A crypto strategist who nailed the pre-halving Bitcoin ( BTC ) correction earlier this year says altcoins will likely rip once this large-cap coin takes center stage. Pseudonymous analyst Rekt Capital tells his 517,800 followers on the social media platform X that a bullish Ethereum ( ETH ) would be very favorable for the altcoin market. “An ETH breakout would lead the next wave of altcoin rallies.” Looking at Ethereum, the trader says ETH is very close to sparking a high timeframe breakout. “Ethereum is now pressing past the ~$3,700 resistance of its main pattern (light blue). A weekly close above the pattern top would kickstart a breakout and end the 2024 ETH downtrend.” Source: Rekt Capital/X Ethereum has closed the latest weekly candle above $3,700. At time of writing, Ethereum is trading for $3,731. Late last month, Rekt said that Ethereum moving above $3,100 would trigger capital rotation from Bitcoin to ETH. He also shared a chart suggesting that capital would eventually move from ETH to mid-cap and subsequently lower-cap coins. “A weekly close above the blue diagonal resistance ($3,100) would likely set up another wave in the money flow cycle as ETH would take control of large-cap money flow.” Source: Rekt Capital/X As for Bitcoin, Rekt says the crypto king needs to rally above its immediate resistance to spark an upside burst toward the six-figure level. “Bitcoin is now trying to press beyond the bull flag top. A daily close above the bull flag resistance of ~$97,450 could kickstart additional trend continuation to get closer to challenging $100,000 once again.” Source: Rekt Capital/X At time of writing, Bitcoin is trading for $97,891. Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: DALLE3 The post Here’s What Could Trigger the Next Wave of Altcoin Rallies, According to Crypto Strategist Rekt Capital appeared first on The Daily Hodl .
The Daily Hodl 2024-12-03 03:00
Bitcoin, the world’s leading cryptocurrency, appears to be on the brink of a potential sharp rise. According to a CryptoQuant analyst, Crypto Dan, the market could experience a significant upward trend within the next two months. This insight , shared on the CryptoQuant QuickTake platform, is based on a critical market indicator that has historically signaled major price rallies. Bitcoin Market Outlook: Sharp Rise Incoming In the post titled “Strong Rise in Bitcoin is Expected Within 1-2 Months”, Crypto Dan highlights the emergence of a “golden cross” in the Spent Output Profit Ratio (SOPR) indicator. This occurrence, he notes, is a rare event that typically happens only once or twice during an entire bull market cycle. As part of the current bullish cycle that began in January 2023, its reappearance is being seen as a strong precursor to a substantial market move . For further context, the SOPR Ratio indicator measures realized profits and losses in the Bitcoin market, offering insight into investor sentiment. The “golden cross” identified by Crypto Dan signifies a pivotal moment in the bull cycle . Historically, this signal has been followed by strong price increases within two months of its appearance. Crypto Dan explained that the market is likely entering the final phase of the current upward cycle, a stage characterized by steeper price gains and shorter periods of consolidation . This means that while Bitcoin’s ascent might accelerate, the opportunities for investors to accumulate at lower prices could diminish rapidly. Furthermore, he projected that if the anticipated rise materializes by the end of 2024 or the first quarter of 2025, it could draw significant new capital into the market. The inflow of additional funds is expected to fuel Bitcoin’s momentum, potentially driving the market to its peak during this cycle. Dan wrote: As the market moves towards the later stages of the cycle, the magnitude of the rise tends to be larger, and the periods of decline/adjustment are shorter. If a steep rise occurs as implied by this indicator within the end of 2024 to the first quarter of 2025, it can be expected that new inflows and additional funds will enter the market, bringing it to its peak. BTC Market Performance Meanwhile, Bitcoin continues to maintain stability above the $95,000 price mark. At the time of writing, the asset currently trades for $96,296, down by 1% in the past day but still up by nearly 40% in the past month. According to a renowned crypto analyst known as Ali on X, while some in the community expect a major retracement in Bitcoin’s price, BTC could do the opposite. The analyst projected BTC could surge to as high as $120,000-$150,000 before the first 30% price correction . Given the fact that #Bitcoin tends to do the opposite of what the crowd believes, there is potential for $BTC to go higher. If the current cycle behaves like the last two, #BTC could go to $120,000-$150,000 before the first 30% price correction. https://t.co/xTHJMITqJa — Ali (@ali_charts) December 2, 2024 Featured image created with DALL-E, Chart from TradingView
NewsBTC 2024-12-03 02:30
Recent trends in the cryptocurrency market reveal a significant increase in ETF inflows, indicating a shift towards traditional financial instruments for Bitcoin and Ethereum exposure. As institutional investors continue to
CoinOtag 2024-12-03 02:06
XRP’s recent surge to $2.31 has ignited discussions regarding its potential to challenge Bitcoin’s longstanding dominance in the cryptocurrency realm. XRP has recorded a notable price increase of over 17%
CoinOtag 2024-12-03 02:03
Altcoins are reclaiming serious pace, entering new growth stage
U.Today 2024-12-03 02:01
XRP’s recent surge to $2.31 has sparked discussions about its potential to challenge Bitcoin’s dominance.
AMB Crypto 2024-12-03 02:00
Is Ethereum poised for an explosive run after its recent ETF and price surge?
AMB Crypto 2024-12-03 01:30
Digital assets manager CoinShares says institutional investors have now allocated nearly $40 billion to crypto products this year. In its latest Digital Asset Fund Flows report , CoinShares says that institutional crypto investment products saw a surge in net inflows that brought yearly flows to $37.3 billion last week, a new record. “Digital asset investment products saw inflows totaling US$270m last week, while the flows displayed an unusual dichotomy between assets within the asset class. Since the launch of options on US ETFs, despite their high initial volumes, we have not seen a commensurate rise in ETP volumes at US$22bn last week, compared to US$34bn the week prior. Total inflows this year so far are at a new record of US$37.3bn.” Source: CoinShares The US region led the world with $266 million in inflows, followed by Hong Kong and Germany at $39 million and $12.3 million. “Minor outflows were seen in Switzerland and Canada of US$26m and US$10m respectively.” Following Bitcoin’s ( BTC ) unsuccessful push for the key psychological price level of $100,000 last week, BTC saw outflows of $457 million. Meanwhile, Ethereum ( ETH ) set a new record for yearly inflows. “In stark contrast, Ethereum saw inflows of US$634m, and has experienced a dramatic turnaround in sentiment which has seen year-to-date inflows hit US$2.2bn, finally beating its 2021 inflows record of US$2bn.” XRP products brought in $95 million, possibly due to possibility of an upcoming XRP exchange-traded fund (ETF). Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox Check Price Action Follow us on X , Facebook and Telegram Surf The Daily Hodl Mix Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing. Generated Image: DALLE3 The post Ethereum Sees ‘Dramatic’ Shift in Institutional Sentiment Amid New Yearly Record in Product Inflows: CoinShares appeared first on The Daily Hodl .
The Daily Hodl 2024-12-03 01:01
Summary The WisdomTree Bitcoin Fund ETF tracks the same Bitcoin Reference Rate index as IBIT, but suffers from illiquidity and higher bid/ask spreads, with an Average Spread of 0.09%. BTCW offers a 0% expense ratio until January 2026. However, IBIT counters with a six-month discounted fee of 0.12%, narrowing the effective savings. I see BTCW’s declining trading volume as a shift toward long-term holding, while IBIT continues to attract active traders and benefits from a virtuous liquidity cycle. Despite BTCW’s temporary fee advantage, IBIT remains the superior ETF due to lower transaction costs, higher liquidity, and additional features like options availability. This is my second article part of the “Bitcoin ETFs Showdown” series I am writing for Seeking Alpha, where I analyze different Bitcoin ETFs, comparing them against the iShares Bitcoin Trust ETF ( IBIT ), the largest and most liquid Bitcoin (BTC-USD) exchange-traded fund on the market. My last article concerned the ARK 21Shares Bitcoin ETF ( ARKB ), which I see as an overall slightly inferior choice than IBIT. This article focuses on the WisdomTree Bitcoin Fund ETF ( BTCW ). Once again, I will compare BTCW against IBIT to determine whether IBIT remains the best choice for investors. This series does not explore whether it’s the optimal time to invest in Bitcoin. I continue to see Bitcoin as a high-risk, asymmetric opportunity based on its potential to evolve into a global reserve asset. Investors unsure about Bitcoin should study its fundamentals and evaluate if it fits their risk tolerance and investment goals. If you are interested in learning more about Bitcoin, you can find my broader investment thesis and thoughts about Bitcoin on my Seeking Alpha profile . BTCW: ETF profile The first thing that I noticed when opening BTWC’s webpage is the relative chaos in terms of documentation for this ETF. WisdomTree released an initial 21 page ETF prospectus , followed by three prospectus supplements of 20+ pages each, the latest of which came in November of this year. Additionally, quarterly 10K reports are also available to download. While very generous in terms of documentation, the webpage of BTCW is surprisingly scarce in terms of information about the fund. There is no clear mention of custodians, nor of what exact Bitcoin index or index proxy the ETF tracks (if any). WisdomTree claims its BTCW fund will track the price of Bitcoin based on an “independently calculated value based on an aggregation of executed trade flow of major bitcoin spot exchanges”. Interestingly in my view, only one of the four available prospectus documents reveals what WisdomTree means with “independently calculated”: The Trust will hold bitcoin and will value its Shares daily based on the value of bitcoin as reflected by the CME CF Bitcoin Reference Rate – New York Variant (the “Reference Rate”), which is an independently calculated value based on an aggregation of executed trade flow of major bitcoin spot platforms. Which is to say, the BTCW ETF tracks the same index as IBIT and most other Bitcoin ETFs - the ME CF Bitcoin Reference Rate – New York Variant. This is an index that produces a once a day price for Bitcoin aggregating multiple trade data from different cryptocurrency exchanges. IBIT, while tracking the exact same index, makes it clear the fund uses this index from the very beginning in its website and marketing material. Further deep diving into available documentation also reveals how, exactly like IBIT, the BTCW fund uses Coinbase (COIN) as its custodian. I see custodian risk as one of the main elements to keep in mind when investing in Bitcoin via ETFs - something I covered in my very first article about IBIT, explaining the differences and risks between self custody and exposure to BTC via ETFs. While the BTCW ETF is in line with other Bitcoin ETFs for what concerns custodian and index tracking, the issues start when looking at key financial metrics and how they compare with those of IBIT. I will cover these elements in the next sections of this article. Key metrics at a glance The BTCW ETF has the following key metrics at the time of writing: Expense ratio of 0.25%, with the fee completely waived until January 10th, 2026 or until the fund reaches $ 2.5 Billion in Assets Under Management ( AUM ). Asset Under Management of $ 365 Million - which makes it seem likely the expense ratio will remain at 0% until January 2026. Average Bid/Ask Spread of 0.09%. Average Daily Trading Volume of $ 5.51 Million. The main issue of the BTCW ETF in my view is the fact it is a very illiquid fund, compared to major BTC ETFs such as IBIT. The Bid/Ask spread is very high, at 0.09%. The fund often trades at a somewhat significant difference with its Bitcoin holding, as outlined by WisdomTree itself in the chart below. BTCW's premium / discount trading levels, history (BTCW webpage) Except for its effectively 0% expense ratio (which I will cover in more detail in comparison to IBIT in the next section), I see this ETF is not competitive in the context of Bitcoin ETFs. Investors purchasing it are effectively giving up 0.09% of their fund in the form of Bid/Ask spread, with the added risk of purchasing a fund that trades at a discount from its holdings. The relative complexity of its documentation, which in my view signals a weak marketing support from its issuer, also does not help in making BTCW a decent choice for investors. BTCW vs. IBIT IBIT vs. BTCW, key metrics at a glance (Author's elaboration of Seeking Alpha and ETF.com data) The chart above compares key metrics of the BTCW ETF with IBIT, with "P3M" reflecting changes between August and November 2024. Similar to my observations about ARKB in my previous article, BTCW experienced a notable decline in Average Daily Trading Volume over the past three months, contributing to its relative illiquidity. I find this data point interesting, as I believe it indicates how BTCW investors are shifting from active trading to long-term holding, while active Bitcoin traders gravitate towards more liquid options like IBIT. This dynamic creates a virtuous cycle for IBIT, which becomes increasingly liquid over time, and a vicious cycle for less liquid funds like BTCW. The only positive element that would make me consider BTCW against IBIT is that - given the fact the fund has less than $ 500 Million in AUM - the expense ratio is likely to be 0% until January 10th, 2026. This could result in meaningful fee savings, potentially offsetting BTCW's illiquidity for investors holding until early 2026 before switching to a more liquid ETF like IBIT. However, a more careful analysis reveals how IBIT is still preferable to BTCW, even when accounting for its 0% effective expense ratio. First, IBIT also offers a discount for first time buyers in the form of a 6 month period where the issuer only charges 0.12% in fees. So the effective “saving” of buying BTCW instead of IBIT in the first year would only be of about 0.13%. Second, BTCW’s higher bid/ask spread of 0.18% outweighs the fee advantage when compared to IBIT's 0.02% spread and 0.13% expense ratio. Ultimately, IBIT’s liquidity and lower transaction costs make it the superior option despite BTCW’s temporary fee waiver. Conclusion: I cannot find a good reason to enter BTCW over IBIT IBIT vs. BTCW, qualitative assessment (Author's work) The above table summarizes the qualitative assessments I made across this article. Due to its illiquidity, I find it difficult to recommend investing in the BTCW ETF. Investors would face up to 0.18% in costs just to enter and exit their positions. Additionally, there’s a risk of the fund becoming even less liquid over time, as suggested by the declining trend in Average Daily Volumes observed in recent months. Even accounting for the fee waiver until January 2026 does not change the picture for BTCW. This is a trend that I have started observing in the world of Bitcoin ETFs: they are all seemingly losing their battle with IBIT, primarily due to the sheer size of the latter fund, which constantly improves its liquidity metrics. I believe many issuers, including WisdomTree, will need to rethink their Bitcoin ETF strategies in the coming years to ensure their products remain relevant in the market. Finally, a note about options: these are available for IBIT since November, while there are currently no options on offer for the BCW ETF. Risks to investing in Bitcoin ETFs and BTCW Investing in Bitcoin remains a highly speculative bet on its potential to mature into a global reserve asset. While I personally find this bet compelling, it represents the primary risk for anyone considering BTCW or any Bitcoin ETF and should be carefully evaluated. Another critical risk for Bitcoin ETFs is custodian reliance. Funds like BTCW depend on custodians such as Coinbase to safeguard their Bitcoin holdings. Any fraudulent activity or security breach by the custodian could lead to significant losses for investors. BTCW's reliance on a single custodian heightens this risk. Lastly, BTCW's potential illiquidity is a concern. If its bid/ask spread rises significantly above the current 0.09%, it could pose another challenge for investors.
Seeking Alpha 2024-12-02 23:57
The cryptocurrency market is poised for significant movements as historical data suggests a slowdown in bullish trends following presidential elections. This phenomenon is particularly evident in the weeks after an
CoinOtag 2024-12-02 23:16
As Bitcoin (BTC) continues to grapple with the $98,000 resistance level, recent derivatives data reveals a resilient market sentiment and promising investor confidence. Despite the market’s struggle, Bitcoin has achieved
CoinOtag 2024-12-02 23:07
BitGo, a renowned digital asset infrastructure provider , has expanded its services beyond institutional clients. The asset provider has recently launched a platform catering directly to retail investors. This marks the first time the firm, founded in 2013, offers its comprehensive services, which include regulated digital asset trading, staking, lending, wallet management, and self-storage custody, to a global audience of individual investors. BitGo’s Retail Platform Built on A Legacy of Trust and Security BitGo’s reputation in crypto is built on years of providing robust security solutions for large-scale institutional clients. The firm has been entrusted with safeguarding billions of dollars in crypto assets. It has served as a custodian for major players’ client repayments, including Ark Invest, 21Shares, Valkyrie , and the now-defunct Mt. Gox exchange. It is also the custodian for the largest Ethereum-based Wrapped Bitcoin (WBTC) asset. For years, BitGo’s institutional clients have benefited from its secure custody, seamless trading services, and advanced settlement solutions. For the first time, BitGo has made these services available to the retail market, promising the same high-level security and transparency for individual investors. This decision aligns with a broader trend in the crypto industry. Infrastructure providers increasingly recognize the rising demand from retail investors for institutional-grade services. BitGo’s Retail Platform to Bridge Retail and Institutional Services BitGo’s CEO, Mike Belshe, emphasized the importance of security and trust in the launch of the new platform. To incentivize early adoption, U.S. users can register for the chance to win a full Bitcoin, a move designed to attract a large number of participants to the platform. This move concerns more than just opening up new revenue streams for BitGo. He stated that it also bridges the gap between retail and institutional services. With concerns over crypto platform security, BitGo’s trusted reputation gives it an edge in attracting users seeking reliability. BitGo’s $100M Funding Boost Powers Retail Launch and WBTC Strategy The launch of the retail platform comes on the heels of BitGo’s $100 million Series C funding round in 2023. This valued the company at $1.75 billion. This funding is expected to help drive the growth of the new retail platform, making it a formidable player in the space. However, BitGo’s strategic shifts extend beyond just its new retail offerings. The company has also gained attention for its role in wrapping Bitcoin (WBTC) governance . WBTC is a popular tokenized version of Bitcoin on the Ethereum blockchain. In August, BitGo announced plans to become a minority owner in a joint venture with Hong Kong-based BiT Global to manage WBTC custody. BiT Global is a trust company linked to Tron founder Justin Sun. The post BitGo Launches Retail Platform for Crypto Trading and Staking appeared first on TheCoinrise.com .
The Coin Rise 2024-12-02 23:03
Bitcoin ETFs Showdown: BTCW Falls Short Against IBIT
