Altcoins

Bitcoin outflows, altcoin inflows: Is a shift in the crypto market underway?

Published

9 months ago

7 May, 2024

Bitcoin outflows, altcoin inflows: Is a shift in the crypto market underway?

(Kitco News) – Digital asset investment products recorded their fourth consecutive week of outflows in the week ending May 3, as collective assets under management (AUM) declined by $251 million to 84 .86 billion dollars.

It was also “the first week to see measurable outflows from newly issued ETFs in the United States, which saw outflows of $156 million last week,” said James Butterfill, head of research. at CoinShares. “We estimate the average purchase price of these ETFs since their launch at US$62,200 per Bitcoin (BTC), as the price fell 10% below this level, this may have triggered automatic sell orders.

Outflows from spot BTC ETFs mean the US is responsible for the majority of the drop in assets under management with $504 million in outflows, while Switzerland, Canada and Germany saw withdrawals of $9 .8 million, $9.6 million, and $7.3 million, respectively.

“The bright spot last week was the successful launch of the Bitcoin and Ethereum spot ETFs in Hong Kong, which saw inflows of $307 million in the first week of trading,” Butterfill said.

In an unusual turn of events, Bitcoin was the only token to experience outflows, with $284 million withdrawn from funds, while Ethereum (ETH) ended its seven-week outflow streak to record inflows of $30 million.

“A wide range of altcoins saw inflows, with the largest being Avalanche, Cardano, and Polkadot at $0.5 million, $0.4 million, and $0.3 million, respectively,” Butterfill said.

Trade flows are decreasing

Another set of flow data that crypto investors are watching are Bitcoin inflows into cryptocurrency exchanges, which recently hit their lowest point in nearly a decade, suggesting a bullish recovery looms on the horizon.

The number of people wanting to sell BTC has decreased since February 2018. The MA-365D exchange flow decreased from 90,000 to 36,000.

The current Bitcoin Exchange Inflow trend is 20,000 BTC, a similar situation happened in 2015.#deficit pic.twitter.com/YGNUOPBWqj

– Axel 💎🙌 Adler Jr (@AxelAdlerJr) May 6, 2024

As shown in the chart provided by CryptoQuant analyst Axel Adler, Bitcoin inflows into exchanges stand at 20,000 Bitcoins, the lowest value the market has seen since 2015.

At the same time, Adler noted that long-term hodlers also stopped distributing their tokens and started reaccumulating them, which has always been bullish.

Experienced Investors Long Term Holders (LTH) at the 70K level have finished distributing coins to new investors.

This week, the oscillator will turn blue 🔵, indicating the cohort’s transition to the active accumulation phase. pic.twitter.com/H7NYStSAZC

– Axel 💎🙌 Adler Jr (@AxelAdlerJr) May 6, 2024

Data provided by Alternative shows that general sentiment in the crypto market remains in “greed” territory, which some analysts say means additional weakness is needed to ensure excess froth is cleared from the market.

But according to for analyst Kripto Mevsimi, this could soon change: “We are approaching the “gray line” [in the chart below]which serves as an optimism/pessimism threshold for the crypto market.

“The blue line, representing the proportion of Bitcoin supply currently in profit, is particularly high,” Mevsimi said. “This generally indicates that a significant portion of the market may be looking to make gains, which could lead to increased selling pressure. Historically, such high levels often preceded market volatility and potential pullbacks as holders began to liquidate their positions.

As the measure moves closer to the gray line, “market participants must be vigilant; a move below this line could lead to a deeper price correction,” he warned. “However, if we remain above this line, market sentiment will likely remain positive and any correction may be short-lived.”

“Profitability is a crucial factor in market psychology, especially when macroeconomic conditions, such as current economic expansionary monetary policies, do not favor risky assets,” Mevsimi concluded. “Participants should carefully monitor these dynamics as they can significantly influence market movements.”

Disclaimer: The opinions expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is for informational purposes only. This is not a solicitation to trade any commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article accept no liability for loss and/or damage arising from the use of this publication.

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Altcoins

Long-Term Impact of Ethereum ETF on Cryptocurrency Market

Published

6 months ago

29 July, 2024

CoinFlix Staff

Long-Term Impact of Ethereum ETF on Cryptocurrency Market

Popular crypto analyst Michael van de Poppe has highlighted his altcoin portfolio approach in light of the new Ethereum ETF. In a recent Youtube videoThe analyst explained the measures he would take for this major market event.

The Ethereum ETF was listed on the stock exchange and it took time to get approval and so far there has been no significant change in price. The analyst pointed out that the long-term effect could be quite significant, comparing it to the situation of the Bitcoin ETF where the initial decline was followed by large inflows.

According to Van de Poppe, the Ethereum ETF’s trading volume on the first day of trading was about 25% of the volume Bitcoin ETF He noted that the first day of trading was marked by low inflation, and said there was a net inflow of $150 million to $160 million, which reduced the available supply.

Altcoins are poised for growth

The analyst said that as Ethereum adoption increases in the future, the supply of Ethereum will decrease, which is a deflationary model. Ethereum is up about 15% since the ETF approval, the broader market reaction has yet to happen as several sell-offs have taken place, including the Grayscale Trust.

Van de Poppe also mentioned other important market events, including the end of Mount Gox The process of repaying creditors initially caused tensions in the markets, but had little effect subsequently. It also highlighted the role of macroeconomic factors, which can lead to Fed rate cuts, which can affect markets.

In this regard, looking at van de Poppe’s strategy, he is still keen to trade within the altcoins of the Ethereum ecosystem. He stated that there is a possibility of short-term price fluctuations that may discourage many people, but the long-term still looks good due to the improvement and adaptation that has been made to Ethereum and its environment.

According to the analyst, substantial inflows could propel Ethereum towards new historic highs with estimates ranging from $5,000 to $7,000. Despite the current market fluctuations, he is confident that macroeconomic changes and greater liquidity will be favorable for altcoins.

He explained that his broad approach to altcoins, especially those associated with Ethereum, will be beneficial because the market will react differently to these events. The basis for his optimism comes from the fact that he believes that Ethereum and all associated projects are still extremely undervalued and have the potential to skyrocket as sentiment changes.

Looking ahead and market adjustments regarding the Ethereum ETF and other macroeconomic factors, the analyst remains bullish on altcoins. He suggested investors stay informed and believe that in the ever-changing world of crypto, they will eventually be rewarded.

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Altcoins

Altcoins Are Severely Undervalued, Awaiting Ethereum Move | Flash News Detail

Published

6 months ago

28 July, 2024

CoinFlix Staff

IntoTheBlock Releases Report on Institutional DeFi Trilemma

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Altcoins

Altcoins Correct Amid ETH Decline, Grayscale Outflows | Flash News Detail

Published

6 months ago

28 July, 2024

CoinFlix Staff

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Altcoins

Epic Altcoin Rally Expected for August and September

Published

6 months ago

28 July, 2024

CoinFlix Staff

Crypto analyst predicts massive altcoin rally similar to Q1 2024, urging patience and accumulation.
Bitcoin’s potential as a reserve asset and its technical patterns suggest that it will drive the rise of the cryptocurrency market.

Captain Faibik, a renowned crypto analyst, has created excitement in the cryptocurrency sector with his latest prediction. He indicated that we are on the cusp of a massive altcoin rally, similar to the one we saw in Q1 2024.

We are on the verge of a massive Altcoin rally, similar to Q1 2024📈

Keep accumulating and hold with patience. (Patience will be rewarded)

The majority of #Altcoins have already hit rock bottom and are about to escape.

In my opinion, August-September is going to be epic for Altcoins.🚀🚀#Crypto pic.twitter.com/cMdHagiaYc

— Captain Faibik (@CryptoFaibik) July 24, 2024

Accumulating and Holding Altcoins: The Path to Potential Profits

He stressed the need to accumulate altcoins and hold them patiently, as it will eventually pay off. According to him, the majority of altcoins have already bottomed out and are about to break it. He believes August and September will be epic months for altcoins.

In a chart posted by Captain Faibik, the overall crypto market cap, excluding Bitcoin and Ether, known as TOTAL3, is approaching the upper boundary of a descending channel pattern.

This context suggests a potential breakout and a significant rally towards the $1 trillion mark. Technically, the decline since mid-March is interpreted as a corrective trend for the value of TOTAL3, signaling a preparation to enter a rally structure.

Bitcoin’s influence and legislative developments suggest good prospects for the future

Furthermore, based on sentiment and technical patterns, Bitcoin, the world’s leading cryptocurrency, appears poised to lead the charge in the cryptocurrency market. Bitcoin’s performance often sets the tone for the market as a whole, and a strong move in BTC could trigger a significant rally in altcoins.

Previously, as we have already said reportedSenator Cynthia Lummis said she plans to introduce a bill at the upcoming Bitcoin conference that would require the Federal Reserve to hold Bitcoin as a reserve asset.

If this law passes, the US will treat BTC as a long-term investment rather than selling huge amounts infrequently, which could disrupt the market.

In addition, asset management firm VanEck has proposed a bold scenario in which Bitcoin Price Could Reach $2.9 Million Per BTC By 2050based on its fundamental outlook. Matthew Sigel, head of digital assets at VanEck, and senior investment analyst Patrick Bush noted that their estimate is based on Bitcoin’s adoption as a global medium of exchange and reserve asset.

As Bitcoin price increases, altcoins are expected to gain popularity, indicating the start of a bullish rally shortly after the BTC halving event.

Meanwhile, at the time of writing, the price of BTC was hovering around $67,007.99up 4.67% over the past 24 hours following a short-term correction.