FLOW OF FUNDS IN THE CRYPTOCURRENCY MARKET: THE CONTRADICTORY STORY OF BITCOIN AND ETHEREUM
In the cryptocurrency market, fund flow is one of the key indicators for understanding investor behavior and market trends. Recent data has highlighted how major players, especially#Bitcoin(#BTC) and#Ethereum(#ETH), are moving in different directions.
Bitcoin (BTC): Safe Haven Role StrengthensBitcoin draws attention with a positive fund flow of $48.42 million in the last 4-hour period. This figure increased to $372.03 million on a daily basis, while weekly fund inflows increased to $30.
Historic Drop in Bitcoin Reserves: Are New Records on the Way?
The Bitcoin market is set to witness a remarkable period in 2024, both in terms of reserves and price movements. The latest data shows that Bitcoin exchange reserves have fallen to 2.4 million, and the supply shock has had a major impact on the price.
Decline in Reserves and Increase in Prices Throughout 2024, reserves on Bitcoin exchanges have reached historic lows, falling from 3 million in January to 2.4 million by the end of the year. Experts say that this decline indicates that investors are withdrawing their crypto assets from exchanges and turning to a long-term storage strategy. This indicates that institutional investors in particular have increased confidence in Bitcoin and that the "hodl" strategy remains popular.
Bitcoin Is Being Pulled From Exchanges: A Signal of Price Increase?
In the cryptocurrency world, the relationship between Bitcoin price and exchange net flows is becoming increasingly important. Recently, the increase in Bitcoin withdrawal rates from exchanges has attracted attention. This shows that the bullish scenario is strongly supported in the market. The Importance of Stock Exchange Net Flows Exchange net flows are a critical way to understand investor behavior. Bitcoin inflows to exchanges usually indicate increasing selling pressure, while outflows from exchanges indicate investors are accumulating. Large negative net flows in particular can lead to price increases as supply in the market decreases.
📊 BTC/USDT Technical Outlook 🔹 Price: $97,267 🔹 Support: $96,000 🔹 Resistance: $98,000 The price has made a strong recovery from the short-term bottom and is approaching the resistance zone. 🎯 ➡️ Rise: If it breaks above 98.000$ , target $99,500-100,000 ➡️ Fall: If it falls below 96.000$ , target 94.500$ 📈 Pay attention to critical levels!
📊 BTC/USDT Technical Outlook 🔹 Price: $97,267 🔹 Support: $96,000 🔹 Resistance: $98,000 The price has made a strong recovery from the short-term bottom and is approaching the resistance zone. 🎯 ➡️ Rise: If it breaks above 98.000$ , target $99,500-100,000 ➡️ Fall: If it falls below 96.000$ , target 94.500$ 📈 Pay attention to critical levels!
There is a concept we hear frequently in the cryptocurrency markets: “Market correction.” Especially in a volatile asset like Bitcoin, a correction movement is almost inevitable during periods when the price increases rapidly. The data we have today is rich enough to discuss the possibility of this correction.
Bitcoin reserves on exchanges are rapidly decreasing. The reserves, which were at 3.2 million at the beginning of 2023, have fallen below 2.6 million today. This decrease shows that investors are withdrawing their Bitcoins from exchanges and moving them to cold wallets, meaning they are not considering selling. So, what does this mean?
Good morning friends, I wanted to warn you as we enter the weekend:
There is an unwritten rule in the market:#CMEGAPs will definitely fill up.
Considering that it is exactly in the middle of the road from 67,000 to 93,000, I think this is the new scenario.
Instead of exiting the game, I closed my futures transactions and switched to spot. In case I make a mistake. Of course, that will melt down too, but I can't risk making a mistake when I've come this far.
Since I think there may be news-driven increases, I'm mainly holding #BNB, which went well with yesterday's news. I think there will be a lot of#Launchpoolnews from now on.
I also bought #ETH, the lazy kid in our neighborhood.
Although things can sometimes be calm in the cryptocurrency world, when memecoins come on the scene, things can get hectic all of a sudden. Here, the#mememarket value, which was $28.43 billion at the beginning of September, skyrocketed to $44.40 billion as of October 21! This rise shows that the winds blowing on social media and the speculative interest of investors have caught a new wave.
The influence of big players (whales) cannot be ignored in memecoins. For example, 97% of #CorgiAI's total supply is in the hands of whales.#Dogecoinalso draws attention in this regard with 42%. The intense presence of whales can affect liquidity and cause sudden price fluctuations. In other words, memecoins are perfect for those who like to swim in choppy seas!
#Bitcoin hasn't even tested this area since March 13, 2023 when it broke the red band.
In its correction movement from the 73k region to the 49k region, it switched from a "buy" position to a "wait" position, but never switched to a "sell" position.
While the small investor said, "I'm done for" when it fell, the fathers put their hands on their necks and continued to watch.
In short, are you a trader or an investor? If you are a trader, there will definitely be declines, be careful. If you are an investor, sit back and enjoy. #BTC$BTC $ETH $BNB #BnbAth
Ethena: Changing Dynamics, Trust and Future Perspectives
#Ethena protocol has experienced remarkable changes in the market in recent months, experiencing both growth and decline. On-chain data provides critical clues for investors to shape their strategies, while also providing important signals about the future of the protocol. Let's analyze #ENA's latest performance and data and examine how user trust and market dynamics are shaped.
1. TVL Drop: Risk or Opportunity? Ethena’s Total Locked Value (TVL) has fallen from a peak of $3.6 billion in July 2024 to $2.5 billion in October. This decline may indicate a decline in user confidence or fluctuations in market conditions. However, recent signs of recovery suggest that investors are starting to show interest again. The change in locked value plays a key role in measuring liquidity and user confidence in the protocol.
Solana co-founder Anatoly Yakovenko recently shared vital survival tips for startups on the X platform.
He emphasized that the primary cause of startup failure is running out of funds, and avoiding this can help ensure the company’s survival. Yakovenko warned entrepreneurs to be very careful with long-term contracts, such as office leases or data center agreements, because they are akin to debt. He advised keeping contract expenses below 20% of total expenses, and said that exceeding this threshold is extremely risky.
Yakovenko also emphasized that large teams can burn through funds quickly. He suggested that each employee should be justified by profit or revenue. If a company has 18 months of cash reserves, it should reach profitability or refinance within 6-12 months. If profitability is not reached within six months, a 33% reduction in expenses may be required; after nine months, a 50% cut may be required. Given that contract expenses cannot be reduced, this can lead to layoffs of 50% to 70%.
The Federal Reserve’s Federal Open Market Committee (FOMC) has removed a key statement from its latest statement. It previously removed language indicating that it would not be appropriate to lower the target range for interest rates until there was greater confidence that inflation was moving toward the 2% target.
This change in language signals a possible shift in the Federal Reserve’s approach to managing inflation and interest rates. The removal of this language could signal a more flexible stance on monetary policy that allows for adjustments based on changing economic conditions, rather than strictly adhering to the 2% inflation target.
Market analysts and investors are closely following this development as it could signal future changes in the Federal Reserve’s policy direction. The omission of this statement could lead to increased speculation about the timing and magnitude of potential interest rate adjustments.
The Federal Reserve’s decision to change its communication strategy comes amid ongoing economic uncertainty and changing inflationary pressures. By not explicitly tying interest rate decisions to the 2% inflation target, the FOMC may be trying to give itself more flexibility to respond to a variety of economic scenarios.
Overall, the removal of this key statement from the #fomc statement represents a significant shift in the Federal Reserve’s message and could have significant implications for future monetary policy decisions.
Data tracked by Hyblock Capital on September 14 shows that market depth, which covers buy and sell orders close to or far from market prices, was depleted over the weekend. This pattern typically occurs at market turning points and suggests that Bitcoin’s downtrend from its peak above $65,000 in late August has ended.
Market depth represents liquidity and measures the market’s ability to absorb large trading orders without affecting prices. It usually depends on a variety of factors, including time of day, current market events, and specific price levels.
Market bottoms are characterized by difficulty for investors to take decisive action, resulting in fewer buy and sell orders and reduced liquidity.
“By analyzing aggregate spot order books, particularly those with depths of 0%-1% and 1%-5%, we found that low order book liquidity often coincides with market bottoms,” Shubh Verma, co-founder and CEO of Hyblock Capital, told CoinDesk. These low order book levels can be early indicators of price reversals, which often precede bullish trends.”
Here are the important headlines in the cryptocurrency world for August 19, 2024:
1. US Political Developments: The Democratic Party's 2024 platform was released today and it was striking that#cryptocurrencieswere not mentioned at all. This situation caused uncertainty about cryptocurrencies. There is a clear difference between this situation and the Republican Party's positive stance on cryptocurrencies.
2. Market Movements:#Bitcoin(#BTC) is currently trading at around $59,100, while#Ethereum(#ETH) is around $2,600. The global crypto market cap has decreased by 1.4% in the last 24 hours.#XRPand#TRXare among the biggest gainers, while Cardano (#ADA) has fallen out of the top 10 in market cap.
3. Corporate News: Investment giant BlackRock has surpassed Grayscale to become the largest crypto exchange-traded fund (#ETF) provider in terms of assets under management. This situation shows that institutional interest in Bitcoin in particular is increasing.
4. Regulatory Changes: The Federal Reserve and FinCEN plan to revise the definition of “money” in the Bank Secrecy Act to include cryptocurrencies. This move could have significant implications for compliance and reporting requirements for crypto businesses and users.
5.#DeFiand #NFTs: The DeFi sector continues to grow, with total value locked (TVL) up 3.5% in July. Meanwhile, trading volume in the#NFTmarket has declined, with large Ethereum collectibles falling significantly, while Solana-based NFTs have shown some growth.
Vulnerabilities and Lost Values Decentralized Finance (DeFi) stands out as a space that has the potential to revolutionize the crypto world. However, this innovative financial ecosystem is also facing serious security vulnerabilities and major losses. DeFi Exploits Dashboard data provides an in-depth look at security breaches and losses in this dynamic ecosystem, contributing to the understanding of the current situation. Total Value Lost in DeFi
Arkham:#DecentralizedBlockchain Analysis and Information Platform
• Arkham is an analysis platform that deanomizes blockchain data, making on-chain transactions more transparent. It uses advanced tools to correlate cryptocurrency activities with real-world assets and provide users with clear and actionable insights.
• Arkham provides transparency by analyzing blockchain data and provides users with the information they need to make more informed decisions.
• This platform aims to establish a delicate balance between privacy and transparency in the crypto ecosystem, revealing users' activities by monitoring transactions in the decentralized world.
✅ Strategic Partnerships and Integrations #Arkham; It works integrated with leading blockchain networks such as #Bitcoin #ETH , #Binance , #Polygon, #Avalanche,#Arbitrumand #Optimism. It can therefore track a wallet across almost any network.$BTC $BNB $ARKM
✅ AI-Powered Crypto Analysis Arkham's AI-powered algorithm called#Ultraanalyzes blockchain addresses, associates these addresses with real-world institutions, and provides users with in-depth analysis.
This technology makes crypto transactions more transparent, while also playing an important role in detecting malicious activities such as fraud.
✅ Arkham Intel Exchange#ArkhamIntelExchangeis an on-chain marketplace that allows users to anonymously buy and sell blockchain intelligence, which they call the "intelligence economy."
✅ Who Supports The companies supporting the Arkham project include some of the most prominent investors in the crypto space and beyond. These companies and investors include: - Co-Founder of OpenAI (unnamed) - Co-Founder of Palantir Joe Lonsdale (8VC) - Tim Draper of Draper Associates - Wintermute - GSR - Bedrock Founder Geoff Lewis
Binance Introduces Toncoin on Launchpool: A New Opportunity for Crypto Enthusiasts!
As the cryptocurrency world continues to evolve,#Binancecontinues to offer exciting opportunities to its users by listing new projects. The latest addition to Binance’s impressive projects is Toncoin. Toncoin (TON), a decentralized and open Layer 1 blockchain, has been selected as the 56th project to be introduced on BinanceLaunchpool. Toncoin’s entry into Binance Launchpool is a significant moment for the crypto community, especially for those looking to expand their portfolio with promising digital assets.