Fun

Bitcoin ‘potentially reached’ local bottom, Bitfinex says

News Feed - 2024-07-08 11:07:49

Helen Partz9 hours agoBitcoin ‘potentially reached’ local bottom, Bitfinex saysBitfinex analysts pointed out several reasons suggesting that Bitcoin’s bloodbath should be over soon.5612 Total views46 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksAfter facing a massive sell-off in June, Bitcoin might have potentially reached a local bottom, according to a new report by analysts from the Bitfinex exchange.


Bitcoin’s (BTC) price plummeted below the 120-day range on July 3, dropping to as low as $53,219 amid the increasing fear, uncertainty and doubt related to the start of Mt. Gox’s creditor repayments and other issues.


Bitfinex analysts suggested on July 8 that Bitcoin might have reached a local bottom based on market data over the weekend, even though Mt. Gox is yet to distribute 94,457 BTC — or about 67% of total BTC in repayments collected for creditors.


Bitfinex also mentioned that the fall in BTC was partly triggered by the German law enforcement agency Bundeskrimanalamt (BKA), which started selling Bitcoin on exchanges and caused high-volume selling from different types of investors.


According to Bitfinex, there are multiple reasons why Bitcoin should stop bleeding soon.U.S. and Germany dumped only 4% of all BTC bought and sold since 2023


One reason is that despite the sizeable nominal value of BTC transferred to exchanges by the German government, as a proportion of all Bitcoin bought and sold since 2023, it is a relatively small number.


According to the analysts, the realized capitalization of Bitcoin flowing into the market since 2023 — or the value of BTC bought and sold — amounts to $224 billion.


“This compares to only $9 billion from Bitcoin that was seized and subsequently sold by governments, including that from the United States and Germany,” Bitfinex analysts wrote, adding that the amount makes up only 4% of the total cumulative realized value since 2023.Source: Bitfinex/CryptoQuant


“Despite the large nominal value, the actual number of Bitcoins transferred to exchanges amounts to only hundreds of millions of dollars, which suggests that the real market impact and the supply overhang from government-seized Bitcoins are relatively minimal,” the report noted.Low SOPR and negative funding rates often mark the bottom of price corrections


Other factors potentially suggesting that Bitcoin might be bouncing in the near future is the drop in the spent output profit ratio (SOPR) coupled with negative funding rates.


SOPR is a financial metric that gauges the realized profit or loss on a given day for wallets falling under a specific cohort of investors. It is calculated by comparing the combined USD value of all coins spent to the value of these coins when they were initially acquired.


According to Bitfinex’s research, SOPR for short-term holders reached 0.97 as of July 6, indicating that short-term investors are not selling at a loss.


Related:Spot Bitcoin ETFs see record inflows after July 4 dip


The average funding rate across all BTC perp trading pairs has also flipped negative for the first time since the bottom on May 1.


“Historically, periods of negative funding rates combined with low short-term SOPR values have often marked the bottom of price corrections,” Bitfinex wrote, adding:“Negative funding rates suggest that selling pressure is high or sellers are dominating the market, but it can also indicate that the market is oversold. When this oversold condition aligns with a recovering SOPR, it often signals that the market is finding a floor.”


Magazine:Could a financial crisis end crypto’s bull run?# Bitcoin# Bitcoin Price# BitfinexAdd reaction

News Feed

Debt Deflation Warnings, Shibarium Buzz Sees SHIB Rise, Former FTX US President Talks SBF, and More — Week in Review
Debt Deflation Warnings, Shibarium Buzz Sees SHIB Rise, Former FTX US President Talks SBF, and More — Week in Review “The Price of Tomorrow” author Jeff Booth has war
Russia Can’t Do Without Cross-Border Crypto Payments, Consensus Reached
Russia Can’t Do Without Cross-Border Crypto Payments, Consensus Reached Key government institutions have agreed that Russia needs to legalize crypto payments for international se
Nigerian Inflation Rate Rises to 20.52% in August — Month-on-Month Rate Drops
Nigerian Inflation Rate Rises to 20.52% in August — Month-on-Month Rate Drops While Nigeria’s year-on-year inflation rose for the seventh straight month to 20.52% in Augus
Over $182 Million Wiped Out As Bitcoin Price Breaks $64,000 And Sends Bears To The Gallows
Este artículo también está disponible en español. In a dramatic turn of events, the Bitcoin price has breached the $64,000 threshold again after a 7.7% increase from a lo
UK Police Seize USB Stick With Ethereum Worth $9.5 Million
UK Police Seize USB Stick With Ethereum Worth $9.5 Million British detectives have seized $22.25 million from operators of an international cryptocurrency scam.
Biggest Movers: Tron Climbs to 5-Month High, With WAVES up 15%
Biggest Movers: Tron Climbs to 5-Month High, With WAVES up 15% Tron (TRX) rallied to a five-month high earlier in today’s session, as bulls continued to feed off recent news
Patient Capital Management switches out Grayscale Bitcoin Trust for BTC ETP
Derek Andersen7 hours agoPatient Capital Management switches out Grayscale Bitcoin Trust for BTC ETPThe asset manager"s Opportunity Trust Fund has $1.4 billion in assets under management.2565 Total views3 Total sharesLis
Traders: Ethereum is the ‘most bullish altcoin’ as ETH reclaims $3.5K
Nancy Lubale5 hours agoTraders: Ethereum is the ‘most bullish altcoin’ as ETH reclaims $3.5KEther’s price holds above a crucial support level where whales are accumulating more.1152 Total views6 Total sharesListen
Spanish Crypto Exchange 2gether Won’t Reimburse All Stolen Funds From the 2020 Hack
Spanish Crypto Exchange 2gether Won"t Reimburse All Stolen Funds From the 2020 Hack Spanish cryptocurrency exchange 2gether has announced that it won’t com
Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days
Following a Brief Fee Spike, Gas Prices to Move Ethereum Drop 76% in 12 Days Transaction fees on the Ethereum network are dropping again after average fees saw a brief spike on Apr
David Attlee4 hours agoSBF claims innocence, contradicts other witnesses: Law DecodedSam Bankman-Fried was the final witness to take the stand after more than three weeks of testimonies in court.771 Total views4 Total sh
BCH House Venezuela Shows Real Cryptocurrency Adoption in First Documentary
BCH House Venezuela Shows Real Cryptocurrency Adoption in First Documentary BCH House Venezuela, an adoption organization, has published its first documentary on social media, wher