Bitcoin falls to lowest since February as fears of sales persist
BNN Bloomberg’s Post
More Relevant Posts
-
One of the few widely known facts about Bitcoin is its capped supply of 21 million coins. However, what many fail to appreciate about Bitcoin’s inelastic supply is its unique response to changes in demand compared to other commodities or assets. When demand for gold increases, miners are incentivized to extract more gold from the earth, eventually stabilizing the price. In contrast, the remaining supply of Bitcoin is predetermined and fixed over time, meaning there's no physical way to generate additional Bitcoin beyond the scheduled issuance. Consequently, as demand for Bitcoin rises, its price will be pushed higher by those who compete for the scarce asset. This distinct feature is what gives Bitcoin the potential to surprise the world with significant upward price movements, unlike any other asset.
Conor Chepenik writes, "Rising demand coupled with Bitcoin’s strictly capped supply means prices will inevitably be pushed up by those willing to pay the most at the margin for the remaining scarce coins." https://lnkd.in/eG93wRph
What Happens When There Is A Bitcoin Supply Shock?
https://bitcoinnews.com
To view or add a comment, sign in
-
Full-Time Trader & Investor | Technical Analysis Educator | Daily Trade Setups & Insights | Join Our Private Trading Group of 15,500+ | Live Trading Sessions: Daily 10AM-12PM UTC-6
What We Know: - Big supply overhangs from Mt. Gox, the German Government, and the US Government. What We Don't Know: - Timing and volume of actual sales. - Extent of OTC sales of Mt. Gox claims in prior years. - Capital dynamics: Amount sold, shorted, or waiting to buy back in anticipation of this supply being sold. Considerations: What if sidelined capital equals or surpasses the actual supply hitting the market in the coming months? No one can predict these flows, but the strategy of "sell now, buy after the Mt. Gox selling occurs" seems crowded. For reference: - We saw billions in sales the day distributions were announced. - Add pre-announcement insider sales, and it's clear the market has likely priced in these distributions to some extent. Government Sales: Governments tend to sell slowly: - The US Government sold about 10% of their stack in 2 years. - They don't seem to be in a rush and might be comfortable holding some BTC. Historical Context: Consider what happened with SOL: - Despite predictions of SOL dropping to $3 due to massive supply overhangs, it rallied from $20 to $200. - The market overestimated the supply impact, aided by overall crypto market appreciation. TL;DR: Predicting future flows is extremely difficult. Stay level-headed and don't get too caught up in headlines. The truth often lies somewhere in the middle.
To view or add a comment, sign in
-
In case you're wondering why the market is red, here’s what we’re up against in the near-term bearish sentiment: 1. Regulatory and Government Actions: - German Government BTC Sales: Significant selling pressure from large-scale BTC sales. - Mt. Gox BTC Moves: Defunct exchange moves $2.71 billion in BTC, raising concerns of incoming sell-offs. - US Government Sales: Similar substantial BTC sales contributing to price decline. 2. Market Dynamics and Analysis: - Technical Weakness: BTC has broken below the critical 200-day moving average, indicating potential deeper corrections. - Leverage and Liquidations: High market leverage increases vulnerability to liquidations, exacerbating price declines. 3. Macroeconomic Factors: - Interest Rates and Economic Instability: Rising interest rates and global economic instability reduce Bitcoin’s appeal. - Institutional Selling: High-profile investors holding out for lower prices, adding to the selling pressure. 4. Psychological and Sentiment Indicators: - Fear and Greed Index: Market sentiment shows tendencies towards fear, often signaling bearish conditions. - Community Sentiment: Pessimism within the crypto community is on the rise, impacting sentiment negatively. 5. External Validation and Skepticism: - Negative News Cycles: Continuous coverage of major sell-offs maintains a bearish narrative. - Capacity for Recovery: Short-term sentiment hinders immediate recovery prospects despite tactical suggestions. Stay informed and prepared. Say a word of prayer to your portfolio alongside. Source: Kaito AI
To view or add a comment, sign in
-
BTC continues to sell off post-FOMC and tested 65k today. While BTC seems to have sneezed, alts seemed to have caught a cold as they dropped 20-30% over the weekend. We attribute this weakness in majors to a lack of news flow. Boring markets usually shake out weak hands, and nobody likes to pay 11% ann. to hold a long position in perps. Read more here: https://lnkd.in/gfrkHza6
London and New York Colour
https://www.qcpgroup.com
To view or add a comment, sign in
-
BTC is still looking weak. Now we're watching for daily B&B "Sell" pattern with particular attention to 63.5-64.0K resistance area, where it could start. https://lnkd.in/dSpWc4AJ
To view or add a comment, sign in
-
-
In recent market activity, Ether traders are showing a strong bullish sentiment by buying call options. This surge in call options, particularly focusing on $4,000 calls, indicates a growing confidence in Ether’s potential to break through its previous all-time high. The increased demand for these options began in mid-June, aligning with Ether’s price rally above […]
Ether's Price Soars with Ethereum Upgrade Hopes | US Newsper
usnewsper.com
To view or add a comment, sign in
-
Finally! Watch how this influences the prices of the altcoins. See my list.
SEC Approves All Spot Bitcoin ETFs - Stocks & Crypto
https://stocksandcrypto.net
To view or add a comment, sign in
-
In recent market activity, Ether traders are showing a strong bullish sentiment by buying call options. This surge in call options, particularly focusing on $4,000 calls, indicates a growing confidence in Ether’s potential to break through its previous all-time high. The increased demand for these options began in mid-June, aligning with Ether’s price rally above […]
Ether's Price Soars with Ethereum Upgrade Hopes | US Newsper
usnewsper.com
To view or add a comment, sign in
-
Ethereum remains under pressure despite notable market activity. Priced at $2,683, ETH fluctuated within a 24-hour range of $2,523 to $2,720, with a market cap of $321 billion and trading volume reaching $17.58 billion. Despite this activity, technical indicators reveal persistent challenges for ETH as it struggles to break through key resistance levels, maintaining a bearish trend across various timeframes. On the 1-hour chart, ETH's short-term recovery from $2,508.6 to $2,720 shows signs of bullish momentum, yet the inability to sustain above $2,700 raises concerns. A failure to hold this level, especially with growing selling pressure, could see the price dip back towards $2,600. The 4-hour chart reflects a similar struggle, with Ethereum’s recent upward movement showing signs of weakening near the $2,700 mark. Although a spike in volume during this bounce indicates buying interest, without sustained follow-through, the uptrend remains fragile. A broader view on the daily chart reveals a pronounced downtrend, with ETH having dropped from $3,565 to a low of $2,017.8, stabilizing in the $2,600-$2,700 range. Lower volumes in recent sessions suggest either consolidation or a loss of selling momentum. A break above $2,800 could hint at a potential reversal, but failure to do so may trigger further declines. Technical indicators present mixed signals. Oscillators like the RSI and CCI remain neutral, while the MACD and moving averages signal a bearish outlook. However, the 10-period simple moving average provides a glimmer of optimism, hinting at possible bullish opportunities if ETH can sustain above $2,700 with strong volume. Bullish Perspective: If Ethereum can hold above $2,600 and break past $2,700, it may signal a rebound, targeting $2,800 or higher. Bearish Perspective: However, the struggle to overcome key resistance levels and the overall bearish signals suggest caution. Failure to maintain above $2,700 could lead to further declines, potentially dropping ETH back towards $2,500 or lower. The current market sentiment leans bearish, urging traders to proceed with caution.
To view or add a comment, sign in
-
Financial Advisor
1moLove a good buying opportunity