Due to US government transfers and continued MtGox refunds, BTC price significantly dropped in the last 24 hours. Despite the ETH ETF launch, the outlook turned negative, and some altcoins saw drops exceeding 7%. What are the current market predictions from experts? What scenario do investors think is unfolding at this stage?
Cryptocurrency Commentary
The US government moved $4 million worth of assets seized in the Ryan Farace case to Coinbase. Since the government has an agreement with Coinbase Prime, sales are conducted through Prime rather than directly on spot markets. If there is demand in the ETF channel or OTC, Coinbase facilitates the sale directly. However, since the government still holds 213,000 BTC worth $14.2 billion, investors sold due to surplus supply concerns.
MtGox refunds also contributed to the recent decline, with 48,641 BTC sent to Kraken, and victims of the 10-year-old incident started receiving their refunds. According to CryptoQuant data, BTC outflows from Kraken accelerated with the distribution of MTGOX assets. However, analysts suggest this indicates accumulation in cold wallets for long-term goals rather than sales. In the last 24 hours, 5,000 BTC left the exchange.
Current Cryptocurrency Status
QCP Capital Analysts explained the reason for yesterday’s drop and shared the current market outlook and predictions. BTC was hovering above $66,500 at the time of writing and was weakly recovering. Analysts wrote:
“- The eagerly awaited ETH spot ETF started trading last night, but expected market reactions did not occur.
– ETH volatility was sold across term structures, and ETH’s front-end BTC vols premium finally reversed, with BTC 1-week and 2-week options now trading 1-3 points higher than ETH.
– Compared to BTC’s first-day net inflow of $655 million, ETHE’s outflow of $484 million resulted in a net inflow of $107 million on the first day of trading.
– We maintain our positive ETH outlook. BTC reaching an all-time high two months after its ETF launch sets an interesting precedent. With the expectation of continued institutional interest, ETH’s price trajectory could gradually approach its previous ATH.
As things calm down, we expect a drop in ETH volatility towards the weekend. Since it is still at a good level, we believe implementing an Accumulator strategy could be the best way to benefit from this slow upward movement.”
