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 the crypto world grapples with the aftermath of the FTX collapse, Kaiko’s recent report sheds light on a pivotal question: Can the impending ETF approval breathe new life into Bitcoin’s liquidity? Delving into the impacts of an ETF, the report dissects market depth, trade volume, and the role of market makers.
So, let’s unravel the intricacies of Bitcoin’s liquidity landscape and explore the potential ramifications of ETFs.
Since the FTX collapse, the crypto sphere has weathered a storm of diminishing liquidity, impacting volumes and order book depth universally. Meanwhile, the recent report of Kaiko underscores the harsh reality that the latest market rally has not resurrected pre-FTX levels. Notably, the looming prospect of an ETF approval in January introduces a ray of hope, albeit with caution.
Meanwhile, Kaiko suggested two ways an ETF could trigger in liquidity surge of Bitcoin: liquidity transferred via trading and liquidity transferred via market makers (MMs). The report contends that an ETF could exponentially broaden the crypto trader base, fostering larger volumes and more efficient markets. In addition, market makers, too, stand to gain as ETFs provide a hedge, potentially expanding their operations.
However, Kaiko also highlights concerns that significant ETF outflows might exert selling pressure on underlying markets. Additionally, market makers could respond by imposing higher spreads due to an influx of informed traders. This dichotomy sets the stage for a critical examination of Bitcoin’s current liquidity status.
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Following the FTX collapse, Bitcoin’s market depth witnessed a substantial decline. In addition, the recent market rally, though marginally impacting liquidity, has largely been attributed to price effects.
Meanwhile, as Bitcoin Spot ETF approval looms, the importance of market depth surfaces. Notably, the ETF issuers engaging in buying and selling the underlying asset might spur increased flows on centralized spot exchanges. Liquidity, crucial for arbitrageurs in maintaining market efficiency, becomes a linchpin in the ETF narrative.
In addition, FTX’s impact on trade volume, though less significant than market depth, echoes the volatility seen since November 2022. Despite a modest recovery after the March banking crisis, overall volumes still lag behind pre-FTX levels. An ETF approval, the report suggests, could reshape trading costs as more informed investors enter the Bitcoin market.
However, the report suggests that despite the ongoing market turmoil, Bitcoin stands resilient as the most liquid crypto asset. Comparing trade volume distribution over the past year, BTC consistently outperforms ETH and top altcoins.
Considering all these aspects, Kaiko suggested that an ETF approval could further solidify Bitcoin’s dominance, potentially influencing the broader market dynamics.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Bitcoin price is struggling to uphold its position at $27,000 support in the wake of the Federal Open Market Committee (FOMC) meeting, which as expected left interest rates unchanged for September.
The regulator kept the course open for at least one more rate hike before the year ends and subsequently fewer cuts than it had previously outlined for 2024. Jerome Powell, the Fed Chair said that the regulator is “in a position to proceed carefully in determining the extent of additional policy firming.”
There were no sudden reactions from investors following the announcement as the rate hike pause was expected and already priced in. However, there is evidence of a trendless trading period likely to follow as long as bulls refuse to let go of the $27,000 support.
Santiment, an on-chain analytics platform, believes that unchanged interest rates are a positive signal for Bitcoin and the crypto market.
“Crypto market caps have held up well, despite the SP500 plummeting to 4-week lows. A promising correlation break sign,” Santiment said via a post on X.
The early week rejection immediately after Bitcoin price touched the $27,200 level implied vulnerability and a possible pullback. Bulls have the opportunity to keep declines at bay with support at $27,000 remaining solid.
However, the uptrend is not strong enough to rule out a retracement to collect liquidity, especially with Bitcoin price currently holding below the 21-day Exponential Moving Average (EMA) (red).
If bears set camp at $27,000, the path with the least resistance will flip to the downside, where the 200-day EMA (purple) will try to absorb the selling pressure at $26,710 and the 100-day EMA) at $26,519. Further losses would aim for $26,000 and the major support at $25,000.
Based on the position of the Moving Average Convergence Divergence (MACD) indicator, sellers may soon have the upper hand. The call to traders to consider closing their long positions to short BTC manifests with the blue MACD line crossing beneath the red signal line.
Renowned analyst and trader, Rekt Capital, believes that Bitcoin price is on the cusp of a natural correction from resistance at $27,150. With this “old support acting as new resistance,” a significant retracement is bound to follow.
#BTC update when it comes to the Monthly level of ~$27150
Old support now acting as new resistance$BTC #Crypto #Bitcoin https://t.co/rkRsoC1ILt pic.twitter.com/TmWfJguaDB
— Rekt Capital (@rektcapital) September 21, 2023
The Bitcoin bearish fractal, discussed earlier this week affirms the plausible correction. A bearish fractal allows BTC price to rise sharply before hitting a resistance and retracing to sweep through fresh liquidity ahead of another significant climb.
Bitcoin Bearish Fractal Update$BTC #Crypto #Bitcoin https://t.co/4H3OMiDzFB pic.twitter.com/Gn3iH75DFw
— Rekt Capital (@rektcapital) September 21, 2023
That said, traders would be in a better position to avoid losses if they keep their eyes on several key levels including the resistance at $27,200, support/resistance at $27,000, $26,000, and $25,000.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The U.S. crypto market is yet to see the light for the approval of the first spot Bitcoin ETF from the U.S. SEC. Considering the ongoing developments, analysts are expecting the spot Bitcoin ETF to arrive by early 2024.
However, some are already seeing the spot ETF products as threats to the existing Bitcoin futures ETFs already available in the market. At present, the most accessible route for US fund investors to engage with cryptocurrency is by investing in products that follow Bitcoin futures contracts. These funds made a significant splash when they were introduced in October 2021, setting records.
However, they struggled to maintain that initial excitement, and their collective market value has since stabilized at around $1 billion. Analysts suggest that the introduction of spot-based funds would more accurately track the coin’s price and potentially at a lower cost. The spot product could challenge the existing Bitcoin futures ETFs in the market. James Seyffart, an analyst at Bloomberg Intelligence said:
“We would expect the assets and volume to coalesce around one or multiple spot-Bitcoin ETFs because they are superior products for most types of investors. New money, particularly those looking to buy and hold over longer time periods, will be attracted to a spot product, which is also likely to be cheaper and more efficient than the current futures ETFs on US exchanges.”
As per the analysts from Bloomberg Intelligence, the arrival of spot Bitcoin ETFs could soon make it a $100 billion market. They can further dampen the futures ETF products for Bitcoin.
After a strong momentum in the early days, the Bitcoin futures ETFs have failed to keep the momentum going further. They have been trailing Bitcoin’s rally this year. Analysts believe that once the spot Bitcoin ETFs come into the market, there could be significant outflows from the Bitcoin futures ETFs. This is due to the higher costs of the latter and their underperformance.
The introduction of spot ETFs, which are more likely to provide a real-time reflection of supply and demand, could lead to a shift in trading activity and liquidity away from US Bitcoin futures markets if they replace futures-based Bitcoin ETFs, as noted by JPMorgan strategist Nikolaos Panigirtzoglou in a July report.
Spot funds may present their own attractive qualities, including the potential for significantly lower fees compared to the current lineup of futures-based ETFs. In the increasingly competitive ETF landscape, fee battles have become a common occurrence, both in emerging categories and well-established asset classes. Should Bitcoin ETFs launch, many anticipate intense competition among various issuers.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
A prominent cryptocurrency analyst, Bluntz, has expressed skepticism about the recent uptrend that increased Bitcoin and Ethereum prices by more than 5%. The pseudonymous analyst told his over 224,000 Twitter followers that the flagship crypto assets may face more downturns.
Applying the Elliott Wave theory in his analysis, Bluntz predicted that Ethereum is about to complete a five-wave pattern. According to him, Ethereum will decline to $1,450 on completing the wave pattern marked 1, 2, 3, 4, and 5.
In Bluntz’s technical analysis, the five-wave chart pattern exists within a larger three-wave pattern marked A, B, and C. And this three-wave pattern is also on a downtrend. He noted that ETH and BTC must complete this wave pattern before a bullish upturn.
However, while this analysis projects a bearish trend for ETH and BTC, Bluntz believes there is potential for a bullish breakout. He said the theory becomes invalid if ETH breaks above $1,804 or Bitcoin surpasses the $28,770 price level.
Bluntz noted:
Invalidation of this thesis is if we break $1,804 for ETH or $28,770 for BTC as wave-4 can’t go within wave-1 territory,
Meanwhile, Bitcoin and Ethereum are exhibiting a slightly bearish outlook at press time. Bitcoin trades at $27,211, with a nearly 1% decline, while Ethereum price is down by 0.89%, at $1,704. Bitcoin had also been under bearish pressure over the past seven days after slipping off the $29,000 support level on August 16.
As the bears pressed on, the flagship cryptocurrency traded within the $26,000 price level, occasionally regressing to $25,900. The downturn was in tune with the bearish sentiment in the cryptocurrency market over the past few days.
However, on August 29, the news of the court ruling in favor of Grayscale Investment in its case against the US SEC broke out. This news generated a buzz in the crypto market, leading to an uptick in market capitalization.
As a result, Bitcoin recorded a sharp spike that returned its value to the $28,000 price mark. At the time, BTC’s price surged 8%, climbing from a week low of $25,860 to a high of $28,010. But the bulls couldn’t sustain the momentum as Bitcoin quickly regressed, dipping to $27,394.
Bitcoin now consolidates around the $27,000 price zone, awaiting a bullish turn to trigger a rally.
Ethereum also met a similar fate as Bitcoin, exhibiting the same chart pattern and price movement in the last week. The second-largest cryptocurrency by market cap remained on a bearish trend in line with the broader crypto market.
Ether’s price slipped off the $1,800 support on August 17, accompanied by a prolonged bearish momentum that pushed it to $1,600.
Just like Bitcoin, Ethereum reacted to the brief market recovery, pushing above $1,740 on August 29. While ETH’s rally has relapsed, it maintains a price level above $1,700, holding over 2% of its past week’s gains. However, ETH’s latest strides suggest the bulls are up for a recovery.
Featured image from Pixabay and chart from TradingView.com
The global rice market is experiencing a significant upheaval as prices soar to their highest levels in nearly 12 years.
The global rice market is currently on the brink of further strain as China, the world’s largest rice producer, grapples with heavy rain and flood risks in its grain-producing north-eastern region. The resulting reduction in yields is expected to exert upward pressure on global rice prices, according to a recent report by Fitch Ratings.
China’s role in the global rice market cannot be understated. As the leading rice producer, the country not only feeds its own vast population but also contributes significantly to the international rice trade. The Fitch report highlighted that China’s three key provinces, Heilongjiang, Jilin, and Inner Mongolia, have been grappling with heavy rainfall, prompting flood alerts and raising concerns about the impact on grain production.
These provinces collectively accounted for a significant portion of China’s grain output in 2021, with Heilongjiang being the largest rice-producing province, contributing 13.7% to the country’s rice production in the same year.
The heavy rainfall, triggered by the remnants of Typhoon Doksuri and worsened by the approach of Typhoon Khanun, has left many key grain production areas waterlogged. As a result, crop yields for the current year are expected to decrease, although the extent of the damage remains uncertain.
These adverse conditions are predicted to drive up China’s domestic grain prices, potentially prompting higher imports during the latter half of 2023 to offset the potential yield loss. While the situation in China raises concerns about potential disruptions to the global rice market, the effects on corn prices are expected to remain contained due to ample global supply.
Meanwhile, the global rice market is experiencing a significant upheaval as prices soar to their highest levels in nearly 12 years, according to the Food and Agriculture Organization’s (FAO) All Rice Price Index.
The recent ban on non-basmati white rice exports by India and the United Arab Emirates has sent shockwaves through the market. With India accounting for over 40% of the world’s rice trade, this move has had a substantial impact on the availability of rice in international markets.
In addition, Thailand, another significant rice producer, has taken measures to address water scarcity. Low rainfall has prompted the Thai government to urge farmers to plant less rice in order to conserve water resources.
The consequences of these developments have led to a surge in rice prices, with the FAO’s All Rice Price Index reaching levels of 129.7 as of July 2023. Market observers are now anticipating a continuation of higher rice prices as the impacts of these supply disruptions reverberate across the industry.
As China navigates the challenges posed by heavy rains and floods, the global community is reminded of the importance of building resilient agricultural technological systems and collaborative efforts to mitigate the impacts of climate-related events on food production and distribution.
Read other market news on Coinspeaker.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
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