Aurelia Butler

This article was originally published on U.Today More

In reaction, BTC prices rose to a new multi-year high, reaching $49,102. The market then fell 18% over the weekend, reaching fresh year-to-date lows of $40,236.As with any important event, holders of Bitcoins enjoy debating whether it was priced in or not.In this regard, Julio Moreno, the head of research at CryptoQuant, debunks the widely circulated narrative that the Bitcoin price drop was caused by Grayscale’s GBTC selling Bitcoin.Before being converted to an ETF from a trust, Grayscale Bitcoin Trust (GBTC) was one of the only options for stock traders in the United States to obtain exposure to Bitcoin price swings without having to purchase the actual cryptocurrency.While GBTC has seen remarkable outflows after its uplisting into an ETF, a chunk of these have been from investors moving to lower-fee ETFs.Moreno highlighted that, while GBTC sold approximately 60,000 Bitcoins, other Bitcoin ETFs net purchased roughly 72,000 Bitcoins, thus offsetting the sales of BTC from Grayscale’s GBTC.He attributes the volatility in Bitcoin’s price to selling by Bitcoin holders (short-term traders and whales) who took profits following last year’s surge, noting that the ETF approval might just be the “sell-the-news” event.However, several metrics in both the on-chain and derivatives domains suggest that a non-trivial portion of Bitcoin investors did treat the ETF approval as a sell-the-news event.While there are other key driving factors behind the interim volatility, both futures and options markets have seen a meaningful uptick in open interest (OI) since mid-October, according to Glassnode.Open interest in both markets remains around multi-year highs, showing that leverage is rising and becoming a more dominant force in markets.At the time of writing, BTC was up 0.58% in the last 24 hours to $41,543, per CoinMarketCap data.This article was originally published on U.Today More

This article was originally published on U.Today More

Bitcoin climbed over 4% on Wednesday, reaching a high of $40,527 before trimming its gains to trade at $40,091 at press time.Given Bitcoin’s recent bounce from lows of $38,501 on Jan. 23, Glassnode cofounder “Negentropic” on X wonders if it just bottomed in a “descending wedge with a classical throw-over.”Adding to that, if this is the case, Bitcoin may rally to $42,000 before retesting $40,500, after which it should skyrocket. The Glassnode cofounder added reassuringly that the “bigger picture still remains very bullish” for the Bitcoin price.The digital asset markets observed an upswing in speculation leading up to the Bitcoin ETF approvals, with a general sell-the-news event playing out over the following days. Bitcoin has fallen over 20% from an intraday high of $49,021 when the ETFs went live, as excitement over the products gave way to anxiety about the eventual extent of demand for them.The latest sell-off marks the fourth time in the last year or so that Bitcoin has lost approximately 20%.Elliott’s wave theory claims that markets are prone to repeating wave patterns. Applying the approach to Bitcoin implies that the largest cryptocurrency will find a base between $36,000 and $38,000 before a fifth wave reignites last year’s ascent.According to cryptocurrency analyst Ali, historical patterns demonstrate that in bull markets, BTC price declines are consistently followed by further upside increases. This implies that declines could provide smart buying opportunities for investors eager to capitalize on Bitcoin’s potential rise.This article was originally published on U.Today More

This article was originally published on U.Today More