Based on my observation of the crypto market and the information provided, I believe that we are currently in a correction period following the recent Bitcoin halving. The sudden sell-off on April 24th, which led to a plunge in BTC price and significant outflows from Bitcoin spot ETFs, is indicative of this trend.
I’ve observed an unexpected turn of events in the cryptocurrency market on April 24th, where the BTC price dipped down to $63,300 all of a sudden. The cause for this decline could be traced back to two primary factors: the escalating conflict in the Middle East and a significant withdrawal from Spot Bitcoin ETFs.
Yesterday, the Spot BTC ETF experienced a withdrawal of $121 million. In stark comparison, Grayscale’s GBTC ETF witnessed a significant outflow of approximately $130 million. Conversely, Fidelity’s ETF, FBTC, saw an inflow of $5.61 million, while both Ark Invest’s ARKB and 21Shares drew in modest investments of around $4.17 million each.
According to SoSoValue, yesterday the total net outflows for Bitcoin spot ETFs were $121 million.
In a single day, GBTC from Grayscale’s ETF saw a net withdrawal of approximately $130 million, while Fidelity’s Bitcoin spot ETF, FBTC, experienced the highest net inflow at around $5.61 million.
— Wu Blockchain (@WuBlockchain) April 25, 2024
Over the past day, Bitcoin (BTC) and Ethereum (ETH) experienced approximately a 4% decrease in value, whereas coins such as Solana (SOL), Toncoin (TON), and Dogecoin (DOGE) saw about an 8% drop.
Instead of viewing this market downturn solely as a negative, some market observers consider it a normal correction following Bitcoin’s halving event. This perspective opens up potential buying chances for investors and may contribute to a more balanced crypto market in anticipation of an upcoming price surge.
1) Ethereum (ETH)
Ethereum is a decentralized, open-source platform for building applications using smart contracts. Its market value currently stands at approximately $376.2 billion, making Ether the second most valuable cryptocurrency after Bitcoin.
During the latest Bitcoin halving, the Ethereum price bounced back from its support at $2850 over the weekend and climbed 15% to challenge the $3300 mark. Yet, the insufficient push prevented a full recovery as Ethereum had difficulty breaking through the overhead resistance.
Lookonchain identified a significant Ethereum transaction worth $22.34M from an address believed to be connected to Justin Sun. This transaction followed the accumulation of 154,570 ETH ($492.23M) by this address since April 8. Given the ongoing market correction, it’s speculated that Sun made this acquisition strategically in preparation for a potential price rebound and bullish market reversal.
Update:
Approximately 0x4359, or possibly Justin Sun, removed around 7,128 Ether (equivalent to about $22.34 million) from Binance about 7 hours ago. Since April 8th, they had purchased approximately 154,570 Ether (equaling roughly $492.23 million) at a price of $3,177 per Ether.
— Lookonchain (@lookonchain) April 25, 2024
Observing the crypto market, I notice a resurgence of optimism surrounding Ethereum’s recovery. This renewed sentiment might empower buyers to push for a bullish breakthrough from Ether’s falling wedge patterns, potentially marking an end to its corrective phase.
2) Shiba Inu (SHIB)
I’ve come across Shiba Inu (SHIB), a lively decentralized meme token world that’s growing in popularity as an alternative to Dogecoin. This ecosystem I’m observing boasts its unique offerings, such as the decentralized exchange named ShibaSwap. Moreover, there are ambitious plans underway to dive into non-fungible tokens (NFTs) and gaming sectors.
During the latest market downturn, the Shiba Inu token price shifted from $0.0000282 to a 13% drop, now trading at $0.0000247. On the daily chart, this decline unveiled another lower-higher pattern, suggesting that the correction process is ongoing and traders remain active in selling off any bullish rebounds.
At the time this article was published, the Shib token had achieved a market capitalization of $14.5 billion, and its trading volume over the past 24 hours amounted to $875 million.
If the demand to buy the memecoin decreases significantly, causing its price to fall, it may drop below the $0.0000238 support level and find new support around $0.0000185 instead.
3) Hedera (HBAR)
Hedera (HBAR) is a publicly accessible network, distinguished by the use of Hashgraph consensus mechanism for faster transaction processing. This innovative approach focuses on delivering high speeds, minimal fees, and reduced latency compared to traditional blockchain systems.
Over the past two days, I’ve observed a significant price decline for HBAR. The value dropped from $0.182 to $0.133, resulting in a steep 37.6% fall. Despite this setback, Hedera coin still holds a market capitalization of $4.081 Billion and ranks as the 25th largest cryptocurrency.
The decreasing price is approaching the significant level of $0.1, where it may encounter buying interest to reverse its downward trend. This area, aligned with various technical indicators, increases the likelihood of a price increase due to strong buyer demand.
Key Takeaway
The cryptocurrency market may be experiencing a correction following the halving event—a typical occurrence that sees digital assets taking a final dip before starting an expected surge. This downturn could help thin out less committed investors and establish a solid base for the asset, allowing it to regain bullish momentum.
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2024-04-25 15:30