Bitcoin investors are fearful, with sentiment reaching lows not seen in over a year according to the Crypto Fear and Greed Index. That’s despite Bitcoin’s repeated attempts at $60,000 which it can’t seem to overcome. One trader, Justin Bennett, spotted an alarming similarity to what is known as a “rising wedge,” which could put more selling pressure on Bitcoin soon.
Not a while ago bitcoin was close to $59,500 but could not hold the gains, the price now being $57,499 signifies a massive decline from the March peaks. The news had turned when Mt. Gox, one of the largest holders of Bitcoin in the world, reportedly started sending its money back to creditors in conjunction with a liquidation that caused billions of dollars worth of Bitcoin to hit the market. Germany also reported selling a large amount of bitcoin if not more compounding on the sell side pressure.
Factors that added to it include market volatility, Bitcoin’s dominance etc. It had hit an “Extreme Greed” level earlier this year but has seen sharp plunges. All of these highlights are increasing fear among investors and concerns about heavy regulatory crackdowns and also a byproduct of massive liquidations that too coinciding with the present Bitcoin woes in a volatile market.
German Government's Bitcoin Holdings Decrease 18% Amid Controversial Sell-offs
Germany's government, which took 49,857 BTC from a piracy raid, now only has 9,094 BTC after moving most of its coins with crypto exchanges. There have been billions worth of dollars on the move from the German wallet since June 19, though early July saw some of those returned to it. Most went to the US exchanges Coinbase and Bitstamp.
Market concerns rise as Mt. Gox proposes to distribute $8 billion in Bitcoin to creditors, adding to recent price falls. Crypto Fear & Greed Index shows this anxiety, hitting “Extreme Fear” for the first time since January last year. Bitcoin is currently at $56,870 down 1.8% in the last 24 hours and down 15.1% over the last month as general market sentiment sours on major institutional news and regulatory scrutiny.
Ethereum ETF Launch Can Deliver $10 Billion Inflows and New Highs
Tom Dunleavy at MV Global is out with a prediction that once Ethereum (ETH) ETFs are launched, they could draw $5 billion to $10 billion in new investments, pushing prices to all-time highs into Q4. These are much-awaited Ethereum ETFs expected to debut, also subject to any last-moment regulatory changes in the US, in as early as the current month. They will add to the $15.9 billion total under management by the existing Bitcoin (BTC) ETF suites.
Dunleavy believes the ETH ETF could initially attract a monthly inflow of about $1 billion since ETH is currently relatively of meagre supply in exchanges, which might aid in catalysing spot price rallies from increased demand. He added that previous BTC ETF launches turned out to be great launch pumps, with BTC appreciating up to 36% from the time of launch to this year's peak.
Describing ETH as having cash flows closer to tech stocks or internet bonds, Dunleavy feels that if traditional investors find Bitcoin to be digital gold, they might find the ETH to be the "app store of crypto". At the same time, he warned that an RE of ETH may not necessarily drag other cryptocurrencies up, just due to the difference in market dynamics between institutional and retail investors.
