Tag: liquidity

  • Gold ETFs down $2.4 billion in 2024 as BTC and this memecoin soak up liquidity

    Gold ETFs down $2.4 billion in 2024 as BTC and this memecoin soak up liquidity

    It’s 2024, and the investment landscape is undeniably shifting – traditional safe havens like gold ETFs are experiencing notable outflows in contrast to Bitcoin ETFs, which have seen a substantial increase in interest since their debut at the beginning of the year. This change suggests investors are exploring new territories, possibly looking for alternatives that promise both security and growth in these uncertain times as we had highlighted in this article.

    In this narrative, Galaxy Fox ($GFOX) is also heading to a lucrative road, soaking up liquidity and selling out over 2.7 billion tokens throughout the presale. Why is crypto leaning from gold to $BTC, and how is $GFOX surpassing some of the best altcoins?

    Bitcoin vs Gold in 2024

    In the year 2024, the difference between investments in gold and Bitcoin has become much more obvious. A total of $2.4 billion has been pulled out of gold ETFs, with the biggest amounts being $230.4 million and $423.6 million from BlackRock’s iShares Gold Trust Micro and iShares Gold Trust, respectively. 

    In contrast, Bitcoin ETFs have seen an opposite trend. With record-breaking volumes and a noticeable move towards digital assets, the ten authorized spot Bitcoin ETFs have collected an incredible $3.89 billion in inflows since their inception in early January.

    Source: X/Jameson Lopp

     

    There has been an even more fundamental shift in investor attitude, and this change is reflected in the figures. Bitcoin has gained 23.5%, reaching a two-year high, while gold, which is usually a safe haven during uncertain times, has fallen 3.4% to a two-month low. The difference shows that investors are starting to see Bitcoin as a good substitute for gold, attracted by its high return potential in the present economic climate.

    Bloomberg analyst Eric Balchunas is among many who think this trend might mean more diversification into US stocks and digital assets than a straight shift from gold to Bitcoin. It suggests that investors’ priorities are changing and that digital currencies may soon be considered as good as, or perhaps better than, conventional assets like gold as a store of value.

    Investors troop to Galaxy Fox

    Bitcoin’s success is directly reflected in the overall crypto market, and the current crypto stats are no exception. Among the top 10 altcoins, Galaxy Fox is a name you’ll often hear from analysts discussing the potential best altcoins.

    Galaxy Fox, one of the best crypto ICOs so far, is split into ten separate stages, and at each stage, it gradually raises the value of the $GFOX tokens. This means early investors have the chance to see their deposits grow by 450%, a temptation hardly anyone should miss. 

    However, with such a lucrative opportunity, competition arises, and investors have been rushing to soak up the $GFOX tokens at their lowest rate. This has resulted in the presale stages selling out quickly, and currently, $GFOX is on the verge of closing its 8th stage. 

    However, the window to step in and buy $GFOX in the 8th stage is still there, though narrow, and if you make it, you secure yourself a 33% gain, as two more presale stages will naturally increase the price of $GFOX. 

    Notably, the charm of $GFOX is not only in its rewarding presale but also in its hybrid memecoin/P2E ecosystem, which is fully dedicated to community engagement and will reward you at multiple steps during your participation.

    Bottom Line

    As the latest market dynamics show, Bitcoin has become the new gold, which means cryptocurrencies as a whole are about to experience more adoption and trust. 

    In these directions, experts often suggest identifying low-cap gems with tangible utility and future potential, as those are the best altcoins that would pay off the most in the bull run.

    Learn more about $GFOX, visit Galaxy Fox Presale or join the Community.

     

    Source link

  • Bitcoin price falls below $29K, no surprise given volatility and liquidity metrics

    Bitcoin price falls below $29K, no surprise given volatility and liquidity metrics

    Key Takeaways

    • Bitcoin has softened fallen from $30,000 to close to $28,000
    • Our head of research looks into the data, arguing the move should not be a surprise
    • Bitcoin’s fixed supply and lack of dividends or earnings means price is entirely demand-driven
    • Thin liquidity in the Bitcoin market exaggerates every move, with 45% of stablecoins leaving exchanges in the last 4 months
    • Correlation with stocks remains high, with high UK inflation creating pause for thought
    • Market has also peeled back slightly on forecasts for interest rate cuts, and Bitcoin has followed

    I have lost count of the number of times I’ve been asked “Why is Bitcoin going up?”, or “what is driving this Bitcoin sell-off?”. 

    For many assets, it’s clear as day as to what is driving the price action over any given trading period. Earnings forecast missed by 10%? Hello, red candle. Warren Buffett announced a mass purchase of your stock? Buckle in; we’re heading north. 

    For Bitcoin, it’s a little tougher. There are no dividends or dividend forecasts; Bitcoin pays no yield. Nor are there earnings. Additionally, the supply doesn’t waver, instead it follows a pre-determined schedule set by Satoshi Nakamoto in October 2008, governing it block by block in ten-minute intervals. 

    With the supply set in stone and out of the picture, and the absence of any periodic yield/forecasts derived from dividends or earnings, this means that the Bitcoin price is all about demand. And that is very difficult to predict. Bitcoin gonna Bitcoin, is often about the best reasoning that can be given. 

    But there are factors we can assess. One is liquidity, which I touched on in a recent deep dive as Bitcoin surged beyond $30,000 for the first time in ten months. Order book liquidity is as thin as it has been in a year, while overall capital has fled the crypto space at large. Take a look at the balance of stablecoins on exchanges:

    That is 45% of the stablecoin balance taking the exit door in the last four months, the balance as low as it has been since October 2021. 

    With Bitcoin already uber-volatile (VIX metric blows that of any “normal” asset out of the water), this amps up its propensity for violent moves even further. In simple terms, thinner liquidity means it takes less action to move the price. 

    Why is the Bitcoin price currently falling?

    So, it is often difficult to ascertain why Bitcoin is moving, as this thin liquidity and capricious demand combine to make it very sensitive. 

    But sometimes, we can make educated guesses as to what moves Bitcoin on any given day. This is one of those moments. 

    Macro conditions have long been the key for Bitcoin. Again, a little chart to show this:

    Despite some temporary optimism that Bitcoin was decoupling as investors fled a collapsing (fiat) bakning system for the safe haven that is Bitcoin, the orange coin is very much moving in tandem with high-risk assets, such as tech stocks listed on the Nasdaq.

    I wrote a deep dive at the time of the banking crisis as to why Bitcoin’s dip in correlation with stocks was just a temporary blip. Looking at the data, it appears to have come back up.

    And looking at wider financial markets in the last few days, optimism over the economic climate has pulled back. UK inflation was released yesterday, holding firm in the double digits, fuelling the expectation that the Bank of England will hike further. 

    Over in the US, Atlanta Federal Reserve president said he expected another 25 bps hike, casting another bit of doubt for the market that hikes may not be done quite yet. 

    Not to mention a rally can’t go on forever. Bitcoin has been on a tear this year, up 74% year-to-date. It’s an asset which has always oscillated, so it’s not a surprise that it is finally showing a bit of weakness. And a fall from $30,000 to $28,000 is merely a drop in the ocean compared to what it is capable of. 

    A true Bitcoin red candle cannot be ruled out here, given the volatility and thin liquidity, just like it could suddenly surge further north. As financial markets adjust to new data all the time, like the all-important inflation readings and FOMC minutes, Bitcoin will continue to move like a levered bet on tech stocks. 

    As for what direction it will move in, that is anyone’s guess. I don’t have a crystal ball, and I won’t make any predictions just for the sake of it, because I simply don’t know. Not many people do right now, with the world in a precarious state economically. Inflation is still high, yet interest rates are apparently coming to the end of the tightening cycle. 

    Soft landing, hard landing, something in between? The future will tell. But whatever happens, the volatility of the world’s biggest cryptocurrency is very real, and abrupt price reversals and large swings won’t stop anytime soon. Bitcoin gonna Bitcoin. 



    Source link