How Has Bitcoin Trading Changed with the Introduction of ETFs?

How Has Bitcoin Trading Changed with the Introduction of ETFs?

The percentage of Bitcoin traded during weekends has dropped significantly,
reaching an all-time low of 16% of total trading volume this year,
according to cryptocurrency research firm Kaiko.

 

 

Topic

Impact of ETFs on Trading Periods

24/7 Trading

Continuing Downtrend

Bitcoin ETFs

Impact of Bank Collapses

Decreased Price Volatility

Relative Stability of Bitcoin

 

 

 

 

 

 

 

Impact of ETFs on Trading Periods

This decline follows the launch of Bitcoin exchange-traded funds (ETFs),
which appear to have shifted Bitcoin trading periods to align more closely
with traditional stock market hours, reducing price volatility.

 

 

24/7 Trading

Cryptocurrencies, unlike stocks, can be traded 24/7, including Saturdays and Sundays.
In the past, Bitcoin was notorious for its “wild weekends,” characterized by severe price fluctuations.
However, this phenomenon has been diminishing since weekend trading peaked at 28% in 2019.
The introduction of Bitcoin ETFs is believed to be a significant factor in this decline.

 

 

Continuing Downtrend

Kaiko’s chief analyst, Dessislava Aubert, noted that the reduction in weekend trading has been a “long-standing trend, exacerbated by the ETFs.” Bitcoin ETFs were approved by the U.S. Securities and Exchange Commission (SEC)
at the beginning of 2024 and have seen strong investor interest,
pushing Bitcoin’s price to a record high in March. Despite some pullback,
the largest cryptocurrency’s price remains up about 45% this year, hovering around $61,000.

 

 

Bitcoin ETFs

Unlike most cryptocurrencies that can be traded anytime on exchanges like Binance,
Bitcoin ETFs follow the trading hours of the traditional stock exchange they are listed on,
meaning no weekend trading.
The proportion of Bitcoin traded on weekdays between 3 and 4 PM has increased to 6.7%,
up from 4.5% in Q4 2023, according to Kaiko.
This period is known as the “fixing window,”
during which ETF managers determine Bitcoin’s price to calculate the net asset value of these funds.

 

 

 

 

 

 

 

Impact of Bank Collapses

Kaiko also notes that the collapse of banks dealing with digital currencies,
such as Silicon Valley Bank and Signature Bank in March 2023, contributed to the decline in weekend trading volumes. Market makers can no longer use these banks’ 24/7 payment networks to buy and sell cryptocurrencies in real-time.

 

 

Decreased Price Volatility

Increased institutional adoption of cryptocurrencies through Bitcoin ETFs has led
to a significant drop in price volatility, according to another Kaiko report.
When Bitcoin last reached record levels in November 2021, volatility soared to nearly 106%.
In March, as Bitcoin hit an all-time high of $73,798 amid optimism about ETFs, volatility was only 40%.

 

 

Relative Stability of Bitcoin

The downward trend in volatility, remaining below 50% since the beginning of 2023,
indicates that Bitcoin has become a more established asset, according to Kaiko.
While it is too early to declare this the new normal,
changes in Bitcoin’s market structure over the past year may help explain
why its price movements have been relatively “boring.”

 

 

 

How Has Bitcoin Trading Changed with the Introduction of ETFs?

Bitcoin Price Temporarily Exceeds $70,000 Amid GameStop

Bitcoin Price Temporarily Exceeds $70,000 Amid GameStop

Frenzy Investors Pour $2 Billion into Crypto Assets in May

 

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Bitcoin’s price briefly surpassed $70,000, driven by four consecutive weeks of inflows into cryptocurrency investments,
amid a new frenzy surrounding GameStop (GameStop) shares, which is fueling speculation around meme coins.

According to a report by CoinShares International Ltd.,
inflows into crypto assets totaled $185 million in the week ending May 31.
Investors poured $2 billion into digital assets during May, including Bitcoin exchange-traded funds.

On Monday morning, Bitcoin’s price temporarily rose above $70,000 for the first time in a week.
Meanwhile, most other cryptocurrencies experienced price fluctuations after an initial rise.

Traders attributed these gains to an indirect effect from the rise in GameStop shares,
driven by a Reddit account that sparked the meme stock frenzy in 2021.

 

 

 

 

 

 

 

Additionally

A cryptocurrency on the Solana blockchain, which uses the name, logo, and symbol of GameStop,
surged over 120% on Monday, according to CoinGecko,
a site that tracks cryptocurrency activity, despite the currency not being legally associated with the company.

This surge followed the rise in GameStop shares after Keith Gill,
known as “Roaring Kitty,” posted a screenshot on Reddit on Sunday showing his significant stake in GameStop shares.
On the other hand, the price of Dogewhatever, one of the most popular meme coins this year, remained largely unchanged.

Spencer Hallarn, head of over-the-counter trading at digital asset firm GSR, stated:
“The massive derivatives position supported GameStop after Roaring Kitty’s announcement on Sunday night,
The significant increases seen in Doge and Bitcoin are sparking a rise in cryptocurrencies within moments of his post being widely shared on Reddit.”

Shiliang Tang, head of the leading trading firm Arbelos Markets,
noted that the market was also influenced by new exchange-traded fund inflows at the start of a new month.
However, he emphasized that GameStop news over the weekend remains the main driver behind market gains.

The CoinShares report added that Ethereum saw a second week of inflows following the excitement
generated by the approval of exchange-traded funds investing directly in Ether in the United States.

 

 

Bitcoin Price Temporarily Exceeds $70,000 Amid GameStop

Bitcoin Price Stabilization

Bitcoin Price Stabilization

Bitcoin’s price has stabilized after experiencing its largest daily drop since 2023, with the largest cryptocurrency’s value dropping by 7.7% on Saturday, marking the steepest decline since March 2023. This drop is part of a broader downturn in the cryptocurrency market, which was influenced by escalating geopolitical tensions in the Middle East, leading to a shift away from risk among investors.

 

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On Sunday, Bitcoin traded at around $63,700 at precisely 6:35 AM Singapore time, after it had pared some of its previous losses.
Other major cryptocurrencies such as Ether, Solana, and Dogecoin also incurred notable losses throughout the day.

 

In a related context, Iran launched drones and offensive missiles against Israel,
apparently in response to a strike in Syria that resulted in the death of several senior Iranian military officers,
escalating the conflict in the region to a new, more perilous phase.

 

It’s noteworthy that digital assets are also traded over the weekends,
providing investors with an opportunity to gauge the potential mood in traditional markets when they reopen on Monday,
although much can change in the interim.

 

 

According to Zuhair Ebtikar, founder of the cryptocurrency fund “Split Capital,” the continuation of selling in the cryptocurrency markets may depend on further geopolitical escalation, pointing out that investors are waiting to see what the markets will look like on Monday.

 

He added that borrowing had significantly deteriorated in the past three days,
leading to a noticeable drop in digital asset prices.
He noted that data from “Coinglass” shows that approximately $1.5 billion in bullish bets on cryptocurrencies were liquidated on Friday and Saturday,
in one of the most severe liquidations over at least the past six months.

 

As the date for the so-called “Bitcoin halving” approaches,
which is expected to halve the new supply of the currency around April 20th,
speculators are waiting to see if this event will support the prices as it has in the past,
despite growing doubts about the likelihood of repeating this scenario especially
after Bitcoin recently reached its all-time high.

 

 

Bitcoin Price Stabilization

Bitcoin Stabilizes Near $42,000

Bitcoin Stabilizes Near $42,000 After Worst Performance Since August

Profit-Taking Lifts Crypto After Decline Tied to Rate-Cut Bets

 

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the details
Expectations

 

 

 

 

 

the details

Bitcoin stabilized near $42,000 on Tuesday after falling 8% in recent weeks, its worst three-day performance since August, raising concerns about more volatility as the end of the year approaches.

The cryptocurrency fell from $45,000, dragging down broader cryptocurrency markets as well.

Some analysts attributed the decline to traders reducing their positions ahead of a Federal Reserve meeting that could signal a rate cut in 2024.

However, most analysts struggled to find a specific reason for the decline, describing it as expected given Bitcoin’s 152% year-to-date gain.

The cryptocurrency has rebounded this year after a setback in 2022, as investors have become increasingly confident that regulators will soon approve the first spot Bitcoin exchange-traded funds (ETFs) in the United States. This could lead to increased demand for the virtual currency.

Caroline Maulon, co-founder of Orbit Markets, a provider of liquidity for digital assets derivatives, said: “Cryptocurrencies have finally seen some profit-taking after a stunning rally in recent weeks.” She added: “We expect more cryptocurrency volatility in the run-up to the approval of spot Bitcoin exchange-traded funds in early January. This volatility could increase during the holiday season.”

 

 

 

 

 

 

Expectations

The cryptocurrency industry is awaiting the outcome of applications submitted by BlackRock and other companies seeking permission to launch Bitcoin ETFs in the United States. Bloomberg Intelligence expects a group of funds to receive approval from the Securities and Exchange Commission (SEC) by next month.

Another factor supporting traders’ sentiment is the upcoming Bitcoin halving in 2024, which will reduce the number of cryptocurrency rewards that miners receive for their work. This event, which takes place every four years, is part of the process of capping Bitcoin’s maximum supply at 21 million coins. Bitcoin has set record highs after each of the last three halvings.

However, on Monday, optimistic scenarios were tempered. Data from Coinglass shows that about $455 million worth of cryptocurrency trading positions betting on rising prices were liquidated on December 11, the highest level since at least mid-September.

Greg Moritz, co-founder of AltTab Capital, a cryptocurrency hedge fund, said: “There were a number of market signals where we can see that Bitcoin is facing general resistance from a technical trading perspective.” He added: “I don’t think this indicates any fundamental change. If anything, it’s a buying opportunity from our perspective.”

Bitcoin rose by about 1% to $41,737 on Tuesday. Smaller altcoins such as Binance (BNB) and Avalanche (AVAX) also rose, while an index tracking the top 100 cryptocurrencies registered modest gains.

 

 

 

Bitcoin Stabilizes Near $42,000 After Worst Performance Since August

Bitcoin Approaching $42000

Bitcoin Approaching $42000

Bitcoin rose to nearly $42,000 on Tuesday,
driven by expectations of a rate cut and increased demand from exchange-traded funds.

 

 

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The price of Bitcoin rose to $40,000, surpassing the previous level of collapse after the collapse of TerraUSD. This rise in Bitcoin reflects investors’ optimism about a rate cut.

 

Tony Sycamore, a market analyst at IG Australia, wrote in a note: “Bitcoin is still supported by optimism about the approval of the Securities and Exchange Commission to reduce interest rates on exchange-traded funds and Federal Reserve interest rates in 2024.” He added that the technical chart patterns of the currency indicate that $42,330 is the next level to watch.

 

Bitcoin’s recovery from the collapse of cryptocurrencies last year has withstood the US crackdown that put Sam Bankman-Fried behind bars on charges of fraud at FTX. Binance, a major cryptocurrency exchange, and its founder Changpeng Zhao were also fined heavily.

 

For optimists, the push to curb questionable practices and the wave of exchange-traded fund applications point to the maturity of the industry and the potential for wider adoption of cryptocurrencies.

 

 

 

 

 

 

Conclusion:

 

If Bitcoin can break through the $42,000 level, it could be on track to reclaim the record levels it reached during the pandemic rally.

 

While the rise in the price of Bitcoin indicates that investors are feeling more confident about the future of the cryptocurrency, amid expectations of a rate cut and increased demand from exchange-traded funds.

 

 

Bitcoin Approaching $42,000

Theft of $110 Million in Cryptocurrencies Hits Digital Asset Network

Theft of $110 Million in Cryptocurrencies Hits Digital Asset Network

In a massive cybersecurity incident, projects affiliated with the pioneer in digital assets,
Justin Sun, fell victim to two separate attacks.
The cryptocurrency exchange “HTX” (HTX) and the “HECO Bridge” were breached,
resulting in losses exceeding $110 million.

 

Topic
the details
Conclusion

 

 

 

 

 

the details

Confirmation came through a tweet from Justin Sun on Wednesday,
where he affirmed that the HTX exchange had temporarily halted deposit
and withdrawal operations while an investigation is underway.
Another statement from the exchange spokesperson confirmed
that around $30 million worth of cryptocurrencies were stolen from its wallet.

 

In a separate development, CryptoQuant, a research company,
reported a loss of over $85 million in Ether and other tokens due to a breach of the HECO Bridge.
Despite the independence of HECO Bridge from the HTX exchange,
both suffered simultaneous cyberattacks.

 

As of now, there has been no official comment from HECO Bridge,
and more details are expected to be revealed after the completion of investigations into the twin attacks.

 

 

 

 

 

 

 

Conclusion

These incidents come shortly after the announcement by Poloniex,
another cryptocurrency exchange supported by Justin Sun,
revealing a similar security breach resulting in the theft of over $100 million.
Additionally, HTX incurred losses of $8 million due to a security breach in September.

 

Justin Sun stated in a post on the former “X” platform, now known as Twitter,
that HTX would fully compensate for the losses from its wallet and
affirmed the resumption of services once the investigation concludes and
the reasons behind these massive cyberattacks are identified.

 

 

 

Theft of $110 Million in Cryptocurrencies Hits Digital Asset Network

Bitcoin Exchange-Traded Funds

Bitcoin Exchange-Traded Funds: A New Gateway for Institutions to the Crypto Market

The anticipated launch of Bitcoin exchange-traded funds (ETFs) in the United States is expected
to open the door for institutions to enter the crypto market,
potentially leading to significant growth in the sector.

 

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Analysis

Conclusion

 

 

 

 

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There are several reasons why institutions are interested in investing in Bitcoin.
First, many institutions believe that Bitcoin is a promising asset class with significant growth potential.
Second, investing in Bitcoin can help institutions diversify their investment portfolios.
Third, investing in Bitcoin can help institutions attract new customers.

 

Bitcoin ETFs offer several advantages that appeal to institutions, including:

 

Transparency: Bitcoin ETFs are subject to the same regulatory rules as traditional investment funds,
which provides institutions with greater transparency and governance.

Liquidity: Bitcoin ETFs trade on exchanges, which provides institutions with greater liquidity for entering and exiting investments.

Cost-effectiveness: Bitcoin ETFs are more cost-effective than traditional investment funds,
making them more attractive to institutions.

 

 

 

 

 

 

Analysis

 

The launch of Bitcoin ETFs is expected to lead to significant growth in the crypto market.
It is expected that institutions will invest billions of dollars in these funds,
which will lead to increased demand for Bitcoin and rising prices.

 

In addition, the launch of Bitcoin ETFs is expected to increase liquidity in the crypto market,
making it easier for investors to buy and sell.
It will also increase transparency in the market, making it more attractive to investors.

 

Conclusion

 

The launch of Bitcoin ETFs marks a watershed moment in the development of the crypto market.
It is expected to lead to a significant increase in investment in this asset class,
which could lead to fundamental changes in the market.

 

 

 

Bitcoin Exchange-Traded Funds

Unlocking the Bitcoin Surge: A Dive into the $38,000 Realm

Unlocking the Bitcoin Surge: A Dive into the $38,000 Realm

Discover the driving force behind Bitcoin’s approach to $38,000, fueled by tradable funds.
Explore the ripple effect on smaller cryptocurrencies like Ethereum and grasp the investment landscape’s dynamics.

 

Topic

Introduction

Expectations and Anticipations

Unveiling Market Dynamics

 

 

 

 

 

Introduction

In the ever-evolving cryptocurrency sphere, Bitcoin is once again in the limelight, nearing the significant $38,000 threshold. Fueled by tradable funds, this surge sparks anticipation for increased investments from both institutional giants and individual players. This article dissects the factors propelling Bitcoin’s momentum and delves into its impact on smaller digital currencies, notably Ethereum.

 

Bitcoin’s Rally: Beyond Numbers

Bitcoin’s Ascent to $38,000

The journey of Bitcoin to $38,000 is not merely a numerical accomplishment; it’s a manifestation of the robust dynamics within the market.

 

Tradable Funds: The Propellant

Backing Bitcoin’s climb is the substantial support from tradable funds,
injecting liquidity and fortifying its upward trajectory.

 

 

 

 

 

 

 

Expectations and Anticipations

Institutional Influx

As investment institutions prepare to channel funds into Bitcoin, expectations soar. Cryptocurrency’s allure as a legitimate asset class gains momentum among institutional investors.

 

Small Investors on the Rise

Beyond major players, small investors are entering the arena, drawn by promises of returns and the increasing legitimacy of cryptocurrencies as viable investments.

 

Ripple Effect: Empowering Smaller Cryptos

Ethereum Riding the Bitcoin Wave

The surge in Bitcoin’s value extends its influence to smaller players, notably Ethereum. Often deemed Bitcoin’s counterpart, Ethereum reaps the benefits of positive market sentiment.

 

 

 

 

 

 

 

 

Unveiling Market Dynamics

Deciphering the Driving Force

Understanding what propels Bitcoin and, consequently, the entire cryptocurrency market provides valuable insights into the interconnected nature of digital assets.

 

Market Optimism’s Sway

Optimism plays a pivotal role in shaping market trends. The positive sentiment surrounding Bitcoin creates a ripple effect, fostering a growth-oriented climate for various cryptocurrencies.

 

Conclusion

In summary, Bitcoin’s price surge, backed by tradable funds, marks a pivotal moment in the cryptocurrency landscape. The ripple effect reaches smaller cryptocurrencies, creating a dynamic and promising market. Whether you’re an institutional investor or an individual venturing into the crypto space, comprehending the forces steering these movements is imperative.

 

 

 

Unlocking the Bitcoin Surge: A Dive into the $38,000 Realm

Cryptocurrency Demand Surpasses Bitcoin

Cryptocurrency Demand Surpasses Bitcoin as Risk Appetite Rises

Demand for speculative cryptocurrencies is on the rise,
potentially overshadowing Bitcoin’s prospects for revival.

 

 

Topic
Introduction

Optimism in the Crypto World

 

 

 

 

 

 

 

Introduction

Cryptocurrencies within the lower tier, including 30 tokens in the mid-cap category on the “MarketVector” index,
comprising the top 100 digital assets, have surged by 16% and 14% respectively in November.
This exceeds the broader benchmark’s gains of 4% and Bitcoin’s rise of just 1%.

 

As a result, Bitcoin’s market share in the $1.38 trillion cryptocurrency market has dropped to approximately 49% from its peak of 51.5% in October,
as indicated by CoinGecko data. Investors in digital assets often view this decline as a sign of an increased appetite for risk.

 

Richard Galvin, co-founder of Digital Asset Capital Management, remarked,
“This rally is certainly broader and more sustainable than any price movement we’ve seen since January.
” He added, “In a relatively weak liquidity environment, we are witnessing some substantial moves to the upside.”

 

 

 

 

 

 

 

Optimism in the Crypto World

 

Bitcoin’s 28% increase last month is its best performance since January,
amid expectations that the licensing of the first US exchange-traded funds directly
investing in cryptocurrencies will happen soon.
This positive sentiment extends beyond the leading digital asset,
buoyed by bets that the Federal Reserve has finished raising interest rates.

 

The surge in cryptocurrencies also extends to other areas, such as decentralised finance (DeFi),
a collective term for blockchain projects that facilitate direct transactions between participating parties.
Interest rates for borrowing stablecoins from the primary lender in the core DeFi finance platform “Aave” exceeded 10%, signalling that investors are willing to pay for their trading positions.

 

Among smaller tokens, XRP, associated with Ripple Labs Inc.,
has been one of the best-performing cryptocurrencies in November, gaining 14%.
The cryptocurrency benefits from a partial legal victory that Ripple achieved with the Securities and Exchange Commission regarding whether XRP falls under the agency’s regulatory jurisdiction.

 

The upcoming deadline set for November 9 to determine the schedule of hearings on potential resolutions for ongoing lawsuits has spurred speculation about a possible settlement of the SEC lawsuit.

 

ByteTree staff, including prominent investment officers like Charlie Morris, wrote in a memo: “Despite a lack of an immediate clear incentive for this price surge, traders are likely to respond to positive developments for Ripple.”

 

Bitcoin has risen by 111% this year, rebounding from its slump in 2022. This upward momentum has managed to withstand the damage to the sector’s reputation following the conviction of Sam Bankman-Fried on charges of fraud involving billions of dollars at the FTX exchange, one of several digital trading platforms and cryptocurrency exchanges that faced insolvency.

 

Bitcoin’s value has dropped to less than $35,000 as of 9:53 AM in Singapore today, while XRP has retreated slightly from its recent gains. Bitcoin remains significantly below its 2021 record high of around $69,000.

 

 

 

Cryptocurrency Demand Surpasses Bitcoin as Risk Appetite Rises

 

Surging Bitcoin Value Signals Digital

Surging Bitcoin Value Signals Digital Currency Transformation

The notable upward trajectory of Bitcoin’s value has continued, highlighting the significance of this outstanding performance. The most famous cryptocurrency reached a new milestone, surpassing $35,000. This surge is the strongest in 17 months, indicating tangible progress in the world of digital currencies.

 

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This new ascent began at the beginning of Asian trading sessions, with Bitcoin reaching $35,578 before a slight retracement. This new level is the highest since May 2022, signaling the continuation of positive momentum for this currency.

 

The substantial increase in Bitcoin’s value can be attributed to growing expectations regarding the approval of exchange-traded funds (ETFs) holding cryptocurrencies. This potential decision is expected to increase interest in digital currencies and boost demand for them.

 

Furthermore, this strong Bitcoin rally comes after a 28% increase in October, the largest monthly gain since January. This robust performance is largely due to increasing expectations that the U.S. Securities and Exchange Commission (SEC) will approve ETFs investing directly in Bitcoin, following years of discussions and preparations.

 

Michael Safai, a partner at the private trading firm “Dixitery Capital,” emphasized the significance of this rally and suggested a strong push towards the $37,000 level.

 

In addition to Bitcoin, there has been a notable increase in the value of “Sol” (SOL), which belongs to the Solana blockchain network, with gains of around 30% during this week. This performance reflects the growing optimism surrounding digital currency projects and blockchain technology.

 

Tyung Hong, CEO of the cryptocurrency investment company “Satori Research,” pointed out the importance of the $35,000 level and its impact on market behavior.

 

In conclusion, the world of digital currencies appears to be experiencing rapid growth and development. With increasing interest and acceptance of these digital assets, they may gain a more significant position in the global financial landscape in the future. These recent increases underscore the importance of the digital transformation in the financial world.

 

Surging Bitcoin Value Signals Digital