates, which measure whether the buyers or the sellers are executing their orders more aggressively. Positive values show optimism, while negative values indicate bearish market sentiment.

As the chart suggests, the funding rates have significantly declined following the recent market correction. The metric is now showing values close to zero, which means that market sentiment is now neutral. While not necessarily a good thing, low funding rates mean that the futures market has cooled down, and if sufficient spot market demand comes in, the price can experience a sustainable rally in the coming weeks.

Source: CryptoQuant

The post Bitcoin Price Analysis: Is Bitcoin About to Crash Below $60K or Stage a Recovery? appeared first on CryptoPotato.

With the Bitcoin halving just days away, the cryptocurrency has been highly volatile leading up to the event. In fact, BTC lost almost 7% on Tuesday alone, fluctuating from $66,000 to the current price of $63,225, extending weekly loss to more than 12%.

Bitcoin has so far wiped all the monthly gains and is now consolidating within a parallel channel. However, there are new resistance and support levels that investors need to watch out for.

Key Support and Resistance Levels

According to the latest findings by the popular crypto analyst Ali Martinez, Bitcoin has been consolidating in a parallel channel, within which he identified $61,000 as the crucial support level. Meanwhile, $72,400 has been deemed as the most important resistance level.

Martinez warned that a breach below the support line may trigger a descent towards $56,200 or even $51,600. On the other hand, a break beyond the resistance barrier in question could catapult Bitcoin towards ambitious targets, setting sights on $79,000 and $86,000.

“Let’s keep it simple and only focus on support and resistance! By the looks of it, Bitcoin has been consolidating in a parallel channel, which makes $61,000 the most important support level and $72,400 the most important resistance level. If BTC breaks below support, it could drop to $56,200 or $51,600. But if BTC can break past resistance, the next price targets are $79,000 and $86,000.”

It is important to note that certain whale entities have ramped up their holdings despite the chaotic price action partially spurred by escalating geopolitical tensions.

Since March 1st, Bitcoin whale wallets holding 100 to 1,000 BTC bought 43,489 coins (valued at around $2.75 billion), as per data by Santiment. In the same period, wallets with 1,000 to 10,000 BTC amassed 80,544 coins (approximately $5.1 billion), mirroring a trend seen in wallets holding 10,000 to 100,000 BTC, which gathered 91,732 BTC (worth around $5.8 billion).

Bitcoin’s Trajectory Uncertain or Normal Occurrence?

The latest downturn has worried many crypto investors. However, CryptoQuant revealed that this decline aligns with historical trends seen during previous halving events.

In past halving cycles, similar price drops were witnessed before significant surges.

For instance, during the second halving, there was a 40% drop before Bitcoin skyrocketed to $19,600. Similarly, in the third halving, over 20% decrease preceded a peak of $69,000. The current cycle’s decline also mirrors these patterns, indicating “a normal and anticipated occurrence.”

The post Bitcoin (BTC) Could Dump to $51K If it Breaks Below This Support Line: Expert appeared first on CryptoPotato.

TL;DR

XRP recently lost nearly 20% of its value amid a broader market correction affecting major cryptocurrencies.

However, several analysts remain optimistic, predicting a significant rally in the range of $1-$4.

Where is XRP Headed?

The cryptocurrency market experienced a severe correction in the past few days, with leading digital assets such as Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL), and many more, plunging to multi-week lows.

Ripple’s native token – XRP – was also among those that headed south, losing almost 20% of its value over a seven-day scale.

XRP Price, Source: CoinGecko

Numerous analysts, though, remain unfazed by the negative trend, forecasting an impressive rally in the following months. The popular X user Ash Crypto recently outlined targets for 2025, claiming that XRP may skyrocket to the $3-$5 range. 

Dark Defender chipped in, too, predicting a fresh bull run for the asset should it overcome the crucial resistance zone of $0.52. “We might be experiencing the darkest hours before the dawn. I trust what I have; I trust Ripple & XRP,” the X user added.

Previous XRP Predictions

There are many other analysts who expect XRP’s valuation to take off soon. One example is EGRAG CRYPTO, who argued that the ongoing correction is “for buying, not for crying.” According to the analyst, the token “finds itself in a unique position, caught between bullish sentiment and bearish pressure,” and is poised to ignite like a rocket.

Last week, EGRAG CRYPTO suggested that XRP’s price trajectory has formed a so-called “three camel humps,” which could trigger a bull run to the range of $1-$1.30.

Mikybull Crypto and the YouTube content creator D.I.Y Investing were also bullish. The former believes the coin is gearing up for an ascent toward $4, whereas the latter thinks XRP is on the verge of exploding to a new all-time high.

Multiple elements hint the asset may experience a significant resurgence this year, such as a positive outcome of the lawsuit between Ripple and the US SEC. Check out our dedicated video below to explore the additional factors:

The post Popular Analyst Predicts an ATH for Ripple (XRP) in 2025: Details appeared first on CryptoPotato.

Preliminary data from Farside Investors revealed that four of the new spot Bitcoin ETFs had another day of zero flows on April 16.

These were Bitwise (BITB), Invesco Galaxy (BTCO), WisdomTree (BTCW), and Hashdex (DEFI).

Additionally, Grayscale’s GBTC and ARK 21Shares’ ARKB had outflows of $79.4 million and $12.9 million respectively.

Nevertheless, Bloomberg ETF analyst James Seyffart said this was perfectly normal.

To all those people emailing us, saying we have a bug, because that many flows cannot be zero and its too much of a coincidence. See this thread from @JSeyff

Bitcoiners clearly do not understand ETFs, we are so early… https://t.co/aLhTiJX3IS

— Farside Investors (@FarsideUK) April 16, 2024

Why Zeros Don’t Matter

On April 16, Seyffart said that on any given day, the vast majority of ETFs will have a flow number of zero, adding that “this is very normal.”

He said that there are around 3,500 ETFs in the US, and on April 15, 2,903 of them had a flow of exactly zero. Moreover, nine of the newly launched eleven spot Bitcoin ETFs, including Fidelity (FBTC), had a flow of zero that day.

He explained that shares are produced or destroyed in creation units, which only happens when there is a mismatch in supply and demand.

“That mismatch has to be large enough to justify tapping the underlying market,” and a bigger mismatch than a creation unit, he added.

Moreover, creation units are the lots that ETF shares are created and redeemed in. Every ETF can have different-sized creation units. In the case of the spot Bitcoin ETFs, they are blocks of shares ranging from 5,000 to 50,000 shares, he said.

“A creation or redemption will only happen if there is a large enough mismatch in supply and demand AND the cost to make a market by doing that creation or redemption is lower than simply hedging and making markets the old fashioned way.”

Okay too many questions about #Bitcoin ETFs and zero flows — a few quick thoughts:

1. On any given day, the vast majority of ETFs will have a flow number of ZERO — this is very normal. There are ~3,500 ETFs in the US. Yesterday 2,903 of them had a flow of exactly zero

— James Seyffart (@JSeyff) April 16, 2024

Third Day of Outflows

Minor mismatches will see the market makers handle trading of shares just like they would a stock, Seyffart explained. However, “it needs to be lopsided and more than a creation unit in either direction for market makers to tap the underlying market,” he added.

Therefore, when these mismatches are large enough, there will be significant inflows or outflows of the underlying asset, and when they are too small, there will be zeros.

Nevertheless, April 16 was the third trading day in a row with an outflow as a net aggregate of $58 million left spot Bitcoin ETFs. This was due to a tiny inflow of $25.8 million for BlackRock (IBIT) and outflows from GBTC and ARKB.

The underlying asset, BTC, recovered marginally, briefly reclaiming $64,000 during the Wednesday Asian trading session, but slipped in the following hours.

The post Why Zero Flows for Spot Bitcoin ETFs Don’t Really Matter appeared first on CryptoPotato.

Throughout the past few days, Bitcoin and the broader cryptocurrency market have experienced considerable declines. BTC tumbled toward $60K before recovering and crashing again, while most of the altcoins followed suit.

Renowned trader Rekt Capital stated that Bitcoin has demonstrated similar retrace patterns since the 2022 bear market bottom, witnessing 20% drops and one 18% retrace on one particular occasion.

Bitcoin’s current pullback — which the analyst estimates at 16% — almost equals the lows of the -18 % retrace that occurred earlier in March of this year. Each pullback was succeeded by a significant surge in price.

Source: X

On a similar note, crypto investor Trader Tardigrade says Bitcoin is going through a routine move. Since the beginning of the 2024 cycle, shakeouts have occurred several times, followed by a price surge.

BTC Still On Track for 2024 Cycle Top

Meanwhile, renowned Bitcoin analyst CryptoCon shared an optimistic view regarding Bitcoin’s current difficulty breaking above resistance from all-time highs. He states that, despite certain metrics being at overheated levels, Bitcoin’s position remains lined up for a cycle top expected by December 2024.

“In 2017 and 2020 leading up to ATHs MVRV faced some difficulty at this exact point. Our position still lines up perfectly for a cycle top that is one year accelerated in December 2024.”

#Bitcoin continues to face resistance at ATHs, but according to the MVRV-Z, that’s normal!

In 2017 and 2020 leading up to ATHs MVRV faced some difficulty at this exact point.

Our position still lines up perfectly for a cycle top that is one year accelerated in December 2024.… pic.twitter.com/qiGwfnBjhV

— CryptoCon (@CryptoCon_) April 13, 2024

The consensus between analysts and market observers is that these types of pullbacks are “normal,” as history shows that BTC’s price has corrected ahead of previous halvings.

The post Here’s Why Pullbacks Preceed Major Returns for Bitcoin: Analysts appeared first on CryptoPotato.

The first quarter of 2024 witnessed over $824 million across 67 hacks as bad actors became more active in targeting high-profile individuals and projects.

According to the latest Hacken report shared with CryptoPotato, breaches in access control emerged as the most frequent category of hacks in terms of both frequency and financial impact, with $682 million being siphoned away. This constituted 83% of the total funds stolen during Q1 2024, spread across 26 separate incidents.

Access Control Breaches Reign

Four major incidents alone comprised 66% of the total losses. These included the $290 million breach at the gaming platform Playdapp, the $112 million incident involving Ripple co-founder Chris Larsen’s wallet hack, the $80 million hack of the Orbit chain bridge, and the $63 million exploit of Munchables, a Web3 gaming protocol on Blast.

Each of these breaches was characterized by unauthorized access, which essentially highlighted access control breaches as the most impactful exploit type during Q1 that allowed hackers to infiltrate critical system components.

Token projects also bore the brunt of hacking activity, with 19 reported incidents, followed by other projects at 10 incidents and lending protocols at 9 incidents. Gaming platforms, led by Playdapp’s substantial losses, suffered the most significant financial hits, followed by Munchables.

Breached wallets belonging to notable individuals, DAOs, tokens, bridges, and CeFi platforms constituted the second-largest category of losses, exemplified by incidents involving figures like Chris Larsen, Jeffrey Zirlin, and AirDAO.

Ray of Hope?

Despite the staggering losses during the first quarter, Hacken found that approximately $444 million was successfully recovered or frozen from various hacks and exploits, equivalent to 54% of the amount stolen. The firm noted that such a recovery effort marks a notable advancement in the industry’s responsiveness to such incidents.

Measures like hackers returning funds for bounties, as seen in the Seneca Protocol hack and Dolomite case, and intervention by white hat hackers, such as @coffeebabe_eth disrupting and returning funds in the Blueberry protocol hack, contributed to this recovery.

The proactive steps taken by project teams and white hat hackers played a crucial role in recovering stolen funds and minimizing further disruptions. While the total amount hacked in this period was substantial, recovering more than half of the stolen funds represents a significant positive development for security and resilience in the industry.

While speaking to CryptoPotato, Edgar Pavlovski, Hacken’s Senior Blockchain Researcher, explained,

“The beginning of this year spawned more of the same – losing control of one’s private key remains the largest vector of attack, accounting for 83% of all funds lost. On the bright side, more than half of all stolen funds were either returned or frozen. This represents big advancement compared to previous years, and we expect this dynamic to continue improving over time.”

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Bitcoin’s price movements continue to be quite underwhelming as the asset failed to overcome the $64,000 level and has remained just below it.

Most altcoins are also quite sluggish, with ADA and BCH charting minor losses, while NEAR and PEPE have gained the most.

Bitcoin’s Uncertainty Continues

The primary cryptocurrency went through a highly violent weekend in which it first slumped by six grand on Friday evening to $65,000 before another decline drove it south to just over $61,000 a day later. Both of these collapses were blamed on external events like the US Fed’s most recent comments and Iran’s retaliation against Israel.

Bitcoin started to recover some ground on Sunday and Monday morning and jumped to just over $67,000. However, that was short-lived, and the cryptocurrency started losing value almost immediately.

It has been unable to regain any traction since then and now stands below $64,000 after another failed attempt to overcome that line. Its market capitalization has slipped to $1.250 trillion, but its dominance over the altcoins remains just over 51.5% on CG.

Bitcoin’s fourth halving, an event generally regarded as a catalyst for future price increases, is just days ahead. It would be interesting to follow how the asset will perform in the next 72 hours or so leading to the event.

BTCUSD. Source: TradingView NEAR, PEPE Stand Alone

Most altcoins slumped hard during the weekend crash, with numerous double-digit drops seen by almost all altcoins on both days. Although they have bounced off the lows, the situation is still quite gloomy.

ETH, BNB, ADA, AVAX, BCH, DOT, and LINK are still in the red from the larger-cap alts, while only SOL, XRP, TON, DOGE, and SHIB have produced insignificant gains.

The most substantial price increases come from NEAR Protocol’s native token and the popular meme coin – PEPE. The former has jumped by about 6% in a day, while the latter by 5%.

The total crypto market cap, though, still remains quite shaky and is close to breaking below $2.4 trillion on CG.

Cryptocurrency Market Overview. Source: QuantifyCrypto

The post BTC Still Shaky Below $64K Days Ahead of Halving, NEAR Soars 6% (Market Watch) appeared first on CryptoPotato.

Bitcoin (BTC) becomes more scarce after each halving, but the next event that takes place in the next four days will make the digital assets twice as rare as gold, according to analysts at the leading crypto exchange, Bybit.

A report on what to expect before and after the Bitcoin halving revealed that BTC will experience a supply squeeze after the event, as the reserves on all centralized exchanges may be consumed within nine months.

Twice as Rare as Gold

Bybit said the Bitcoin stock-to-flow (S2F) model substantiates its claims as the metric has shown that BTC becomes scarcer than gold after each halving. The S2F ratio is calculated by dividing the circulating supply of a commodity by its annual production to derive a scarcity gauge.

At the time of writing, Bitcoin’s S2F ratio hovered around 56, while that of gold is 60. After the halving, Bitcoin’s ratio is expected to double to 112.

Halving slows supply by reducing the rate of BTC production, and a supply squeeze may be inevitable. Bitcoin is already seeing early signs of a short squeeze, which will worsen post-halving.

The BTC supply for spot Bitcoin exchange-traded funds (ETFs) usually comes from centralized exchanges as investors realize their profitable positions and miners sell their block rewards. When mining rewards are slashed and investors HODL their assets in cold storage or decentralized wallets, miners would refrain from selling quickly, and the sell-side supply flowing into the exchanges will decline.

A Complex Cycle

Currently, roughly two million bitcoins are in centralized exchange reserves. Assuming spot Bitcoin ETFs see daily inflows of $500 million, around 7,142 BTC will leave exchange reserves daily, indicating that the reserves will only last nine months after the halving.

“With this in mind, it’s unsurprising that Bitcoin’s price may continue to climb before the halving, or even afterward, as the supply squeeze propels the price to another new record,” Bybit said.

Although halvings are known to trigger bitcoin price rises, analysts see this cycle as complex and remain uncertain about the effect of the upcoming event as BTC already recorded a new high. Some believe the post-halving rally will be less remarkable than the market has experienced after past events.

Nevertheless, market experts believe demand will drive the BTC post-halving surge this time as spot Bitcoin ETFs achieve their full potential.

The post Bitcoin to Become Twice as Rare as Gold After the Halving: Bybit appeared first on CryptoPotato.

TL;DR

Shiba Inu (SHIB) experienced a 6% price increase today, making it the best performer among the top 20 cryptocurrencies.

Its rally occurs amidst a broader positive trend in the meme coin market, where other assets like DOGE and MEW also recorded gains.

The Possible Reasons

The second-largest meme coin – Shiba Inu (SHIB) – is among the best-performing cryptocurrencies (at least from the top 20 list) today (April 17), with its price spiking by 6% on a daily scale.

SHIB Price, Source: CoinGecko

Its rally could be attributed to numerous important factors, such as the massive burn rate increase. As CryptoPotato reported, the team behind Shiba Inu burned almost 800 million tokens in the past week, while the destroyed assets throughout March surpassed the 15.5 billion mark. The program’s ultimate goal is to reduce SHIB’s tremendous supply, making it scarcer and potentially more valuable in time.

Another element that might have played a role is the resurgence of the layer-2 scaling solution – Shibarium. Daily transactions on the network have headed north lately, while the total number of transactions has surpassed the 400 million level.

Shibarium was introduced last summer and aims to elevate Shiba Inu above its rivals in the meme coin niche by improving speed, lowering transaction fees, and enhancing scalability. If you are curious to learn more about the feature, take a look at our dedicated video below:

Overall Meme Coin Revival

SHIB’s latest price rally coincides with a green wave that reigns across the meme coin cohort. Leading assets of that type, such as Dogecoin (DOGE), dogwifhat (WIF), Floki Inu (FLOKI), and Bonk Inu (BONK) have charted some gains in the past 24 hours, albeit not as substantial as Shiba Inu’s.

The best performer in the realm is once again the Solana-based meme coin Cat in a Dogs World (MEW), whose valuation jumped by 40%. Other notable gainers include PEPE (8%), PUPS (19%), and SLERF (13%).

The post Why is the Shiba Inu (SHIB) Price Up Today? appeared first on CryptoPotato.

Hong Kong regulators recently approved spot Bitcoin and Ethereum exchange-traded fund applications, but Bloomberg ETF analyst Eric Balchunas predicts that the local ETF market may not perform as well as the US due to the current lack of big players and the possibility of high fees.

According to Balchunas, the Hong Kong Bitcoin and Ether ETF market may generate $500 million in inflows, which is small compared to the over $15 billion from BlackRock’s spot Bitcoin ETF product alone in the United States.

Hong Kong Spot BTC ETF Smaller than the US

The Hong Kong Securities and Futures Commission (SFC) on April 15 granted in-principle approval for spot Bitcoin and Ethereum ETF products from China Asset Management, Harvest Global Investments, and Bosera Asset Management in partnership with HashKey Capital.

While the spot crypto approvals are a major milestone for Hong Kong, which is determined to position itself as a central digital assets hub, there are speculations that the city-state may not witness large inflows like in the United States.

Bloomberg ETF analyst Eric Balchunas, in a tweet, predicted that the Hong Kong ETF market could see an inflow of $500 million, debating another prediction that estimated $25 billion.

According to Balchunas, key factors such as the absence of major players in the Hong Kong ETF market and the possibility of these issuers charging high fees could hinder demand for the products.

The ETF analysts added that the potential local issuers are small compared to the behemoths in the United States. The US boasts financial giants such as the world’s largest asset manager, BlackRock, and Fidelity, which has nearly $5 trillion in assets under management (AUM).

In terms of fees, one to two percent, as speculated by Balchunas, may prove uncompetitive for Hong Kong Bitcoin ETF issuers, with US ETF providers offering 0.25% and lower.

As previously reported by CryptoPotato, Grayscale, which currently charges 1.5% for a management fee on its spot Bitcoin ETF, said there would be a reduction over time, following the maturity of the ETF market.

The company’s management fee is significantly higher than its rivals and has seen continuous outflows compared to competitors such as BlackRock, which continues to record gains.

When Spot Ethereum ETF in the United States?

Meanwhile, the Hong Kong spot Bitcoin ETF market could see an uptick if bigger players are involved and mainland Chinese investors are allowed access to the product, according to Balchunas.

Although the US spot Bitcoin ETF market is larger than Hong Kong’s, the latter may have an edge over the United States, being one of the first jurisdictions with an approved spot Ethereum ETF.

Since greenlighting almost a dozen applications in January 2024, the US Securities and Exchange Commission seems to be reluctant to give its approval for a similar product tracking the price of Ether, the second-largest cryptocurrency by market capitalization.

BlackRock, Grayscale, Frank Templeton, Fidelity, and Invesco are among the applicants for a spot Ether ETF. The American regulator recently delayed its decision on Ethereum filings from BlackRock and Fidelity after previous delays on other applications.

However, some analysts believe the SEC’s approval of a spot Ethereum ETF in the United States may not happen in 2024.

The post Bloomberg Analyst Issues a Warning for the Upcoming Hong Kong Bitcoin, Ethereum ETFs appeared first on CryptoPotato.

The neutralization of funding rates in crypto perpetual markets following the drawdown suggested that the correction was healthy and that volatility may eventually decline.

With the Bitcoin halving a few days away, the amount of BTC leaving centralized exchanges has risen to levels not seen for more than 15 months. At the same time, the number of BTC that have not moved in over a year has declined significantly.

According to the Bitfinex Alpha report, these on-chain activities come as Bitcoin recovers from a two-day plunge that triggered a massive liquidation cascade over the weekend.

BTC Exchange Outflows Surge

The net amount of BTC that exited exchanges on April 12 was the highest seen since January 2023. Bitfinex analysts found that investors transferred 6,767 BTC on Friday, signaling a large movement to cold storage in anticipation of potential price rises after the halving. Conversely, the decline in one-year-plus inactive supply suggests that the market is at a point of inflection.

In the last month, long-term holders (those holding their BTC for more than 155 days) have been selling their assets at roughly 16,800 BTC daily. Analysts have discovered a similarity between the actions of BTC holders currently and in December 2020, shortly before the market recorded a major pump.

Bitfinex said this trend is often a precursor to a market downturn and usually lasts about seven months. The pattern suggests this cycle may experience a similar growth phase and that the market may be six months away from the BTC peak. However, this cycle may differ as prices have risen, with BTC recording a new all-time high before the halving.

Notably, long-term holder supply gradually falls before BTC reaches its peak.

Bitcoin Recovers From Weekend Bloodbath

At the time of writing, BTC hovered around $63,000, slightly up from its weekend bottom of $61,200. The market saw liquidations of more than $1.8 billion in long and short positions between Friday and Saturday as it reacted to Iran’s launch of drones and missiles against Israel.

However, the neutralization of funding rates in crypto perpetual markets following the drawdown suggested that the correction was healthy and that volatility may eventually reduce. Bitfinex said Bitcoin’s rebound to the $65,000 level afterward indicated that the market took the sell-down in its stride.

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