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Bitcoin may ‘take out’ previous $53K lows before bulls regain control, says trader

Bitcoin price is focusing on $53,000 after another night of losses.

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A night of losses pressures bulls as liquidations mount up and $46,000 support looms large.

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Bitcoin may 'take out' previous $53K lows before bulls regain control, says trader

Bitcoin (BTC) dropped to its lowest in two weeks on March 23 amid fears that bulls were running out of appetite to buy.

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingviewBTC price bounces at $53,000

Data from Cointelegraph Markets Pro and Tradingview showed BTC/USD hitting local lows of $53,125 on Bitstamp overnight.

The latest hit to the 2021 bull run this month, Tuesday’s dip brought the prospect of a $50,000 test ever closer, with buyer support on exchanges looking increasingly shaky.

Data from Binance’s orderbook confirmed support at $53,000, but should this crumble, only definitive demand at $46,000 remains to halt the retracement.

“Expecting the previous lows in BTC to be taken out before we can see a significant bounce,” trader Crypto Ed summarized, forecasting an upcoming move below $53,000.

“This bull-run isn’t over yet. I’m ready to buy the dip,” Ki Young Ju, CEO of on-chain analytics service CryptoQuant, argued, striking a more upbeat tone.

“But I’ll patiently wait till on-chain supply/demand indicators say ‘all-in.’”

Ki referred to high selling pressure on spot exchanges keeping upside in check, but was representative of the broader mood among traders on the day, who overwhelmingly classed recent price action as a standard consolidatory move rather than capitulation.

In their favor was hodler behavior, which saw more BTC taken off exchanges in recent days than at any point in the past six weeks.

BTC and Tether (USDT) exchange supply changes vs. BTC/USD. Source: Santiment/ Twitter24-hour liquidations near $2 billion

As Cointelegraph reported, however, other on-chain metrics suggest that Bitcoin could be at least half way through its latest bull run, with only the top formation segment left.

Bitcoin liquidations chart. Source: Bybt

Not every trader was meanwhile prepared for the extent of the overnight drop, as demonstrated by the $1.38 billion in liquidated longs over the past 24 hours.

2021 has become notorious for those betting on price direction across cryptocurrencies, with leveraged traders in particular contributing to a huge amount in liquidiations, data from Bybt confirms.

Source: https://cointelegraph.com/news/bitcoin-may-take-out-previous-53k-lows-before-bulls-regain-control-says-trader

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Cointelegraph

VanEck and BetaShares apply for Aussie crypto ETFs as family offices snap up BTC

VanEck and BetaShares have lodged submissions with the ASX for Bitcoin and crypto-related funds.

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Numerous institutional crypto product applications have been lodged as Australians buy more Bitcoin.

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VanEck and BetaShares apply for Aussie crypto ETFs as family offices snap up BTC

Family offices in Australia are reportedly piling into digital assets as fund managers compete to list the country’s first cryptocurrency-backed exchange-traded fund.

VanEck and BetaShares have each lodged submissions with the Australian Securities Exchange (ASX) following a rejection of industry speculation in March that the exchange was opposed to such products. The ASX confirmed that had received formal applications from several other investment managers eager to launch their own Bitcoin ETFs.

Earlier this week VanEck Asia-Pacific chief executive Arian Neiron stated that the crypto asset movement had become more mainstream and thaa Bitcoin ETF on the ASX could democratize crypto assets for all types of investors.

Australian ETF provider BetaShares also confirmed an ASX application but did not specify whether it was planning a Bitcoin product or one more broadly backed by digital assets.

Managing director Alex Vynokur stated that there was significant demand for such products, adding:

“From our perspective, a regulated structure of an ETF is the more appropriate structure for a significant number of investors, rather [than] buying Bitcoin or other cryptocurrencies on unregulated exchanges.”

The ASX declined to speculate or comment on the applications but stated that it is closely monitoring developments in relation to listed investments involving Bitcoin and other cryptocurrencies.

The moves have been viewed as bullish by investors down under as Australia’s wealthiest families begin to diversify their portfolios with crypto assets.

According to a Business Insider Australia report, listed blockchain investment company DigitalX has been offering assistance to increasing numbers of family offices eager to invest in the maturing digital asset space. Executive director Leigh Travers said that investors are replacing their gold portions of portfolios with Bitcoin, adding:

“The biggest change has been around institutional interest which has helped evolve it from a speculative asset to an asset that is part of a diversified portfolio and has the strongest macro winds of any investment possible I think,”

Travers cited DeFi as being one factor that has made this bull run different from the previous one in 2017/18.

The report revealed that the average family office in Australia and New Zealand controls more than $600 million each and the moves into crypto assets signal just how ubiquitous the asset class is becoming.

As reported by Cointelegraph, Australia’s securities regulator (ASIC) wants crypto firms to engage with them to help them foster innovation in the region.

In late April, the U.S. SEC delayed the decision on VanEck’s Bitcoin ETF until June 17.

Source: https://cointelegraph.com/news/vaneck-and-betashares-apply-for-aussie-crypto-etfs-as-family-offices-snap-up-btc

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Ethereum co-founder Vitalik Buterin becomes billionaire as Ether hits $3K

Ethereum co-founder Vitalik Buterin officially becomes a crypto billionaire following Ether’s meteoric rise above $3,000.

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Vitalik Buterin’s crypto holdings have doubled since January 2021 to surge above $1 billion.

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Ethereum co-founder Vitalik Buterin becomes billionaire as Ether hits $3K

Vitalik Buterin, a co-founder of the world’s most popular smart contract platform, the Ethereum blockchain, has officially become a crypto billionaire.

Buterin’s public Ether address, which he described as his main wallet back in 2018, has hit $1 billion on its balance following Ether’s meteoric rise above a $3,000 price mark on Monday.

At the time of writing, the address holds around 333,500 Ether (ETH) now worth $1.029 billion, according to on-chain data from Etherscan, as ETH more than quadrupled in value from around $700 at the beginning of 2021.

At publishing time, the world’s largest altcoin is trading at $3,144, up 8.6% over the past 24 hours, with gains of 36% over the past seven days, according to data from CoinGecko.

Ethereum price chart over the past 180 days. Source: CoinGecko

According to some online crypto players, 27-year-old Buterin now could be the youngest self-made billionaire in the cryptocurrency industry.

Vitalik Buterin is the youngest crypto billionaire #ETH #Ethereum #Crypto pic.twitter.com/7PfyPvbiC9

— JUSTIN (@justintrimble) May 2, 2021

Amid surging prices, Buterin has been generous with his crypto holdings. In late April, the Russian-Canadian programmer donated 100 Ether and 100 Maker (MKR) tokens to a COVID-19 relief fund for India.

According to some online crypto players, 27-year-old Buterin now could be the youngest self-made billionaire in the cryptocurrency industry.

Source: https://cointelegraph.com/news/ethereum-co-founder-vitalik-buterin-becomes-billionaire-as-ether-hits-3k

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2 key Ethereum price metrics prove pro traders are behind ETH’s new highs

Ethereum futures data suggests that pro traders believe $3,500 ETH is the next stop for the top altcoin.

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Ethereum futures data suggests that pro traders believe $3,500 ETH is the next stop for the top altcoin.

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2 key Ethereum price metrics prove pro traders are behind ETH’s new highs

As Ether (ETH) made a $2,800 all-time on April 29, so did its futures open interest. The $8.5 billion figure marks a 52% monthly increase and shows robust trading activity behind the meteoric price rise.

Some analysts might dismiss Ether derivatives, considering CME’s future has $355 million in open interest compared to Bitcoin’s $2.4 billion. However, Ether contracts were only launched a couple of months ago. Both FTX and Deribit require 100% full-KYC for their clients, and these markets hold a combined $2 billion in ETH open interest.

Ether futures aggregate open interest, USD. Source: Bybt

To this in perspective, the open interest on silver futures currently stands at $22.6 billion. The precious metal has decades of trading history and a $1.4 trillion market capitalization. However, a simple analysis of the number of outstanding contracts isn’t really helpful as these can be used for hedging.

Growth in futures is positive but not a guaranteed bullish indicator

To assess whether the market is leaning bullish, there are a couple of derivatives metrics to review. The first one is the futures premium (also known as basis), which measures the price gap between futures contract prices and the regular spot market.

The 3-month futures should usually trade with a 10% to 20% annualized premium, which should be interpreted as a lending rate.

24-hour average OKEx 3-months ETH futures basis. Source: Skew

As the above chart depicts, ETH’s futures premium went berserk in mid-April, peaking at 45% annualized. Although traders’ FOMO played a role, this also signaled extreme optimism. While professional traders most frequently use monthly futures contracts, perpetual contracts are the go-to instrument of retail investors.

Retail investors are flat at the moment

Perpetual contracts are also known as inverse swaps, and these contracts have a funding rate usually charged every 8 hours. This fee increases as longs (buyers) use higher leverage, so their accounts get drained little by little. When a retail buying frenzy occurs, the fee can reach up to 5.5% per week.

Ether perpetual futures 8-hour funding rate. Source: Coinalyze.net

As the above chart displays, the 8-hour funding rate recently peaked at 0.18% on April 14, equivalent to 3.8% per week. While this certainly contributed to the highly optimistic monthly futures’ basis, the impact has completely faded as the funding rate has been negligent over the past couple of days.

This data suggests that, compared to retail investors, professional traders are more bullish on Ether as the 3-month basis currently stands at 25% per year. This rate is higher than most stablecoin lending services offer, meaning longs (buyers) are willing to pay a premium to keep their positions open.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.

Source: https://cointelegraph.com/news/2-key-ethereum-price-metrics-prove-pro-traders-are-behind-eth-s-new-highs

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