BTC HODLers are selling

October 04, 2024

Reading time: 5 minutes

Bitcoin and Ether ETFs under pressure as investors withdraw millions

Key points:

  • Bitcoin and Ether prices fell significantly this week.

  • Bitcoin ETFs experienced a total of $361.2M in outflows over three days.

News - In the latest market developments, Bitcoin has experienced a 6% decline, while Ether has dropped by 10% this week, largely influenced by outflows from US-listed ETFs.

On 3 October, Bitcoin ETFs saw a significant withdrawal of $54.2 million, marking three straight days of net outflows that totaled $361.2 million, according to Farside Investors.

Prominent contributions to these outflows included Ark's ARKB, which faced $58 million in withdrawals, and Fidelity's FBTC, losing $37.2 million. In contrast, BlackRock's IBIT managed to attract $36 million in new investments. Grayscale’s GBTC remained stable with minimal outflows of $5.9 million this week.

Despite the recent sell-off, the 11 Bitcoin and Ether ETFs have collectively raised $18.5 billion since their launch, with average investor gains of 3-10% based on their cost basis.

In Ether, total outflows have reached $555.4 million, with Grayscale’s ETHE suffering $14.7 million in withdrawals.

Brazil's CBDC to offer multiple banking and payment options

Key points:

  • Brazil's CBDC, Drex, incorporates DeFi principles to enhance its functionality.

  • The central bank aims to address decentralization, privacy, and programmability challenges.

News - Brazil is taking a groundbreaking approach to its central bank digital currency (CBDC) development, incorporating DeFi principles to create a "synthetic" digital real called Drex.

This innovative approach aims to address the challenges of decentralization, privacy, and programmability, which have been difficult to solve in traditional markets.

To further enhance its CBDC initiative, Brazil plans to accelerate its nationwide tokenization efforts through an Open Finance platform. This platform will provide users with a wider range of options for banks and payments, including CBDCs.

The first phase of the CBDC pilot focused on experimenting with decentralization elements, while the ongoing second phase is centered on digital asset transactions, such as liquidity pools for government bonds and international trade finance. The second phase is expected to continue into 2025, with no fixed deadline.

Brazil's DeFi-inspired CBDC has the potential to revolutionize the financial landscape, offering a more efficient, transparent, and inclusive system for both individuals and businesses.

IMF urges El Salvador to revise Bitcoin legislation and enhance oversight

Key points:

  • The IMF recommends that El Salvador refine its Bitcoin legislation.

  • Ongoing discussions focus on improving regulatory frameworks for Bitcoin.

News - The International Monetary Fund (IMF) has once again urged El Salvador to narrow the scope of its Bitcoin legislation and adoption. The IMF continues to engage with Salvadoran authorities to address the risks associated with the country's Bitcoin experiment.

In its latest recommendation, the IMF has suggested strengthening the regulatory framework and oversight of the Bitcoin ecosystem in El Salvador. Additionally, the IMF has advised the Salvadoran government to limit the public sector's exposure to the coin.

The IMF's goal is to reach an agreement with El Salvador on a new IMF-supported program that would help stabilize the nation's economy and address macroeconomic challenges. However, the IMF's conditions for such a program include implementing measures to manage the risks associated with Bitcoin.

El Salvador's adoption of Bitcoin as a legal tender has been a controversial move, with many experts expressing concerns about its potential risks. The IMF's latest statement adds to the growing pressure on El Salvador to reconsider its Bitcoin policy.

Bearish sentiment surrounds Worldcoin as short-term holders profit

Key points:

  • Worldcoin struggles to maintain its $2.00 support level.

  • Investor sentiment is cautious as they consider adding WLD to their portfolios.

News - Worldcoin (WLD) has been struggling to maintain its price momentum, recently failing to break above the $2.00 support level. This downward pressure is further exacerbated by bearish indicators.

The MVRV indicator suggests a negative outlook for Worldcoin, indicating that short-term holders are profiting and may be inclined to sell.

What’s more? Additionally, the Sharpe Ratio, which measures risk-adjusted returns, is at its lowest point since the altcoin's inception. This suggests that the risk associated with investing in Worldcoin currently outweighs the potential rewards.

Given these bearish signals, investors are becoming increasingly cautious about adding Worldcoin to their portfolios. The current market sentiment suggests that Worldcoin may face challenges in regaining upward momentum in the near term.

Unless significant bullish catalysts emerge, investors are advised to be wary of entering the market under these conditions.

Did you know?

  • Solana’s monthly DEX volume climbed to an all-time high of $60 billion in March. This represented a 172% uptick from the $22 billion recorded in DEX volume in February. The surge in trading volume across DEXes on Solana in March was due to the significant interest in meme coins during that period.

  • Over 15,000 companies worldwide accept Bitcoin as a payment method. Out of these 15,000, over 2000 of these companies are based in the United States.

  • To mine one Bitcoin, you would need 9–13 years of household electricity. This is because the process of creating BTC to spend or trade consumes around 91 terawatt-hours of electricity annually.

Top 3 coins of the day

Ethereum (ETH)

Key points:

  • ETH has been under heavy selling pressure over the last week.

  • It was trading at $2,381, at the time of writing.

What you should know - Ethereum's price has shown significant volatility, with recent price action forming a near-term support level at approximately $2,200. The current upward movement is facing strong resistance in the $2,800 to $3,000 range, highlighted by the resistance zone. The price dipped sharply below this zone in mid-September, and despite minor recoveries, it has struggled to break through. The RSI is hovering around 41, indicating that the market is nearing oversold conditions, which may hint at a potential recovery if buying pressure builds. However, bearish momentum could dominate if the price fails to maintain support at $2,200, potentially leading to further downside.

Key points:

  • LINK was attempting a recovery, at the time of reporting.

  • Its value appreciated by 5% over the last day.

What you should know - Chainlink has been experiencing a downtrend since its mid-July peak, marked by a descending trendline that has repeatedly acted as resistance. The price recently attempted to break above the $13 mark but faced rejection at the trendline once again, pushing it down to the current levels near $11. The Bollinger Bands show the price testing the lower band, indicating potential oversold conditions. Support is established around the $9.50 level, where the price bounced in September, and this remains a crucial level to watch. The MACD indicator is signaling bearish momentum as the lines are turning downward, suggesting further downside pressure. A break below the $9.50 support could signal more losses, while a break above the descending trendline would likely indicate a reversal and a potential move toward $15.

Aptos (APT)

Key points:

  • APT recently broke out of its rangebound movement.

  • Its short-term market structure was dominated by bulls.

What you should know - Aptos has been trading in a tight range for several months, as indicated by the highlighted rangebound movement on the chart, with the price oscillating between $6 and $9. The Bollinger Bands show the price testing the upper band, suggesting increased volatility and the potential for a breakout. Recently, Aptos has shown signs of breaking out of this consolidation phase, with increasing trading volume supporting a possible upward move. The Awesome Oscillator (AO) is showing positive momentum, further reinforcing a potential breakout to the upside. However, caution is needed as the price is still within the established range. A confirmed breakout above $9.50 with sustained buying pressure could indicate a bullish reversal, potentially targeting the $10.50 to $12 range.

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