- Bitcoin ETF race continues as Bloomberg ETF analyst speculates Charles Schwab’s entry.
- Bitcoin exchange balances have nosedived by over one million BTC since 2020.
- BTC price sustained above the $42,000 level as Bitcoin eyes a recovery.
Bitcoin ETF race likely to intensify as Bloomberg ETF specialist Eric Balchunas speculates $8.5 trillion asset manager Charles Schwab’s entry into the race. BTC exchange balances are on a decline and a recovery in Bitcoin price is likely in the short term.
Also read: Lido price sustains above $3 despite massive surge in profit-taking by LDO traders
Daily Digest Market Movers: Bitcoin balance on exchanges in a downtrend
- Bloomberg ETF specialist Eric Balchunas has predicted multi-trillion dollar asset manager, Charles Schwab’s entry in the Bitcoin ETF race with a competitively priced product.
- Balchunas believes that the investment giant’s entry could intensify the ETF race. According to sources, the giant is yet to develop its spot Bitcoin ETF.
- Crypto analyst Joe Burnett reports that Bitcoin exchange balances have declined by over a million since 2020. This is a significant on-chain development since BTC has a limited supply of 21 million. One million BTC leaving exchange wallets adds to the bullish thesis for the asset.
- The Bitcoin halving event where the reward for mining a BTC block will be slashed in half, from 6.25 to 3.125 is nearly 80 days away.
- The BTC halving is considered a catalyst for the asset, as Bitcoin price hit a new all-time high post halving in previous instances.
- Another key on-chain metric that supports the bullish thesis for BTC is addresses with less than 1 BTC.
- According to Glassnode data, wallet addresses with less than 1 BTC have been in a downward trend since the asset hit its $49,000 local top. This seems to have bottomed out with more signs of consolidation around the $40,000 level.
-638421048576263911.jpeg)
Bitcoin wallet addresses with less than 1 BTC. Source: Glassnode
- Bitcoin’s ongoing bull run is likely sustainable as Glassnode data reveals that Bitcoin’s short-term holder realized price continues to climb. This indicates BTC is getting acquired at a higher price, supporting Bitcoin’s uptrend and the thesis for BTC recovery.
Bitcoin: Long/Short-term on-chain cost basis. Source: Glassnode
- Bitcoin’s Spot ETF product is gaining popularity among traders. On January 26, Harvest Hong Kong, one of China’s largest fund companies, filed an application for a BTC Spot ETF, the first application of its kind, submitted to the Hong Kong Securities and Futures Commission.
Technical Analysis: Bitcoin price likely to recover from slump
Bitcoin price sustained above the $42,000 level on Monday, recovering from its weekend slump. BTC price climbed above the $40,000 psychological level. BTC price is likely to face resistance at $43,600 and $45,589, two key levels in its uptrend.
Bitcoin price recovery to the $45,000 level becomes increasingly likely as the asset breaks out of its slump and rebounds from the psychologically important level of $40,000.
BTC/USDT 1-day chart
A daily candlestick close below $40,000 could invalidate the bullish thesis and BTC price could decline to support zone between $38,155 and $38,555.
Open Interest, funding rate FAQs
How does Open Interest affect cryptocurrency prices?
Higher Open Interest is associated with higher liquidity and new capital inflow to the market. This is considered the equivalent of increase in efficiency and the ongoing trend continues. When Open Interest decreases, it is considered a sign of liquidation in the market, investors are leaving and the overall demand for an asset is on a decline, fueling a bearish sentiment among investors.
How does Funding rate affect cryptocurrency prices?
Funding fees bridge the difference between spot prices and prices of futures contracts of an asset by increasing liquidation risks faced by traders. A consistently high and positive funding rate implies there is a bullish sentiment among market participants and there is an expectation of a price hike. A consistently negative funding rate for an asset implies a bearish sentiment, indicating that traders expect the cryptocurrency’s price to fall and a bearish trend reversal is likely to occur.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Polygon joins forces with WSPN to expand stablecoin adoption
WSPN, a stablecoin infrastructure company based in Singapore, has teamed up with Polygon Labs to make its stablecoin, WUSD, more useful in payment and decentralized finance.
Coinbase envisages listing of more meme coins amid regulatory optimism
Donald Trump's expected return to the White House creates excitement in the cryptocurrency sector, especially at Coinbase, the largest US-based crypto exchange. The platform is optimistic that the new administration will focus on regulatory clarity, which could lead to more token listings, including popular meme coins.
Cardano's ADA leaps to 2.5-year high of 90 cents as whale holdings exceed $12B
As Bitcoin (BTC) gets closer to the $100,000 mark for the first time — it crossed $99,000 earlier Friday — capital is rotating into alternative cryptocurrencies, creating a buzz in the broader crypto market.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Bitcoin: Rally expected to continue as BTC nears $100K
Bitcoin (BTC) reached a new all-time high of $99,419, just inches away from the $100K milestone and has rallied over 9% so far this week. This bullish momentum was supported by the rising Bitcoin spot Exchange Traded Funds (ETF), which accounted for over $2.8 billion inflow until Thursday. BlackRock and Grayscale’s recent launch of the Bitcoin ETF options also fueled the rally this week.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.