Tag: Bitcoin News

U.S. spot Bitcoin ETF recorded $129.5 million in inflows on Monday, its highest in the past 16 trading days.

After surviving a bearish crypto market within the past two weeks, outflowing more than $500 million, U.S.-approved spot bitcoin ETFs have resumed their inflow streak. Within the past five market days, about $266.7 million have flowed into the market, with Fidelity’s FBTC leading the streak. 

Bitcoin ETFs Records Fifth Straight Day of Inflows

According to data from Farside, spot bitcoin ETFs have concluded the last five market days with inflows, signaling a knock-up from the just finished outflow streak. Winding up the market on Monday, the 11 approved ETFs recorded their highest inflow within the previous 16 market days, infusing $129.5 million. 

Significantly, Fidelity’s FBTC has been at the forefront of this inflow period, taking in $65 million on Monday and inflowing $112 million within the past five days. Bitwise’s BiTB seconded by recording $41.4 million in inflows on Monday. Ark21Shares’ ARKB recorded $17.4 million, while Vaneck’s Bitcoin Trust, HODL, realized its first inflow of $5.4 million since June 26th. BTCO and EZBC inflowed $3.2 and $1.8 million, respectively. 

On the other hand, the two largest bitcoin ETFs by net value, Blackrock’s IBIT, known for massive inflows, and Grayscale’s GBTC, which has recorded the most outflows since launch in January, remained dormant on Monday, recording neither an inflow nor an outflow. 

WisdomTree Bitcoin Fund, BTCW, saw its last market movement on June 3rd when it inflowed $1.1 million. Valkyrie Bitcoin Fund, BRRR, also saw its previous market move on June 10th after outflowing $15.8 million.

Bitcoin Price Action Amidst ETF Inflow Streak 

Following the recent inflows into bitcoin ETFs, the bitcoin price chart witnessed a significant change in market structure and reached the $63,800 mark on Monday. 

Despite recent strong selling pressure from the German government, the cryptocurrency has demonstrated resilience. Investors have continued to grow in confidence as many reputable firms, like Sony Technology Groups, enter the crypto industry by purchasing a renowned crypto exchange. Japan-based company Metaplanet continues to top up its bitcoin possessions.

At press time, bitcoin stands above the $62,500 resistance level and trades around $62,800, forming a few bullish candlesticks. 

Despite the downward movement of the digital asset, Tokyo-traded public corporation acquired another 20 BTC worth approximately $1.2 million. The firm now holds over 161 bitcoins. 

Metaplanet, a Tokyo-traded public corporation, has announced an additional acquisition of 20 BTC, valued at $1.2 million, which brings its total corporate treasury holdings to over 161 bitcoins.  

According to the statement on its website, the firm announced that it purchased 200 million yen ($1.2 million) worth of bitcoin, increasing its total holdings to 161.3 BTC. The company also posted about the purchase on its social media platform X account shortly after the Tokyo Stock Exchange closed.   

A week ago, the company announced plans to increase its Bitcoin holdings by purchasing an additional $6 million worth of BTC. It already owned $9 million of the digital asset at that time. According to the Metaplanet website, the primary focus on the crypto asset was driven by changes in the investment environment resulting from the COVID-19 pandemic.    

Metaplanet’s BTC Accumulations 

On May 13, 2024, the public corporation announced a shift in its treasury management plan by adopting bitcoin as its primary reserve asset. Metaplanet noted that the firm recognizes the current challenges and opportunities in the financial landscape.   

In addition, on April 10, 2024, Metaplanet revealed its decision to allocate a staggering 1 billion yen ($659 million) in Bitcoin to its corporate treasury. At the time, the company witnessed its share price soar by approximately 90%.  

The firm mentioned that its transition to Bitcoin is a significant milestone in its mission to lead the digital finance era and positions Metaplanet as a pioneer in adopting digital assets in Japan.   

MicroStrategy Secures Huge Bag 

Similarly, MicroStrategy, led by Michael Saylor, is known for acquiring substantial amounts of BTC. Despite the recent downtrend in its price, the company invested $7.8 million in acquiring bitcoins in April.   

On June 21, 2024, the firm’s CEO, Saylor, announced on the X platform that the company purchased 11,931 BTC for $786 million at approximately $65,883 per coin.    

Before the purchase, Saylor disclosed that the company planned to sell $500 million worth of convertible notes to raise funds for acquiring bitcoin. A few days later, the company increased the amount to $700 million. In a press release, MicroStrategy announced the completion of $800 million worth of convertible notes due in 2032.

Bitcoin typically performs well in July, but Mt. Gox repayments could exert downward pressure on the price of the crypto asset. 

Bitcoin’s price struggled through out June, but history data shows that the leading cryptocurrency usually record a bullish rebound in the month of July.

According to data from Coinglass, which tracks bitcoin’s monthly returns since 2013, BTC has historically averaged a 0.35% decline in June.  However, the asset experienced a 7% decline last month, making it one of the worst June in the history of Bitcoin. 

Interestingly, the data further revealed that BTC usually see a strong recovery after the end of June, with an average of 7.42% gain in July. 

Murad Deeps Into Bitcoin’s Historic Trend 

Memecoin analyst Murad briefly reviewed Bitcoin’s historic trend on X, highlighting the rapid historical rebounds that typically start in July.  He stated that the crypto asset has consistently posted minimum gains of 28% in the first few weeks of July for the past six years. 

However, several analysts predict a potentially challenging July. They attribute it to the substantial bitcoin sale by the German government and the upcoming Mt. Gox repayments, which could exert downward pressure on the asset’s price.   

The repayments, totaling approximately $8.5 billion worth of BTC, are expected to commence in July to refund creditors. However, some analysts argue that the market impact of these repayments might not be as significant as anticipated, as only $4 billion is expected to enter the spot Bitcoin market.    

Will BTC Drop in July?

In a recent interview with Jonathan de Wet, chief investment officer at digital asset trading firm ZeroCap, noted that BTC has maintained strong trading around the low to mid $60,000 range despite facing significant headwinds.  

He also noted that the cryptocurrency would remain near the $60,000 level. Still, he acknowledged the possibility of dropping to its key support level of roughly $57,000 in the coming weeks due to Mt. Gox creditor repayments affecting the markets.   

As of the time of writing, bitcoin was exchanging hands above $62,800, a 2.3% gain since the start of July. 

Long-term holders, known for stabilizing Bitcoin’s price by retaining their assets through market fluctuations, indicate a sentiment shift through their decision to liquidate a substantial portion of their holdings.

Long-term Bitcoin (BTC) holders sold approximately $10 billion worth of BTC in May 2024, according to data from blockchain analytics firm IntoTheBlock. This massive sell-off, amounting to around 160,000 BTC, marks a significant change in the behavior of long-term investors.

Long-term BTC holders have been reducing their holdings throughout 2024.

May saw a significant drop with 160k BTC (~$10B) sold. The selling slowed down somewhat in June, with 40k $BTC Leaving long-term holders' wallets pic.twitter.com/POtniNrU4p

— IntoTheBlock (@intotheblock) June 28, 2024

Historically, long-term holders tend to retain their assets through market fluctuations, contributing to Bitcoin’s overall price stability. The decision to liquidate such a substantial portion of their holdings indicates a shift in sentiment. Although June saw a slower sell-off, with long-term holders offloading an additional 40,000 BTC, the trend of liquidation among these investors continues.

This sell-off has contributed to a bearish sentiment in the market. Over the past 30 days, Bitcoin’s price has dropped by 10.03%, reflecting the market’s reaction to the increased selling pressure. Currently, Bitcoin is trading at $61,343, a noticeable decline from its previous levels.

Factors Influencing BTC Liquidation

Several factors might be influencing long-term holders to sell their BTC. Given Bitcoin’s substantial appreciation over the past few years, many of these investors, who acquired BTC at significantly lower prices, might be capitalizing on their gains. 

Substantial outflows from spot Bitcoin exchange-traded funds (ETFs) in the United States, totaling more than $1 billion over the last ten trading days, might also be influencing this trend. Additionally, there are concerns that Mt. Gox, the infamous crypto exchange that collapsed years ago, might be preparing to sell $8.5 billion worth of Bitcoin to its creditors, which could significantly impact market sentiment. Germany has also started selling some of its Bitcoin reserves, adding to the negative outlook.

Bitcoin miners have been selling more Bitcoin than usual amid a tumbling network hashrate, which may have also weakened market sentiment. Broader economic factors, including changes in interest rates, inflation worries, and geopolitical events, can also influence investor actions. Long-term holders may be adjusting their portfolios in response to these broader economic changes.

The sustained sell-off by long-term holders raises questions about the future trajectory of Bitcoin’s price.

Since their launch in January, the 11-spot Bitcoin funds have garnered a total net inflow of $14.42 billion as of Tuesday.

Spot bitcoin exchange-traded funds (ETFs) in the U.S. returned to net inflows on Tuesday, attracting a total of $31 million. This comes after the 11 bitcoin funds experienced net outflows for seven consecutive trading days.

Bitcoin ETF Flow (US$ million) – 2024-06-25

TOTAL NET FLOW: 31
(Provisional data)

IBIT: 0
FBTC: 48.8
BITB: 15.2
ARKB: -6.2
BTCO: 0
EZBC: 0
BRRR: 0
HODL: 3.5
BTCW: 0
GBTC: -30.3
DEFI: 0

For all the data & disclaimers visit:https://t.co/4ISlrCgZdk

— Farside Investors (@FarsideUK) June 26, 2024

Fidelity’s FBTC led the net inflows on Tuesday with $49 million, followed by Bitwise’s BITB, which reported $15 million in inflows. VanEck’s HODL also saw net inflows of $4 million, according to data from Farside Investors. 

In contrast, Grayscale’s GBTC experienced net outflows of $30.3 million. Ark Invest and 21Shares’ ARKB saw $6 million in net outflows.

BlackRock’s IBIT, the largest spot bitcoin fund in terms of net asset value, had no net flows despite a daily trade volume of $1.1 billion on Tuesday. Other funds from Invesco, Galaxy Digital, Valkyrie, and Franklin Templeton also recorded no net flows.

Since their launch in January, the 11-spot Bitcoin funds have garnered a total net inflow of $14.42 billion as of Tuesday.

Ether ETFs Still Awaiting Launch

While it has been nearly six months since the spot Bitcoin ETFs started trading, their Ethereum counterparts have yet to launch. Experts had previously anticipated a July launch after the Securities and Exchange Commission (SEC) gave soft approval last month.

Firms recently filed amended S-1 registration statements, which is the final step before approval. Eric Balchunas, senior Bloomberg ETF analyst, expects spot Ethereum ETFs to launch soon, though the SEC has not confirmed a timeline.

SEC Chief Gary Gensler stated that the process for spot Ether ETFs in the U.S. is “going smoothly.” He noted that the final registration steps are currently being handled by SEC staff.

The SEC approved the 19b-4 filings from eight ETF bidders on May 23, but the asset managers are still completing their Form S-1s, the final requirement for approval before trading. Bitwise Chief Information Officer Matt Hougan predicted that spot Ether ETFs could accumulate $15 billion in net inflows within the first 18 months of their U.S. launch.

The index fell 21 points on June 24, entering the “Fear” zone, marking one of the biggest day-to-day drops in recent years.

The Crypto Fear and Greed Index, which measures market sentiment for Bitcoin and the broader cryptocurrency industry, has reached its lowest score in 18 months. The index fell 21 points on June 24, entering the “Fear” zone. This marks one of the biggest day-to-day drops in recent years.

🚨 Fear & Greed Index Hits 30 (Fear)

The #Bitcoin Fear & Greed Index just entered the fear zone, dropping to 30! This is the lowest index value since September 12th, while previously the FGI was below 30 in January 2023. pic.twitter.com/BxeveE1VH2

— CryptoRank.io (@CryptoRank_io) June 25, 2024

The Crypto Fear and Greed Index gauges people’s feelings about the cryptocurrency market by analyzing price changes, trading volume, Bitcoin’s market share, and online trends. Since March 5, when Bitcoin hit $69,000 and the index showed “Extreme Greed” with a score of 90, the score has been declining.

The index hasn’t fallen below 30 since January 11, 2023, when Bitcoin was trading at $17,200, two months after the collapse of the crypto exchange FTX. A week ago, the score was 74 in the “Greed” zone. Bitcoin hit a seven-week low on June 24 and is currently trading at $60,300.

Factors Contributing to Market Fear

Several factors have contributed to this shift in sentiment. Substantial outflows from spot Bitcoin exchange-traded funds (ETFs) in the United States have occurred over the last ten trading days, totaling more than $1 billion.

Additionally, there are concerns that Mt. Gox, the infamous crypto exchange that collapsed years ago, might be preparing to sell $8.5 billion worth of Bitcoin to its creditors. Such a massive sell-off could significantly impact market sentiment. Germany has also started selling some of its Bitcoin reserves, adding to the negative sentiment.

Moreover, Bitcoin miners have been selling off more Bitcoin than usual amid a tumbling network hashrate, which may have also weakened market sentiment.

These combined factors have triggered significant investor anxiety, pushing the Crypto Fear and Greed Index into “Fear” territory. A technical and on-chain analyst, Ali Martinez, addressed the current market sentiment, stating on X, “Crypto market sentiment has turned into fear. be greedy when others are fearful!”

#crypto market sentiment has turned into fear. be greedy when others are fearful! pic.twitter.com/Cysesda5PD

— Ali (@ali_charts) June 25, 2024

The Crypto Fear and Greed Index’s drop into the “Fear” zone reflects significant anxiety among investors. While some believe the reaction may be overblown, the combination of ETF outflows, potential large-scale Bitcoin sales, and actions by Bitcoin miners have collectively driven the market into a state of fear.

Despite last week’s sell-off, the German government recently sold 900 BTC, worth $24.33 million, to popular crypto exchanges Coinbase and Kraken.  

The German government sold 900 bitcoin (BTC), valued at $54.75 million, and transferred 400 BTC, worth around $24.33 million, to popular crypto exchanges Coinbase and Kraken.  

Following today’s transfers, the government currently holds 46,356 BTC, valued at roughly $2.83 billion, according to Lookonchain.   

The government wallet holding over $2.83 billion could cause massive selling pressure, pushing Bitcoin’s price below the $60,000 mark.

On June 21, 2024, the German government broke the internet after it initiated the transfer of 200 BTC worth $13.6 million to crypto giant Coinbase. 

German Government Initial BTC Transfers 

According to Arkham data, on June 19, 2024, the country transferred 1000 BTC (500 BTC each) worth approximately $65.14 million to crypto exchanges Kraken and Bitstamp.      

Arkham identified the wallet address as belonging to the German Federal Criminal Police Office (BKA). The address moved 6,500 BTC to another address and then back to itself. Transaction data shows that $32 million worth of bitcoin was deposited on the Kraken exchange and a similar amount on Bitstamp.   

Before the transfer, the wallet had nearly 50,000 BTC since February 2024. The money is thought to have been taken from the pirated movie website operator Movie2k.   

BTC Selling Pressure from Germany and Mt. Gox 

In addition to sending bitcoin to untagged wallets, most of the digital assets were sent to centralized exchanges (CEXs), which suggests that the government might be planning to sell BTC. 

Bitcoin’s price has experienced a significant decline, dropping from 11% over the past month to more than 7% in the past week. According to Bitstamp data, the world’s largest crypto is trading just above $61,000.  

On June 22, 2024, popular analyst Willy Woo noted that chart patterns suggest that the digital asset might drop for up to four weeks before its price rises again.  

“Eyeballing this model… probably 1-4 weeks more of cooling down before Bitcoin price action is sufficiently boring,” he wrote. 

Meanwhile, July might see more bitcoin selling pressure since the collapsed exchange Mt. Gox announced it will start repaying its former users.   

The exchange owed roughly $9.4 billion worth of bitcoin to over 127,000 creditors. These creditors have waited for over 10 years to recover their funds from Mt. Gox, which could introduce significant selling pressure on the crypto asset.

Bitcoin ETFs outflow hits $1.3 billion in the last two weeks, but analysts predict markets will bounce back in the months ahead.

Despite the recent market sell-off, Bitcoin exchange-traded funds (ETFs) have maintained a substantial presence, holding over $50 billion in assets under management (AUM). 

Over the last two weeks, $1.3 billion has been withdrawn from the U.S. Bitcoin exchange-traded funds (ETFs) as Bitcoin’s price keeps declining. 

Data from Farside Investors shows that Bitcoin ETFs had a total outflow of over $1.298 billion in the past two trading weeks, with Grayscale accounting for $517.3 million.   

Spot Bitcoin ETFs Outflow

BlackRock’s Bitcoin ETF is the only fund to see positive results, bringing in $43.1 million over the last two weeks. During the same period, bitcoin’s price dropped 11.6%, going from $69,476 on June 10 to $61,359 now, according to TradingView data.   

The recent wave of outflows from spot Bitcoin ETFs is the largest since April. These investment funds saw total net withdrawals of over $1.2 billion from April 24 to early May.   

Bitcoin’s Downward Wave 

Jonathan de Wet, the chief investment officer at digital asset trading firm ZeroCap, expects bitcoin to drop to around $57,000 in the coming weeks. He mentioned that the crypto market continues to decline and attributed the development to upcoming repayments to Mt. Gox creditors.      

Many market analysts have expressed worries about the significant downward pressure ahead. They point to bitcoin sales by the German government and the anticipated impact of nearly $9 billion in BTC repayments to Mt. Gox creditors expected in July.     

However, many analysts believe that the Mt. Gox creditor repayments might not have as negative an impact as people expect. 

According to CoinGlass data, as bitcoin’s price fell below $61,000, more than $122 million worth of leveraged long positions were sold off, increasing the risk that it could drop below the crucial $60,000 level. The liquidations were triggered because bitcoin’s price fell over 5% in a single day, briefly dropping below $61,000 at 1:25 pm UTC on June 24. 

The Trustee requested that users be patient once more, mentioning that the timing of payments will depend on each crypto exchange’s process. 

Making headlines today, the trustee of Mt. Gox, the now-infamous Bitcoin exchange that collapsed in 2014, has announced plans to initiate repayments to creditors starting in July. 

On February 24, 2014, Mt. Gox ceased operation and declared bankruptcy because it revealed it had lost roughly 850,000 bitcoins, valued at approximately $450 at the time. On June 22, 2018, the exchange started a “civil rehabilitation” process. Its primary objective was to help creditors recover what they lost by giving them BTC directly, not the equivalent amount of money from 2014.    

Mt. Gox Wants to Repay Users? 

The exchange announced that creditors will begin receiving payments in July 2024. The trustee noted that the repayment will be made in bitcoin and Bitcoin Cash, which were recovered from Mt. Gox’s remaining assets. The recent development means that creditors could benefit more because the value of the digital asset has increased since then.  

“The Rehabilitation Trustee will commence the repayments in Bitcoin and Bitcoin Cash in due course to the cryptocurrency exchanges with which the Rehabilitation Trustee has completed the exchange and confirmation of the required information for implementing the repayments,” the exchange said in the announcement.  

The Trustee has requested users to be patient once more, mentioning that the timing of payments will depend on each crypto exchange’s process.  

“We will commence the repayments in the order of the cryptocurrency exchanges with which the Rehabilitation Trustee will complete the exchange and confirmation of the required information. Please wait for a while until the repayments are made,” the trustee added.   

Mt. Gox’s BTC Transfer

On May 28, Mt. Gox moved 141,686 Bitcoins, valued at $9.62 billion, into a new wallet. These bitcoins came from several other cold wallets linked to Mt. Gox. This is the first time in over five years that funds from the failed exchange have been moved to the blockchain. 

After the reports, Mt. Gox’s trustee, Nobuaki Kobayashi, confirmed that moving the funds is part of their plan to begin paying back creditors. However, he did not specify when these repayments will commence. Kobayashi made this statement in an announcement on May 28. 

The exchange noted that the trustee handling the rehabilitation process is getting ready to repay the portion of claims that involve crypto. It further requested that creditors be patient until the payment is complete.

Standard Chartered has expressed readiness to accelerate its crypto adoption by launching a trading desk for Bitcoin and Ethereum.

Standard Chartered is ready to become one of the first global banks to introduce a spot crypto trading desk to its customers. As revealed by representatives familiar with the matter, the new desk will start operations once everything is set up and will be a part of the bank’s foreign exchange trading unit. The desk will be controlled in the bank’s London subsidiary.

Standard Chartered Starts Crypto Trading

As Bloomberg reported on Friday, Standard Chartered is working towards establishing a cryptocurrency trading desk soon. The company revealed that this establishment will satisfy customer demands for Bitcoin and Ethereum trading on its platform. 

In an emailed statement, the bank said, “We have been working closely with our regulators to support demand from our institutional clients to trade Bitcoin and Ethereum, in line with our strategy to support clients across the wider digital asset ecosystem, from access and custody to tokenization and interoperability,”

Notably, Standard Chartered has exercised trust in cryptocurrency by investing in Zodia Custody and Zodia Markets, crypto firms that offer digital asset custody and exchange services. 

Following this information, Binance’s CEO, Richard Teng, welcomed Standard Chartered into the crypto industry in a recent post on X.

Focused on satisfying customer interests, the bank has launched Libeara, a platform built to help users tokenize their local assets. Libeara allows government treasuries and banks to issue tokenized bonds. They enable investors to easily subscribe to tokenized bonds and store them in digital wallets. In addition, it adopts the blockchain, allowing transparency in transaction history.

Customers Requesting for Crypto Trading Services

A few other Banks have been trading crypto futures for quite a while now but have not stepped into spot trading due to regulatory issues. Customers have shown keen interest in spot crypto trading, and Goldman’s Hedge Fund Clients have expressed similar concerns.

Speaking about customer’s interest in bitcoin and cryptocurrency trading, Max Minton, Goldman’s Asia Pacific head of digital assets, said in an interview, “The recent ETF approval has triggered a resurgence of interest and activities from our clients,” He added, “Many of our largest clients are active or exploring getting active in the space.”