Red Packed Code : BPKMULBD16, BPS5OXB30W After a staggering crypto rally, primarily led by Bitcoin, it is fair to say that the approval of spot bitcoin U.S. ETFs in January approval was a game-changer. Since January 10, crypto’s total market cap has surged from $1.5 trillion to $2.4 trillion, a 60% increase. Nonetheless, crypto remains a nascent and niche asset class – its size is only a fraction of gold (10%) and smaller than Microsoft ($3.1 trillion). Many naysayers predicted that the ETF approval would be a classic buy-the-rumor-sell-the-fact situation. But, given the massive price rally, this could not have been further from the truth. The burning question now is: What’s next? You're reading Crypto Long & Short, our weekly newsletter featuring insights, news and analysis for the professional investor. Sign up here to get it in your inbox every Wednesday. ETFs and Supply/Demand Imbalances U.S. ETFs alone have attracted inflows of around $19 billion. Including all ETPs, the year-to-date figure is significantly higher. The Blackrock IBIT ETF is the fastest ETF to reach $10 billion in assets. In only two months, the ETF has amassed more bitcoin than Microstrategy since 2020. These large inflows have created a supply/demand imbalance, thereby increasing the price of the underlying asset. Bitcoin ETFs in the U.S. alone account for ~4% of all Bitcoins in circulation. Add to this the fact that ~29% of all Bitcoin supply has not been touched for over five years, or might be lost forever, these ETFs now represent a significant source of demand. The current demand-supply dynamics are likely to exacerbate once the Bitcoin halving takes place mid-April. Like a pre-announced corporate action in the traditional world, the event should not have any price impact. However, if the past is any guidance, halving cycles have acted as a psychological catalyst for price increases, kicking off a rally not only in Bitcoin but also in the altcoin market. #BTC🔥🔥🔥🔥 #Bitcoin(BTC)
After a staggering crypto rally, primarily led by Bitcoin, it is fair to say that the approval of spot bitcoin U.S. ETFs in January approval was a game-changer. Since January 10, crypto’s total market cap has surged from $1.5 trillion to $2.4 trillion, a 60% increase. Nonetheless, crypto remains a nascent and niche asset class – its size is only a fraction of gold (10%) and smaller than Microsoft ($3.1 trillion). Many naysayers predicted that the ETF approval would be a classic buy-the-rumor-sell-the-fact situation. But, given the massive price rally, this could not have been further from the truth. The burning question now is: What’s next? You're reading Crypto Long & Short, our weekly newsletter featuring insights, news and analysis for the professional investor. Sign up here to get it in your inbox every Wednesday. ETFs and Supply/Demand Imbalances U.S. ETFs alone have attracted inflows of around $19 billion. Including all ETPs, the year-to-date figure is significantly higher. The Blackrock IBIT ETF is the fastest ETF to reach $10 billion in assets. In only two months, the ETF has amassed more bitcoin than Microstrategy since 2020. These large inflows have created a supply/demand imbalance, thereby increasing the price of the underlying asset. Bitcoin ETFs in the U.S. alone account for ~4% of all Bitcoins in circulation. Add to this the fact that ~29% of all Bitcoin supply has not been touched for over five years, or might be lost forever, these ETFs now represent a significant source of demand. The current demand-supply dynamics are likely to exacerbate once the Bitcoin halving takes place mid-April. Like a pre-announced corporate action in the traditional world, the event should not have any price impact. However, if the past is any guidance, halving cycles have acted as a psychological catalyst for price increases, kicking off a rally not only in Bitcoin but also in the altcoin market.
Over the past 48 hours,Bitcoin (BTC) price dropped 13% from its new all-time high of $73,835 to briefly trade near $60,000. The correction was caused by overheated market conditions in what analysts have christened a “pre-halving retrace” ahead of the Bitcoin halving event that is roughly 30 days away. BTC/USD daily chart. Source: TradingView However, a report by CryptoQuant shows that the Bitcoin bull cycle is not over, given the relatively low level of investment flows from new investors and price valuation metrics still below levels seen in past market tops. The on-chain data analytic firm’s Weekly Crypto Report reveals that 48% of Bitcoin investment is coming from short-term holders. The “bull cycle typically ends with 84%-92% of investment” from these new investors, according to CryptoQuant analysts. “The Bitcoin bull cycle is still far from over, as shown by the relatively low level of new investment flows.” Bitcoin realized cap - OTXO age bands percentage. Source: CryptoQuant The chart above also reveals that this metric has “reached levels similar to mid-2019 (52%) when Bitcoin also experienced a meaningful correction,” something that short-term traders should watch out for. The CryptoQuant report also revealed that valuation metrics are still below levels consistent with past market tops. “CryptoQuant P&L Index is still outside a market top zone (red area) and above the index's 1-year moving average.” Bitcoin: CryptoQuant profit and loss (PnL) index. Source: CryptoQuant Related: BTC price dip hits 17.5% as week’s Bitcoin ETF net outflows near $500M CryptoQuant’s PnL index is made up of three on-chain indicators that show the profitability of Bitcoin. The index has previously indicated that the crypto market will enter a bull cycle in 2024. However, the chart above shows that the current level is slightly below those observed when the market peaked during the 2013, 2017 and 2021 bull runs.
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Jupiter Team Allegedly Rug-pulled JUP Amid 63% Price Tank 24hrs After Launch
The JUP token of Solana DEX Jupiter tanked by over 64% after its launch. The Jupiter team has been accused of withdrawing liquidity of the coin. Jupiter’s founder intends to conduct a thorough post-launch analysis later. The newly introduced JUP token from Jupiter, a decentralized exchange built on Solana, has caught the crypto community off guard with its significant decline of over 64% within just 24 hours of its launch. This starkly contrasts the typical pattern observed among newly introduced crypto assets, which frequently see gains of up to 100% on their first day of trading. According to data from CoinMarketCap, JUP has tanked from a height of $1.2707 to as low as $0.5590 within the last 24 hours.
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PYTH token price has surged 30% in 24 hours. Source: CoinStats PYTH’s price hovers around $0.5045 at the time of writing, according to data from the portfolio management app CoinStats. As a first-party oracle network, Pyth is a relative newcomer in the industry. However, owing to its ability to provide high-fidelity, real-time financial market data directly on-chain, it has emerged as a strong competitor to established market players, like the Ethereum-based Chainlink (LINK). Several recent developments around the Pyth Network have brought it under the limelight. All these have acted as a catalyst for the recent price growth. Pyth Network launches on ZeroLend PYTH recently became the first project listed on the popular lending market ZeroLend’s airdrop points platform Zero Gravity. #Write2Earn
The team of the new Jupiter token was accused of an exit scam and a price drop of 63%
recently released JUP token of decentralized exchange aggregator Jupiter, built on Solana, unpleasantly surprised the crypto community with a drop of more than 63% after just 24 hours after launch. This is in stark contrast to the typical situation where new tokens see profits of up to 100% on the first day of trading.
According to CoinGecko, JUP fell from $1.2707 to $0.5795 in the last 24 hours.
In this regard, experts turned their attention to the team, coming to the conclusion that they were responsible for manipulating the JUP token. Well-known critic of crypto projects Adam Cochran is confident that the Jupiter team allocated 50% of the tokens to themselves, using their own platform for this.
In addition, he claims that team members withdrew liquidity from the cash pool and gave some to the development team. So they actually cashed out $30 million on the first day without any lock-ups, while retaining 50% of the shares. Cochran expressed concern that such actions tarnish the reputation of a promising project. #Write2Earn #Jupiter #JUP #Jupiter(JUP) $JUP