Get Smarter About Crypto

₿itcoin reached $63,083. -7.14%

♢Ethereum reached $3,273. -8.09%

What we will talk about today...

📉🔄 Crypto Market Downturn: A Simple Overview

🔄📉 Ether’s Volatility Triggers $624M Liquidations, Watching $3,100 Level

📉🔄 Grayscale Moves Forward with Ethereum ETF Listing, Targets NYSE Uplisting

Crypto Market Downturn: A Simple Overview

Today, the crypto market saw a notable downturn, with Bitcoin falling below $63,000 and other major altcoins also experiencing sell-offs. The total market capitalization dropped by 7.68%, landing at $2.27 trillion.

📉 Major Players’ Decline

Bitcoin (BTC) led the downturn, falling around 7% to roughly $62,650. Ethereum (ETH), the second-largest crypto by market cap, also declined, dropping about 8% to $3,200.

📉 Downturn Causes

Bitcoin ETF Outflows: The downturn coincided with the largest single-day outflow from Bitcoin ETFs ever recorded. The Grayscale Bitcoin ETF saw outflows of $642.5 million on March 18, indicating decreased investor interest.

Fed Policy Worries: The downturn comes before the Federal Open Market Committee meeting on March 20. Market sentiment is affected by speculation about the Fed’s monetary policy, especially regarding inflation. High interest rates could potentially slow the crypto market rally.

Market Correction: The downturn is part of a larger correction that started on March 14, marked by bearish divergence signals and high Relative Strength Index (RSI) levels. Overvaluation and profit-taking opportunities led to decreased trader demand and the downturn.

Liquidations: The sharp drop in crypto prices led to a wave of liquidations in the derivatives market, especially long positions. Over $182 million in positions were liquidated, putting downward pressure on asset prices and intensifying the sell-off.

While today’s downturn might indicate short-term market volatility, it also highlights the dynamic nature of the crypto landscape. Investors and traders will be closely watching developments in the coming days, especially regarding regulatory and macroeconomic factors, to determine the market’s direction. 📉🔄

Ether’s Volatility Triggers $624M Liquidations, Watching $3,100 Level

In the last 24 hours, the crypto market saw liquidations over $624 million, mainly affecting leveraged long positions. Ether (ETH), the second-largest cryptocurrency, dropped 9.3% to $3,254. If Ether’s price drops below the $3,100 mark, it could cause more liquidations of over $212 million.

📉 Ether’s Decline Impact

If Ether’s price falls below $3,100, it could lead to the liquidation of leveraged long positions worth over $212 million. Ether’s recent downturn and its weekly decline of over 18% highlight the market’s volatility and potential liquidation risks.

📉 Liquidation Overview

The recent price volatility led to $624.4 million in liquidations in the past 24 hours. Long positions accounted for $514 million of the liquidations, while short positions made up $110 million. OKX, Binance, and Bybit had the highest liquidation volumes, totaling $90.8 million, $79.9 million, and $23.4 million, respectively.

📉 Market Recalibration Expected

With Bitcoin’s sharp pullback from its March 14 peak, analysts predict a period of market recalibration, especially with increased institutional interest in Spot Bitcoin ETFs. Despite Bitcoin’s retracement, the altcoin market, particularly Ethereum, remains resilient. Ethereum’s exchange netflow data suggests a potential short-term upward trend, driven by a record-high Ether outflow from exchanges, potentially reducing supply and driving up prices.

📉 Bitfinex Insights

According to Bitfinex analysts, the recent surge in Ether net outflows from exchanges, hitting a new record high of 154,000 Ether on March 11, indicates a potential shift towards trading on ERC-20 protocols or Layer 2 solutions like the Base mainnet. This trend, along with increasing investment flows into large-cap altcoins, could influence the market’s direction in the coming days.

As the crypto market navigates through volatility and market recalibration, investors and traders are staying vigilant, closely watching key price levels and market dynamics for potential opportunities and risks. 📉🔄

Grayscale Moves Forward with Ethereum ETF Listing, Targets NYSE Uplisting

Grayscale Investments has made progress in its pursuit of an Ethereum exchange-traded fund (ETF), submitting an updated Form 19b-4 filing. Craig Salm, the firm’s Chief Legal Officer, highlighted the increasing demand for Ethereum and the importance of a spot Ethereum ETF, similar to Bitcoin ETFs.

📈 NYSE Listing Journey

Grayscale’s revised filing seeks to list and trade Ethereum Trust shares on NYSE Arca under Rule 8.201-E. Salm emphasized the similarity between Ethereum and Bitcoin ETFs, noting that investors should have easy access to Ethereum.

📈 SEC Decision Postponed

The updated submission follows the U.S. Securities and Exchange Commission’s (SEC) recent delay in decisions on Ethereum ETF applications from Grayscale and Blackrock, among others. While BlackRock aims to list its ETF on Nasdaq, Grayscale’s action shows continued faith in Ethereum’s potential and the value of diversification in the ETF market.

📈 Market Predictions

Despite recent delays, analysts expect SEC approval for Ethereum ETFs, possibly by May. The introduction of spot Ethereum ETFs could significantly strengthen Ethereum’s position as the second-largest cryptocurrency by market cap. However, two U.S. senators have voiced concerns to SEC Chairman Gary Gensler about approving such ETFs, citing potential risks related to other cryptocurrencies’ trading volumes and integrity.

As Grayscale continues with its updated ETF application, the wider cryptocurrency market eagerly awaits regulatory decisions that could influence Ethereum investment opportunities. Investors are closely watching developments, anticipating potential regulatory changes and their impact on Ethereum’s market dynamics. 📈🛤️

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Stay tuned for more twists and turns in the crypto world & Happy Investing🚀💎