updraftplus domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131hustle domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131wpforms-lite domain was triggered too early. This is usually an indicator for some code in the plugin or theme running too early. Translations should be loaded at the init action or later. Please see Debugging in WordPress for more information. (This message was added in version 6.7.0.) in /home/aonyeani76/cryptocurrencypanther/wp-includes/functions.php on line 6131As it stands, the premier cryptocurrency maintains its broader bearish structure, with its price struggling to overcome the $68,000 resistance over the past few days. However, an interesting on-chain development suggests that the Bitcoin price could likely see a relief soon, but only after a certain condition has been met.
In a recent Quicktake post on CryptoQuant, on-chain analyst MorenoDV revealed that Bitcoin whales have realized more than $208 million in profits. As shown by the Realized Profit By Whales metric, this event — where over $200 million is taken as profit by members of this cohort — marks the seventh such occurrence over the past two years.
Notably, these spikes in profits-taken have not occurred without any impact on price; instead, they have often been followed by market turbulence, which has also mostly preceded the formation of local bottoms. This suggests that large-scale selling from seasoned holders tends to introduce temporary liquidity imbalances.
After the supply created by these whales is absorbed, it often leads to price stabilization. Interestingly, this stability has often preceded bullish reversals in the Bitcoin price. However, there have also been a few instances where such profit-taking among this investor cohort coincided with the establishment of local tops.
Nonetheless, MorenoDV explained that this profit-taking behavior among the Bitcoin whales typically signals conviction, due to the behavioral consistency of this investor class. As such, these large investors rarely sell impulsively, but when they do, “it signals conviction about near-term price exhaustion or strategic repositioning.”
Hence, if history is anything to go by, the analyst explained that the Bitcoin market stands a high chance of experiencing turbulence in the near-term. However, this also comes with the inference that the Bitcoin price is closer to a local exhaustion point than to the start of a bearish market cycle.
If institutional flows, or even mid-sized holders, begin accumulating at current levels, the market could interpret this as a healthy rotation, which could in turn translate into bullish momentum. On the other hand, if demand should remain insufficient or if more market participants sell their holdings, downside pressure could be amplified, thereby pushing prices further south.
At the time of writing, the price of BTC stands at around $67,960, reflecting no significant movement in the past 24 hours.
Featured image by Dall.E, chart from TradingView
El Salvador is now sitting on $482 million in unrealized gains in its Bitcoin holdings. This comes as BTC hit a new all-time high and became the world’s seventh most valuable asset. El Salvador’s Bitcoin Reserves Surge Past $775 Million In a recent X post, President Nayib Bukele shared the country’s Bitcoin portfolio. The figures
The post El Salvador’s Bitcoin Holdings Hit $475M Profit as BTC Becomes World’s 7th Largest Asset appeared first on CoinGape.
]]>On Thursday, the ECB increased interest rates for the seventh consecutive time, with the latest figure aligning with analysts’ predictions.
The European Central Bank (ECB) has hiked interest rates for a seventh consecutive time as its war against inflation wages on. Today, the eurozone central bank hiked rates by 25 basis points as expected following its May policy meeting. The latest rate hike decision also sees the main refinancing operations’ interest rate increased to 3.75%. In addition, the rate on the marginal lending facility and the deposit facility also grew to 4% and 3.25%, respectively. This is the seventh straight meeting ending in a hike.
Economists and market observers expected the ECB’s seventh interest rate hike to be smaller than its predecessors due to contracting financial conditions. Although inflation still appeared unrelenting, rising 7% in April, the spate of accompanying rate hikes in the West threatened a recession. Analysts also pointed to the extreme drop in credit demand due to stricter lending criteria, proving that the ECB’s latest rate hike would be far from the higher end of its basis points (bps) range.
For instance, Davide Oneglia, an investment research analyst at macroeconomic forecasting consultancy TS Lombard, had weighed in ahead of the ECB’s latest hike. According to Oneglia, “from a risk management perspective, shifting to 25 basis points would give the ECB the flexibility to deal with both upside and downside risks to growth and inflation. So, a 25 basis points hike is not necessarily ‘dovish.’ For now, we maintain our call for a 3.75% ECB terminal rate”.
Inflation in the eurozone grew 7% in April, with Germany and France experiencing the highest increases in consumer prices. However, despite these increases, core inflation, excluding food, fuel, tobacco, and alcohol, in the eurozone has slowed from 5.7% to 5.6%. The core inflation development is lower than consensus expectations and marks the first decline since June 2022 as central banks angle for a sustained decrease. However, despite the slowdown in core inflation, the present figure still far exceeds the ECB’s target of 2%.
Meanwhile, analysts anticipated that food, alcohol, and tobacco would have the highest annual rate in April of 13.6% compared with March’s 15.5%. Coming in a distant second is non-energy industrial goods, which turned out at a yearly rate of 6.2% last month compared to 6.6% in March. Lastly, services increased 5.2% compared to March’s 5.1%, while energy prices climbed again by 2.5% after dropping 0.9% in March.
Opinions remain divided on the ECB’s rate hike stance to curtail swelling inflation amid a banking crisis. For instance, Italy’s central bank chief Ignazio Visco previously warned that further rate increases would hamper the economy and create financial risks. Furthermore, Visco pointed out that more people would suffer greatly due to excess rate increases. However, his Dutch counterpart Klaas Knot believes that the ECB should continue hiking interest rates into the summer.
The US Federal Reserve also recently hiked rates by another 25 basis points, which took interest rates above 5%.
Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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