U.S. Bitcoin ETFs record major outflow

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Mt. Gox transfers $2.2B in Bitcoin, raising market concerns

Key points:

• Mt. Gox has moved over $2.2 billion worth of Bitcoin, raising fears of increased selling pressure on the market.

• The transfer includes Bitcoin allocated for repayment to creditors, who have waited over a decade for compensation.

News - On November 5, 2024, Mt. Gox, the infamous cryptocurrency exchange that collapsed in 2014, executed a transfer of approximately 32,871 BTC (valued at over $2.2 billion) to new wallets, some of which are linked to centralized exchanges. This move signals potential repayment to the 127,000 creditors owed more than $9.4 billion.

Market implications - The transfer has ignited discussions among traders and investors regarding the potential impact on Bitcoin's price. With a significant amount of Bitcoin now on the move, market participants are concerned that if creditors decide to liquidate their holdings, it could add downward pressure on the already volatile market.

Creditor sentiment - Despite the anxiety surrounding these transfers, many creditors have expressed a desire to hold their Bitcoin rather than sell. Previous distribution patterns have shown that creditors often opt to retain their assets, believing in the long-term value of Bitcoin. This sentiment could play a crucial role in mitigating any immediate impact on the market, as the influence of this massive transfer unfolds.

U.S. Bitcoin ETFs experience second-largest daily outflow ahead of election

Key points:

• On November 4, 2024, U.S. spot Bitcoin ETFs saw a net outflow of $541.1 million, marking the second-largest outflow day in their history.

• The Fidelity Wise Origin Bitcoin Fund and ARK 21Shares Bitcoin ETF accounted for the majority of these outflows.

News - On November 4, 2024, U.S. spot Bitcoin ETFs experienced a net outflow of $541.1 million, the second-largest in their history. The Fidelity Wise Origin Bitcoin Fund had the largest outflow at $169.6 million, followed by the ARK 21Shares Bitcoin ETF with $138.3 million. This occurred just a day before the U.S. presidential election, with Bitcoin trading around $68,000, a 4.6% decrease over the past week.

Market implications - The significant outflows from Bitcoin ETFs suggest that investors may be reducing exposure to Bitcoin amid election uncertainties. The timing of these outflows, coinciding with the election, indicates that market participants are cautious about potential regulatory changes that could impact Bitcoin's price.

Investor sentiment - Despite the outflows, many investors remain optimistic about Bitcoin's long-term prospects. The cryptocurrency has shown resilience in the face of market fluctuations, and some view the current dip as a potential buying opportunity. The upcoming election results could provide clarity on future regulatory frameworks, influencing Bitcoin's market dynamics.

Binance and Changpeng Zhao seek dismissal of SEC's amended complaint

Key points:

• Binance and CEO Changpeng Zhao have filed a motion to dismiss the SEC's amended complaint, challenging the classification of certain crypto assets as securities.

• The SEC's amended complaint targets additional tokens, including AXS, FIL, ATOM, SAND, and MANA.

News - On November 4, 2024, Binance and CEO Changpeng Zhao submitted a motion to dismiss the U.S. Securities and Exchange Commission's (SEC) amended complaint. The SEC's updated allegations involve additional tokens, such as Axie Infinity Shards (AXS), Filecoin (FIL), Cosmos' ATOM, The Sandbox's SAND, and Decentraland's MANA, asserting that these assets qualify as securities under U.S. law.

Legal arguments - Binance's legal team contends that the SEC's amended claims fail as a matter of law. They argue that secondary market resales of crypto assets, long after their initial distribution by developers, do not constitute securities transactions. The defense emphasizes that each transaction must independently satisfy securities laws, and the SEC's approach conflates crypto assets with investment contracts without meeting the necessary legal criteria.

Market implications - The outcome of this legal battle could significantly impact the regulatory landscape for cryptocurrencies in the United States. A dismissal of the SEC's complaint would set a precedent favoring the classification of certain crypto assets as commodities rather than securities, potentially influencing future regulatory approaches and market dynamics.

First of its kind: Michigan State Pension Fund expands holdings with $10M Ethereum investment

Key points:

• The Michigan State Pension Fund has invested $10 million in Ethereum ETFs, becoming the first U.S. state pension fund to do so.

• This investment builds upon a previous $6.6 million allocation to a Bitcoin ETF in July.

News - On November 5, 2024, the Michigan State Pension Fund announced a $10 million investment in Ethereum exchange-traded funds (ETFs), marking the first time a U.S. state pension fund has ventured into Ethereum ETFs. This move demonstrates growing institutional acceptance of digital assets beyond Bitcoin.

Strategic expansion - This latest investment builds upon the fund’s earlier entry into digital assets, which began with a $6.6 million allocation to the ARK 21Shares Bitcoin ETF in July. By diversifying into Ethereum, the fund aims to balance its digital asset portfolio and capitalize on the potential growth of both leading cryptocurrencies.

Implications for institutional adoption - The Michigan State Pension Fund's decision to invest in Ethereum ETFs reflects a broader trend of institutional adoption of cryptocurrencies. As more traditional financial entities incorporate digital assets into their portfolios, it may pave the way for increased acceptance and integration of cryptocurrencies in mainstream finance.

More stories from the crypto ecosystem

• Bitcoin below $70,000 – Here’s why holders shouldn’t lose hope yet!

• Gemini buys $120M in altcoins, including ETH – 2025 Altcoin season in mind?

• NEAR may be heading to its 2024 low, despite bullish signs – Why?

• Examining Ethereum’s role in Solana’s booming liquidity 

• Bitcoin leads $2.2B inflow as U.S. Election looms – Here’s everything to know!

Did you know?

• The total value locked (TVL) in Decentralized Finance (DeFi) platforms exceeds $144 billion as of August 2024, allowing users to lend, borrow, and trade without intermediaries.

• As of late 2024, over 560 million people globally hold cryptocurrency, a 34% increase from the previous year, particularly in countries facing economic instability.

• Over 1,600 DeFi tokens are now in circulation, targeting niche sectors like insurance, gaming, and social finance. Notably, Yearn.finance's YFI launched without pre-mined tokens, promoting community-driven governance.

Top 3 coins of the day

Dogecoin (DOGE)

Key points:

• At press time, DOGE was trading at $0.170.

• It experienced a significant increase of 7.70% during the trading session, reflecting robust bullish momentum.

What you should know:

The daily chart indicated that DOGE was trading above its 50-day Simple Moving Average (SMA) at $0.126, suggesting a strong bullish trend​. The Stochastic RSI at 20.44 pointed that DOGE is nearing oversold conditions, which may signal a potential reversal or bounce back in price if buying momentum increases​. Additionally, the recent price action has shown a strong upward trend following a period of consolidation, which is a positive sign for continued growth. There is also potential for resistance around the $0.172 level, where traders should be cautious of potential pullbacks if the price approaches this area​. For DOGE to maintain its bullish momentum, it should continue to trade above the $0.126 SMA. If it shows weakness and drops below this level, it may indicate a potential pullback and test lower support levels.

Mog Coin (MOG)

Key points:

• At press time, MOG was trading at $0.00000183.

• It experienced an increase of 5.46% during the trading session, showing positive momentum in the market​.

What you should know:

On the daily chart, MOG was seen moving upward, suggesting a bullish trend in recent sessions​. The Relative Strength Index (RSI) at 51.82 indicated a neutral position, denoting potential for further upward movement if buying pressure increases​. The volume on the chart exhibited significant trading activity, which is essential for validating the price movements. Moreover, a downward trendline was noted, reflecting previous bearish sentiment. A breakout above this trendline could signal a shift in momentum and a potential reversal. For MOG to maintain its upward trajectory, it should keep trading above its current level.

Ethena (ENA)

Key points:

• At press time, ENA was trading at $0.34.

• It experienced an increase of 4.01% during the trading session, exhibiting bullish momentum​.

What you should know:

On the daily timeframe, ENA was trading between the middle Bollinger Band (SMA) at $0.37 and the lower band at $0.32. This positioning suggested potential support, which may allow for a price rebound if buying pressure increases​. Moreover, the Awesome Oscillator (AO) showed a value of -0.0013, indicating neutral momentum. The indecisive behavior in momentum could signal a possible trend change​. Additionally, the On-Balance Volume (OBV) at -25.808M indicated that selling pressure has recently outweighed buying pressure, reflecting a bearish sentiment​. For ENA to maintain its upward momentum, it should break above the middle Bollinger Band. Conversely, if the price falls below the lower band, it may indicate further bearish pressure.