🛑 Incoming BTC short term capitulation?

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Trending over the past 24 hours 👇️ 

1. 🏮 Potential Correction? - BTC inflow to exchanges sees a sudden surge, causing concerns over a short term capitulation.

2. 🙏 Lessons not learnt - Bankrupt FTX begins process to relaunch the exchange.

3. 🔍️ Testing the waters - Analyzing the launch of the first leveraged BTC ETF, BITX!

Exchange inflows on the rise 🛑 

As the price of BTC has soared by ~95% since the start of the year, short term holders and miners are finally eyeing to take some profits.

Short term holders include entities holding BTC for 155 days or less, and are generally speculators. Exchange inflows for this cohort of investors has been recently increasing, with a significant 1.28% (+35.4K BTC) of their total supply sent to exchanges. Their aggregate cost basis is that of around $26,500 earlier this month, putting them on potentially 13% gains at the time of writing

Simultaneously, BTC miners have also been seen sending their fair portion of coins to exchanges, indicating that they too are keen to lock on to some gains. Miners have transferred over $128 million worth BTC to exchanges in the past week—equivalent to 315% of their daily revenue, indicating the possibility of a short term capitulation.

Such valuable on chain analysis, combined with a macro technical resistance for BTC at $30,000 potentially indicates that a short term capitulation in prices is a fair possibility. We believe that the bottom is in for Bitcoin, and the maximum upside for the year would be at around $35,000. But hey, crypto does tend to surprise us time and again, doesn’t it ❗️ 

Fool me once shame on you, fool me twice, shame on me 🤷 

What’s worse than FTX? FTX 2.0! After disclosing that it’s debtors have found ~$7 billion in misappropriated funds as early as last week, the defunct exchange is now looking for a potential reboot, as new CEO John Ray reportedly opened up the floor to bidders looking to finance the new venture.

It’s expected that FTX will not be re-named “FTX 2.0” or any other derivative of its original name and will instead choose to rebrand as an entity with a different name altogether. Smart move, we should say!

Despite still having a hole of nearly $2 billion on its books, the new exchange is expected to launch sometime in the second quarter of 2024 🤦 What’s worse is that the price of $FTT surged 37% upon this news.

Needless to say, we would never recommend our readers to use the new platform, and we need not even explain why 😂 As always, we advice you to get a hardware wallet, and trust no centralized exchange with your funds. If you are having difficulty setting up your cold wallets, you can book an appointment with us here for any type of assistance. Happy HODling!

A decent debut 🟢 

Yesterday, the first ever leveraged BTC ETF, i.e Volatility Shares' 2x Bitcoin Strategy (BITX) made its debut, with day-one trading volumes of approximately ~$5.5 million 😅 

When compared to other bitcoin futures funds launched this year, BITX fared favorably. For example, Bitwise Bitcoin Strategy Optimum Roll ETF (BITC) recorded a mere $36,000 in trading volume 24 hours after its launch this year.

On the other hand, the ProShares Bitcoin Strategy ETF (BITO), that came to market in October 2021 had witnessed a trading volume of over $1 billion on its opening day, thanks to the ongoing bullish sentiments back then.

Overall in terms of opening day volumes, the BITX ranked 30th of all the 195 ETFs so far introduced in 2023, which is not a bad feat.

With the crypto world evolving rapidly, BITX's entrance is a sign of exciting times ahead. As sentiments slowly change, these ETFs could surely hold the potential to act as a catalyst, by bringing in fresh interest amongst investors in the next bull-run ❗️ 

Meme of the day

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Disclaimer: This newsletter is educational and does not constitute financial advice. You must exercise caution and conduct your research before making any financial decisions.

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