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Peter Davis

An writer at FOMOdrive

  • Feb 06, 2024
  • 4 min read

Bitcoin (BTC) under pressure from news from Genesis

Genesis has asked for authorization to trade $1.6 billion in Bitcoin ETF stocks.

There has been a significant increase in investments in cryptocurrency funds over the last week.

According to Matrixport, February was a favorable time to purchase Bitcoin.

The post-halving sell-off of BTC will challenge the determination of investors.

According to the creator of the Stock-to-Flow model, Bitcoin is expected to reach $500,000.

CoinShares reported that there was a substantial increase in inflows of $708 million into crypto funds last week, following a significant outflow of $500 million the previous week. The majority of these investments, $703 million, were directed towards Bitcoin, while Solana saw an increase of $13 million and Ethereum experienced a decrease of $6 million. Additionally, there was a decrease of $5 million in investments in funds that enable short positions on Bitcoin.

Since January 11, the amount of money flowing into recently introduced ETFs reached $7.7 billion. However, there were also outflows of $6 billion, although recent data shows a decrease in the rate of these outflows. This resulted in a net inflow of $1.7 billion into the ETF, according to CoinShares. The total value of assets under management globally was $53 billion.

In January, Morningstar reported that the most popular U.S. ETFs in terms of inflows were the BlackRock and Fidelity Bitcoin ETFs, ranking in the top 10. These two funds collectively received a total of $4.8 billion in net inflows. However, the GBTC fund experienced a significant outflow of $5.7 billion.

Bitcoin is facing scrutiny in the media. Genesis, a crypto lender, has declared bankruptcy in the New York District Court over the weekend. They are seeking approval to sell $1.6 billion worth of their digital assets from Grayscale trusts, which could have a detrimental effect on the overall cryptocurrency market.

Matrixport deemed February a favorable time to purchase Bitcoin. Based on past records, the average return for the leading cryptocurrency in February was 8%.

The Block reports that the BTC network has experienced a continuous increase in transaction volume for the past four months, reaching a total of $1.21 trillion in January. This marks the highest amount since September 2022. Despite this, Bitcoin's volatility has remained at its lowest point since December 2023.

According to CryptoQuant, the reserves of mining pools have reached their lowest point since July 2021. In anticipation of the halving event, where the reward for mining a block will be reduced by half, miners are currently liquidating their BTC holdings.

According to the creator of the Stock-to-Flow model, known as PlanB, Bitcoin will become even rarer than gold and real estate after the upcoming halving in April. This could potentially lead to a price of approximately $500,000 for the cryptocurrency. However, no specific timeline was given for when this price may be reached. Additionally, PlanB believes that Bitcoin will not drop below the 200-week moving average (200-WMA), which is currently at $31,000.

According to analysts at DecenTrader, the upcoming halving of Bitcoin will challenge investors and potentially lead to a sell-off. However, they predict that the cryptocurrency will reach its all-time high in the fourth quarter.

Nayib Bukele, a strong advocate of Bitcoin, has been re-elected as the president of El Salvador. Analysts predict a surge of skilled professionals and investments in the nation.

The Spanish government plans to increase its oversight of cryptocurrency assets in order to seize them for the purpose of settling tax liabilities.

According to Jim Rogers, co-founder of Soros Fund Management, Bitcoin does not pose a major risk to the traditional financial system. If it did, authorities would have already taken strong actions against it.

Whale Alert reported that a sum of 492 ETH, equivalent to $1.1 million, was recently moved from an Ethereum address that had been dormant for 8.5 years. This event has sparked conversations among members of the cryptocurrency community.

Binance has denied allegations of a potential leak of user information and asserted that their security systems for clients are operating without any interruptions.

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