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Five Charts Explain the Decline

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As Bitcoin (BTC) struggles to reclaim the $60,000 psychological level, the on-chain data provider CryptoQuant has highlighted five key charts that illustrate the recent price drop.

The crypto markets are in turmoil, leaving traders on edge as Bitcoin’s price sends mixed signals. Analysts are divided on whether the market is heading for a correction or set to continue its uptrend.

Five Charts to Explain the Latest Bitcoin Price Drop

Bitcoin has slipped below the critical $60,000 psychological level, extending its decline after a recent surge above $65,000. A closer look at the underlying fundamentals reveals intriguing dynamics as traders and investors navigate the market conditions.

Short-term Holders Cash in at Break-Even

According to CryptoQuant, Bitcoin short-term holders established a resistance wall at their break-even price, indicating they took profits. The break-even price is where traders neither gain nor lose, with the asset trading near their purchase price.

This strategic profit-taking followed Bitcoin’s earlier price drop, which had caused short-term holders to incur a 17% loss. When the price rebounded to their average cost basis, these holders sold around their break-even prices. The resulting selling pressure contributed to the latest price drop.

Bitcoin price correction as short-term holders sell at break-even, Source: CryptoQuant
Bitcoin Price Correction as Short-Term Holders Sell. Source: CryptoQuant

Increased Open Interest and Positive Funding Rates

CryptoQuant also reports a premium on Bitcoin perpetual contracts, with open interest rising by 31% since August 5, moving from $13.5 billion to $17.9 billion. Open interest represents the total number of open positions, reflecting futures traders’ predictions about the next market move.

In a liquid market, high open interest typically results in better execution prices, tighter bid-ask spreads, and reduced slippage, providing traders with enhanced market efficiency and easier entry and exit opportunities. The 31% increase in open interest suggests growing market participation and heightened interest in Bitcoin.

Read more: Where To Trade Bitcoin Futures: A Comprehensive Guide

Open Interest, Source: CryptoQuant
Bitcoin Open Interest. Source: CryptoQuant

At the same time, funding rates remained positive, indicating that long positions (buyers) were paying short positions (sellers) to maintain their positions. This scenario reflects market conditions where demand exceeds supply.

Funding Rates, Source: CryptoQuant
Bitcoin Funding Rates. Source: CryptoQuant

The combination of rising open interest and positive funding rates can destabilize traders’ positions, primarily due to increased speculative activity. As more participants enter and exit positions in an attempt to capitalize on potential price movements, volatility escalates, causing sudden shifts in market sentiment.

This dynamic can create a feedback loop, where growing market participation fuels further price movements. As a result, herd behavior and momentum trading amplify market trends, making it increasingly difficult to predict and manage risks effectively.

Increased Spot Inflows

Research indicates that increased Bitcoin inflows into spot exchanges during the price drop further contributed to the decline, as traders viewed it as a sign of impending selling pressure. When investors transfer their holdings to exchanges, it is often seen as an intent to sell.

This influx added strain to already fragile futures positions. According to CryptoQuant’s Head of Research, Julio Moreno, these inflows were attributed to large holders, amplifying the pressure on the market.

Read more: Bitcoin (BTC) Price Prediction 2024/2025/2030

Exchange Inflow, Source: CryptoQuant
Bitcoin Exchange Inflows. Source: CryptoQuant

As shown in the chart above, the rise in spot exchange inflows coincided with price drops, reinforcing the thesis.

This increase in Bitcoin supply available for trading on exchanges means more sellers are offering their BTC for sale. When supply outpaces demand from buyers, it exerts downward pressure on the price, contributing to the decline.

Shaking Off Weak Hands

The series of events has led to “weak hands” exiting their positions, resulting in increased liquidations. Ethereum and Bitcoin longs were liquidated for $55 million and $90 million, respectively, marking the highest levels of liquidation since August 5, according to research.

Bitcoin Long Liquidations, Source: CryptoQuant
Bitcoin Long Liquidations. Source: CryptoQuant

CryptoQuant’s research suggests that the market will need time to stabilize before a clear directional bias can emerge. As of this writing, Bitcoin is trading at $59,118, down nearly 5% since the Wednesday session began, according to BeInCrypto data.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Aptos Partners with Circle and Stripe to Revitalize Network

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The Aptos Foundation announced a new partnership with Circle and Stripe, hoping to revolutionize its network functionality. Circle’s CCTP and USDC stablecoin will enhance blockchain interoperability, while Stripe will attract TradFi by simplifying fiat interactions.

Aptos has set ambitious goals with this partnership, but APT’s upward momentum has stagnated.

Aptos Partners with Circle and Stripe

According to a new announcement from the Aptos (APT) Foundation, its network is integrating Circle’s USDC stablecoin and Cross-Chain Transfer Protocol (CCTP). Additionally, Aptos is integrating the payment platform Stripe, generally streamlining fiat-related features. These include on- and off-ramps, payment processing, and TradFi ease of adoption.

“Once the integration is complete, users will be able to seamlessly transfer USDC between Aptos and 8 major blockchains. In addition to USDC and CCTP, Stripe will soon launch its payment services on Aptos, creating a reliable fiat on-ramp to streamline merchant pay-ins and payouts using Aptos-compatible wallets,” the firm claimed via press release.

In other words, Aptos aims to use this partnership to make itself “the ultimate hub for interoperable DeFi.” These companies will approach this goal from both ends: enticing new users and investors while substantially improving the core experience. This partnership marks a new development for Stripe’s integration with crypto.

Indeed, Stripe took a six-year hiatus from cryptocurrency payments, which only ended this April. Since then, however, it’s been engaging seriously with the industry. The firm entered an earlier partnership with Circle this June, hoping to promote USDC adoption. Additionally, Stripe acquired Bridge, a crypto payment platform, last month.

For its part, Aptos is undertaking a recovery process. Despite a major price spike in March, it suffered a lingering decline for most of 2024. The asset began regaining steam in October, and the November bull market has brought increased optimism. Still, its gains have stagnated for about a week.

Aptos Price in 2024
Aptos Price in 2024. Source: BeInCrypto

This partnership between Aptos, Circle, and Stripe may help APT regain its forward momentum. These ambitious new features will greatly add functionality and accessibility to Aptos’ network. Still, the firm has set a very ambitious goal for itself: to solidify “its place as a leader in interoperable DeFi and enterprise-grade blockchain technology.” Only time can tell its success level.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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SEC Moves Toward Solana ETF Approval Amid Pro-Crypto Shift

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The SEC is quietly meeting with several issuers to discuss approving a Solana ETF, claims Fox Business reporter Eleanor Terrett. With Trump’s impending pro-crypto administration, the SEC seems more inclined to approve such a product.

However, anti-crypto figure Gary Gensler is still nominally in charge of the SEC, and public progress might not begin until 2025.

Solana ETF Approval Is Getting Closer

According to a scoop from Fox Business reporter Eleanor Terrett, the SEC and several ETF issuers are in talks to approve a Solana ETF. Currently, Brazil is the only country that has given this product a green light. As recently as September, Polymarket odds gave the SEC a dismal 3% chance of approving it. This reluctance, however, might soon be changing:

“Talks between SEC staff and issuers looking to launch a Solana spot ETF are “progressing” with the SEC now engaging on S-1 applications. Recent engagement from staff, coupled with the incoming pro-crypto administration, is sparking a renewed sense of optimism that a Solana ETF could be approved sometime in 2025,” Terrett claimed.

Terrett was very clear about the impetus for this progress in negotiations: Donald Trump’s re-election. On the campaign trail, Trump vowed to significantly reform US crypto policy, and one cornerstone was firing anti-crypto SEC Chair Gary Gensler. Gensler has apparently conceded to his impending ouster, and his replacement will undoubtedly support the industry.

Previous attempts have floundered at an early step in the process. Once the SEC officially acknowledges an application, it must confirm or deny it within a 240-day window. Previous filings have lingered in limbo at this stage. However, the list of candidates is now growing: Canary Capital filed for a Solana ETF in October, and BitWise did the same earlier today.

Timeline of Solana ETF Applications, with Previous Frozen Attempts
Timeline of Solana ETF Applications, with Previous Frozen Attempts. Source: Eric Balchunas

Nonetheless, these positive negotiations still only consist of anonymous rumors. The Commission has not publicly moved to begin this process, and Gensler is still nominally in charge. Terrett posits that the SEC will only make serious progress on the Solana ETF at the start of 2025. Compared to previous pessimism, however, this is a complete sea change.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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ETH/BTC Ratio Plummets to 42-Month Low Amid Bitcoin Surge

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The ETH/BTC ratio, a metric measuring Ethereum’s price performance compared to Bitcoin, has reached its lowest point since March 2021. This development comes amid BTC’s brief rise to $98,000.

While the flagship cryptocurrency has increased by 7.45% in the last seven days, ETH has hovered around the same region, with investors raising concerns about the altcoin’s future.

Ethereum Continues to Lag Behind Bitcoin

In February, the ETH/BTC ratio climbed to a yearly high of 0.060. During that time, speculation spread that Ethereum’s price would begin to outperform Bitcoin and validate the altcoin season. However, that has not happened, as Bitcoin’s price has continued to make new highs

Ethereum, on the other hand, is yet to retest to reclaim its all-time high despite reaching $4,000 earlier in the year. This disparity in performance could be linked to several factors. For instance, both cryptocurrencies saw approval for exchange-traded funds (ETFs) this year.

However, while Bitcoin has seen billions of dollars in inflows, ETH has been inconsistent in attracting capital. Hence, the institutional inflow has driven BTC toward $100,000, ensuring that the ETH/BTC ratio drops to $0.033 — the lowest level in 42 months.

ETH/BTC performance
ETH/BTC Ratio. Source: TradingView

Further, the disparity in Ethereum’s performance can largely be attributed to sustained selling pressure. For instance, CryptoQuant data reveals that exchange inflows into the top 10 exchanges have climbed to 461,901 ETH, valued at approximately $1.50 billion as of this writing.

This surge in exchange inflow reflects large deposits by investors, indicating a heightened willingness to sell. Such movements typically increase the supply of ETH on exchanges, raising the likelihood of a price drop.

In contrast, a low exchange inflow generally indicates that investors are holding onto their assets, which is not the current scenario for ETH.

Ethereum Exchange Inflow
Ethereum Exchange Inflow. Source: CryptoQuant

ETH Price Prediction: Crypto Could Retrace

As of this writing, ETH trades at $3,317, which is a higher close than yesterday’s. Despite that, the altcoin is still below the Parabolic Stop And Reverse (SAR) indicator. The Parabolic SAR generates a series of dots that track the price movement, positioning above the price during a downtrend and below the price during an uptrend. 

A “flip” in the dots — shifting from one side to the other — often signals a potential trend reversal. As seen below, the indicator is above ETH’s price, suggesting that the cryptocurrency could reverse its recent gains.

Ethereum price analysis
Ethereum Daily Analysis. Source: TradingView

If this is the case and the ETH/BTC ratio declines, Ethereum’s price could decline to $3,083. However, if buying pressure increases, that might not happen. Instead, the value could surge above $3,500 and toward 4,000.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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