As April comes to a bearish close, expectations for Dogecoin in May are not exactly bullish, especially as the crypto market has continued to fall. DOGE has been one of the main losers during this time, falling below $0.14. This underperformance is expected to continue as the machine learning algorithm at CoinCodex predicts further decline for the meme coin. Algorithm Predicts Another 13% Decline Despite the Dogecoin price already suffering a notable 14% decline in the last week, the machine learning algorithm believes it will fall another 13% in the month of May. The machine learning algorithm, which takes a number of metrics into consideration, presented that the DOGE price remains very bearish despite the market still sitting in greed. For the month of May, the algorithm expects the meme coin’s price to decline by a total of 13.66% from here, falling below $0.13 to $0.1238. Even on the shorter term, the Dogecoin price remains bearish with an expected 1% decline to $0.14 in the next five days. On the broader timeframe, expectations for the meme coin are not high as the machine learning algorithm does not expect the cryptocurrency to reach a new all-time high until 2029. For the year 2025, it gives the meme coin a yearly high of over $0.66, which is less than its current all-time high price of $0.7. The next two years after this are expected to be bearish as the price is predicted to fluctuate around $0.126 and $0.25. Then, a new all-time high price of $1.4 is expected. If this plays out, then it would mean that Dogecoin investors would have to wait another five years to see new peaks. Dogecoin Metrics Tell A Different Story While the machine learning algorithm remains bearish, the Dogecoin metrics have been painting a picture of bullishness. For example, there has been a steady increase in the Dogecoin trading volume, rising 28% in the last day alone. This suggests a return of investor interest and if it translates into demand, it could see the price rise rapidly from here. There has also been an accumulation trend for the meme coin, especially among whales. One whale, in particular, withdrew 226 million DOGE from the Robinhood exchange in two transactions. Usually, when investors move coins from exchanges to private wallets, it means they are accumulating for better prices. This could signal a turn in the tide. However, at the time of writing, the Dogecoin price is still struggling at $0.135, with a 4% drop in the last 24 hours. A reversal from here could see DOGE retest the $0.15 resistance. But a breakdown could send it back toward $0.12. DOGE price breaks down below $0.14 | Source: DOGEUSDT on Tradingview.com Featured image from Bitcoinist, chart from Tradingview.com
Tether reports a net profit of $4.52 billion this period. Net equity reaches $11.37 billion as of March 31, 2024. Continue Reading: Tether Achieves Notable Financial Success in Early 2024
The post Spot Bitcoin ETFs See $344 Million Withdrawals in April appeared first on Coinpedia Fintech News The U.S. spot bitcoin ETFs saw $343.5 million withdrawn from the funds in April. The outflow streak extended to five days on Tuesday. The ETFs had been on an impressive run of inflows in January, February, and March. However, overall flows slowed significantly, with the bitcoin dropping by 18%. April’s outflows continued to be led …
The post What Experts Are Buying: Top Crypto Picks for 2024 appeared first on Coinpedia Fintech News The crypto market is thriving as predictions for a strong upward trend in 2024 come to life. With a diverse range of options catching the interest of seasoned investors, this article delves into the favorites that experts are adding to their portfolios. It offers a sneak peek into the strategies of successful crypto investors and …
Andreessen Horowitz (a16z), one of the leading companies, purchased Optimism (OP) tokens worth approximately $90 million. Continue Reading: Andreessen Horowitz Invested $90 Million in This Ethereum (ETH) Based Altcoin!
Microsoft’s $13 billion bet on OpenAI was borne out of a concern that the company was already losing to Google in the AI race, according to a 2019 internal email exchange between Microsoft’s chiefs, released on Tuesday. “I got very, very worried,” Says Microsoft CTO In the email captioned “Thoughts on OpenAI,” Microsoft’s Chief Technology
Key industry figures echoed this sentiment, believing the new leadership could positively affect Indonesia’s crypto economy. Indonesia’s election winners vow to boost crypto sector, eyeing regional competitiveness Indonesia’s presidential election The post Will Indonesia’s New Leadership Strengthen The Country’s Crypto Economy Post-Election? appeared first on BitcoinWorld .
The post Over 16% Active Shiba Inu Addresses in Profit Despite SHIB Price Drop appeared first on Coinpedia Fintech News Shiba Inu has also been feeling the heat with the broad market downturn. Witnessing a two-digit loss over the last 24 hours, SHIB slumped 22.23% in the past week, breaking below multiple support levels to trade at $0.00002148. However, despite the SHIB collapsing to $0.000021, about 499 addresses, representing over 16% of the total active …
Summary ProShares Ultra Bitcoin ETF aims to generate 2 times the daily reward of the price of Bitcoin, primarily for short-term traders. Holding leveraged funds like BITU for too long can result in underperformance and long-term capital erosion due to decay. BTC is currently correcting. Trying to catch the knife in BITU may lead to deep losses while BTC finds a bottom. Just 15 years into its existence, Bitcoin ( BTC-USD ) has catapulted from a niche cypherpunk computer project to a global powerhouse, valued by the market at $1.2 trillion. With the increase in valuation and market interest comes an increase in the amount of proxies and derivatives available to speculators. One such product is the Proshares Ultra Bitcoin ETF ( BITU ). Fund Objective & Details BITU was launched by ProShares on April 2nd, 2024. AUM: $121 million Expense ratio: 0.95% The goal of BITU is fairly straightforward. Before fees and expenses, BITU shareholders are attempting to generate 2 times the daily reward of the price of Bitcoin. So if BTC increases by 5% in a given day, BITU would theoretically increase by 10% in the same day. Thus, BITU is a 2x leveraged Bitcoin ETF and is primarily intended for short-term traders and not for long-term investment. Data by YCharts Since the fund is still relatively new, BITU holders who have been in the fund since inception are down 12% while BTC is down closer to 9%. While not as dramatic an underperformance as is possible with a 2x ETF, this does highlight the long-term risk in holding leveraged funds for too long. Risks with Leveraged ETFs Leveraged funds like BITU are rebalanced daily. When a 2x long fund is leveraged against a sector or asset that is in a sustained uptrend, the leveraged fund shares can work beautifully at maximizing gains for short-term trades. However, the opposite is also true to the downside. A 2x long strategy tracking an asset going down doubles the pain. But in order to win, leveraged ETF holders need a sustained uptrend. Chop won't work. That's because shareholders of leveraged funds also lose when the sector or asset experiences directional ambiguity. In a prior article covering the GraniteShares 2x Long COIN ETF ( CONL ), I detailed how long-term decay works with these funds due to daily rebalancing. In that note, I shared a table showing how it only takes a few weeks of holding before the leveraged shares start underperforming the intended strategy, even if the sector or asset can have a positive total return. For the sake of prospective BITU buyers, I've updated that table to show it would look here: Author's calculations In the example above, we're looking at 20 days of back and forth 5% intraday BTC moves that generate 10% back and forth moves in the BITU shares. By Day 20, BITU has underperformed BTC, though both are still marginally higher than from where they started. This illustrates why BITU and generally all 2x funds like it are poor long-term investments and shouldn't be held for a longer than a few days at a time. Unlike CONL which intends to track with shares of Coinbase ( COIN ), BITU shareholders have a greater risk of missing out on potential BTC gains due to the fact that the market for BTC doesn't actually close. This risk is highlighted in the Summary Prospectus in the Market Price Variance Risk section: As a result, the value of the Fund’s holdings may vary, perhaps significantly, on days and at times when investors are unable to purchase or sell Fund shares. For example, if Bitcoin rallies by 10% over the weekend and then falls back down to its Friday level, BTC will be even but BITU shareholders would have missed a 20% rally in the fund shares. This is also a risk for spot ETFs as well, but those fund objectives are different and meant for longer term holding rather than short term trades. Bitcoin Correction Given the obvious risks with buying BITU, timing is the most important factor and I suspect even short-term traders likely want to avoid this fund with BTC showing signs of an imminent deeper correction. Fundamentally, spot ETF flows started turning negative in April: The Block According to data from Farside Investors , daily net flows in the spot Bitcoin funds have been negative 9 out of the last 12 sessions as of April 29th. Up until recently, the only spot ETF that was experiencing outflows was the Grayscale Bitcoin Trust ETF ( GBTC ). However, April has seen more of the other funds now turning to net outflows as well. This is an indication that investment demand for BTC has started to reverse, with the block reward halving now in the rearview mirror. BTC Daily (Investing.com) Technically, I see additional downside for Bitcoin in May as the coin retests important moving averages and prior areas of resistance. Consider the 50 DMA curling lower, the MACD crossing back down and the fact that the RSI has yet to hit oversold territory as it is still only at 37. Given the interest rate environment and general weakness in the equity market, I don't think BTC will be immune from further declines if the broader market is in risk-off mode, as I suspect it currently is. The point is, this is not an environment where I'd want to be trying to catch knives in BITU. Closing Summary BITU is not a fund for long-term investment. It could actually be a terrific trading instrument for short term tactical buyers, but we have yet to see the fund perform well for bulls since it's still such a new ETF. Not only are spot ETF investors starting to take profits, but the technical setup indicates further downside in BTC, in my opinion. Furthermore, I don't think the time is right to long BITU given the macro setup. September Rate Probabilities (CME FedWatch) The broader financial markets have been expecting numerous interest rate cuts in 2024, and we have yet to get a single one. In fact, the market is now pricing in the possibility that the Federal Reserve won't start cutting until September. In my view, this is going to further weight on risk assets like BTC. I'm still bullish BTC longer term. But in my view, it's best to express that idea through the spot ETFs for now and wait for a more clear indication of a trend shift back up before speculating with BITU.
Following this week’s cryptocurrency market crash, digital assets currently display bearish technical indicators like a weak relative strength index (RSI). … Continue reading The post Buy signal for the two most oversold cryptocurrencies today appeared first on Finbold .