Weekly Crypto Recap with NewsCrypto
Welcome back, NewsCrypto enthusiasts! It's time for another edition of the Crypto Recap newsletter.
Today we are going to discuss the price action of Bitcoin and when the altseason is going to happen. Spoiler alert: SOON. We are also going to tell you how spot Bitcoin ETFs have been performing in the first two days.
What's on the menu today?
1. Breaking Crypto News
2. BTC TA Analysis
3. Bitcoin ETFs are Live. How're They Doing?
4. Funniest Meme of the Week
· Spot Bitcoin ETFs were approved!
· Argentina has registered one of its first lease agreements denominated in bitcoin.
· Users of Mercari, one of Japan's biggest e-commerce platforms, will be able to pay for products using Bitcoin.
· Michael Saylor has warned about new Bitcoin Giveaway scams using AI-generated deepfake videos.
· Vanguard reportedly blocked customers from trading spot bitcoin ETFs.
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Bitcoin TA Analysis
· Bitcoin 3D Time Frame
We will first focus on the macro situation and then discuss why Bitcoin sold off after the approval of ETFs despite X “analysts” calling for $60k+. What to expect next from Bitcoin and the entire crypto market? You will find that out as well.
Every time before the bull market started 100MA and 200MA crossed (golden cross) on a 3D chart. This happened in October of 2023 so we are now in a bull market territory but this doesn’t mean up only. For example, in 2020 Bitcoin went down ≈60% in a couple of weeks after 100MA was already above 200MA.
Currently, the price action looks ok, it would be better if $BTC held $48k or at least $45k as support but this doesn’t mean it’s over. More about that in a bit.
· Bitcoin Daily Time Frame
Let’s discuss why Bitcoin didn’t go to the moon after ETFs were approved.
We, investors, had about 6 months to buy the rumor and once ETFs were approved it was a “sell the news” event. Yes, Bitcoin touched $49k but many were expecting $50k-$52k and thus got liquidated once the price started falling sharply resulting in an even sharper decline.
Now let’s look at the current price action. On the daily time frame we can see Bitcoin just came down into the previous range and if it continues to range here it will be a great opportunity for $ETH to play catch up.
· ETH 3D Time Frame
By comparing the $BTC and $ETH chart we can see Ethereum is holding up above support while Bitcoin came below it and went back into the previous range. This shows that right now people are more bullish on coins that are not "digital gold”.
Something similar happened at the peak of the last cycle when Bitcoin started to range but ETH pulled off a ≈100% move to the upside. We are not saying the same % move will happen now but the price of $3000 per ETH before the “pre-halving selloff” wouldn’t be surprising.
· What about altcoins?
By looking at the crypto dominance chart excluding $BTC and $ETH we can see altcoins are holding up nicely, just like $ETH. Y’all are most likely already familiar with the rotation cycle of crypto so you know once $ETH starts pumping large caps follow and then money flows into small caps.
For those who don’t know what we are talking about.
This rotation would mean we get a mini version of an altseason which will be negligible in comparison to the one that will happen at the peak of the bull market but can still make you a handsome amount of profit if you position correctly.
Bitcoin ETFs are Live. How're They Doing?
We’ve witnessed a significant milestone with the SEC’s approval of spot Bitcoin ETFs. This move, akin to opening Pandora's box, led to a diverse market movement and a trading frenzy. On the first day, the 11 approved spot ETFs saw a whopping $4.6 billion worth of shares traded. By the second day, the cumulative volume soared to over $7.6 billion.
BlackRock, known for its Midas touch in the investment world, emerged as the frontrunner with a staggering $497.7 million worth of BTC in its ETF. While Bitwise and Fidelity initially led the pack, BlackRock quickly caught up, boasting the highest net inflow of $386 million on the second day. This surge pushed its total inflow to nearly half a billion dollars in just two days.
Day 1Day 2
BlackRock's spot bitcoin ETF now holds 11,439.2 BTC. Despite the ETF launch performing well under normal circumstances, it fell short of the sky-high expectations set by many market analysts and X “analysts”. However, BlackRock CEO Larry Fink views these ETFs as just the first step toward a new financial world, hinting at the potential tokenization of every financial asset.
However, the dynamics between the first and second day of trading revealed interesting trends. While the first day ended with a significant $625.8 million net inflow, the second day saw a decrease in trading volume and a lower net inflow of $205 million.
The Grayscale BTC Trust
Interestingly, the Grayscale Bitcoin Trust, despite leading the market on the first day with about $1.9 billion in trading volume, ended with a net outflow. This trend continued into the second day, with the trust registering over $484 million net outflow.
Funniest Meme of the Week