Shops in Torrevieja Adopt Payment with Cryptocurrencies, and other News

Trends in the crypto world over the last week are explored.

The City Council of Torrevieja, a city located in the province of Alicante, Spain, wanted to join the path towards innovation by proposing to businesses the possibility of incorporating this new form of payment into their economy. The initiative is supported by the Bitnovo exchange.

Through an agreement between the Department of Commerce of the City Council and the Association of Small and Medium Merchants of Torrevieja, the city of Vega Baja will allow the use of cryptocurrencies to pay in local businesses. Thus, Torrevieja “continues with its commitment to new technologies and the digitalization of the local productive fabric as a way to boost commerce and continue contributing to local economic development.”

In this regard, Rosario Martínez Chazarra, Torrevieja Councilor for Commerce, assured that the project “will enhance and modernize purchases in our local businesses and will be another incentive for those people who have cryptocurrencies.”

Crypto Company Fined in Spain for Omission of Risks in its Advertising

The National Securities Market Commission has decided to fine the company Miolo Desarrollos SL, owner of the company Material Bitcoin, for four serious infractions for failing to comply with the circular it launched on the regulation of advertising of crypto assets.

Two fines of 10,000 euros each are imposed for the commission of two serious infractions, for failure to comply with administrative control measures for crypto advertising. Mainly, the fines are for not incorporating information and warnings about the risks of crypto assets in the massive advertising campaigns carried out in La Voz de Galicia and El Mundo in the printed and digital version of the newspaper, along with its social networks.

In addition, two other fines of 5,000 euros each were imposed for failure to comply with the administrative control measures for cryptocurrency advertising, relating to advertising about cryptoassets presented as an investment object, for not submitting prior communication to the advertising campaigns. massive.

Honduras Takes Measures: Regulator Bans Banks from Holding and Transacting Cryptocurrencies

The National Banking and Securities Commission of Honduras (CNBS) prohibited the financial system from operating cryptocurrencies and virtual assets that have not been permitted by the country’s monetary authority due to the risk of fraud.

The resolution prohibits institutions supervised by the CNBS from “holding, investing, intermediating or operating with cryptocurrencies, crypto assets, virtual currencies, tokens or any other similar virtual asset, which have not been issued or authorized by the Central Bank of Honduras as Monetary Authority.” from the country”.

Supervised institutions are also prohibited from holding derivative instruments based on cryptoassets. The resolution requires that all dangers associated with cryptoassets be included in financial education programs.

Mining Farm Burned in Paraguay

According to local media reports, Volunteer Firefighters identified Bitcoin mining equipment at the site of the fire. Officials believe that the Bitcoin mining machines overheated and, as the situation was not attended to, they ignited, thus unleashing the fire in the 16-story Flytec building.

The fire department captain, Ray Mendoza, stated on February 15 that the fire was still not under control on three floors of the building, and that two of them have weakened structures, increasing the risk of collapse.

Mendoza further added that the damaged building had been used as a goods warehouse, with large quantities of cardboard boxes and lithium batteries. And he stressed that a Bitcoin mining farm operated in the structure on the 11th and 12th floors of the tower, which was already worn out.

By Audy Castaneda

Bitcoin ETFs Threaten Gold’s Dominance as Digitalization Trends Gain Momentum

In just over a month since their approval by the US Securities and Exchange Commission (SEC), Bitcoin ETFs have rapidly gained momentum in the market, posing a formidable challenge to long-standing dominance of gold ETFs.

The rapid rise of Bitcoin ETFs has led to a convergence in asset values, with BTC ETFs closing the gap with gold ETFs. Bitcoin ETFs hold approximately $37 billion in assets after just 25 days of trading, while gold ETFs have accumulated $93 billion in more than 20 years of trading.

According to data from the Coinglass portal, as of this Friday, Bitcoin products accumulated $37.29 billion in AUM. Meanwhile, gold ETFs have a total of approximately $93 billion in the same monetary denomination. In this way, cryptocurrency products already occupy more than a third of the total value of gold products.

The fact that Bitcoin ETFs already occupy 39.8% of the AUM of their gold rivals leaves no doubt about the future. If within a period of approximately one month they managed to get within that distance, everything suggests that in a few weeks they will surpass them. This becomes a huge moral victory for proponents of cryptocurrency as digital gold.

Bitcoin ETFs Gain Ground Against Gold ETFs

Bloomberg Senior Commodities Strategist Mike McGlone emphasizes the changing landscape, stating that “Tangible gold is losing its luster to intangible Bitcoin.” According to McGlone, the continued resilience of the US stock market, the strength of the US currency and 5% interest rates have presented headwinds for gold.

Furthermore, as the world increasingly embraces digitalization, the emergence of Bitcoin ETFs in the United States adds more competition to the precious metal. McGlone further states that while the bias towards gold prices remains bullish, investors who focus solely on gold may risk falling behind potential paradigm-shifting digitalization trends.

Ultimately, McGlone suggests that investors should consider diversifying their portfolios by incorporating Bitcoin or other digital assets to stay ahead in the changing investment landscape.

Bitcoin Rally Driven by Institutional Demand

The success of Bitcoin ETFs is further demonstrated by recent data suggesting that the upward trend in Bitcoin prices is primarily driven by institutional demand. At the same time, retail participation appears to be declining.

According to analyst Ali Martinez, as the price of Bitcoin continues to fluctuate between $51,800 and $52,100, there has been a notable decline in the daily creation of new Bitcoin addresses, indicating a lack of retail participation in the current bullish rally and highlighting the growing influence. of institutional investors in the cryptocurrency market.

However, market expert Crypto Con points to a significant change in the positions of long-term Bitcoin holders, indicating a possible downward movement. Based on a chart analyzed by the expert, the position reversal line crossed below -50.00 for the first time in over a year, a pattern that has historically occurred at critical times in market cycles. of Bitcoin.

These moments include the bottom of the cycle, the middle top (which occurred only once), and the start/end of a top parabola of the cycle (which occurred most frequently).

This recent change in the positions of long-term holders raises two possible scenarios: a medium or imminent parabolic movement. Such a move at this stage of the cycle is considered unusual. It indicates that long-term Bitcoin holders are exiting their positions in significant amounts, possibly anticipating a market correction or a change in the overall trend.

Overall, the change in Bitcoin holders’ positions and the decline in retail participation present contrasting dynamics in the current market landscape. While institutional demand continues to drive up the price of Bitcoin, long-term holders appear to be taking profits or adjusting their positions.

While BTC is currently trading at $51,800, it remains to be seen which direction the next move will take, and how institutions will continue to influence the price action of the largest cryptocurrency as spot Bitcoin ETFs gain traction.

By Leonardo Perez

BTC’s Three-Day Winning Streak Ends amid ETF Flows

On Saturday, BTC fell 0.93%, reversing a 0.45% gain from Friday, BTC ended the session at $51,697. Significantly, BTC ended a three-day winning streak.

On Saturday, investors reacted to BTC spot ETF market flow data for February 16. Inflows retreated to the lowest level of the week, which affected buyers’ demand for BTC.

Net inflows decreased from $477 million (Feb. 15) to $331 million (Feb. 16), according to BitMEX Research.

BTC-Spot ETF Market: Net Inflows Affect BTC Price Trends

iShares Bitcoin Trust (IBIT) led the way for the seventh consecutive session. However, IBIT net inflows fell to their lowest level ($191.4 million) since February 7. ARK 21Shares Bitcoin ETF (ARKB) overtook Fidelity Wise Origin Bitcoin Fund (FBTC) into second place, with net inflows of $140 million.

Bitwise Bitcoin ETF (BITB) saw a drop in net inflows after a positive session on Thursday. However, Grayscale Bitcoin Trust (GBTC) saw a modest drop in net outflows. US economic indicators and sentiment towards the Fed’s monetary policy may have impacted flows on Friday.

US Economic Indicators and Fed Rate Cuts in H1 2024

On Friday, US producer price figures for January weighed on market bets on a Fed rate cut in the first half of 2024. Producer prices rose 0.3%, reversing a 0.1% drop since December. Core producer prices rose 0.5% after falling 0.1% in December. Economists expected producer prices and core producer prices to rise 0.1%.

The larger-than-expected increase signaled a rebound in demand that could fuel demand-driven inflation. Upward trends in demand-driven inflation may influence the timeline for a Fed rate cut.

Recent US inflation figures eroded bets on a Fed rate cut in March. According to the CME FedWatch tool, the probability of a Fed rate cut in March fell from 16.0% to 10.0% in the week ending February 16. The chances of a Fed rate cut in May fell from 52.2% to 35.2% over the week.

However, the chances of a 25 basis point rate cut in June rose from 41.9% to 53.7% in the week ending February 16.

Bitcoin Fear and Greed Index Returns to Greed Zone

The influences of the Federal Reserve and the decline in inflows into the BTC spot ETF market affected investor confidence. On Sunday, the Bitcoin Fear & Greed index fell from 76 to 72. Significantly, the index fell from the Extreme Greed zone to the Greed zone.

Despite the return to the greed zone, the Fear & Greed index continues to indicate positive investor sentiment. However, a continued downtrend may reflect a change in sentiment. An index that falls into the Neutral zone could change the narrative.

US economic indicators, FOMC meeting minutes, Fed speakers, and updates related to BTC spot ETFs should be considered next week.

Bitcoin Analysis

BTC settled well above the 50- and 200-day EMAs, sending bullish price signals. A BTC break above Thursday’s high of $52,869 would put the $55,000 level in play. However, a fall below the $51,000 level would give the bears a run towards the $50,500 support level.

The 14-day RSI reading of 77.58 shows BTC in overbought territory. Selling pressure may intensify at the $52,000 level.

Ethereum Analysis

ETH remained well above the 50-day and 200-day EMA, sending bullish price signals. A breakout of ETH from Thursday’s high of $2,867 would support a move towards the $3,000 level. However, a fall of ETH through the $2,750 level would leave the $2,650 support level in sight.

The 14-period daily RSI at 73.99 shows ETH in overbought territory. Selling pressure could intensify at the $2,800 level.

By Audy Castaneda

Bitcoin Futures Traders on DEX Predict Price of $70,000 After Halving

Traders on the decentralized Bitcoin futures exchange Lyra predict that Bitcoin will reach $70,000 by the end of April with 20% certainty. The BTC prediction comes after Lyra clients predicted the rally up to $50,000; however, causality is unclear. SkyBridge Capital’s Anthony Scaramucci expects Bitcoin to hit $170,000 within 18 months of the 2024 Bitcoin halving event.

Bitcoin futures traders on decentralized exchange (DEX) Lyra predict the asset will hit $70,000 by the end of April. The next Bitcoin halving will occur in April, after which many experts, including SkyBridge Capital’s Anthony Scaramucci, expect the price to rise, although options and traders seem bullish.

Lyra traders predict with 20% certainty that the BTC price will rise to a new all-time high of $70,000 on April 26, 2024.

Bitcoin Futures Traders Predict $50,000

The prediction comes after Lyra clients correctly forecasted Bitcoin’s $50,000 rally. Volumes for $52,000 call options spiked last week before Bitcoin broke out.

However, crypto derivatives trader Samneet Chepal has seen an increase in volume after February 7, when Lyra introduced new incentive schemes, making causality difficult to pin down:

“It is also interesting to see a pickup in volumes after February 7, which is when the new Lyra incentives were announced. It is difficult to find causality because cryptocurrencies rose during the same period, but nevertheless it is great to see volumes increasing.”

Lyra is the largest decentralized Bitcoin futures exchange. It recorded around $32 million in trading volume in the last 24 hours, an increase of 134% in the last seven days.

Lyra trader sentiment coincides with an increase in open interest in Bitcoin futures contracts on centralized exchanges, suggesting that speculation on the future price of Bitcoin is a widespread trend in the market.

Open interest in futures amounted to $23 billion earlier this week, while BeInCrypto reported around 15,766 calls at $50,000 with a notional value of $822 million earlier today.

Generalized Bitcoin Price Rise Forecasts

The next bullish event for Bitcoin halving is 2024 which reduces the number of coins released per Bitcoin transaction block mined. Participants in the cryptocurrency market have commented on the price of Bitcoin after this event.

Grayscale Investments predicts that Bitcoin’s rise around this halving will be driven by a mix of recent flows into Bitcoin exchange-traded funds (ETFs) and increased on-chain activity.

Speaking to Bloomberg Television, the CEO of alternative investment firm SkyBridge Capital, Anthony Scaramucci, said he expects BTC to reach $170,000 within 18 months after the Bitcoin halving. According to his statements in a previous podcast, Bitcoin has quadrupled its pre-halving price in the last 14 years, and he expects this to continue.

“There is a technical analysis that can be done in the last 14 years. The price at the time of the halving is multiplied by four, which is typically where Bitcoin has run to in that cycle. You are seeing that the network is only producing 900 coins a day and you know, you have 12 times the demand for that right now, so you are seeing upward price compression.”

The rally in cryptocurrency prices is related to expectations of an easing of monetary policy by the Federal Reserve. As for market forecasts, they remain optimistic. The latest data comes from the British financial technology company Finder, which concludes that Bitcoin would reach a new record of $88,000 throughout the year, before settling around $77,000 at the end of 2024, according to a new report.

By Leonardo Perez

Five Reasons Why Bitcoin Price May Rise to $500,000 by 2025

Bitcoin price surpassed the $50,000 mark a few days ago and recently even surpassed the trillion-dollar mark in market capitalization. The big bull run could really start in 2024 and especially 2025.

Bitcoin price has made strong gains so far in 2024. Bitcoin rose from a value of $44,000 to over $52,000 in 6 weeks. In particular, the Bitcoin ETFs, approved in early January, had a very bullish influence. The price of Bitcoin has increased considerably, especially in the last 2 weeks.

Massive price gains for Bitcoin may be evident in the next 2 years. Below are five reasons why the price of Bitcoin may rise to $500,000 by 2025.

Bitcoin Halving at the End of April 2024

Throughout its history, the price of Bitcoin has always increased tremendously following a Bitcoin halving. With Bitcoin Halving, the number of new Bitcoins hitting the market each day is halved again. This supply shock has always caused the price of Bitcoin to skyrocket in the year and a half since. There is a good chance this will happen again.

One of the prominent figures in the crypto industry, who shows an optimistic view on the price of Bitcoin in the future, is Will Clemente, co-founder of the firm Reflexivity Research, who recently said that Bitcoin will become scarcer than gold, in regards to the stock-flow relationship, after the next halving.

Low Bitcoin Liquidity on Stock Exchanges

There has been an interesting trend in recent months. The supply of Bitcoins on the exchanges is decreasing and more and more people are holding their BTC for the long term. This means that the true supply of liquid Bitcoins is only between 2 and 3 million. This means that high demand can cause the price to rise much faster and steeper.

Great Interest in Bitcoin ETFs

Bitcoin ETFs have been the most popular asset class since the introduction of the ETF financial product. Billions of capital flowed into Blackrock, Fidelity and Co’s Bitcoin ETFs in the early days. Heavy capital outflows from the Grayscale ETF initially led to losses in the price of Bitcoin. But now we are seeing massive inflows in the triple-digit millions. The demand could cause the price of Bitcoin to skyrocket in the coming months as supply dwindles.

In November last year, during an exclusive interview on CNBC’s Squawk on the Street, MicroStrategy president Michael Saylor noted that Bitcoin could become a treasury asset for many companies, just as it is for his company MicroStrategy, which holds a total of 158,400 BTC, currently.

Probable Fall in Official Interest Rates

In 2023, central banks in the United States and Europe have raised interest rates extremely sharply to control inflation. This caused huge losses for many assets, but they were able to recover. Interest rate cuts are expected in the next two years. This makes money cheaper again and investments in tangible assets like Bitcoin should increase.

FOMO and Mass Speculation

If the price of Bitcoin were to rise again to new all-time highs and even surpass the $100,000 mark, new investors who would not want to miss out on the hype would return to the market. Bitcoin is emerging into the mainstream and FOMO is spreading among the average investor. This is the time when speculation can start the parabolic bull run like in 2017. That could take the price of Bitcoin to $500,000.

By Audy Castaneda

BTC 401k Retirement Plans Will Boom in 2024: Standard Chartered

Standard Chartered’s Jeff Kendrick sees potential for pensions to enter the market with the recent approval of spot Bitcoin ETFs. Kendrick is optimistic about the approval of a spot Ethereum ETF in May and its impact on the cryptocurrency market. Experts believe that the recent approval of Bitcoin spot ETFs will make cryptocurrency investing more accessible to retirees.

Jeff Kendrick, head of cryptocurrency research at Standard Chartered, is optimistic about pension fund interest following the recent SEC approval of spot Bitcoin exchange-traded funds (ETFs).

Kendrick is bullish on Ethereum, suggesting it will likely follow a similar path to Bitcoin in the approval process for its own ETF.

Standard Chartered Bullish on BTC and ETH 401k Plans

During an interview with Yahoo Finance Future Focus, Standard Chartered’s Jeff Kendrick explained that Bitcoin and Ethereum, the two largest cryptocurrencies by market cap, are performing well. Furthermore, he hints that investor confidence has increased despite recent declines in inflation:

“Actually, Bitcoin and Ethereum and risk assets in general have held up very, very well. And I think that is because we are now in a situation where we know that the cuts are coming because inflation is going down, most importantly.”

Meanwhile, during a recent press conference, Federal Reserve Chairman Jerome Powell pointed to the persistence of high utility prices as a cause for concern.

According to PBS News Hour, he indicated that central bank policymakers would prefer to see further easing of services inflation before considering a reduction in their base interest rate.

However, Kendrick pointed to the possibility of an influx of pensioner funds flocking to Bitcoin ETFs. This could give the cryptocurrency a big boost. Statista data for the second quarter of 2021 revealed that the value of assets in 401k retirement plans in the United States had reached $7.26 trillion.

Kendrick was also optimistic about the approval of the Ethereum spot ETF in May:

“And what we are going to see now in the US is that the 401(k) market, that is, pensions, etc., enter Bitcoin and other assets in this space when we have the Ethereum market in May for the first time as well.”

Kendrick estimates a total net inflow of around $50 billion to $100 billion into spot Bitcoin ETFs in 2024. In terms of Ether, he predicts that the SEC will approve spot Ether ETFs in May, leading to an inflow net around $20 billion to $35 billion in Ether spot ETFs throughout 2024.

Standard Chartered Optimistic on Ethereum ETF Approval in May

Standard Chartered has expressed optimism about the future of the leading cryptocurrency. The bank believes that the approval of the 11 Bitcoin ETFs could stimulate inflows of between $50,000 and $100,000 million in 2024, which could take the price of BTC to a high of $200,000 in 2025.

The bank predicts that if asset managers who have applied to issue spot Bitcoin ETFs are successful, there could be inflows of between $50 billion and $100 billion this year. This would mean that between 437,000 and 1.32 million new Bitcoins could be held in US ETFs by the end of 2024.

The move toward Bitcoin ETFs by US pension plans marks a significant step in the integration of cryptocurrencies into mainstream finance. It emphasizes the growing recognition of digital assets as a legitimate investment option for retirement portfolios.

By Leonardo Perez