After a week of continuous outflows, the ETFs on Monday finally turned to inflows, but the inflows were actually not large, with only 231 net inflows. Grayscale continued to outflow, and the total outflows were already 276,000 pieces. The total number of Grayscale positions is only 340,000, and nearly 50% has been outflowed.
There was still some big news yesterday. According to the official announcement, the London Stock Exchange will accept listing applications for Bitcoin and Ethereum crypto exchange-traded funds (ETNs) starting from April 8, 2024. According to the British Financial Conduct Authority ( Subject to the FCA's approval of the basic prospectus, the London Stock Exchange's planned first trading listing date is May 28, 2024. As for ETN, let me explain to you that it is different from ETF. It is just an index security. The issuer does not hold any collateral assets. That is to say, even if it goes online, its issuer will not hold the spot of the pie. Therefore, it is only a reference basis for the market and will not directly affect the market.
Regarding why new products are popular in each bull market, rather than old ones, I would like to share some thoughts. We can also think of “old products” as products born or incubated in the last bull market or the previous bull market. Usually, the prices in the last round were very high, and they fell to the bottom after a bear market. New products are usually projects born in a bear market or the current bull market. Let’s talk about the difference.
1. With the development of the times, more new technologies and new tracks have been added, and funds will continue to hype new products and new stories to drive up prices. Old stockholders may have felt fresh about this sector at the time, but now, it may have been outdated.
2. Usually, the circulation and market value of "old stock" are relatively large. After a few years, most of the chips have been unlocked and flowed into the market. The chips are relatively unconcentrated and the locked-in stocks are serious. The circulation of "new stock" is relatively small and the market value is relatively small, and the chips are concentrated. Especially for the currencies in the same track, which one needs less cost and gets more benefits? I think everyone should understand the reason, and the dog dealer or market maker must understand it better than you.
3. Covering the investors to realize their capital, which is what we call "lifting the sedan chair". The chips of the investors must be relatively cheap, because they chose to support you when you have nothing, so usually "new goods" will choose to raise prices or various market hype methods at a certain time point so that these investors' chips can be realized through market circulation. Most of the old goods have already completed this step, so there is no such thing.
The above is just some simple logic, maybe not well thought out, welcome everyone to criticize and correct me.
Market Interpretation
The strength of Bitcoin is a bit unexpected, but the purchasing power does not come from ETFs. It was relatively strong before the US stock market opened and during the day today. This time it should still have a lot to do with leveraged positions. The total network contract holdings hit a new high, but the price has not yet reached a new high. So, I think there is a chance to directly break through the historical high this time, but it is very likely that a leverage clearing event will happen again, similar to the 69,000-59,000 time. In addition, if a new high is reached, Bitcoin will have a large divergence at the daily level. The on-chain chips are also highly concentrated at 71,000-73,000, which may also cause some supply.
Ethereum is the main linkage. Grayscale said that ETF has not been completely defeated. So friends who chose Bitcoin, since you have chosen it, you should respect your choice. Bitcoin’s performance this round is actually quite good.
SOL's trend remains strong and a new high is just around the corner, but divergence will occur after the new high.
If you caught DUSK yesterday, congratulations.
Today's Fear and Greed Index: 81 (Extreme Greed) #xrp #icp #LUNA $BTC $ETH