As of April 30, the DTCC will prohibit the use of Bitcoin ETFs as collateral for other loans and credits in the United States. Depository Trust & Clearing Corporation (DTCC) notifies about this, clarifying that this ban applies to all other crypto products:
“...No collateral value will be provided for any ETF or other investment vehicle that includes BTC or any other cryptocurrency as an underlying investment and will therefore be subject to a 100% discount...”
As a reminder, Depository Trust & Clearing Corporation clears NASDAQ trades. On NASDAQ from Spot Bitcoin ETFs:
-#BlackRock(!), iShares Bitcoin Trust - #IBIT.
-#Bitcoinfund#Valkyrie- #BRRR.
This significantly worsens the value of cryptocurrencies for the traditional US financial market. Negative for crypto assets in the States if the situation does not change in the future.
It is not yet clear whether#BTCand altcoins are now declining due to this news.#BTCdropped below $63,000, breaking through the volume level of $62,987. Altcoins are falling more noticeably, BTC dominance is growing.
Separately, we note that, as predicted on April 26, BTC’s dominance is beginning to reverse upward. We see a reversal formation on the daily candles.
If the dominance trend continues, the end of this week and almost the entire next week will be a period of increasing BTC dominance. Taking into account the current situation on the market, this increase in dominance will most likely be due to a correction in the crypto market.
The BTC Price Volatility Index is also ready for a reversal. Place a green vertical mark on the chart. On April 27-28, we expect the end of the decline and the beginning of the growth of the Index. The question, we repeat, is only whether this will be a V-shaped reversal of the Index, or a reversal across the range. RSI and MACD of the Index on a daily basis - for the second option. BUT the reversal signal of BTC dominance is for the first one.
