Bitcoin tumbles, altcoins bleed, but investors don't shrinkMarketsTop StoriesOther NewsTrending

Ethereum, the second-largest cryptocurrency, is facing its own set of challenges as it struggles to keep pace with Bitcoin’s impressive performance this year. The future of Ether largely depends on the SEC’s decision regarding the approval of spot Ether ETFs, with the first ruling expected on May 23.

Meanwhile, Bitcoin’s current price correction is attributed to profit-taking by long-term holders, according to Bitfinex analysts. Despite this healthy market adjustment, experts maintain a positive outlook, with some predicting Bitcoin to reach $80,000 by the end of the year.

Today’s Newsletter

• Bitcoin tumbles, altcoins bleed, but investors don’t shrink: Santiment
• Ether fettered by fate of spot ETF proposals
• Bitcoin correction is tied to profit-taking by long-term holders, says Bitfinex analysts

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Top Stories

BITCOIN

Bitcoin tumbles, altcoins bleed, but investors don’t shrink: Santiment

Despite the recent decline in Bitcoin and altcoin prices, investor confidence remains strong, with many anticipating a swift market recovery.

Santiment, a crypto analytics platform, has noted the prevalence of bullish terms like “#buy,” “#buying,” and “#bullish” in social media discussions, suggesting that investors are not deterred by the current dip. In fact, these bullish hashtags are being used twice as frequently as bearish ones, indicating a dominant sentiment of greed among investors, as reflected in the Alternative platform’s Bitcoin Fear Greed Index, which currently stands at 70.

Crypto analysts and experts maintain a positive long-term outlook for Bitcoin, with Bitwise CIO Matt Hougan predicting an influx of around $1 trillion into Bitcoin via ETFs from institutional investors over the next few years. This projection, if realized, could pave the way for a “raging bull market.”

Despite the recent price correction, which saw Bitcoin dip below $66,000 and face resistance at $67,000, analysts believe that the hype and excitement surrounding the upcoming Bitcoin halving might be contributing to the current price movement, which aligns with historical trends observed before the halving event. [ cryptobriefing ]

ETHEREUM

Ether fettered by fate of spot ETF proposals

Ether, the second-largest cryptocurrency, is struggling to keep pace with Bitcoin’s impressive performance, despite the recent technical upgrade of the Ethereum blockchain. While Ether has seen a 53% increase in the first three months of the year, it lags behind Bitcoin’s 65% gain and remains at least 26% below its all-time high from November 2021.

The Ethereum blockchain’s Dencun upgrade, aimed at lowering transaction fees, failed to generate significant excitement beyond the crypto enthusiast circle, in contrast to the anticipation surrounding Bitcoin’s upcoming halving event.

Much of Ether’s future hinges on the SEC’s decision on the approval of spot Ether ETFs, with VanEck’s filing first in line for a ruling on May 23. While some, like Standard Chartered Bank, expect US Ether ETFs to be approved and drive the cryptocurrency’s price to new heights, others remain skeptical due to Ether’s ambiguous legal status.

The SEC has not yet ruled on whether Ether is a commodity or a security, and its proof-of-stake model, which allows users to earn yield by locking up tokens, could complicate the approval process for ETFs. [ reuters cryptoverse ]

MARKETS

Bitcoin correction is tied to profit-taking by long-term holders, says Bitfinex analysts

Bitcoin’s current price correction, which has seen the alpha cryptocurrency fall over 7% since April 1, from $70,877.82 to $65,619.10, is tied to profit-taking by long-term holders (LTHs), according to Bitfinex analysts. They believe that this correction reflects a healthy market adjustment following BTC’s surge to new all-time highs and is related to profit-taking movement.

This is a common occurrence registered in previous cycles when the old supply of LTHs is activated after a new all-time high, reflecting patterns of distribution and accumulation that underscore investor sentiment and market psychology.

The analysts at Bitfinex anticipate continued fluctuations as the market absorbs this newfound supply, with over $2.6 billion in profits recorded through on-chain transactions, a significant portion of which is attributed to LTHs. Despite the correction, some experts, like Ruslan Lienkha, chief of markets at crypto services provider YouHodler, still see BTC reaching $80,000 this year, although not without more significant corrections along the way.

Lienkha notes that the stock market might affect the Bitcoin price, as a possible correction in traditional markets can trigger institutional capital outflows from crypto due to investment companies’ formal approach based on asset credit ratings. [ cryptobriefing ]

Other News

TOKEN2049 Dubai officially sold out with 10,000 attendees following unprecedented demand

Paradigm prepares to raise up to $850M, largest crypto fund since 2022

MakerDAO could back a billion Dai with Ethena’s ‘synthetic dollar’ USDe. [protos]

EigenLayer restaking empowers security of privacy-focused rollup Fhenix

Trader turns $13K into $2M within 1 hour as memecoin frenzy continues. [cointelegraph]

Bitfinex launches ‘implied volatility’ perpetual futures for Bitcoin and Ether

DOJ moves 30K BTC connected to Silk Road seizure. [blockworks]

Binance launches support for ARC-20 tokens on its inscription marketplace

Quant momentum trade is hot again in crypto. [bloomberg crypto]

Fantom founder Andre Cronje speaks out on negative funding rates and unbacked assets

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Nexo is giving out 10 BTC in rewards until the Bitcoin halving.

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Vince