In the past 24 hours, the cryptocurrency market has experienced notable changes, with Bitcoin struggling to stay above the $58,000 mark. Despite avoiding lower levels, the cryptocurrency failed to break through the $60,000 resistance, causing bulls to focus on maintaining the $57,500 support. Typically, weekends are characterized by lower trading volumes and subdued price movements. So, what were the key events?
Significant Cryptocurrency Events?
One major highlight was the transfer of $720 million in Bitcoin from the Genesis Trading wallet. Despite expectations that sales in Germany were concluding, uncertainty about the MTGOX repayment speed lingered. Genesis’s recent activities have further fueled market negativity. Over the past month, the wallet has conducted multiple large transfers. Following an agreement with the Attorney General, Genesis was ordered to pay $2 billion to Earn program victims.
Funds are being moved to the Coinbase exchange for sale, two months post-acquisition. This includes $50,000 from Germany, $46,000 from Genesis, and $8.5 billion from MTGOX, creating a significant surplus in the latter half of 2024.
Why Is Fear Increasing?
The market sentiment is dominated by extreme fear as Bitcoin failed to surpass $60,000 on its second attempt. Noted crypto commentator Justin Bennett warned investors of potential declines due to a rising wedge pattern. Within 12 hours, Bitcoin’s price dropped to $57,000, and the fear and greed index plunged back into the extreme fear territory, often seen before significant losses. Bitcoin is currently 23% below its all-time high.
Ether ETF Forecasts
Experts are making predictions about the capital inflows expected with the upcoming ETH ETF listing. Tom Dunleavy of MV Global estimated inflows between $5 billion and $10 billion, suggesting a positive market impact in the final quarter. He compared it to Bitcoin’s $15 billion inflow and anticipated a similar positive effect on Ethereum’s price, potentially reaching new highs.
Key Takeaways
– Genesis Trading has moved $720 million to Coinbase, hinting at significant sales.
– Fear and greed index has returned to extreme fear levels.
– Predictions for ETH ETF indicate substantial inflows, signaling potential price hikes.
The supply of ETH on exchanges continues to decrease due to staking, and the long-term impact of net inflows remains to be seen. The effect on ETHE compared to GBTC will unfold with time.