According to CryptoQuant CEO Ki Young Ju, the sale of 4,000 BTC by the US government is unlikely to have a substantial influence on the market. The current BTC price reduction is primarily due to miner capitulation.
Over the last week, we’ve seen the German government repeatedly liquidate its Bitcoin (BTC) holdings on prominent exchanges such as Coinbase and Kraken. On Wednesday, June 26, the US government joined the bandwagon, transferring 4,000 Bitcoins to Coinbase Prime. Soon after, the Bitcoin price fell by 1.5%, dipping below $61,000. However, CryptoQuant’s CEO noted that the present selling by governments is just FUD and not the true cause of the BTC price reduction.
US Government’s Bitcoin sale unlikely to impact market
Addressing worries about the U.S. government’s current Bitcoin auction, CryptoQuant CEO Ki Young Ju claimed that the 4,000 BTC sale is unlikely to have an influence on markets.
He also mentioned that Coinbase Prime has the potential to manage significant liquidity ranging from 20,000 to 49,000 BTC during instances of strong spot ETF inflows. Even with modest Bitcoin ETF inflows, the exchange maintains liquidity between 6,000 and 15,000 BTC.
“I’m posting this because I’m tired of ‘government selling’ FUDs,” Ju said, noting that the transaction should not be a huge source of concern for market players.
US gov’t sold 4K #Bitcoin today, but less likely to impact the market.
Coinbase Prime handled 20-49K BTC in sell-side liquidity daily during high spot ETF inflows and 6-15K daily during low spot ETF inflows.
Posting this because I’m tired of “gov’t selling” FUDs. pic.twitter.com/4IrO1aBGO6
— Ki Young Ju (@ki_young_ju) June 26, 2024
Earlier this year, in April, the US government sent 30,175 BTC worth $2 billion to the same Coinbase wallet.
Similar to the US government, we’ve seen the German government shift around 2.200 BTCs in the last seven days. Despite these sell-offs, Germany’s Bitcoin holdings have increased significantly, currently valued at $2.76 billion, with $1.1 billion in unrealized profits.
What’s causing the BTC price correction
The current BTC price fall is primarily due to miner capitulation, as they struggled to keep their operations running following the recent Bitcoin halving event. As a result, BTC miners have been the net sellers in the market, increasing selling pressure on BTC.
As of press time, Bitcoin is trading 1.5% down at $60.630, with a market capitalization of less than $1.2 trillion. Over the previous week, Bitcoin’s market capitalization has fallen by more than $100 billion.
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Bitcoin ETFs see inflows for second consecutive day as BTC holds steady at $60K
Spot Bitcoin exchange-traded funds (ETFs) in the United States had positive net inflows for the second straight day.
On Wednesday, spot Bitcoin ETFs showed net inflows of $21.52 million, maintaining a strong trend that began on Tuesday.
According to SoSoValue statistics, Fidelity’s FBTC had the greatest net inflows of the day, totaling $19 million.
Grayscale’s GBTC sees inflows
Grayscale’s GBTC also had net inflows of $4 million, its first positive flow since June 5. VanEck also recorded $3 million in inflows on Wednesday.
However, not every fund had good inflow.
Ark Invest and 21Shares’ ARKB were the only funds to report net withdrawals totaling $5 million. Other funds, including as BlackRock, Bitwise, and Valkyrie, saw no net flows during this time.
Since their inception in January, spot Bitcoin ETFs have received a total of $14.44 billion in net inflows, indicating their rising popularity.
Meanwhile, Bitcoin’s price, which fell to $59,021.42 on Monday for the first time since May 3, managed to remain over the $60,000 barrier.
At the time of writing, BTC was trading at $60,633, down 1.5% over the previous day. Over the last week, the leading cryptocurrency has dropped by approximately 11%.
Last week, CryptoQuant predicted that Bitcoin’s lack of bullish momentum would force it to fall down below $60,000 after breaking below the critical support level of $65,800.
The on-chain statistics showed that traders have been lowering their holdings since Bitcoin reached $70,000 in late May and have yet to begin buying.
#Bitcoin is trading below the critical support level of $65.8K, now below $64K.
Falling under this threshold suggests a potential 8%-12% correction toward $60K. pic.twitter.com/hXwUkC13up
— CryptoQuant.com (@cryptoquant_com) June 21, 2024
Bitcoin is down over 10% this month.
Although it temporarily surpassed $71,000 in early June, it has subsequently been steadily declining.
Since mid-March, Bitcoin has mainly traded around the $60,000 to $70,000 region, having reached an all-time high of $73,797.68.
Digital asset products see $584M in outflows for the week
CoinShares, a crypto-focused asset management, reported that crypto investment products witnessed a second week of outflows.
More precisely, digital asset investment products as a whole had a second consecutive week of outflows totaling $584 million.
Pessimism among investors about possible interest rate reduction by the Federal Reserve is seen to be a contributing cause.
Last week also witnessed the lowest worldwide trading activity on ETPs since the debut of U.S. ETFs in January, with only $6.9 billion moved.
Meanwhile, US issuers are aggressively preparing to establish spot ether ETFs after receiving conditional permission from the Securities and Exchange Commission (SEC) last month.
According to a recent Reuters article, the SEC might approve spot Ethereum ETFs by July 4 if talks between financial firms and regulators are completed.
At a Bloomberg conference on June 25, SEC Chair Gary Gensler stated that the clearance process is “going smoothly.”
He also emphasized the need of asset managers providing complete information in their registration statements, as necessary for ETF approval.
Can Shiba Inu price recover amid meme coins collapse?
Shiba Inu prices have resumed their downward trajectory following a small uptick, owing to the broader meme coins market crisis. Determine if the price will rebound soon or not.
Today is not a good day for meme currencies, as their 24-hour training volume has dropped by 27% and their entire market value has fallen by 3%. Though the general market has been struggling for some days, the impact is finally obvious in meme coins. Dogecoin (DOGE), Shiba Inu (SHIB), and many other popular cryptocurrencies are also struggling. The Shiba Inu price has dropped 3.55% in the previous 24 hours, to $0.00001696, the current value.
Shiba Inu is presently ranked 13th with a market value of $9.9 million, although its market position is gradually dropping. So, why is SHIB’s price decreasing, and will it recover anytime soon? Let us debate it on this blog.
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Reasons why Shiba Inu price is declining
Aside from market instability and intense competition from freshly created meme coins, the Shiba Inu price is also influenced by shifts in investor attitude. The fear and greed index, which is at 45, a neutral point closer to the bears, properly describes investors’ attitudes and how careful they are with their investments.
It caused a dip in the general market, which had an influence on altcoins including meme coins. In addition, the Binance exchange announced the delisting of the Shiba Inu TUSD pairings, which would have a detrimental impact on holders. Finally, whale dumping is to responsible for today’s fall, despite previous charts showing a modest improvement.
Spot on Chain, an analytics service, disclosed that two whales deposited $18.12 million in SHIB on Binance, which has been accumulating since November 2023, when the market bottomed. It is rephrased as an indication of the whale’s maximum profits, as further dips are possible if the market falls.
Two big whales deposited $25.95M worth of $SHIB and $PEPE to #Binance in the past 14 hours. Did whales become bearish with #Ethereum #memecoins?
1. Whale 0x42a deposited all 1.088T $SHIB ($18.12M) ~14 hours ago.
• Accumulation period: Nov and Dec 2023 (the market bottom).
•… pic.twitter.com/fspHueZ7Mi— Spot On Chain (@spotonchain) June 25, 2024
What’s coming next for Shiba Inu: surge or decline?
Shiba Inu is in a strong selling zone, with technical indicators such as ADX(14) and Williams%Rm indicating excessive selling. Furthermore, the MACD (12,26), the Relative Strength Index (RSI), and moving averages (5, 10, 20, 50) in the selling zone all contribute to the continuous SHIB price decrease.
The SHIB Burn rate is also lowering today, indicating that SHIB token prices are falling. The open interest rates have fallen further 8.33%, which explains why money is moving out of this meme coin as users’ emphasis shifts.
However, the 100 and 200-week exponential averages have identified a critical support level of 0.00001743. If completed, a trend reversal may occur, putting the Shiba Inu back on track.
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