Despite the heavy correction in the US stock market over the last two days, Ethereum price has remained firm while holding the crucial support of $1,800. Several market analysts believe that the bottom is in, and the possibility of further ETH downside remains limited. After a 44% drop in 2025 so far, the analysts also believe that ETH remains undervalued for now. Ethereum Price Dominance At A Multi-Year Low As per crypto analyst Rekt Capital, Ethereum market dominance has plummeted from 20% to just 8% since June 2023, marking a significant decline in its share of the overall crypto market. The analyst further highlighted that the current level aligns with a historical reversal zone—dubbed the “green area”. This is the same zone from where the Ethereum price has made strong comebacks in the past. Source: Rekt Capital Crypto analyst Javon Marks identified a regular bullish divergence formation on the Ethereum price chart, while signaling a shift in the momentum. According to Marks, while ETH prices have continued to decline, the divergence suggests that bearish strength may be waning. This technical pattern typically indicates that bulls could be preparing to regain control of the market. Marks has set a potential upside target of $4,000 for Ethereum, contingent on a sustained bullish reversal. Source: Javon Marks Furthermore, currently the risk reward ration seems to benefit the investors as further downside is limited to $1,500 as expected by investors. However, the upside potential for ETH is higher to nearly 100-250% % from the current levels. On the downside, the current support for ETH price is $1,650, however, for the potential uptrend to resume, ETH must surge past $2,100 levels with strong trading volumes. Our ETH price prediction indicator shows the possibility of a drop under $1,700 over the next month. ETH Whale To Bring Selling Pressure Again? While analysts are turning optimistic over the Ethereum price recovery, we cannot ignore the whale activity around ETH. Crypto analyst Ali Martinez has reported a significant whale selloff in the Ethereum market, with data from Santiment revealing that large holders have offloaded 500,000 ETH over the past 48 hours. Source: Ali Martinez Ethereum has largely struggled to keep pace with Bitcoin over the past year. As per the current data, the ETHBTC ratio has dropped to the lowest level in nearly five years. The post Ethereum Price Reversal Chances Improve, $4000 ETH Next? appeared first on CoinGape .
Hold onto your hats, crypto enthusiasts! The U.S. spot Bitcoin ETFs market just witnessed a significant tremor. After a period of positive momentum, April 4th brought a wave of net outflows totaling a concerning $64.88 million. This marks the second consecutive day of net negative flow, prompting questions about potential shifts in investor sentiment. Let’s delve into the specifics of these Bitcoin ETF outflows and what they might signify for the crypto market. Decoding the $64.88M Bitcoin ETF Outflows: What Happened on April 4th? According to crypto data tracker Trader T (@thepfund) on X, April 4th saw a combined net outflow of $64.88 million from U.S. spot Bitcoin ETFs . This figure represents the difference between the amount of Bitcoin flowing into these ETFs versus the amount flowing out. A negative number, like $64.88 million, indicates that more Bitcoin was withdrawn from these funds than invested on that particular day. This event raises eyebrows, especially after a period where these ETFs were generally experiencing net inflows, contributing to Bitcoin’s price appreciation. But which ETFs were primarily responsible for these Bitcoin ETF outflows ? Let’s break down the key players: Grayscale’s GBTC: Leading the outflow charge was Grayscale’s GBTC, experiencing a substantial $25.21 million in net outflows. GBTC has been under scrutiny since its conversion to a spot ETF, largely due to its higher fees compared to newer competitors. ARK Invest’s ARKB: Following closely behind was ARK Invest’s ARKB, with $21.82 million in net outflows. ARKB, managed by Cathie Wood’s ARK Invest, is a popular choice among investors, making these outflows noteworthy. Bitwise’s BITB: Bitwise’s BITB also saw significant Bitcoin ETF outflows , registering $17.85 million. BITB has been gaining traction as a lower-fee alternative in the spot Bitcoin ETF space. The Rest: Interestingly, the remaining U.S. spot Bitcoin ETFs reported no change in their holdings on April 4th. This suggests that the outflows were concentrated in GBTC, ARKB, and BITB. Why are Spot Bitcoin ETF Outflows a Big Deal? The performance of spot Bitcoin ETFs is closely watched because they are seen as a gateway for institutional and retail investors to gain exposure to Bitcoin without directly holding the cryptocurrency. Consistent net inflows into these ETFs are generally interpreted as a positive sign, indicating growing demand and potentially supporting Bitcoin’s price. Conversely, net outflows can be viewed as a bearish signal, suggesting reduced demand or investor concerns. Here’s why these Bitcoin ETF outflows matter: Market Sentiment Indicator: ETF flows are a real-time gauge of investor sentiment. Outflows can indicate a shift in market mood, potentially driven by factors like price corrections, macroeconomic concerns, or profit-taking. Price Impact: While a single day of outflows may not be drastically impactful, sustained outflows can exert downward pressure on Bitcoin’s price. Conversely, sustained inflows can contribute to upward price momentum. ETF Competition: The competitive landscape of spot Bitcoin ETFs is intense. Outflows from specific ETFs, like GBTC, might indicate investors migrating to lower-fee or more attractive options. Broader Market Trends: Bitcoin ETF outflows can sometimes reflect broader trends in the crypto market or even the wider financial markets. It’s crucial to analyze these outflows in conjunction with other market indicators. Are ARKB Outflows and BITB Outflows a Cause for Alarm? While GBTC outflows have been a recurring theme since its ETF conversion, the significant outflows from ARKB and BITB on April 4th are somewhat more unexpected. These ETFs have generally been viewed favorably by investors. Several factors could be at play: Profit Taking: After a period of Bitcoin price appreciation, investors in ARKB and BITB might have decided to take profits, leading to outflows. Portfolio Rebalancing: Institutional investors often rebalance their portfolios. Outflows from Bitcoin ETFs could be part of a broader portfolio rebalancing strategy. Market Volatility Concerns: Increased market volatility or uncertainty about Bitcoin’s short-term price direction could prompt some investors to reduce their ETF holdings. Alternative Investment Opportunities: Investors might be shifting capital to other asset classes or investment opportunities within the crypto space or traditional markets. GBTC Outflows Continue: Is Fee Structure Still a Factor? The persistent GBTC outflows are not entirely surprising. GBTC’s higher management fee compared to newer spot Bitcoin ETFs from competitors like BlackRock (IBIT) and Fidelity (FBTC) remains a significant point of contention for investors. While GBTC was the first mover advantage in offering Bitcoin exposure through a publicly traded vehicle, the ETF landscape has evolved rapidly. Investors now have access to similar products with considerably lower fees. This fee disparity likely continues to drive outflows from GBTC as investors seek more cost-effective options to hold Bitcoin in ETF form. Navigating Bitcoin ETF Outflows: Actionable Insights for Investors So, what should crypto investors make of these recent Bitcoin ETF outflows ? Don’t Panic Sell: One day of outflows doesn’t necessarily signal a long-term trend reversal. Avoid making impulsive decisions based on short-term market fluctuations. Monitor ETF Flows: Keep an eye on daily and weekly Bitcoin ETF outflows and inflows. Consistent outflow trends over a longer period might warrant closer attention. Diversify Your Portfolio: Bitcoin ETFs can be a part of a diversified portfolio, but it’s crucial not to put all your eggs in one basket. Diversification across different asset classes can help mitigate risk. Stay Informed: Keep abreast of market news, macroeconomic developments, and regulatory updates that could impact the crypto market and Bitcoin ETFs . Consider Fee Structures: When choosing a spot Bitcoin ETF, carefully consider the management fees. Lower fees can significantly impact your long-term returns. Conclusion: Bitcoin ETF Outflows – A Temporary Blip or a Warning Sign? The $64.88 million net outflow from U.S. spot Bitcoin ETFs on April 4th is undoubtedly a noteworthy event. While it’s crucial not to overreact to a single day’s data, it serves as a reminder of the dynamic and sometimes volatile nature of the crypto market. The continued outflows from GBTC, coupled with the more recent outflows from ARKB and BITB, warrant close monitoring. Whether this is a temporary blip or the beginning of a more sustained outflow trend remains to be seen. Investors should stay informed, maintain a balanced perspective, and focus on long-term investment strategies rather than being swayed by short-term market noise. The evolution of spot Bitcoin ETFs and their impact on the broader crypto ecosystem will continue to be a fascinating story to watch unfold. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin price action.
The post Why Loom Network is Up Today? LOOM Price Surge More Than 200% appeared first on Coinpedia Fintech News The crazy speculation experienced during parabolic crypto rallies could be creeping in again, as small-cap altcoins – led by Loom Network (LOOM) – recorded palpable gains in the past 24 hours. LOOM price experienced an upsurge of nearly 200 percent in the past 24 hours to trade about $0.0347 on April 5, during the mid-London session. The small-cap altcoin, with a fully diluted valuation of about $45 million, recorded a 390 percent surge in daily average traded volume to hover about $64 million at the time of this writing. Top Reasons Why LOOM Price Surged Today LOOM price surged today mostly catalyzed by renewed speculation from investors, as shown by its volume to market cap ratio of about $139 percent. The Loom network has also experienced increased adoption and usage, as more web3 developers tap into its infrastructure to build scalable and high-performance daps. The LOOM price has also benefited from the broader market trends, catalyzed by positive crypto regulation in major jurisdictions led by the United States and Europe. Crypto Takeaway The crypto market has once again stood the rest of time, through changing global regulatory outlooks. As the wider global stock market was gripped with fear of short-term uncertainty caused by the trade war, the crypto market signaled a potential rebound. Moreover, Bitcoin price has closed the past two days in green candles, coupled with a possible reversal pattern characterized by a double bottom in the four-hour timeframe and rising divergence of the Relative Strength Index (RSI). The notable rally for LOOM price in the past 24 hours could be an indication that the crypto market is gradually filling the void left as investors flee the stock market en masse.
Bitcoin ATM scams are on the rise, with North Dakota witnessing an uptick in crime across several counties. According to reports, scammers have been calling residents, urging them to pay certain legal fees in Bitcoin and some other gift cards for missing jury duties. According to several reports coming out of Stanley County, the Sheriff’s Office told the United Judicial System (UJS) that it had received more than 30 reports regarding suspicious phone calls over the last few days. Most of the callers have been telling Stanley County residents that there is a $2,000 warrant for their arrest, instructing them to visit local convenience stores to send money using digital assets like Bitcoin. Bitcoin ATM scams rock Stanley County According to the Chief Deputy of the Stanley County Sheriff’s Office, Greg Swanson, these criminals have various methods of carrying out their activities, using scare tactics as the major example. “They would keep them on the phone while they drove to the bitcoin machine and tell them how to go about this action,” Swanson said. He also added that the scammers have been trying to use the Sheriff’s Office phone numbers to appear legitimate. Some scammers have also been using the Sheriff’s Office’s logo when sending scam emails in an apparent effort to appear legitimate and convincing, the Chief Deputy mentioned. The UJS have also alerted the general public to the growing menace of calls for missing jury duties for subsequent payments, telling them that they would never call anyone regarding jury duty. “We would never call someone, we certainly would never ever demand money over the phone, we wouldn’t accept or look for things such as bitcoins, cryptocurrencies, those are really big red flags,” Greg Sattizahn, the state court administrator for UJS said. The scam has been netting the criminals some heavy amounts, with one Stanley County resident noting that he lost $4,000 to the scammers. While the Sheriff’s office continues to investigate, it has yet to find any suspects. According to Jesse Schmidt from the Better Business Bureau South Dakota Region, criminals usually swing for a home run when carrying out their scams. He mentioned the way they carry out their crimes, noting that they prey on people’s ignorance to make money. “These scams are dialing for dollars, they are placing hundreds if not thousands of phone calls a day, all they need is for a few people to send them hundreds or thousands of dollars at a time then they’re going to move on to the next caller,” said Schmidt. AARP calls for regulation of cryptocurrency kiosks Meanwhile, AARP has called for regulation of cryptocurrency kiosks amid growing concern over the increase in fraud. The group is calling on North Dakota Governor Kelly Armstrong to sign a bill that will regulate the kiosks’ activities. According to an FBI report in 2023, Americans lost about $5.6 billion to cryptocurrency scams, with North Dakota losing $6 million. House Bill 1447 would allow the state to protect consumers by licensing cryptocurrency kiosk operators, displaying fraud warnings on the machines, and mandating the operators to enable compulsory printed receipts detailing the full transaction information. “These machines look like ATMs, and so people are inserting their money, thinking it’s secure,” said Janelle Moos, advocacy director for AARP North Dakota. Janelle Moos added that once users send digital assets into a scammer’s wallet, the money is gone, noting that there is no way to track it. She noted that the criminals have realized this and are using this tool to scam residents in the state out of their hard-earned cash. AARP also mentioned that the bill would offer important safeguards and help protect the older population and other vulnerable consumers in North Dakota from falling victim to crypto scams. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
Ethereum has underperformed compared to bitcoin and the broader cryptocurrency market, and this divergence in performance has led to frustration among ether holders and fans. An expert attributes ether’s recent price decline to the network’s focus on foundational development rather than hype-driven narratives. Ethereum Prioritizes Foundational Development Over Hype Ethereum’s ( ETH) performance since the
In a powerful testament to the long-term conviction within the cryptocurrency sector, U.S.-based Bitcoin mining giant, Hut8, has announced a significant milestone. The company’s latest operational update reveals a substantial increase in their Bitcoin reserves, underscoring their strategic approach to Bitcoin accumulation and solidifying their position as a key player in the digital asset realm. Let’s dive into the details of this impressive feat and explore what it means for Hut8 and the broader crypto ecosystem. Unpacking Hut8’s Impressive Bitcoin Mining Growth Hut8’s recent announcement details their Bitcoin mining performance for March, showcasing a remarkable surge in production. The company successfully mined 88 BTC during the month, a notable jump from the 46 BTC mined in February. This significant Bitcoin mining growth reflects enhanced operational efficiency and potentially optimized mining infrastructure. This upward trend highlights Hut8’s commitment to expanding its digital asset portfolio through active mining operations. Here’s a quick look at Hut8’s recent monthly mining figures: Month BTC Mined February 46 BTC March 88 BTC This nearly doubled production month-over-month is a strong indicator of Hut8’s operational strength and adaptability in the ever-evolving Bitcoin mining industry. But the story doesn’t end with monthly production; it’s the cumulative effect that truly captures attention. The Astonishing Milestone: Hut8 Bitcoin Holdings Reach 10,264 BTC The headline figure that has the crypto community buzzing is Hut8’s total BTC holdings . As of the end of March, Hut8 proudly announced that their Bitcoin treasury has reached an impressive 10,264 BTC. This substantial stockpile positions Hut8 as one of the publicly traded companies with the largest Bitcoin reserves globally. Accumulating and holding such a significant amount of Bitcoin is a strategic decision that speaks volumes about Hut8’s belief in the long-term value proposition of Bitcoin. Why is amassing such a large quantity of BTC holdings significant? For Hut8, it represents: A Strong Balance Sheet: Significant Bitcoin reserves bolster the company’s balance sheet, providing financial stability and potentially attracting investors who value Bitcoin as a reserve asset. Exposure to Bitcoin’s Upside: By holding Bitcoin, Hut8 directly benefits from any future appreciation in Bitcoin’s price. This strategy aligns with a long-term bullish outlook on Bitcoin. Strategic Advantage: In a competitive crypto mining company landscape, substantial Bitcoin holdings can provide a strategic advantage, allowing for flexibility in operations and potential future opportunities within the crypto ecosystem. Hut8: More Than Just a Crypto Mining Company While primarily known for Bitcoin mining , Hut8 operates as a broader digital asset infrastructure company. Their strategic focus extends beyond simply mining Bitcoin; they are building a robust infrastructure to support the future of digital assets. Their substantial BTC holdings are a key component of this broader strategy. What sets Hut8 apart as a crypto mining company ? Diversified Revenue Streams: While mining is core, Hut8 is exploring and developing diversified revenue streams within the digital asset space, reducing reliance solely on mining rewards. Focus on Sustainability: Increasingly, stakeholders are concerned about the environmental impact of Bitcoin mining. Hut8, like other responsible miners, is likely focusing on sustainable energy sources and efficient mining practices. (Note: Specifics on Hut8’s sustainability efforts would require further research). Strong Management Team: Navigating the volatile crypto market requires strong leadership. Hut8’s management team plays a crucial role in strategic decision-making, including their Bitcoin accumulation strategy. Benefits of Strategic Bitcoin Accumulation for Hut8 The decision by Hut8 to aggressively pursue Bitcoin accumulation carries several potential benefits: Enhanced Investor Appeal: Publicly traded companies holding Bitcoin are increasingly viewed favorably by investors seeking exposure to the crypto market through traditional equities. Potential for Increased Valuation: As Bitcoin’s price fluctuates, Hut8’s valuation can be positively impacted by the value of their Bitcoin reserves. Long-Term Growth Potential: By holding Bitcoin, Hut8 positions itself for potential long-term growth as Bitcoin adoption increases and its value potentially appreciates over time. Navigating the Challenges in the Bitcoin Mining Sector While the rewards of Bitcoin mining and Bitcoin accumulation are significant, it’s crucial to acknowledge the inherent challenges within the sector: Market Volatility: The cryptocurrency market is known for its volatility. Bitcoin’s price fluctuations directly impact the profitability of mining and the value of Bitcoin holdings. Regulatory Uncertainty: The regulatory landscape for cryptocurrencies is still evolving globally. Changes in regulations can significantly impact mining operations and the broader crypto industry. Increasing Mining Difficulty: As more miners join the network, mining difficulty increases, requiring more computational power and energy to mine Bitcoin. Energy Costs: Bitcoin mining is energy-intensive. Fluctuations in energy prices and the need for sustainable energy solutions are ongoing challenges. Actionable Insights: What Can We Learn from Hut8’s Strategy? Hut8’s approach to Bitcoin accumulation offers valuable insights for both individuals and companies interested in the crypto space: Long-Term Vision: Hut8’s strategy is clearly rooted in a long-term vision for Bitcoin and the digital asset ecosystem. Patience and a long-term perspective are crucial in this space. Strategic Asset Allocation: Holding Bitcoin as a reserve asset can be a strategic move for companies looking to diversify their treasury and gain exposure to a potentially appreciating asset class. Operational Efficiency: Hut8’s increased monthly mining output highlights the importance of operational efficiency and optimization in the competitive mining sector. Adaptability and Innovation: The crypto space is constantly evolving. Companies that can adapt to changing market conditions and innovate will be best positioned for long-term success. Conclusion: Hut8’s Bitcoin Empire Continues to Expand Hut8’s announcement of reaching 10,264 BTC in BTC holdings is more than just a number; it’s a powerful statement of intent and a demonstration of their commitment to Bitcoin. As a leading crypto mining company , Hut8 is not only expanding its digital asset reserves but also contributing to the growth and maturation of the Bitcoin ecosystem. Their strategic Bitcoin accumulation and operational successes position them as a company to watch in the evolving world of digital finance. The continued growth of Bitcoin mining operations and the strategic holding of mined Bitcoin may signal a bullish outlook for the company and the wider crypto market. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin institutional adoption.
The cryptocurrency market never sleeps, and neither do the dramatic shifts in fortunes for traders leveraging perpetual futures. In the past 24 hours, we’ve witnessed a significant wave of liquidations across major cryptocurrencies. Let’s dive into the crucial details of this crypto liquidation event, specifically focusing on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL), to understand where the market winds are blowing. What Exactly is Crypto Liquidation in Perpetual Futures? Before we delve into the specifics, it’s essential to understand what crypto liquidation in perpetual futures actually means. In simple terms, when you trade perpetual futures with leverage, you’re borrowing funds to amplify your potential gains (and losses). A liquidation occurs when the market moves against your position to the point where your margin balance can no longer support your losses. At this point, the exchange automatically closes your position to prevent further losses. This can happen rapidly, especially in the volatile crypto market. Perpetual futures contracts are popular in the crypto space because they allow traders to bet on the future price of an asset without an expiration date, unlike traditional futures. However, this also means they carry a higher risk of liquidation if not managed carefully. The 24-Hour Crypto Liquidation Breakdown: A Closer Look Over the last 24 hours, the crypto market has seen a substantial amount of liquidations. Let’s break down the numbers for Bitcoin, Ethereum, and Solana: Cryptocurrency Liquidation Amount (USD) Long/Short Percentage BTC $91.89 million Long 50.78% ETH $44.21 million Short 53.35% SOL $18.16 million Short 57.69% As you can see from the table, Bitcoin experienced the largest total crypto liquidation amount at $91.89 million. Interestingly, a slight majority of these liquidations were from long positions (50.78%). This suggests that a downward price movement in Bitcoin caught many traders who were betting on price increases off guard. Ethereum and Solana, while experiencing lower total liquidation amounts, saw a different trend. For both ETH and SOL, short positions were liquidated more significantly (53.35% and 57.69% respectively). This indicates that upward price movements in ETH and SOL triggered liquidations for traders who were anticipating price declines. Why Did This Crypto Liquidation Event Happen? Several factors could contribute to these perpetual futures liquidations. The crypto market is notoriously volatile, and even minor price fluctuations can trigger cascading liquidations, especially when high leverage is involved. Here are a few potential reasons: Market Volatility: Sudden price swings are common in the crypto market. News events, regulatory announcements, or even large whale transactions can trigger rapid price changes, leading to liquidations. Leverage Levels: High leverage trading amplifies both gains and losses. While it can increase potential profits, it also dramatically increases the risk of liquidation. Many exchanges offer very high leverage, which can be tempting but also dangerous for inexperienced traders. Market Sentiment Shifts: Changes in overall market sentiment can quickly shift the price direction. If market sentiment turns bearish, for example, traders holding long positions might face liquidation as prices drop. Conversely, bullish shifts can liquidate short positions. Cascading Effects: Liquidations themselves can trigger further liquidations. As large positions are forcefully closed, they can exacerbate price movements, leading to a domino effect of liquidations across the market. BTC Liquidation: Longs Feeling the Pain? The significant BTC liquidation volume, primarily in long positions, suggests that Bitcoin may have experienced a downward price correction in the past 24 hours. Traders who were overly optimistic about Bitcoin’s short-term price movement and entered long positions with high leverage might have been caught out by this price dip. It serves as a stark reminder of the risks associated with leveraged trading, especially in a volatile asset like Bitcoin. ETH and SOL Liquidation: Shorts Squeezed? On the other hand, the higher percentage of short liquidations in ETH liquidation and SOL liquidation suggests that both Ethereum and Solana may have seen some upward price pressure. Traders who were betting against ETH and SOL by opening short positions might have been squeezed as prices rose, leading to their positions being liquidated. This highlights the importance of carefully analyzing market trends and momentum before taking a position, whether long or short. Actionable Insights: Navigating the Perils of Crypto Perpetual Futures What can traders learn from this 24-hour crypto liquidation breakdown? Here are some actionable insights: Manage Your Leverage Wisely: High leverage is a double-edged sword. While it can amplify gains, it also magnifies losses and significantly increases liquidation risk. Consider using lower leverage, especially if you are new to perpetual futures trading. Use Stop-Loss Orders: Stop-loss orders are crucial risk management tools. They automatically close your position if the price reaches a predefined level, limiting your potential losses and preventing unexpected liquidations. Stay Informed and Monitor the Market: Keep abreast of market news, trends, and potential volatility triggers. Regularly monitor your positions and be prepared to adjust your strategy if market conditions change. Understand Market Sentiment: Gauging overall market sentiment can provide valuable clues about potential price movements. Pay attention to indicators of bullish or bearish sentiment and adjust your trading accordingly. Diversify Your Trading Strategies: Don’t rely solely on high-leverage perpetual futures trading. Explore other trading strategies and asset classes to diversify your risk. Conclusion: The Unpredictable Nature of Crypto Markets The latest 24-hour crypto liquidation data serves as a powerful reminder of the inherent risks and volatility within the cryptocurrency market. While perpetual futures offer exciting opportunities for profit, they also demand careful risk management and a deep understanding of market dynamics. By learning from these events and adopting prudent trading strategies, you can navigate the crypto markets more effectively and minimize the chances of unexpected liquidations. Staying informed, managing risk, and understanding market sentiment are your best defenses in the ever-evolving world of crypto trading. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin price action.
Renowned Rich Dad Poor Dad author Robert Kiyosaki has once again caught the eyes of investors with his recent social media comment. In a recent X post, the author has labeled Bitcoin, among others, as a potential solution amid soaring concerns over a potential market crash. Besides, he also warned about an incoming recession, which might further weigh on the broader market sentiment. Robert Kiyosaki Labels Bitcoin As a Safe Haven In a recent X post, Robert Kiyosaki reiterated his prediction from his book Rich Dad’s Prophecy. He stated that the biggest stock “market crash in history” has already begun. The Rich Dad Poor Dad author emphasized that Baby Boomers, in particular, may not have time left to recover from traditional investments. In addition, he noted that the financial future of millions, especially those nearing retirement, is under threat. Traditional assets like stocks, bonds, mutual funds, and ETFs, he warned, may no longer be viable. The Rich Dad Poor Dad author advised the traders to shift focus toward what he calls “real money.” According to him, investors should avoid relying solely on Wall Street. He recommends assets like physical gold, silver, and Bitcoin as a hedge against inflation and the ongoing dollar debasement. These assets, he believes, could rise as the value of fiat currency declines due to aggressive money printing by the Federal Reserve. On the other hand, Robert Kiyosaki emphasized that the prices of these assets do not necessarily rise on their own. Instead, it’s the purchasing power of the dollar that’s dropping, making everything from food to energy more expensive. “You may want to save real money which are gold, silver, and Bitcoin,” he suggested. Robert Kiyosaki Predicts Recession Ahead Apart from calling Bitcoin, gold, and silver a safer haven, he also addressed the current market situation. He noted that the US has not just slipped into a recession but may already be entering a depression. He said that the current downturn could expose millions of investors to significant losses if they continue relying on fiat-based paper assets. His message was particularly directed at older generations who are running out of runways to recover losses. Instead of traditional long-term strategies, he suggests immediate action through alternative assets like Bitcoin, gold, or silver accumulation. Silver Likely To Outpace Bitcoin & Gold Robert Kiyosaki has repeatedly voiced his concern against fiat currency. He claims central banks and the government steal wealth through inflation, driven by excessive money printing. As fiat currencies lose value, Kiyosaki predicts a strong rise in real assets like Bitcoin, gold, and silver. However, while bullish on Bitcoin, Kiyosaki recently said silver might outperform both Bitcoin and gold . He cited silver’s industrial demand and limited supply as key drivers for future price growth. Meanwhile, BTC price today was down around 1% and exchanged hands at $83,801, while its one-day volume rose 8% to $39 billion. Notably, the recent dip in the financial market comes after the recent US Job data showed that the labor market is resilient and remained strong despite the higher rates. The post Robert Kiyosaki Highlights Bitcoin Solution Amid Market Crash & Recession Woes appeared first on CoinGape .
In a dramatic turn of events, financial markets witnessed a stunning divergence on April 4th. While traditional equities in the U.S. stock market experienced a massive downturn, shedding trillions in value, the crypto market painted a contrasting picture of resilience and growth. Are we seeing a significant shift in investor sentiment and capital allocation? Let’s delve into the details of this intriguing market divergence. What Sparked the Dramatic Stock Market Losses? The U.S. stock market’s staggering $3.25 trillion loss in a single day sent shockwaves through the financial world. Several factors likely contributed to this dramatic plunge, reflecting broader economic anxieties and investor reactions. Understanding these triggers is crucial to grasp the context of the concurrent crypto market gains . Economic Data Disappointments: Weaker-than-expected economic data releases can fuel fears of a slowdown or recession. This can trigger sell-offs in the stock market as investors anticipate reduced corporate earnings. Inflationary Pressures: Persistent inflation worries can lead to concerns about rising interest rates and their impact on borrowing costs for businesses and consumers. This often negatively impacts stock valuations. Geopolitical Instability: Uncertainty stemming from global events, such as geopolitical tensions or conflicts, can increase market volatility and drive investors towards safer assets, away from equities. Profit Taking and Market Correction: After periods of sustained gains, stock markets are prone to corrections as investors take profits. This can sometimes snowball into larger sell-offs, especially if triggered by negative news. It’s important to note that market corrections are a normal part of the economic cycle. However, the scale of this particular downturn highlights the sensitivity of the current financial markets to economic and global uncertainties. Crypto Market Defies Gravity: A $5.4B Influx In stark contrast to the sea of red in the stock market, the crypto market experienced a notable influx of $5.4 billion in investments on the same day. This surge suggests a potential shift in investor strategy, with some seemingly viewing cryptocurrencies as an alternative or even a safe haven amidst traditional market turmoil. What factors are driving these crypto market gains ? Decentralization Appeal: Cryptocurrencies, being decentralized and operating outside traditional financial systems, can appear attractive during times of economic uncertainty. Investors seeking refuge from traditional market volatility may turn to crypto assets. Inflation Hedge Narrative: Bitcoin, in particular, is often touted as a potential hedge against inflation due to its limited supply. During periods of inflationary concerns, this narrative can gain traction, driving investment into the crypto space. Growing Institutional Adoption: Increased institutional interest and adoption of cryptocurrencies provide a foundation for market growth. Institutional investors bringing in larger capital flows can significantly impact market dynamics. Technological Advancements and Innovation: Ongoing developments in blockchain technology, decentralized finance (DeFi), and other crypto-related innovations continue to attract investors who see long-term potential in the space. The influx of capital into the crypto market gains signals a growing recognition of digital assets as a legitimate asset class and potentially a hedge against traditional market risks. Market Divergence: Stock Market Losses vs. Crypto Market Gains The simultaneous occurrence of significant stock market losses and substantial crypto market gains points towards a fascinating market divergence . This divergence raises several critical questions for investors and market analysts: Key Differences: Stock Market vs. Crypto Market Performance (April 4th) Market Change in Value Key Drivers Investor Sentiment U.S. Stock Market -$3.25 Trillion Economic data, inflation fears, geopolitical risks, profit-taking Cautious, Risk-Off Crypto Market +$5.4 Billion Decentralization appeal, inflation hedge narrative, institutional adoption, innovation Optimistic, Risk-On (within crypto) This table highlights the contrasting fortunes of the two markets on the same day. While the stock market reacted negatively to prevailing economic uncertainties, the crypto market seemed to benefit, potentially as investors sought alternative avenues for capital deployment. Investment Shift: Is Capital Flowing from Stocks to Crypto? The observed market divergence naturally leads to the question: Is there an investment shift underway? Is capital moving away from traditional equities and towards cryptocurrencies? While it’s premature to declare a definitive trend based on a single day’s data, the events of April 4th suggest a potential reallocation of assets. Several factors could be contributing to a potential investment shift : Portfolio Diversification: Investors are increasingly looking to diversify their portfolios beyond traditional assets. Cryptocurrencies offer a different risk-reward profile and can act as a diversifier. Seeking Higher Growth Potential: The crypto market, despite its volatility, is perceived by many as having higher growth potential compared to mature stock markets, especially in the long term. Frustration with Traditional Finance: Some investors may be disillusioned with traditional financial systems and seeking alternatives offered by decentralized technologies and crypto assets. Technological Disruption Theme: Investing in cryptocurrencies and blockchain technology is seen by some as investing in the future of finance and technology, aligning with a broader trend of technological disruption. It’s crucial to remember that both the stock market and the crypto market are subject to volatility and risk. Investment decisions should always be based on thorough research, risk assessment, and individual financial goals. Navigating the Evolving Financial Markets Landscape The events of April 4th serve as a powerful reminder of the dynamic and interconnected nature of financial markets . The contrasting performance of the stock market and the crypto market underscores the importance of: Staying Informed: Keeping abreast of economic news, market trends, and developments in both traditional and crypto finance is crucial for making informed investment decisions. Diversification: A well-diversified portfolio across different asset classes can help mitigate risk and potentially enhance returns in the long run. Understanding Risk Tolerance: Investors need to carefully assess their risk tolerance and align their investment strategies accordingly. Both stock and crypto markets carry inherent risks. Long-Term Perspective: Adopting a long-term investment perspective can help navigate short-term market fluctuations and capitalize on long-term growth opportunities in both traditional and crypto markets. Conclusion: A Glimpse into the Future of Finance? The dramatic market divergence witnessed on April 4th, with stock market losses juxtaposed against crypto market gains , presents a compelling narrative. It suggests a potential shift in investor sentiment and capital allocation, possibly indicating a growing role for cryptocurrencies in the broader financial markets landscape. While the long-term implications remain to unfold, this event undoubtedly offers a valuable glimpse into the evolving future of finance and the increasing significance of digital assets. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin price action.
At the same time, the ratio of forced longs and shorts is approximately the same - $120 million and $130 million, respectively. This is due to the high volatility of the first cryptocurrency and the rest of the market. Bitcoin managed to rise from $81,800 to $84,700 on Friday, but collapsed back to its original values after China announced retaliatory duties against the United States. Since the ”liberation day” bitcoin has tried several times to overcome the lost $85,000 level to no avail. During the day, digital gold gradually recovered, but then again reacted with a drawdown to the publication of labor market data in the United States. The subsequent speech by Fed Chairman Jerome Powell added to the negativity. Despite calling for US President Donald Trump to cut the key rate, Powell limited himself to restrained rhetoric. At the same time, he pointed out that trade tariffs are likely to have a negative impact on inflation. ”Our responsibility is to keep long-term inflation expectations on track and to make sure that a one-time increase in the price level does not become a permanent inflation problem,” the Fed chief emphasized. Bitcoin is trading around $83,000 at the time of writing. Other cryptocurrencies from the top in terms of capitalization show high correlation with the leading asset. In parallel, the digital gold dominance index approached 63% . The index has been increasing since January 2023. Expert Opinions Analyst and founder of MN Trading Michael van de Poppe noted that bitcoin is ”still holding up.” However, he did not rule out a drawdown below $80,000. The analyst Ali Martinez also pointed to the risk of further correction on the back of slowing onchain activity. The opposite opinion was expressed by trader Cass Abber. He found a pattern ”falling wedge”, which indicates a possible rebound of bitcoin. To realize the upward scenario, the asset must overcome the level of $86,500. ”Bitcoin did not hit a new low yesterday, despite the stock market experiencing its worst day in five years. Historically, the first cryptocurrency always reaches the bottom first, before the stock market”, - added the expert.