2024-08-15 10:00:13 by NewsBTC

The evolvement of Bitcoin has led to Bitcoin’s trajectory being linked to several other markets, whereby the stance of certain markets could hint at where BTC is headed. However, according to the latest data, this phenomenon is changing specifically for the correlation of Bitcoin’s price to exchange-traded fund (ETF) movements. Historical Patterns And Recent Deviations The latest observation from a CryptoQuant author on the QuickTake platform has revealed that BTC ETF, particularly the ETC Group Physical Bitcoin (BTCE), an investment fund based in Germany, which has shown a historical pattern of syncing with Bitcoin’s price movements, is now seeing a divergence in correlation. The analyst, Joao Wedson, disclosed that historically, increases in BTCE’s Bitcoin holdings have often aligned with substantial price rallies in Bitcoin itself. For instance, a significant accumulation in the fund’s reserves from 0 to over 23,480 BTC in 2020 coincided with Bitcoin’s surge to its first historic peak in April 2021. Conversely, a reduction in holdings has typically indicated a forthcoming drop in Bitcoin prices. Recent Trends and Changes in Fund Behavior “The historical correlation between BTCE and the Bitcoin price has shown a consistent pattern, where changes in the fund’s reserves generally precede movements in $BTC price.” – By @joao_wedson Link 👇https://t.co/59rWi28opD pic.twitter.com/bKRI4TfePP — CryptoQuant.com (@cryptoquant_com) August 14, 2024 However, a shift in this pattern has been observed since January 2024. Despite the fund’s Bitcoin reserves decreasing from a peak of 27,980 BTC to below 17,000 BTC, the anticipated decline in Bitcoin’s price hasn’t materialized to the extent predicted by past trends. This divergence suggests a potential decoupling of the fund’s activities from direct Bitcoin price movements, marking a change in how BTC’s market relation with this product might be interpreted. Wedson revealed that this observation is evident in the 30-day variance of the BTCE fund analysis. This analysis showed that positive variances in the fund’s reserves were typically associated with Bitcoin price rises, and negative variances correlated with price drops. BTCE fund holding. | Source: CryptoQuantThe recent period, however, stands as an exception to these findings, with Bitcoin’s price rising despite continued sell-offs from the fund. Bitcoin Market Performance And Future Outlook Bitcoin is trading for $59,144 at the time of writing, following a 3.6% dip in the past 24 hours. According to the latest report, this decline comes after the US inflation fell to 2.9%, the lowest since 2021. BTC price is moving sideways on the 1-hour chart. Source: BTC/USDT on TradingView.comAmid this price performance, Economist and Trader Mikybull Crypto on X, has pointed out the potential rally for Bitcoin. This rally, according to the analyst is based on the global liquidity index breaking out of a 2-year resistance. Mikybull Crypto noted: The BTC correlation with the global liquidity index is quite strong. This indicates that Bitcoin strong and massive rally is looming. Featured image created with DALL-E, Chart from TradingView Samuel Edyme Meet Samuel Edyme, Nickname - HIM-buktu. A web3 content writer, journalist, and aspiring trader, Edyme is as versatile as they come. With a knack for words and a nose for trends, he has penned pieces for numerous industry player, including AMBCrypto, Blockchain.News, and Blockchain Reporter, among others. Edyme’s foray into the crypto universe is nothing short of cinematic. His journey began not with a triumphant investment, but with a scam. Yes, a Ponzi scheme that used crypto as payment roped him in. Rather than retreating, he emerged wiser and more determined, channeling his experience into over three years of insightful market analysis. Before becoming the voice of reason in the crypto space, Edyme was the quintessential crypto degen. He aped into anything that promised a quick buck, anything ape-able, learning the ropes the hard way. These hands-on experience through major market events—like the Terra Luna crash, the wave of bankruptcies in crypto firms, the notorious FTX collapse, and even CZ’s arrest—has honed his keen sense of market dynamics. When he isn’t crafting engaging crypto content, you’ll find Edyme backtesting charts, studying both forex and synthetic indices. His dedication to mastering the art of trading is as relentless as his pursuit of the next big story. Away from his screens, he can be found in the gym, airpods in, working out and listening to his favorite artist, NF. Or maybe he’s catching some Z’s or scrolling through Elon Musk’s very own X platform—(oops, another screen activity, my bad…) Well, being an introvert, Edyme thrives in the digital realm, preferring online interaction over offline encounters—(don’t judge, that’s just how he is built). His determination is quite unwavering to be honest, and he embodies the philosophy of continuous improvement, or “kaizen,” striving to be 1% better every day. His mantras, “God knows best” and “Everything is still on track,” reflect his resilient outlook and how he lives his life. In a nutshell, Samuel Edyme was born efficient, driven by ambition, and perhaps a touch fierce. He’s neither artistic nor unrealistic, and certainly not chauvinistic. Think of him as Bruce Willis in a train wreck—unflappable. Edyme is like trading in your car for a jet—bold. He’s the guy who’d ask his boss for a pay cut just to prove a point—(uhhh…). He is like watching your kid take his first steps. Imagine Bill Gates struggling with rent—okay, maybe that’s a stretch, but you get the idea, yeah. Unbelievable? Yes. Inconceivable? Perhaps. Edyme sees himself as a fairly reasonable guy, albeit a bit stubborn. Normal to you is not to him. He is not the one to take the easy road, and why would he? That’s just not the way he roll. He has these favorite lyrics from NF’s “Clouds” that resonate deeply with him: “What you think's probably unfeasible, I've done already a hundredfold.” PS—Edyme is HIM. HIM-buktu. Him-mulation. Him-Kardashian. Himon and Pumba. He even had his DNA tested, and guess what? He’s 100% Him-alayan. Screw it, he ate the opp. Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. 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