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Peter Davis

An writer at FOMOdrive

  • Sep 14, 2023
  • 3 min read

Bitcoin crashed below $25,000 - what's happening?

In the American session, Bitcoin dropped below $25,000.

Crypto funds are experiencing outflows due to SEC policies and a stronger dollar.

It appears that Ethereum is about to experience an "extreme swing."

25% of investment firms and hedge funds are prepared to put money into crypto assets.

It is predicted that four months after the introduction of spot Bitcoin ETFs, BTC will experience a surge in value and exceed $42,000.

BTC dropped below $25,000 in the US session, the lowest it has been since June 15. This decrease happened despite the weakening of the US dollar and the increase of stock indices. Some specialists believe this is due to the inflation data that will be released in the US on Wednesday.

CoinShares reported that investments in crypto funds dropped by $59 million last week, making it the fourth consecutive week and seven out of the last eight weeks of outflows. Specifically, investments in Bitcoin decreased by $69 million, while investments in Ethereum decreased by $5 million. On the other hand, investments in funds that allow for shorting Bitcoin increased by $15 million, the highest since March.

Trading volumes dropped drastically during the week, decreasing by 73% to a mere $754 million. CoinShares believes that the current sentiment is still weak, likely due to the worries about the regulation of the asset class and the recent appreciation of the dollar.

Benjamin Cowan, a cryptanalyst, has suggested that Ethereum may experience an "extreme swing" in value, potentially dropping to $400 by the end of the year. This could be due to a decrease in the profitability of blockchain platforms built on ETH smart contract technologies.

Coin Metrics reported that the average transaction fee on Ethereum dropped to its lowest level in 2023, due to a decrease in NFT sales, a decline in meme token trading, and the activity of Telegram bots. The value of the indicator was recorded at $2.24.

The Securities and Exchange Commission (SEC) has appealed Ripple Labs' decision to block their appeal of a judge's ruling to partially invalidate XRP as a security. The SEC believes that the proposed settlement option will expedite the completion of the process. Ripple Labs had previously requested that the SEC's motion for an interlocutory appeal be denied, citing that they saw no legal basis for challenging the decision.

The Financial Stability Board and the International Monetary Fund have had their recommendations on the regulation, supervision and control of digital assets approved by the G20 member countries. The G20 has urged for the swift implementation of a reporting system for crypto assets and changes to the existing financial reporting standards.

Research from Amberdata has revealed that around one-fourth of the world's management companies and hedge funds are prepared to invest in crypto assets. Despite the lack of clarity in regulations, market volatility, and numerous hacks, scams, and exploits, the sentiment is optimistic.

K33 Research predicts that if Spot Bitcoin ETFs are launched in the US, they could attract between 70,000 and 100,000 BTC within four months. It is estimated that within 40 days of the emergence of such funds, the price of BTC could reach $36,000, and after four months it could exceed $42,000.

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