Blockchain

In the ongoing Spot Bitcoin ETF mania, Pando has joined the race aiming to seize the opportunities that may arise following the potential approval of BTC Spot ETFs by the US SEC. 

Pando Submits Spot Bitcoin ETF Filing

Switzerland-based asset management company, Pando Asset has become the latest entrant into the Spot Bitcoin Exchange Traded Fund (ETF) race. The investment firm officially submitted its Spot BTC ETF filing to the United States Securities and Exchange Commission (SEC) on November 29.

The news of the late filing comes as a surprise to the crypto space, as the final dates for the SEC’s decision on the Spot Bitcoin ETF approval approach. 

In the filing, Pando Asset provided a lengthy outline of its Spot BTC ETF, PBTC, highlighting its purpose, offerings, net asset value, regulatory compliance, tax considerations, and other factors. 

“The Trust was formed as a Delaware statutory trust on November 16, 2023. The purpose of the Trust is to own bitcoin transferred to the Trust in exchange for Shares issued by the Trust. Each Share represents a fractional undivided beneficial interest in the net assets of the Trust. The assets of the Trust consist primarily of bitcoin held by the Bitcoin Custodian on behalf of the Trust,” the filing stated. 

Pando’s BTC Spot ETF brings the total number of filed Spot Bitcoin ETFs in the crypto space to 13. Among them are applications from prominent financial institutions such as Grayscale, BlackRock, Ark Invest, WisdomTree, and others.

The crypto space is presently anticipating the approval of these ETFs, as many crypto experts have predicted that a Bitcoin Spot ETF debut could result in massive inflows for BTC which may trigger a bull run. 

Spot ETF Approval Prediction

While the crypto community awaits the US SEC’s final verdict on Spot Bitcoin ETF approval, a Bloomberg analyst, James Seyffart has predicted a favorable approval outcome for BTC Spot ETFs.

According to Seyffart, Spot Bitcoin ETFs could see potential approval by January 10, 2024. His prediction has also been backed by another ETF specialist, Senior Bloomberg analyst, Eric Balchunas who gives a strong 90% likelihood for the approval of Spot Bitcoin ETFs. 

“People asking me if we changed the odds. No, we are still holding the line at 90% odds of approval by Jan 10 (aka this cycle), the same odds we’ve had for months (before it was cool/safe). What we are watching for now: more amended/final filings to roll in and clarity on in-kind vs cash creates,” Balchunas stated.

In a testament to its unwavering confidence in Bitcoin (BTC), MicroStrategy, one of the largest Bitcoin holding companies, has once again expanded its cryptocurrency portfolio. 

The company’s former CEO, Michael Saylor, announced the acquisition of an additional 16,130 BTC, valued at approximately $593 million. This strategic move comes as Bitcoin enters a phase of accumulation above the $37,000 mark.

MicroStrategy Adds To Bitcoin Stash

As announced, MicroStrategy’s latest purchase was made at an average price of $36,700 per Bitcoin. With this acquisition, the company’s total Bitcoin holdings now stand at an impressive 174,530 BTC. 

Throughout 2023 and previous years, MicroStrategy has consistently demonstrated its commitment to BTC, accumulating a substantial amount of the cryptocurrency. 

The total cost of MicroStrategy’s Bitcoin investments exceeds $5.20 billion, with an average purchase price of $30,252 per Bitcoin. This significant investment reflects the company’s long-term bullish outlook on Bitcoin’s potential as a store of value and hedge against inflation.

As reported by NewsBTC, the company has reaped substantial gains from the recent uptrend in the overall cryptocurrency market and Bitcoin’s impressive price surge. With BTC experiencing a 36% increase since October, Microstrategy has now amassed over $1 billion in unrealized profits.

Notably, Bitcoin’s positive performance has directly impacted Microstrategy’s stock, traded under the ticker name MSTR. The stock has witnessed a significant surge in value, closely tied to the ongoing bullish momentum of BTC. 

On November 9, as Bitcoin reached its previous yearly high of $38,000, the price of MSTR stock also soared to an all-time high (ATH) of $533 per share. This milestone further proves Microstrategy’s successful investment strategy over the past three years.

Michael Saylor, a prominent advocate for Bitcoin, has been a vocal proponent of the cryptocurrency, emphasizing its superior qualities compared to traditional fiat currencies. 

MicroStrategy’s continued accumulation of Bitcoin reinforces Saylor’s conviction in its long-term prospects and serves as a testament to the company’s belief in the digital asset’s store-of-value properties.

Potential For Short-Term Pullback Looms

In a recent market update by the CryptoQuant author IT Tech, short-term insights on the Bitcoin derivatives market shed light on the current upward momentum and the potential for a minor pullback. 

According to the analysis, the ongoing upward momentum in the Bitcoin market heavily relies on perpetual movement. The rising price of Bitcoin has been a key driving force, contributing to the bullish sentiment. 

However, the Crypto Volatility Divergence (CVD) Spot indicator suggests a relatively flat movement in spot demand. This indicates that a significant increase in immediate spot demand may not support the current price surge.

In the absence of strong spot demand materializing in the market, IT Tech suggests a possible minor pullback in the near term. 

This potential pullback could be attributed to several factors, including profit-taking by traders or a lack of sustained buying pressure from spot investors.

The analysis also highlights the possibility of Bitcoin liquidations in the short term, which could indicate further upward movement to liquidate late short positions. 

This suggests that additional buying pressure may be from those who have taken short positions on Bitcoin. As these shorts are liquidated, it could continue the upward trend.

As of the latest update, Bitcoin (BTC) is trading at $37,600, showing a slight decrease of 0.5% over the past 24 hours. However, it has maintained a gain of 1.5% over the past seven days, indicating a period of consolidation for the cryptocurrency

Featured image from Shutterstock, chart from TradingView.com 

Recently, the crypto community witnessed a notable event as a dormant Bitcoin whale, inactive for nearly four years, returned to the market.

According to data from the crypto analytics platform Lookonchain, this enigmatic entity transferred 3,623 BTC, worth roughly $136.94 million, to two newly created wallets.

Market Speculations And Potential Impact

This mysterious investor initially accumulated their Bitcoin holdings at an average cost of $6,889 per unit from October 25, 2018, to December 31, 2019. Initially, the total investment stood at approximately $24.96 million.

However, at present market conditions, this investment has grown significantly and is now estimated to yield around $112 million in profits.

The transaction’s significance extends beyond its sheer magnitude. It is particularly noteworthy for its timing, aligning with Bitcoin’s recent surge to a peak price not seen since May of the previous year, reaching around $38,400 per Bitcoin.

A whale that had been dormant for ~4 years transferred all 3,623 $BTC($136.94M) to 2 new wallets 1 hour ago.

This whale accumulated 3,623 $BTC($24.96M) at ~$6,889 from Oct 25, 2018 to Dec 31, 2019.

At current prices, the profit is ~$112M.https://t.co/QL3fPiV900 pic.twitter.com/wrMe4loIwm

— Lookonchain (@lookonchain) November 30, 2023

The sudden activity of this substantial Bitcoin holder has sparked speculation and discussions within the crypto community. On the X platform, a user pointed out the timing of the whale’s movement as it coincides with Bitcoin’s recent rally to a significant high.

This observation has led to conjectures about the whale’s potential insider knowledge or strategic market insights, especially considering the substantial profit they are currently sitting on.

Notably, the actions of large-scale holders, often dubbed ‘whales,’ can exert considerable influence on the crypto market. A transaction of this magnitude could signal various strategic moves, ranging from portfolio restructuring to preparing for a market exit.

Such movements are closely monitored as they can provide insights into market sentiment and potential trends.

A Closer Look At The Bitcoin Whale’s Strategy

Delving deeper into the whale’s investment strategy reveals a calculated approach to Bitcoin accumulation. The purchase of Bitcoin at an average cost of $6,889 per BTC during the 2018-2019 period indicates a strategic entry during a time when the market was relatively bearish.

The subsequent hold for four years through various market cycles underscores a long-term investment mindset, contrasting with the short-term trading strategies often seen in the crypto space.

The recent awakening of this whale and the transfer of a significant portion of their holdings to new wallets might indicate a shift in strategy. While it’s speculative to predict the whale’s next move, this could involve cashing out on some of their investments or redistributing assets for diversification.

It’s also plausible that the whale is positioning for new investment opportunities within the crypto space, potentially in sectors such as decentralized finance (DeFi) or non-fungible tokens (NFTs).

Regardless, Bitcoin is currently in a downtrend following its climb above $38,000 yesterday. The asset now trades at $37,704, at the time of writing, down by 0.4%.

Featured image from Unsplash, Chart from TradingView

Shibarium, the Shiba Inu layer-2 solution, recently reached a new milestone in the past few days, crossing the 4 million total transaction threshold. The launch of Shibarium, Shiba Inu’s layer-2 solution, has been a huge catalyst for the meme coin. At the same time, SHIB’s burn rate has exploded in the last two days, as investors look to push the price of SHIB in a positive direction.

Shibarium’s Rapid Growth, Burn Rate Skyrockets

In just the past few months, over 4 million transactions have taken place on the Shibarium network. According to Shibariumscan, the total transaction count now stands at 4.27 million at the time of writing, with the total block count also at 1.87 million, steadily approaching 2 million. The platform saw its daily transactions soar last weekend, reaching as high as 43,690 on November 23.

This milestone seems to have rolled over to Shiba Inu’s token burning. According to data from Shibburn, Shiba Inu’s burn tracker, the burn rate has increased significantly this week. The last 24 hours have seen the token burns reach 82,887,109 SHIB, an increase of 913.89% from the previous day. 

SHIB tokens can be burned by any Shiba Inu investor by sending the tokens to any of the SHIB burn addresses. Apparently, most of the latest 24-hour figure came from one address, which incinerated 82.86 million SHIB tokens. 

The uptick in SHIB burns has been going on for a while now. The burn rate increased by almost 500,000% over the weekend with more than 264.20 million SHIB tokens sent to inactive addresses.

What’s Next For Shiba Inu — Road To $0.00008?

Shiba Inu burns are a way to create artificial scarcity for SHIB, driving up the price of the tokens in circulation. However, the price of SHIB hasn’t reacted to the recent burns and the Shibarium transaction milestone. 

Shiba inu is currently trading at $0.000008221 and is down by 1.62% in the past 24 hours. On the larger timeframe, the crypto is up by 13.68% from its October bottom of 0.000006. The fundamentals surrounding SHIB also point to a price rise in the coming months as support grows. 

With increasing utility, the creation of new tokens in the SHIB ecosystem, partnerships like the recent one with boxer Manny Pacquiao, and more widespread mainstream interest on the horizon, analysts see SHIB revisiting and possibly surpassing its former high of $0.000088. However, this would mean the Shiba Inu price would rise 902% from its current price. 

The Bitcoin price has been steadily moving around its current range as 2023 comes to an end. Recent data cast light on the current market structure and what could trigger an extension in the bullish momentum.

As of this writing, Bitcoin (BTC) trades at $37,900 with a 1% loss in the last 24 hours. Over the previous week, the cryptocurrency has traded in the green as other assets recorded small losses, except for Solana (SOL) and Dogecoin (DOGE).

Big Day For The Bitcoin Price: What Whales Are Planning

Data shared by crypto analytics platform Material Indicators shows the current state of the orderbook for trading venue Binance. The world’s largest crypto, looking into this orderbook often reveals patterns and clues to anticipate the price action.

Today, Bitcoin faces two potentially high volatility events: whales will fight over the monthly candle close, and the US will reveal macroeconomic data. Thus, the cryptocurrency could finally break above its current levels or re-test support.

The data from Material Indicators, as seen on the chart below, shows a spike in buying orders from Bitcoin whales and “mega” whales (Purple and Brown on the chart, respectively). This buying pressure is unlikely to translate into a rally as these investors prioritize market efficiency.

Thus, they place small orders on exchanges to reduce slippage, leading the price to range. The good news is that this behavior is often positive for the BTC price by attracting, according to Material Indicators, “bid (buy) liquidity.“

Once there is enough liquidity in the order book, whales can sell their positions and avoid downside slippage. The firm stated:

The more they attract, the more they can dump while minimizing slippage. Over the past 7 Days, Purple Whales have Market Bought ~$16M of #BTC and in 4 hours distributed ~$42M to the bidders they lured into the range. Regardless of whether you are bullish or bearish, there are #trading opportunities ahead, as this game appears to be on extended play mode.

In that sense, traders should expect further sideways price action as whales and mega whales take over the market. In the meantime, $40,000 and $35,000 are two critical areas that could hint at a change in the current market dynamic.

Cover image from Unsplash, chart from Tradingview

Robinhood, a major player in the United States financial technology industry is set to stretch out its trading services in the United Kingdom for the purpose of growing its business globally.

Robinhood To Offer US Stock Trading In the UK

Co-founder and Chief Executive Officer (CEO) of Robinhood Vladimir Tenev confirmed the expansion toward the UK sector in an interview with Bloomberg. According to the CEO, the expansion aims to bring the US stocks into the UK market.

The CEO stated:

The intention is, for the U.K. market, Robinhood to be the best place to invest U.S. stocks, U.S. dollars, and we believe we can fill that need better than anyone else.

Tenev noted that the company plans to gradually extend its platform to all users in the United Kingdom in early 2024. With the launch, consumers in the UK market will be able to trade 6,000 equities in the US market. 

The CEO further asserted that a waitlist has been made available to people who wish to gain early assess to the app. Furthermore, the platform’s launch in the UK is under the Financial Conduct Authority (FCA) regulation.

Additionally, the platform offers users features like a five percent interest, and can change their uninvested funds from pounds to dollars. These offers aim to attract a larger range of investors, particularly those with little financial resources.

Robinhood’s expansion sparks wider growth for its business globally. The CEO explained, “I aspire for Robinhood to be a global company. That’s been the plan from the very beginning. Baiju and I started this company as immigrants and children of immigrants, and so, the idea of making our services […] available to anyone in the world is just the vision that I had in mind from the very beginning.”

The company’s entry into the UK market also puts it in direct competition with national and international companies. These include companies like Public.com, based in New York, Revolut, and Freetrade, among others.

Zero – Fee Trading Initiative

The CEO also underscored the platform’s commitment to offering Zero-Fee trading and accessible trading alternatives for UK users. This initiative is similar to the effective charge reduction strategy that was put in place in the US before the epidemic.

Notably, Robinhood does not demand any commission fee for buying and selling stocks on the platform. Due to this, individuals can start creating their investment portfolios with a minimum of one US dollar (79p).

Tenev explained:

So we are launching imminently to the initial set of customers in the UK, and what we are launching is a commission-free share trading of US stocks.

With its zero-fee trading strategy, the platform’s introduction into the UK market will completely change how average investors interact with the stock market.

Also, with its focus on technology and user-centric features, the platform is poised to impact the current market. It will also bring fresh energy to the UK investment landscape.

Bitcoin is still trending at a reasonably high price, especially after falling below $15,000 in 2022 following the FTX collapse. Given its rise since then, investors have turned bullish, expecting the start of another bull market. However, not all investors have bought into this bullish narrative for Bitcoin and this is evidenced by the amount of buy orders sitting at prices more than 65% below its current value.

4,500 BTC Bids At $12,000

In an interesting turn of events, a developer has revealed a massive buy wall waiting in the expectation that the Bitcoin price will crash further. One X (formerly Twitter) user who goes by @tedstalksmacro took to the social media platform to reveal the massive buy wall.

According to the post, there were 4,500 BTC bids waiting at around 65% below the current price of Bitcoin. These Bitcoin bids came out to a total of $54 million, going by the asset’s price at the time, and made up the largest buy wall at any price point for the cryptocurrency.

These 4,500 BTC bids at the $12,000 mark suggest that these Bitcoin investors expect the price to keep falling. Now, if the Bitcoin price were to return to this level, it would mean an approximately 68% drop from the tight range of $37,500 to $38,000 that the price has been trading at.

Another X user pointed out that the buy wall did not recently appear. Rather, the 4,500 BTC bids have been standing for more than a year.

Why Investors Are Expecting Bitcoin To Fall

In response to Ted’s post, another X user, Luke Broyles, took to the platform to explain why there are so many bids for Bitcoin at $12,000. According to Broyles, the bids are a result of a “big unit bias level” that investors developed during the FTX crash.

When the crypto exchange filed for bankruptcy in 2022 and the Bitcoin price dropped to $15,000, the calls for a decline to $12,000 had intensified. But of course, that never happened. However, not all investors have let go of the belief that this could still happen.

Broyles explains that “many people have either $10k or $25k saved up which would’ve made a nice comfy amount of coins at $12k.” Further adding that “Buying 2 coins at $12k sounded better than buying 1.5 in low teens.”

The crypto enthusiast posits that the market has already moved beyond this level, although some people have yet to accept it. “Lots of people still waiting for $12k… still yet to accept market has been reversing for over a year now,” Broyles concludes.

On-chain data shows the Polygon whales have loaded up on 120 million MATIC during the past week, a sign that could be bullish for the asset’s price.

Polygon Whales Have Increased Their Holdings Recently

As pointed out by an analyst in a post on X, MATIC whales have made a decent amount of buys during the past week. The relevant indicator here is the “Supply Distribution,” which keeps track of the total amount of Polygon that the different holder groups are carrying in their wallets right now.

In the context of the current topic, the whales are the ones of interest and their group address balance range may be defined as 10 million to 100 million MATIC (which converts to about $7.7 million to $77 million at the current exchange rate).

The whales are the most powerful entities on the network, because of the sheer scale of reserves they hold. As such, their movements can often be worth keeping an eye on, as they may end up having an influence on the asset’s value.

Now, here is a chart that shows the trend in the Polygon Supply Distribution specifically for these humongous holders over the past month:

As displayed in the above graph, the indicator’s value for the Polygon whales has registered a notable uplift during the past week. In total, these large investors have scooped up more than 120 million MATIC (approximately $92.5 million) in this window.

These buys from the whales have come while the cryptocurrency’s price has been trading around its lows following a sharp pullback from just under the $1 level.

Naturally, this accumulation could be a positive sign for the asset’s future, as it suggests that the whales believe the current prices are low enough to gamble more on.

While this may be so, though, another signal has also been brewing for Polygon recently and this one’s not quite as optimistic. As another analyst has explained in a CryptoQuant Quicktake post, the MATIC exchange reserve has observed a considerable rise recently, as the below chart shows.

The “exchange reserve” here is an indicator that keeps track of the total amount of Polygon that’s currently being stored in the wallets of all centralized exchanges.

From the chart, it’s apparent that the metric started rising shortly after the recent rally in the asset took place, implying that investors began making net deposits.

One of the main reasons why investors would transfer their coins to the exchanges is for selling purposes, so it’s likely that these deposits were coming from those looking to cash in on the profit-taking opportunity.

This isn’t particularly egregious behavior, but the worrying fact may be that the exchange reserve has only continued to rise even after the asset has observed a significant downtrend from the top, meaning that the selling pressure isn’t slowing down.

The whale accumulation is a bullish sign for Polygon, but so long as these exchange inflows continue, it’s perhaps unlikely that the price would feel any benefit in the short term.

MATIC Price

Polygon is currently trading above the $0.77 mark, having seen a plunge of over 21% since the top earlier in the month.

The XRP price has been treading water in recent days. After XRP rose by more than 52% in just 18 days from mid-October to early November, the price is currently in a clear consolidation phase in the shorter time frames. However, a look at the 1-month chart of the XRP/USD trading pair shows that the XRP price has exhibited strong bullish months.

In this sense, Crypto analyst Egrag has drawn attention to an extremely rare phenomenon in the XRP monthly price chart. The pattern in question is a series of three consecutive monthly green candles, which have only been documented twice in the history of the cryptocurrency.

As the market approaches the monthly close today, a confirmation by a close above $0.5987 could mean the third monthly green candle for XRP. “Get ready—within the next [few] hours, we’re poised to seal another trio of consecutive green candles,” Egrag noted.

Here’s What This Could Mean For XRP Price

Delving into the specifics, Egrag elucidates two distinct historical precedents post such formations. In the first scenario, a 5-month consolidation phase was observed after XRP recorded three consecutive green candles from March to May 2017.

However, the consolidation phase had an extremely bullish effect. After it ended, the XRP price experienced a staggering 1,500% surge within just two months. Egrag suggests that if XRP’s price action were to emulate this historical pattern, investors can anticipate a potential surge to $10, starting from the 1st of April 2024.

The second instance Egrag refers to the period from December 2015 to February 2016. During this time, the price rose by approximately 102% in three consecutive green months. What followed was a lengthier 12-month consolidation phase. But the wait was worth it again.

In March 2018, the XRP price started an extraordinary 8,000% rally. A replication of this scenario would imply a potential skyrocketing of XRP’s price to $50, beginning on the 1st of November 2024.

Notably, Egrag offers an average price target standing at $30. He stated, “XRP army stay steady, the average of these two targets lands at $30, you know that I always whisper to you my secret target of $27. Hallelujah, the anticipation is palpable!”

Price Analysis: 1-Day Chart

At press time, XRP was trading at $0.60333. A week ago, the price managed to break out of a downtrend channel. However, the bullish momentum quickly fizzled out after the price was rejected at the 0.382 Fibonacci retracement level at $0.627.

Related Reading: Bitcoin Decouples with XRP, BNB But Correlates With Dogecoin and Cardano

For four days now, the XRP price has been squeezed into a tight range between the 20-day and 50-day EMA (Exponential Moving Average), with a breakout to the downside or upside getting closer and closer. In the event of an upside breakout, the price level at $0.627 would be decisive. Then, the price could tackle the 0.5 Fibonacci retracement level at $0.688.

However, if a breakout to the downside happens, a 100-day EMA at $0.575 would be the first support. This must hold to prevent the price from falling towards the 0.236 Fibonacci retracement level at $0.552, which is also close to the 200-day EMA. The convergence of both indicators signifies a price level that the bulls must defend at all costs.

Long-term crypto investor Jelle who caught the Bitcoin top in 2021 recently provided insights as to the best time to buy and sell crypto assets. Jelle provided a background for his knowledge as he stated these insights helped him sell his Bitcoin holdings at the peak of the last bull run. 

A Powerful Bull Market Indicator

In a post shared on his X (formerly Twitter) platform, Jelle explained one of the “most powerful bull market indicators” that could help traders understand the direction of the market. This was based on how to use moving averages (MAs) for trade entries and exits. To enter trades, Jelle noted that he usually finds the confluence between MAs and horizontal levels. 

The analyst shared a chart to elaborate his point further. According to him, there is usually a good entry when price retests an area that “makes sense both horizontally, and MA-wise.” This strategy is said to work well in the early stages of the bull market. However, he warned that traders will likely have to rely on MAs alone further into the bull market. 

He went on to give an insight into his Bitcoin trading strategy in particular. He said he uses the 21-week moving average when trading the flagship cryptocurrency. In relation to the lower timeframes and altcoins, Jelle mentioned that a combination of the 25, 50, and 200 Exponential Moving Average (EMA) works well.  

Finding Trade Exits For Assets Like Bitcoin 

Jelle also gave insights as to how to find trade exits. He noted that selling to MAs works well too and this is preferable when there is a confluence between the MAs and the horizontal levels. He also discovered that this strategy works best in downtrends. However, that was how he exited the Bitcoin market at its peak back in 2021. 

As to the best time to use MAs for exits and entries, Jelle stated that it works best when there is a strong trend present. Meanwhile, the strategy is said to be “much less accurate in a sideways market.” Although he decided not to go into details, he mentioned that mean reversion strategies are more successful during such conditions. 

Generally, Jelle believes MAs are a “great indicator in the trading toolbox.” However, he cautioned traders not to “blindly trade” when the price reaches an MA. Instead, they should also take a look at how the price reacts to the area. He gave an example of how wicks through an MA can tell one how “it is being respected.”

Jelle had previously given insights as to how to buy the right dips in a bull market. His insights had also bordered on using Moving Averages to achieve this.