Bitfinex Alpha | LTHs, Whales & Miners put pressure on BTC

17 jun 2024 3 min read
Imagen de cabecera del artículo

Indeed, historical patterns suggest that while ETF investment flows are a metric worth watching to gauge investor sentiment on BTC, such flows might not necessarily align with “smart money” flows, and are more reactionary to price changes rather than predictive of market direction. Every time BTC has climbed above $70,000, net ETF inflows have registered close to $1 billion per day. As the price headed lower last week, ETF flows were negative on four days out of five.

We believe a more critical determinant of BTC’s valuation last week, was the key US consumer inflation data that was released and the Federal Reserve’s interest rate decisions.

In fact on-chain metrics show that most of the selling seemed to be coming, not from ETF investors, but rather Long-Term Holders, whales and miners. The Hodler Net Position Change metric, which measures whale holdings, have been showing consistent negative values for the past nine days, while the Bitcoin:Exchange Whale ratio has continued to climb as more Whales deposit balances on exchanges. These two entities command more BTC than the ETFs, and have clearly put pressure onto the market.

Further, miner reserves have continued to decline, even post-halving, suggesting that miners are struggling to maintain operational efficiency and are continuing to sell assets to maintain profitability and invest in upgraded machinery. That said, with miner reserves nearing four-year lows, the selling pressure from this group might be reaching a critical low.

BTC took fright last week after the Fed indicated that aside from maintaining current interest rates, it was likely to postpone any potential rate cuts until December. However, despite this bearishness, we note that other real economy indicators released last week suggested there was room for more optimism.

Both CPI and PPI have shown signs of easing on a month-on-month basis and the historically tight labour market is finally beginning to loosen – a situation the Fed will not want to see persist too long.  These factors suggest that a first rate cut is still quite plausible in September, followed by a further cut in December.

Meanwhile the prospects of an Ether ETF looked more positive last week after Securities and Exchange Commission Chairman Gary Gensler hinted at a possible approval in the coming months. Analysts forecast the first spot Ether ETF could debut as soon as July 2nd, following reported feedback that the SEC requires only minimal adjustments from applicants.

Additionally, a BIS survey revealed a significant uptick in CBDC experiments among central banks, with proof of concept projects increasing by 35 percent and pilots nearly tripling from 2022 to 2023, especially in advanced economies.

It shows how far crypto has come. Happy Trading!

Download Alpha

The post Bitfinex Alpha | LTHs, Whales & Miners put pressure on BTC appeared first on Bitfinex blog.

Noticias populares

How to Set Up and Use Trust Wallet for Binance Smart Chain
#Bitcoin#Bitcoins#Config+2 más etiquetas

How to Set Up and Use Trust Wallet for Binance Smart Chain

Your Essential Guide To Binance Leveraged Tokens

Your Essential Guide To Binance Leveraged Tokens

How to Sell Your Bitcoin Into Cash on Binance (2021 Update)

How to Sell Your Bitcoin Into Cash on Binance (2021 Update)

What is Grid Trading? (A Crypto-Futures Guide)

What is Grid Trading? (A Crypto-Futures Guide)

¡Comienza a operar gratis con Cryptohopper!

Uso gratuito, sin tarjeta de crédito.

Cryptohopper appCryptohopper app

Descargo de responsabilidad: Cryptohopper no es una entidad regulada. El Trading de bots de criptomoneda implica riesgos sustanciales, y el rendimiento pasado no es indicativo de resultados futuros. Las ganancias mostrados en las capturas de pantalla de los productos tienen fines ilustrativos y pueden ser exagerados. Participe en el Trading con bots únicamente si posee conocimientos suficientes o busque la orientación de un asesor financiero cualificado. Bajo ninguna circunstancia Cryptohopper aceptará responsabilidad alguna ante ninguna persona o entidad por (a) cualquier pérdida o daño, total o parcial, causado por, derivado de o en relación con transacciones que impliquen nuestro software o (b) cualquier daño directo, indirecto, especial, consecuente o incidental. Tenga en cuenta que el contenido disponible en la plataforma de Trading social Cryptohopper es generado por los miembros de la comunidad Cryptohopper y no constituye asesoramiento o recomendaciones de Cryptohopper o en su nombre. Las ganancias mostrados en el Marketplace no son indicativos de resultados futuros. Al utilizar los servicios de Cryptohopper, usted reconoce y acepta los riesgos inherentes al Trading de criptomonedas y se compromete a eximir a Cryptohopper de cualquier responsabilidad o pérdida en que incurra. Es esencial revisar y comprender nuestras Condiciones de servicio y Política de divulgación de riesgos antes de utilizar nuestro software o participar en cualquier actividad comercial. Consulte a profesionales jurídicos y financieros para obtener asesoramiento personalizado en función de sus circunstancias específicas.

©2017 - 2024 Copyright por Cryptohopper™ - Todos los derechos reservados.