Record $39.4B Bitcoin Open Interest Suggests Imminent Price Breakout

Bitcoin’s open interest has hit a record high of $39.4 billion, suggesting a possible price breakout. Open interest is used to measure the interest and liquidity in an asset. For Bitcoin, this rise in open interest could mean a significant price move soon.

Bitcoin Futures Open Interest Hits All-Time High

Bitcoin futures’ open interest has reached a new all-time high of $39.46 billion. This high level of open interest shows that more investors are interested in Bitcoin than ever before. The previous record was $39.03 billion, set on March 29, 2024, according to CoinGlass data.

Understanding Bitcoin Open Interest

Open interest is a metric that tracks the total number of open positions in Bitcoin. It helps traders understand how much interest and liquidity there is in the market. The current peak of $39.46 billion shows that investors are very interested in Bitcoin right now, which could lead to a price breakout.

Bitcoin Breakout Could Be Imminent

The new high in open interest, combined with other factors, suggests that Bitcoin’s price might soon reach new all-time highs. Short-term holders and BTC dominance are two key indicators that point towards a possible breakout.

Short-Term Holders in Profit

As of July 24, over 75% of Bitcoin’s short-term holders were in profit. This could lead to more buying pressure on Bitcoin, as short-term holders are often seen as a sign of retail demand for the cryptocurrency.

BTC Dominance Growing

Bitcoin’s dominance in the crypto market is growing. This means Bitcoin is taking up a larger share of the total market capitalization. According to Benjamin Cowen, CEO and Founder of Into The CryptoVerse, this increasing dominance suggests Bitcoin could rise even higher.

Can Bitcoin Price Breach $71,500 Next?

Bitcoin’s next major target is $71,500, according to popular crypto analyst Rekt Capital. Bitcoin’s price is currently 5.8% down from its all-time high of over $73,750, recorded on March 14. Whether Bitcoin can reach this new target will depend on several factors.

US Spot Bitcoin ETFs and Price Action

One of the key factors influencing Bitcoin’s price is the inflows into US-based spot Bitcoin exchange-traded funds (ETFs). Last week, these ETFs saw $795 million worth of net inflows. This was the fourth week in a row of positive inflows, according to Dune data.

Historical Bitcoin Open Interest and Price Movements

Historically, high levels of open interest have often been followed by significant price movements in Bitcoin. When open interest is high, it shows that many investors are actively trading Bitcoin. This can lead to increased volatility and larger price swings.

Increased Investor Demand for Bitcoin

The current record level of open interest indicates that investor demand for Bitcoin is very high. More investors are getting involved in the Bitcoin market, which can drive the price up. High investor demand is a strong sign that Bitcoin’s price could break out soon.

Liquidity and Market Capitalization

Liquidity is crucial for any asset, including Bitcoin. High liquidity means that Bitcoin can be bought and sold quickly without causing large price changes. The current high level of open interest suggests that Bitcoin’s liquidity is strong, which can support a price breakout. Additionally, Bitcoin’s growing market capitalization shows that it is becoming more valuable and more important in the overall crypto market.

What this means

Tthe record $39.4 billion Bitcoin open interest suggests that a price breakout could be imminent. The high level of open interest, combined with factors like short-term holders in profit and growing BTC dominance, points towards a possible price rise. Bitcoin’s next target is $71,500, and the inflows into US spot Bitcoin ETFs will play a significant role in determining whether Bitcoin can reach this target. With increased investor demand and strong liquidity, Bitcoin’s price could be set for a major move soon.

Bitcoin Above $69,000 as Inflation Shows Signs of Easing Ahead of Fed Meeting

Bitcoin prices have surged above $69,000 as inflation shows signs of easing. This change comes just before an important meeting of the Federal Reserve, where decisions on interest rates could impact the crypto market.

Inflation and Federal Reserve Decisions

U.S. prices rose slightly in June, suggesting that inflation is cooling down. This could allow the Federal Reserve to cut interest rates in September. Lower interest rates often lead to higher prices for risk assets, including Bitcoin and other cryptocurrencies.

The Commerce Department reported that consumer spending slowed a bit last month. This, combined with easing price pressures and a cooling labor market, may boost the Federal Reserve’s confidence. They aim to bring inflation down to their target of 2%.

The price index of personal consumption expenditures, the Fed’s preferred measure of inflation, rose by 0.1% last month after being unchanged in May. Compared to last year, it increased by 2.5%.

Impact on Bitcoin and Crypto Prices

A cut in interest rates could help lift crypto prices as borrowing becomes cheaper for investors. Some analysts predict Bitcoin could reach as high as $100,000 this year. Currently, Bitcoin is trading at $69,200 according to CoinGecko data.

The Fed’s next policy meeting is set for July 30-31. The CME’s FedWatch tool, which looks at Fed funds data from derivatives traders, shows a 95.5% chance of no rate cuts this month. However, the probability of a 25 basis point cut in September is above 85%, with a 14% chance of an even larger cut.

Political Influences

Earlier this month, former President Donald Trump warned Fed Chairman Jerome Powell against politicizing interest rates ahead of the U.S. election. Trump believes that cutting rates before the election could boost voter confidence in the economy and help the Democrats retain the White House.

Trump previously stated that the central bank might cut interest rates before the election but added that “it’s something they know they shouldn’t be doing.” He also said he wouldn’t remove Powell from his job before his term ended, provided he was “doing the right thing.”

Bitcoin and U.S. Politics

The upcoming U.S. election is placing additional pressure on the Federal Reserve to remain impartial. However, Bitcoin might benefit from a change in leadership in Washington, D.C. Some experts believe that Bitcoin’s price will closely follow the likelihood of Trump being re-elected.

Rich Rosenblum, co-founder of trading firm GSR, tweeted that “Bitcoin will spend the next four months highly correlated to the probability that Trump is elected.”

At the Bitcoin 2024 conference in Nashville, Trump spoke to a crowd of 20,000 people. He promised to build a “strategic Bitcoin stockpile” and vowed to keep 100% of the Bitcoin the U.S. government currently holds or acquires on home soil.

Despite Trump’s speech having little immediate impact on Bitcoin’s price, his crypto policy promises have made it difficult for Vice President Kamala Harris to counter. Rosenblum tweeted that Harris’ policy lacks any focus on the Securities and Exchange Commission and government-held Bitcoin.

Bitcoin Nears All-Time High

Bitcoin has been pushing toward the $70,000 mark, coming within 6% of its all-time high. On July 29, Bitcoin posted a seven-week high, reaching $69,775 during Asia trading hours. This is the highest Bitcoin has traded since June 13, when it hit $70,000 but faced resistance and retreated.

Analyst “Titan of Crypto” told his 86,000 followers on social media that Bitcoin at $110,000 “is programmed” as the asset is “breaking out from the handle” of a cup and handle chart pattern.

Positive Sentiment in the Crypto Market

Recent positive sentiment around Bitcoin has been driven by two U.S. presidential candidates and a prominent Republican senator at the Bitcoin 2024 conference. Independent presidential candidate Robert F. Kennedy Jr. and Senator Cynthia Lummis spoke about establishing a strategic Bitcoin reserve for the U.S. Meanwhile, former President Donald Trump said the government wouldn’t sell any more Bitcoin if he got elected. This could create a lot of buying pressure and a potential supply shock to Bitcoin markets.

Inflation and Interest Rates

The Personal Consumption Expenditures index rose just 0.1% in June, increasing confidence in an interest rate cut in September as inflation comes under control. The Federal Reserve will meet on July 31, and another rate decision is expected. However, the market expects the Fed to keep rates unchanged. The CME Group predicts a 95.9% chance that rates will remain at 5.25% to 5.5%.

Future of Bitcoin Prices

Signals are strengthening for a rate cut in September, with the odds at 85.8% for a cut to 5.0% to 5.25%. This would be the first reduction since March 2020. If this happens, it could provide a significant boost to Bitcoin prices.

Bitcoin’s recent performance and the potential for lower interest rates create an optimistic outlook for the cryptocurrency market. Investors are keeping a close eye on the Federal Reserve’s actions and political developments in the U.S., as these factors will likely influence Bitcoin’s future price movements.

With inflation showing signs of easing and the possibility of interest rate cuts, the crypto market may see increased investment and higher prices in the coming months. The connection between Bitcoin’s price and political events highlights the growing importance of cryptocurrency in the global financial landscape. As we approach the U.S. presidential election, Bitcoin’s performance will be closely watched by investors and policymakers alike.

Bitcoin’s rise above $69,000 amidst easing inflation and potential interest rate cuts presents a promising scenario for the crypto market. The Federal Reserve’s upcoming decisions and the political landscape will play a crucial role in shaping the future of Bitcoin and other cryptocurrencies. Investors should stay informed and be prepared for potential shifts in the market as these events unfold.

BTC Price Gains Fail to Materialize Despite Trump and Others Promising a Giant Bitcoin Reserve

Bitcoin’s price did not see significant gains on July 28, even after United States presidential candidates, including Donald Trump, promised to build a massive Bitcoin strategic reserve if elected.

Price Stabilizing After Flash Volatility

Bitcoin’s price was stabilizing after experiencing flash volatility during the Bitcoin 2024 conference. Many had anticipated a price surge before the event. Two presidential candidates, Donald Trump and Robert F. Kennedy Jr., both announced plans to build a strategic Bitcoin reserve of at least 200,000 BTC. However, this announcement did not have the expected impact on the market.

Experts Weigh In on Bitcoin Reserve Plans

Charles Edwards, the founder of Capriole Investments, reacted to these announcements on social media platform X, previously known as Twitter. He mentioned there was a 65% chance of a US strategic reserve for Bitcoin and that it could still be bought for under $70,000. Edwards referenced Trump’s election odds while discussing this.

Popular trader Daan Crypto Trades suggested that the lack of immediate market response could be due to timing. In his analysis of Trump and others’ speeches, he noted that people might be surprised and confused by the timeline. He stated that the strategic reserve commitments were “heavily underpricing” the actual impact. Even if no new coins are bought, just holding the seized coins would remove a significant supply from the market, easing sell-side pressure.

Bitcoin Monthly Close in Focus

As the buzz from the conference died down, Bitcoin traders turned their attention to the upcoming weekly and monthly closes. The previous candle finish was nearly $68,200, leaving uncertainty about whether the week would end in losses or gains.

Trader MegaWhale Crypto analyzed Bitcoin’s relative strength index (RSI) and hoped for an upward continuation. He explained that Bitcoin’s weekly RSI had broken upward, which was a positive sign. However, for the breakout to be validated, the RSI needed to stay above the diagonal down trending resistance until the weekly close.

Keith Alan, co-founder of Material Indicators, was more cautious. He pointed out that Bitcoin was still facing rejection from key resistance levels. Data from CoinGlass showed that BTC/USD was up 7.8% in July, canceling out losses from June.

Political Strategies and Crypto Industry Dynamics

As the 2024 election approaches, the relationship between political strategies and the crypto industry is becoming more significant. The Harris campaign, for instance, aims to repair the Democratic Party’s ties with the crypto sector. Kamala Harris’s advisers have reached out to top crypto companies to reset strained relationships.

Harris Campaign’s Outreach to Crypto Companies

According to the Financial Times, members of Harris’s team have contacted individuals connected to major crypto companies, including Coinbase, Circle, and Ripple Labs. The goal is to foster a constructive dialogue and establish a regulatory framework that supports industry growth. This outreach is crucial as the crypto industry has shown increasing support for her rival, Donald Trump.

Rethinking Stance on Digital Assets

The Harris campaign’s outreach is part of a broader effort to reshape the perception of the Democratic Party among business leaders. This initiative aims to counter the notion that Democrats are anti-business, a sentiment that has grown amid the Biden administration’s antitrust actions against tech companies. The campaign is focused on building a positive relationship that can pave the way for sensible regulatory frameworks.

Crypto’s Emerging Role in US Politics

Donald Trump, who once expressed skepticism towards cryptocurrencies, has recently become a strong advocate for the sector. He delivered a keynote speech at the Bitcoin 2024 conference in Nashville, Tennessee, on July 27, highlighting his support for the industry. This shift has garnered him substantial backing from the crypto community, making the sector an important source of funding for his campaign.

Pro-Crypto Super PAC Fairshake

The pro-crypto super PAC Fairshake has raised over $200 million from prominent backers, including Coinbase, Ripple, and venture capital firm Andreessen Horowitz. Meanwhile, Trump’s reelection campaign has received approximately $3 million in cryptocurrency donations since he announced it would accept digital asset contributions.

The Impact of a US Bitcoin Strategic Reserve

The idea of a US Bitcoin strategic reserve has significant implications for the global crypto market. If either Trump or Robert F. Kennedy Jr. implements their plans, it could influence Bitcoin’s supply and price dynamics. Charles Edwards and Daan Crypto Trades have both commented on the potential market impact, noting that the strategic reserve commitments could ease sell-side pressure and support Bitcoin’s price.

Weekly and Monthly Bitcoin Price Movements

Bitcoin traders are closely monitoring weekly and monthly price movements. The relative strength index (RSI) trends are crucial indicators for predicting price directions. MegaWhale Crypto and Keith Alan have provided their analyses, highlighting key resistance levels and potential upward trends.

Anticipation of Price Surge

Despite the anticipation of a price surge before the Bitcoin 2024 conference, the market’s response was muted. The promises from Donald Trump and Robert F. Kennedy Jr. did not lead to the expected gains. Experts believe that the strategic reserve commitments were already priced in to some extent, but the timing and market sentiment played significant roles.

Future of Bitcoin Regulation

The future of Bitcoin regulation is a critical topic as the 2024 election approaches. Both Trump and Harris are focusing on different aspects of the crypto industry. Trump’s support has attracted significant funding from the crypto community, while Harris aims to establish a regulatory framework that balances industry growth with sensible oversight.

Building a Strategic Bitcoin Reserve

The proposal to build a strategic Bitcoin reserve is a bold move by US presidential candidates. Such a reserve could have far-reaching effects on Bitcoin’s market stability and price. The idea is to create a reserve of at least 200,000 BTC, which would significantly reduce the available supply and potentially drive up prices.

Market Reactions and Future Predictions

Market reactions to political statements about Bitcoin have been mixed. While some traders expected a price surge, others were cautious about the timing and impact. Analysts like Charles Edwards and Daan Crypto Trades have provided insights into the potential effects of a strategic Bitcoin reserve on the market.

Key Resistance Levels and RSI Trends

Understanding key resistance levels and RSI trends is essential for predicting Bitcoin’s price movements. MegaWhale Crypto and Keith Alan have highlighted these factors in their analyses, providing valuable insights for traders. The focus is on whether Bitcoin can sustain its upward trend and break through key resistance levels.

Political Influence on Crypto Markets

The influence of political strategies on crypto markets is becoming more apparent. The Harris campaign’s outreach to the crypto industry and Trump’s support for Bitcoin are significant developments. These political moves could shape the future of Bitcoin regulation and market dynamics.

Crypto Donations and Campaign Funding

Crypto donations are playing an increasingly important role in campaign funding. The pro-crypto super PAC Fairshake has raised substantial funds, supporting Trump’s campaign. This trend highlights the growing influence of the crypto industry in US politics.

Sensible Regulatory Frameworks

Establishing sensible regulatory frameworks is a priority for the Harris campaign. The goal is to foster a positive relationship with the crypto industry and support its growth. This approach contrasts with the Biden administration’s perceived hostility towards digital assets.

Conclusion

The 2024 election will significantly impact the future of Bitcoin and the crypto industry. Political strategies, market dynamics, and regulatory frameworks are all key factors to watch. The promises of a strategic Bitcoin reserve and the outreach to the crypto industry highlight the growing importance of digital assets in US politics. As the election approaches, the interplay between political decisions and market reactions will continue to shape the landscape for Bitcoin and other cryptocurrencies.

University of Wyoming

The University of Wyoming (UW) has made history by launching the first academic institute dedicated to Bitcoin studies. Named the UW Bitcoin Research Institute, this new center aims to provide high-quality Bitcoin research to academics, journalists, policymakers, and the public.

Introduction to the Bitcoin Research Institute

The UW Bitcoin Research Institute will focus on improving the quality of Bitcoin research. It will create new faculty positions, offer incentives for good academic research on Bitcoin, and encourage young scholars to take on Bitcoin research projects. The institute will also host workshops on Bitcoin-related papers and books.

Leadership and Announcement

Dr. Bradley Rettler, an Associate Professor of Philosophy at UW and author of the book Resistance Money: A Philosophical Case for Bitcoin, has been appointed as the inaugural director of the institute. Dr. Rettler announced this exciting news at the Bitcoin 2024 Conference in Nashville.

Goals of the Institute

The main goal of the UW Bitcoin Research Institute is to raise the standards of Bitcoin research. Currently, the quality of academic Bitcoin research is not very high. The institute wants to change this by producing more accurate and thorough studies on Bitcoin. This will help ensure that high-quality, evidence-based research is available to everyone.

Creating Faculty Positions

The institute plans to create new faculty positions specifically for Bitcoin research. This will bring in more experts who can contribute to the growing body of knowledge on Bitcoin.

Incentivizing Academic Research

To encourage good academic research on Bitcoin, the institute will offer incentives. This means that scholars who produce high-quality research will be rewarded for their efforts.

Encouraging Young Scholars

The institute also aims to encourage young scholars to pursue research projects on Bitcoin. By offering support and resources, the institute hopes to inspire the next generation of Bitcoin researchers.

Hosting Workshops

Workshops will be a key part of the institute’s activities. These workshops will focus on discussing Bitcoin-related papers and books, providing a platform for researchers to share their findings and ideas.

Collaboration and Interdisciplinary Research

The University of Wyoming is well-positioned to lead this initiative because of its strong interdisciplinary academic collaboration. The UW Bitcoin Research Institute will work with various departments within the university, including the philosophy and economics departments, the School of Computing, and the Center for Blockchain and Digital Innovation.

Philosophy and Economics Departments

By collaborating with the philosophy and economics departments, the institute will be able to explore the ethical and economic implications of Bitcoin. This will lead to a deeper understanding of how Bitcoin can impact society.

School of Computing

The School of Computing will provide technical expertise on Bitcoin and blockchain technology. This will help the institute produce high-quality, technical research on Bitcoin.

Center for Blockchain and Digital Innovation

The Center for Blockchain and Digital Innovation will play a crucial role in the institute’s research activities. By working together, the institute and the center will be able to advance the study of Bitcoin and other digital currencies.

Strategic Positioning

The University of Wyoming is strategically positioned to lead this initiative for several reasons. Firstly, it has strong interdisciplinary academic collaboration. Secondly, it is close to renewable energy sources, which are important for Bitcoin mining. Thirdly, it has a supportive legislative and regulatory environment.

Renewable Energy Sources

Wyoming is home to abundant renewable energy sources, which are crucial for Bitcoin mining. By using renewable energy, the institute can conduct research on sustainable Bitcoin mining practices.

Supportive Legislative Environment

Wyoming has a supportive legislative and regulatory environment for cryptocurrency research. This makes it an ideal place for the UW Bitcoin Research Institute to operate and thrive.

Donations and Support

Those interested in supporting the UW Bitcoin Research Institute can make donations. Donations are tax-deductible, and all Bitcoin donations will be held. This support will help the institute continue its important work.

How to Donate

You can help further the work of the Bitcoin Research Institute by making a donation. Donations can be made through the official page of the institute. Every contribution will make a significant impact on academic Bitcoin research.

Tax-Deductible Contributions

All donations to the UW Bitcoin Research Institute are tax-deductible. This means that donors can reduce their taxable income by the amount they donate, providing a financial benefit for supporting the institute’s work.

Benefits to Various Groups

The research produced by the UW Bitcoin Research Institute will benefit a wide range of groups, including academics, journalists, policymakers, and the public.

Academics

Academics will have access to high-quality, peer-reviewed research on Bitcoin. This will help them in their own studies and contribute to the growing body of knowledge on digital currencies.

Journalists

Journalists will be able to use the institute’s research to write more accurate and informed articles about Bitcoin. This will help educate the public and provide reliable information about the cryptocurrency.

Policymakers

Policymakers will benefit from the institute’s evidence-based research. This will help them make informed decisions about cryptocurrency regulations and policies.

The Public

The general public will also benefit from the institute’s work. By providing accessible and accurate information about Bitcoin, the institute will help people understand the cryptocurrency better.

Future Plans and Vision

The UW Bitcoin Research Institute has ambitious plans for the future. It aims to become a leading center for Bitcoin research, contributing to both academic and public understanding of the cryptocurrency.

Expanding Research Areas

The institute plans to expand its research areas to cover various aspects of Bitcoin and blockchain technology. This includes studying the technical, economic, and social impacts of Bitcoin.

Increasing Collaboration

The institute aims to increase collaboration with other universities and research centers. By working together, they can produce more comprehensive and impactful research on Bitcoin.

Hosting Conferences and Events

In the future, the institute plans to host conferences and events focused on Bitcoin research. These events will bring together researchers, scholars, and industry experts to share their findings and discuss the latest developments in the field.

Developing Educational Programs

The institute also plans to develop educational programs on Bitcoin and blockchain technology. These programs will be aimed at students, academics, and the general public, helping to increase understanding and awareness of digital currencies.

Conclusion

The University of Wyoming’s launch of the first Bitcoin Research Institute is a significant step forward in the study of Bitcoin. With a strong focus on high-quality, evidence-based research, the institute aims to elevate the standards of academic research on Bitcoin. By collaborating with various departments and leveraging Wyoming’s unique advantages, the institute is well-positioned to become a leading center for Bitcoin research. Through donations and support, individuals can contribute to this important initiative and help advance the understanding of Bitcoin.

Trump Promises to End War on Crypto if Elected

Trump’s Big Announcement at Bitcoin 2024 Conference

Former United States president and current Republican candidate, Donald Trump, announced his plans to make the United States the “crypto capital of the world” if he is elected in November. He made this declaration at the Bitcoin 2024 conference in Nashville, Tennessee.

Trump arrived an hour late but received a warm welcome from the crowd. He expressed great respect for the Bitcoin community, comparing its early stages to the steel industry when it was young. “This is like the steel industry,” Trump said, emphasizing the potential he sees in Bitcoin and cryptocurrencies.

Bitcoin’s Future According to Trump

Trump predicted that one day, Bitcoin would overtake gold in value. He called Bitcoin a “marvel of technology” and a “miracle of cooperation and human achievement.” His strong support for Bitcoin was clear throughout his speech, as he referred to it as the future of the economy.

Trump’s Political Rivals and Energy Plans

Not wasting any time, Trump took a shot at his political rivals. He mentioned a “low I.Q. opponent,” hinting at Democratic candidate Kamala Harris. Trump then discussed energy usage for Bitcoin and AI, promising to use fossil fuels to generate more electricity. “We will create so much electricity that you’ll be saying, ‘please, President sir, we have too much electricity,'” he proclaimed. He also spoke about his plans to roll back federal incentives for electric vehicles and charging stations.

Trump’s Vision for Cryptocurrency in America

Trump assured the audience that he is the best candidate for the cryptocurrency and Bitcoin communities. He promised that if he becomes president, “you’ll be so happy, you’ll be so happy.” He stressed that if crypto is going to define the future, it should be “mined, minted, and made in America.” He also expressed a desire for America to lead the way if Bitcoin is going “to the Moon.”

Robert F. Kennedy Jr.’s Bitcoin-Friendly Policy

At the same conference, Independent presidential candidate Robert F. Kennedy Jr. presented his own Bitcoin-friendly policy. He promised to sign an executive order requiring the U.S. Justice Department to transfer the 204,000 BTC held by the Federal Reserve into a strategic reserve. Additionally, he said the Treasury Department would purchase 500 BTC daily until the reserve reaches at least four million BTC. Kennedy believes this would give the U.S. a dominant position in the global Bitcoin market.

Edward Snowden’s Caution on Political Bitcoin Support

In contrast to Trump and Kennedy, Edward Snowden, a key speaker at the conference, had a different message. He warned the cryptocurrency community not to blindly support politicians who use Bitcoin as a tool to gain votes. “Cast a vote, but don’t join a cult,” he advised. Snowden emphasized that the community should be cautious and not fully trust politicians, even if they support Bitcoin.

Pro-Crypto Statements by Trump at Bitcoin 2024

During his speech, Trump made twelve pro-crypto statements:

1. “If I am elected, it will be the policy of my administration to keep 100% of all the bitcoin the U.S. government currently holds. This will serve as the core of the strategic bitcoin stockpile.”
2. “On Day 1, I will fire Gary Gensler.”
3. “I will immediately shut down Operation Choke Point 2.0.”
4. “I will immediately appoint a bitcoin and Crypto Presidential Advisory Council.”
5. “We will design transparent regulatory clarity in the first 100 days. Clear, simple, straightforward, and fair.”
6. “There will never be a CBDC while I am president.”
7. “I will always defend the right to self-custody.”
8. “We will create a framework to enable the safe, responsible expansion of stablecoins.”
9. “We will stop the war on crypto.”
10. “We will become the world’s number one bitcoin mining powerhouse.”
11. “I will commute the sentence of Ross Ulbricht.”
12. “I will be the pro-bitcoin president that America needs.”

Energy and Mining Focus

Trump’s vision includes using fossil fuels to generate more electricity, which he believes is essential for Bitcoin mining. He aims to make America the number one Bitcoin mining powerhouse in the world. This involves creating a framework for the safe and responsible expansion of stablecoins and ensuring transparent regulatory clarity within the first 100 days of his presidency.

Regulatory Clarity and Self-Custody Rights

Trump promised to provide clear, simple, and fair regulatory clarity. He assured the right to self-custody for cryptocurrency users, meaning they can hold and manage their own digital assets without relying on third parties. His administration would stop the war on crypto and ensure no Central Bank Digital Currency (CBDC) is introduced while he is president.

Plans to Fire Gary Gensler and End Operation Choke Point 2.0

One of Trump’s first actions as president would be to fire Gary Gensler, the current chair of the Securities and Exchange Commission (SEC). He also plans to end Operation Choke Point 2.0, a government initiative that targets industries like cryptocurrency. By doing so, Trump hopes to create a more favorable environment for the crypto industry.

Establishment of a Crypto Presidential Advisory Council

Trump intends to establish a Crypto Presidential Advisory Council. This council would consist of experts in the cryptocurrency field who would advise his administration on matters related to Bitcoin and other digital currencies. This council’s goal would be to promote the growth and stability of the crypto market in the United States.

Ross Ulbricht Commutation

Trump also stated his intention to commute the sentence of Ross Ulbricht, the founder of Silk Road, an online black market. Ulbricht is currently serving a life sentence without parole for his involvement in the website. Trump believes commuting Ulbricht’s sentence would show his administration’s support for the cryptocurrency community.

Kennedy’s Ambitious Bitcoin Plans

Robert F. Kennedy Jr.’s ambitious plans include the daily purchase of Bitcoin by the Treasury Department and the establishment of a significant Bitcoin reserve. Kennedy believes this strategy would give the United States a dominant position in the global Bitcoin market, making it difficult for other countries to compete.

Snowden’s Warning to the Crypto Community

Edward Snowden’s speech provided a sobering contrast to the political promises. He cautioned the cryptocurrency community against blindly trusting politicians who support Bitcoin for their gain. Snowden’s message was clear: remain vigilant and ensure that the community’s interests are prioritized over political agendas.

The Future of Crypto in America

Trump’s vision for the future of crypto in America is ambitious. He aims to make the United States the leader in Bitcoin mining and ensure that all cryptocurrency activities are conducted within the country. By creating a favorable regulatory environment and supporting the rights of crypto users, Trump hopes to foster innovation and growth in the industry.

Conclusion

The Bitcoin 2024 conference in Nashville, Tennessee, showcased differing views on the future of cryptocurrency in America. Trump and Kennedy presented bold plans to support and grow the industry, while Snowden offered a cautious perspective, urging the community to remain wary of political agendas. As the 2024 election approaches, the future of cryptocurrency in America remains a hot topic, with significant implications for the global crypto market.

Michael Saylor’s Bold Bitcoin Proposal

Michael Saylor, the co-founder of MicroStrategy, believes the US government should own the majority of Bitcoin. MicroStrategy is already the largest corporate owner of Bitcoin, but Saylor thinks the US should be the biggest Bitcoin holder. At the Bitcoin 2024 commentary desk, Saylor said, “The U.S. government should own the majority of the Bitcoin in the world.”

A Big Prediction for Bitcoin’s Future

Saylor is very optimistic about Bitcoin. He said that by 2024, Bitcoin’s market cap will hit $280 trillion, which is more than 200 times its current value. He has also predicted that Bitcoin’s market cap could go over $100 trillion, meaning each Bitcoin could be worth $5 million.

The Numbers Behind the Proposal

For the US government to own the majority of all Bitcoin, it would need to hold over 10.5 million BTC. At current prices, this would be worth $711 billion. Right now, the US government owns about 208,898 BTC, worth $14 billion. These Bitcoins were seized from criminals.

Similar Ideas from Robert F. Kennedy Jr.

Saylor’s idea is similar to that of Robert F. Kennedy Jr., an independent US presidential candidate. Kennedy said he wants the US government to have as much Bitcoin as it does gold. The US government has the largest gold reserves in the world, with 8,134 metric tons worth $615 billion.

Using Bitcoin to Back the Dollar

Kennedy believes that Bitcoin could be part of a group of hard assets backing the US dollar. Saylor agrees. He said, “You back the dollar by doing something economically rational.” He gave an example of how building the port of New York City helped the US engage in international commerce. He believes that the future of the country is in cyberspace and called Bitcoin “cyber Manhattan.”

Trump and Other Candidates’ Views on Bitcoin

Donald Trump, a former president, has recently shown support for Bitcoin. He wants to protect Bitcoin miners in the United States. Both Trump and Kennedy spoke at the Bitcoin 2024 event in Nashville. The views of current Vice President Kamala Harris on cryptocurrency are not well known, but the Biden administration has been tough on crypto firms. However, Harris’s team is reportedly reaching out to prominent crypto advocates like Mark Cuban.

Establishing a Federal Bitcoin Reserve

For any candidate to back the dollar with Bitcoin, they would need to create a formal US Bitcoin reserve. This would show that digital assets are legitimate in the eyes of the state. It would also mean not selling any of the $14 billion worth of Bitcoin the government currently holds. Bryan Courchesne, founder of crypto wealth manager DAIM.io, said this step is possible but difficult.

Moving Bitcoin Holdings to the Treasury

Courchesne suggested that the Justice Department, which holds about 200,000 units of Bitcoin, could move these to the Department of Treasury. This would put $13 billion worth of Bitcoin on the Treasury’s balance sheet. He believes that if the government moves from being a seller to a long-term holder of Bitcoin, it could be very positive for the cryptocurrency space.

The Financial Impact of a US Bitcoin Reserve

If the US followed Kennedy’s plan, it would need to buy $154 billion in Bitcoin every year for four years. This buying could have a big impact on Bitcoin’s price. According to the “Bitcoin multiplier” estimate, every $1 invested in Bitcoin increases its market cap by $3 to $4 during a bull market. This means that the yearly increase in Bitcoin’s market cap could be between $460 billion and $615 billion. This would result in a yearly Bitcoin price increase of $23,000 to $31,000, putting the price of Bitcoin between $90,000 and $98,000.

Why Bitcoin Could Be a Good Investment for the US

Saylor and others believe that owning Bitcoin could be a smart move for the US. Bitcoin is seen as a valuable digital asset, and owning a large amount could give the US a strong position in the global financial system. As Bitcoin becomes more valuable, it could also provide significant financial returns for the country.

Challenges and Considerations

However, there are challenges to this plan. Establishing a federal Bitcoin reserve would require changes in policy and new regulations. There would also be logistical challenges in buying and storing such a large amount of Bitcoin. Additionally, the volatility of Bitcoin’s price could be a concern for some policymakers.

The Future of Bitcoin in the US

The idea of the US government owning the majority of Bitcoin is ambitious. It reflects the growing interest and acceptance of Bitcoin as a major financial asset. As more influential figures like Michael Saylor and Robert F. Kennedy Jr. advocate for Bitcoin, it could lead to significant changes in how digital assets are viewed and used in the US.

The Role of Cryptocurrency Regulations

The Biden administration’s crackdown on crypto firms shows that there is still a lot of uncertainty around cryptocurrency regulations in the US. Future administrations will play a crucial role in shaping the landscape for digital assets. Whether the US will become a major Bitcoin holder depends on the decisions made by current and future leaders.

Conclusion: A New Era for Bitcoin?

Michael Saylor’s proposal for the US government to own the majority of Bitcoin is a bold vision for the future. It highlights the potential of Bitcoin to be a significant part of the global financial system. As discussions around Bitcoin and other digital assets continue, the US could be at the forefront of this new financial era. The decisions made today could shape the financial landscape for years to come.

Bitcoin 2024 Nashville Conference Day Two Highlights

The Bitcoin 2024 Nashville Conference is in full swing, and day two was packed with exciting events and speeches. Here are the highlights from the first two days.

Michael Saylor’s Vision for Bitcoin

Michael Saylor, the CEO of MicroStrategy, gave a keynote speech that captured everyone’s attention. He talked about his ambitious vision for Bitcoin’s future. Saylor believes Bitcoin, which is currently priced around $67,000, has the potential to grow immensely in the coming decades. He even predicted that Bitcoin could reach a market cap of $280 trillion by 2045. This would mean Bitcoin could be worth $49 million per coin in the best-case scenario. Even in a more conservative estimate, Saylor thinks Bitcoin could still be valued at $3 million per coin.

Under Saylor’s leadership, MicroStrategy has bought 226,331 Bitcoin over the last four years. These Bitcoin holdings are now worth about $15 billion, which is 80% more than what the company paid. This shows how committed MicroStrategy is to Bitcoin.

Cynthia Lummis and Bitcoin Regulation

Senator Cynthia Lummis, along with Senator Tim Scott, also spoke at the conference. They discussed the current regulatory landscape and what might happen in the future. Lummis clarified that there would be no announcement about making Bitcoin a strategic reserve asset for the U.S. Instead, she criticized the SEC’s approach to regulating cryptocurrencies and emphasized the Republican Party’s efforts to protect digital asset ownership.

Lummis and Scott highlighted the importance of Bitcoin mining for the energy sector. Scott also hinted at future initiatives to use Bitcoin to help develop underserved areas.

Robert Kennedy Jr.’s Bold Promise

In a surprising move, presidential candidate Robert Kennedy Jr. promised to make Bitcoin a strategic reserve asset for the U.S. if he is elected. He plans to transfer about 200,000 BTC held by the government to the U.S. Treasury and build a reserve of 4 million coins through daily purchases.

Edward Snowden’s Caution

Edward Snowden gave a virtual address at the conference, warning the crypto community about political involvement in cryptocurrency. He advised attendees to stay independent and be cautious about political promises.

Day One Highlights

Day one of the Bitcoin 2024 Nashville Conference was also full of interesting events. Robert Mitchnick, head of digital assets at BlackRock, spoke about the rising demand for Bitcoin exchange-traded funds (ETFs). He mentioned that these funds are just starting to gain momentum and credited BlackRock CEO Larry Fink’s shift in attitude towards Bitcoin to thorough study and client demand.

Mitchnick highlighted that Bitcoin ETFs have been very successful, contributing significantly to BlackRock’s revenue. He also noted that interest in cryptocurrencies beyond Bitcoin and Ethereum is very limited among clients.

VanEck’s Big Bitcoin Prediction

Investment manager VanEck made headlines with their bold prediction that Bitcoin could reach a market capitalization of $61 trillion, or about $2.9 million per coin, by 2050. They believe Bitcoin will be used widely for trade settlement and as a reserve asset for central banks. VanEck also discussed the potential of Bitcoin Layer-2 solutions to solve scalability issues and facilitate widespread adoption.

Economic Shifts and Bitcoin’s Role

VanEck’s report pointed out that Bitcoin’s rise will be driven by economic shifts, such as a decline in major global economies and a loss of confidence in their currencies. This could increase demand for Bitcoin as a neutral medium of exchange with stable properties and predictable monetary policy.

Marathon Digital Holdings’ HODL Strategy

Marathon Digital Holdings Inc., one of the largest Bitcoin miners, announced that they had acquired $100 million worth of Bitcoin. The company plans to hold onto these Bitcoin, adopting a “HODL” strategy. Marathon’s CFO, Salman Khan, explained that this decision was made because of Bitcoin’s recent price decline and the strength of their balance sheet. This move marks a significant shift from their previous strategy of selling mined Bitcoin to cover operating expenses.

Marathon’s Chairman and CEO, Fred Thiel, emphasized the company’s confidence in Bitcoin’s long-term value and encouraged other corporations and governments to hold Bitcoin as a reserve asset.

The Importance of Bitcoin Mining

Bitcoin mining was a significant topic at the conference. It plays a critical role in the energy sector, helping to innovate and strengthen the U.S.’s energy infrastructure. By using excess energy, Bitcoin mining can make the energy sector more efficient and sustainable.

Bitcoin ETFs and Their Impact

Bitcoin exchange-traded funds (ETFs) were another hot topic. These funds allow investors to buy and sell Bitcoin without owning the cryptocurrency directly. Robert Mitchnick from BlackRock explained that client demand is driving the growth of Bitcoin ETFs. He noted that these ETFs have been some of the most successful launches in history, contributing significantly to BlackRock’s revenue.

Mitchnick also mentioned that interest in Bitcoin ETFs is still growing among wealth advisory and institutional investors. He expects this trend to accelerate in the coming years as more financial institutions start offering these products to their clients.

Limited Interest Beyond Bitcoin and Ethereum

While Bitcoin and Ethereum are gaining traction, interest in other cryptocurrencies remains limited. According to Mitchnick, BlackRock’s clients are primarily interested in Bitcoin, with some interest in Ethereum. He does not foresee a significant increase in demand for crypto ETFs beyond these two core assets.

VanEck’s Vision for Bitcoin’s Future

VanEck’s prediction of Bitcoin reaching $2.9 million per coin by 2050 is based on several factors. They believe Bitcoin will be widely used as collateral for trade settlement and as a reserve asset for central banks. This demand, coupled with economic shifts and a loss of confidence in major global currencies, could drive Bitcoin’s value up significantly.

VanEck also discussed the potential of Bitcoin Layer-2 solutions, like the Lightning Network, to address scalability issues and facilitate widespread adoption. These solutions could be worth around $7.6 trillion, according to their report.

Economic Shifts and Bitcoin’s Role

As major global economies like the United States, the European Union, and Japan face economic challenges, Bitcoin could become an increasingly attractive alternative. VanEck’s report highlighted that the euro and Japanese yen are losing their share in international settlements, presenting an opportunity for Bitcoin to fill this gap.

The Future of Bitcoin Mining

Bitcoin mining continues to evolve, with companies like Marathon Digital Holdings leading the way. By adopting a HODL strategy, Marathon is showing confidence in Bitcoin’s long-term value. This strategy involves holding onto mined Bitcoin rather than selling it immediately, which can be beneficial during bull markets.

Marathon Digital’s Commitment to Bitcoin

Marathon Digital Holdings’ decision to acquire and hold $100 million worth of Bitcoin reflects their belief in the cryptocurrency’s future. By adopting a HODL strategy, the company aims to leverage their technological expertise to support the Bitcoin ecosystem.

Conclusion

The Bitcoin 2024 Nashville Conference has highlighted the growing importance of Bitcoin in various sectors. From Michael Saylor’s ambitious vision to Robert Kennedy Jr.’s bold promise, the conference has shown that Bitcoin is here to stay. As more companies and individuals recognize Bitcoin’s potential, its role in the global economy will likely continue to grow. With continued innovation in Bitcoin mining and the rise of Bitcoin ETFs, the future of cryptocurrency looks promising.

Michigan Pension Fund Invests $6.6 Million in Bitcoin via ARK 21Shares ETF

Introduction to Michigan’s Bitcoin Investment

Michigan’s retirement system has made a notable move by investing $6.6 million in Bitcoin through the ARK 21Shares ETF. This significant step shows how traditional pension funds are starting to embrace cryptocurrency. The State of Michigan Retirement System made this investment, which is only a small part (0.004%) of its total $143.9 billion in assets. This was revealed in a 13-F Form filed with the Securities and Exchange Commission (SEC).

Understanding the 13-F Form

The 13-F Form is a quarterly report that large institutional investment managers must file with the SEC. It is required for those who manage more than $100 million in assets. This form helps the public understand where large institutions are investing their money. Michigan’s latest filing highlights its new interest in Bitcoin, marking a significant development in the world of institutional investments.

Other Pension Funds Investing in Bitcoin

Michigan is not alone in this trend. Other pension funds are also adding Bitcoin to their portfolios. For example, the State of Wisconsin Investment Board (SWIB) has invested $99 million in Bitcoin through BlackRock’s IBIT ETF. This shows a growing trend among public pension funds to diversify into digital assets.

Jersey City’s Plan to Invest in Bitcoin ETFs

Jersey City, New Jersey, is also planning to invest in Bitcoin ETFs. Mayor Steven Fulop announced that the city’s pension fund will include Bitcoin ETFs, following SEC approval. This decision is part of a broader strategy to integrate cryptocurrencies into the city’s financial plans. Fulop has been a strong supporter of cryptocurrency and blockchain technology, viewing them as major technological innovations.

The Rise of Bitcoin ETFs

Bitcoin ETFs have become quite popular since their launch. For example, BlackRock’s IBIT ETF has outperformed other major funds like Nasdaq’s QQQ in terms of year-to-date inflows. The SEC’s approval of spot Bitcoin ETFs has opened the door for more public pension funds to consider these investments. Although some large financial institutions like Wells Fargo and JPMorgan Chase have been slow to adopt Bitcoin ETFs, investing less than $1 million combined, the trend is growing.

Financial Strategies Involving Bitcoin ETFs

The inclusion of Bitcoin ETFs in pension funds reflects a broader trend of acceptance of digital assets in traditional finance. As more cities and states consider adding cryptocurrencies to their portfolios, this could lead to wider adoption of digital assets. Mayor Fulop’s decision is a strong signal that institutional acceptance of cryptocurrencies is increasing. This trend is expected to continue as more institutional investors file their 13-F forms with the SEC, revealing their Bitcoin holdings.

Blockchain Technology’s Impact

Blockchain technology, which underlies Bitcoin, is seen as a revolutionary development, comparable to the internet. Mayor Fulop highlighted this by saying that blockchain is one of the most important new technology innovations. This technology not only supports cryptocurrencies but also has potential applications in various fields such as finance, healthcare, and supply chain management.

Volatility and Risks of Cryptocurrency Investment

Despite the growing interest, there are still concerns about investing in cryptocurrencies. The Michigan government’s official website advises caution, warning about the volatility, lack of regulation, and vulnerability associated with crypto investments. These concerns are valid, as the value of cryptocurrencies can fluctuate significantly, leading to potential losses.

The Future of Institutional Crypto Investments

As more institutional investors and public pension funds start to include Bitcoin and other cryptocurrencies in their portfolios, the landscape of traditional finance is changing. This shift is driven by the potential for high returns and the increasing acceptance of digital assets. However, it is essential for these institutions to carefully consider the risks and benefits before making such investments.

Conclusion

Michigan’s $6.6 million investment in Bitcoin through the ARK 21Shares ETF marks a significant step in the adoption of cryptocurrencies by public pension funds. Other states, like Wisconsin and cities like Jersey City, are following suit, showing a growing trend of institutional acceptance of digital assets. As more 13-F forms are filed with the SEC, revealing institutional investments in Bitcoin, it is clear that the integration of cryptocurrencies into traditional finance is becoming more widespread. However, investors must remain cautious and aware of the risks associated with this volatile market.

Bitcoin Price Sees Relief but Faces Resistance

Bitcoin’s price is finally seeing some relief, as it recently climbed above $67,000. However, it faces significant resistance at the $68,000 mark. This resistance is crucial because breaking through it could trigger over $700 million worth of short liquidations. This means that many people who bet against Bitcoin’s price rising would have to buy Bitcoin to cover their losses, potentially pushing the price even higher.

Bitcoin Short-Term Holders in Profit

Three-quarters of short-term Bitcoin holders are now in profit. This could give Bitcoin’s price more upward momentum. This increase in profit is due to Bitcoin’s recent rally. According to a report by Glassnode on July 24, “This rally has now broken back above the STH cost basis and returned 75% of their held supply to an unrealized profit.” The STH-MVRV metric shows this recovery, which has now risen above the break-even level of 1.0.

The Impact of Bitcoin’s Price Rally

Bitcoin’s price rally offers significant relief for short-term holders. This group saw over 90% of its supply in the red during late July. Short-term holders are often used as a measure to gauge Bitcoin demand and recent buying patterns. Their profitability can be a strong indicator of market sentiment.

Key Support and Resistance Levels

Bitcoin’s price managed to settle above a key support level, despite a $3.9 billion BTC futures expiry that threatened to drop it to $63,000. Following the rally, Bitcoin needs to stay above the $65,000 mark, which acts as a key support. Popular crypto analyst Rekt Capital noted in a July 26 post, “The retest was successful. Bitcoin has confirmed $65,000 as support. Price will now continue to occupy the $65000-$71500 region (red).”

Resistance at $68,000

Despite the bullish price recovery, Bitcoin faces significant resistance at the $68,000 mark. Nearly $700 million worth of leveraged short positions are at risk of liquidation if Bitcoin rises above this level, according to CoinGlass data. Short liquidations would exceed $1 billion if Bitcoin surpasses $68,500, but reaching that level depends on inflows from US spot Bitcoin exchange-traded funds (ETFs).

US Spot Bitcoin ETFs and Their Impact

Inflows into US spot Bitcoin ETFs have been slowing down since July 23. By July 25, these inflows reached $31.1 million, according to Farside Investors data. The pace of these inflows can significantly impact Bitcoin’s price movement.

Bitcoin Futures Expiry and Its Effects

Bitcoin futures expiry is a major event that can influence the price. The recent $3.9 billion BTC futures expiry threatened to push Bitcoin down to $63,000. However, Bitcoin managed to hold its ground and even rally. Futures expiry events are important to watch as they can create volatility in the market.

Glassnode Report on Bitcoin’s Recent Rally

The Glassnode report from July 24 highlights the importance of the recent Bitcoin rally. The report states, “This rally has now broken back above the STH cost basis and returned 75% of their held supply to an unrealized profit.” This shows that short-term holders are now seeing profits, which can boost market confidence and encourage more buying.

Bitcoin Short-Term Holders’ Profitability

The profitability of short-term Bitcoin holders is a key metric to watch. When a large percentage of these holders are in profit, it suggests strong demand and positive market sentiment. This can lead to further price increases as more investors gain confidence in Bitcoin’s upward potential.

Key Support Level at $65,000

Bitcoin needs to maintain its position above the $65,000 support level to continue its upward trend. This level has been confirmed as support by crypto analyst Rekt Capital, who stated, “The retest was successful. Bitcoin has confirmed $65,000 as support.” Staying above this level is crucial for Bitcoin to reach higher price targets.

The Role of Leveraged Short Positions

Leveraged short positions are bets that Bitcoin’s price will fall. If Bitcoin’s price rises, these positions can be forced to liquidate, which means buying Bitcoin to cover losses. This buying pressure can drive the price up even further. Currently, nearly $700 million worth of these positions could be liquidated if Bitcoin breaks above $68,000.

Psychological Resistance at $68,000

The $68,000 mark is a psychological resistance level for Bitcoin. Breaking through this level could lead to significant price movements. Many investors watch these key levels closely, and breaking through can lead to increased buying activity.

Short Liquidations and Their Impact

If Bitcoin’s price rises above $68,000, it could trigger nearly $700 million in short liquidations. If the price goes above $68,500, these liquidations could exceed $1 billion. This would create substantial buying pressure, potentially driving the price even higher.

Bitcoin Demand and Buying Patterns

Short-term holders are often used to gauge Bitcoin demand and recent buying patterns. Their profitability can indicate strong market demand. When short-term holders are in profit, it suggests that recent buyers are willing to hold their positions, expecting further price increases.

Bitcoin’s Price Recovery

Bitcoin’s recent price recovery is a positive sign for the market. It shows that despite threats like futures expiries and resistance levels, Bitcoin can still find support and rally. This recovery boosts investor confidence and can attract more buyers to the market.

Key Metrics to Watch

Several key metrics are important to watch in the Bitcoin market. These include the STH-MVRV metric, which shows short-term holders’ profitability, and the levels of leveraged short positions. Watching these metrics can provide insights into market trends and potential price movements.

Bitcoin’s Price Movement and Future Outlook

Bitcoin’s price movement depends on several factors, including support and resistance levels, futures expiries, and inflows into US spot Bitcoin ETFs. Staying above key support levels like $65,000 is crucial for maintaining upward momentum. Breaking through resistance at $68,000 could trigger significant buying activity and further price increases.

Conclusion

Bitcoin’s recent price rally has brought significant relief to short-term holders, with over 75% now in profit. However, the price faces resistance at the $68,000 mark, which is crucial for future movements. Key support levels, futures expiries, and inflows into US spot Bitcoin ETFs are all factors to watch. The profitability of short-term holders and the potential for short liquidations are important metrics that can influence Bitcoin’s price in the near future. By keeping an eye on these factors, investors can better understand market trends and make informed decisions.

BTC Outperforms Broader Crypto Market

Introduction

Bitcoin (BTC) outperformed the wider crypto market as measured by the CoinDesk 20 Index during the Friday Asia trading session. The performance of Ether (ETH) exchange-traded funds (ETFs) mirrors that of the Bitcoin ETFs after their launch in January.

Bitcoin’s Strong Performance

During the Asia trading day, Bitcoin added 4.4% to test $67,000, while the CoinDesk 20 Index (CD20) rose 3.3%. Solana’s SOL jumped over 5% to lead gains among major tokens, with Ether (ETH), BNB Chain’s BNB, and Cardano’s ADA adding 3%. Dogecoin (DOGE) rose 4%, and Solana-based memecoin popcat (POPCAT) jumped more than 8% to lead gains in that category.

Ether and Crypto Futures

For the third day, Ether products led liquidations across crypto futures, with over $70 million in longs liquidated compared with $55 million on BTC-tracked futures. Open interest, or the number of unsettled futures bets, dropped by $1 billion over the past 24 hours, indicating money leaving the market.

Bitcoin Outflows

Bitcoin exchange-traded funds (ETFs) added a net $31.16 million, bringing the cumulative net flow since their introduction in January to just under $17.5 billion. Total net assets of the ETFs amount to $59.14 billion, or about 4.6% of the entire market cap of the largest cryptocurrency.

Ether ETF Performance

Ether, the second-largest cryptocurrency, rose 2.8% to top $3,200. The Ether ETFs experienced a net daily outflow of $152 million. The current cumulative flow for the ETFs since they started trading this week is negative $178.68 million, mainly due to withdrawals from Grayscale Ethereum Trust (ETHE), which converted to an ETF.

Comparison with Bitcoin ETFs

CoinShares analysts noted that this situation is very similar to the Bitcoin ETF product launches at the beginning of the year. Outflows from the Grayscale Bitcoin Trust (GBTC), the world’s largest Bitcoin fund at the time, which converted from a closed-end structure into an ETF, weighed on Bitcoin’s price over the first weeks. Later, inflows to rival funds overcame the negative trend, propelling BTC to an all-time high in March.

Grayscale Ethereum Trust

The Grayscale Ethereum Trust is following the same path but faster, making the decline a “prime buying opportunity,” according to Mads Eberhardt, a crypto analyst at Steno Research. If this trend continues, the outflow from the Grayscale Ethereum ETF could end much quicker than it did for Bitcoin in January, perhaps as early as mid-next week. After this, strong net inflow is expected due to the inflow into other ETFs observed over the last few days.

Different Opinions on Ether’s Future

Rachel Lin, CEO and co-founder of SynFutures, disagreed, saying she expects short-term pain for ETH traders. She noted that Grayscale’s ETH ETF fund is becoming a net seller on the market, with over $810 million in outflow since the ETF launch. Grayscale currently holds over $8 billion worth of Ether, and nearly 10% of it was sold in just the past two days. If the trend continues, Grayscale might reach the 50% mark far sooner than with Bitcoin. However, that would also mean more downside for Ethereum.

Solana and Other Major Tokens

While Bitcoin and Ether faced mixed performances, Solana’s SOL saw significant gains, jumping over 5%. This made SOL the leading gainer among major tokens. Other cryptocurrencies like BNB Chain’s BNB, Cardano’s ADA, and Dogecoin (DOGE) also saw positive movements, adding around 3% to their values. In the memecoin category, popcat (POPCAT) from the Solana network stood out with an 8% jump.

Market Reactions and Predictions

Analysts have varying opinions on the market’s direction. While some see the current situation as a buying opportunity, others predict more short-term pain. The market is reacting to the launch and performance of ETFs, with significant inflows and outflows affecting prices. The comparison between Bitcoin and Ether ETFs highlights how similar market events can lead to different outcomes based on the timing and speed of investor reactions.

Long-Term Outlook

The long-term outlook for both Bitcoin and Ether remains positive, according to some analysts. Despite the short-term volatility, the introduction of ETFs and the resulting market dynamics are seen as steps toward greater acceptance and integration of cryptocurrencies into mainstream financial systems. The cumulative net flows, despite some negative periods, suggest a growing interest and investment in these digital assets.

Conclusion

Bitcoin’s recent performance has shown its ability to outperform the broader crypto market, even amid significant market events like ETF launches. Ether, while facing challenges, mirrors Bitcoin’s previous ETF journey and may soon see a reversal in outflows. The crypto market remains dynamic, with various factors influencing the prices and performance of different tokens. As always, investors should stay informed and cautious, keeping an eye on both short-term trends and long-term potentials.