Bitcoin‘s market position is bullish as it hovers near $48,000, amidst widespread anticipation of potential growth to $100,000. Glassnode’s analysis marks the current Bitcoin market as “high risk,” emphasizing the volatile nature of cryptocurrency investments.
Grayscale attributes this potential ascent to Bitcoin’s unique market structure post-halving, suggesting a favorable outcome for investors.
Concurrently, global regulatory efforts, exemplified by Nigeria’s move to regulate cryptocurrencies to curb financial crimes, reflect the broader acceptance and scrutiny of digital currencies.
This environment fuels diverse Bitcoin price predictions, with the community oscillating between cautious optimism and strong bullish sentiment for its future valuation.
Bitcoin Market Labeled ‘High Risk’ by On-Chain Data, Glassnode Reports
Glassnode’s on-chain indicators suggest Bitcoin might be entering a bull market, having surpassed the “mid-risk” threshold according to the long-term holder market value to realized value (MVRV) indicator.
This indicates significant profitability for long-term investors by measuring market overheating through the comparison of Bitcoin’s market value against its realized value, excluding short-term sentiment influences.
After the challenging recovery since the FTX collapse, this indicator has advanced to 2.06, entering the High Riskregime.
These levels are typically seen during the early stages of bull markets, as long-term investors return to a relatively meaningful level of profitability. pic.twitter.com/XMSjJjUc1z
— glassnode (@glassnode) February 9, 2024
Last week, Bitcoin’s price rose from $42,317 to $48,582, primarily due to reduced withdrawals from the Grayscale Bitcoin Trust and substantial inflows into spot Bitcoin ETFs.
Notably, spot Bitcoin ETFs recorded an unprecedented $541 million inflow on February 9, while Grayscale’s GBTC experienced its lowest outflow at $51.8 million.
This trend suggests growing investor confidence in Bitcoin, potentially leading to further price increases as more institutional funds flow into the market.
Grayscale Insights: Bitcoin’s Market Structure Boosts Post-Halving Price
Grayscale suggests that the launch of Bitcoin exchange-traded funds (ETFs) could mitigate post-halving market pressures, traditionally driven by miners’ need to sell, by offering a stabilizing influence.
The halving event, which slashes miners’ earnings by half, typically introduces significant sell pressure.
In this report, we provide holistic analysis of the halving—what it is, why it matters, its historical impact, and why the $BTC landscape looks so different from even a year ago. https://t.co/L7aOULUA3W
— Grayscale (@Grayscale) February 9, 2024
However, the advent of ETFs may counteract this by fostering sustained market demand. The recent rollout of nine Bitcoin ETFs, collectively managing $10 billion in assets, exemplifies this potential.
Leading the pack, BlackRock’s iShares Bitcoin Trust holds $4 billion in Bitcoin, demonstrating substantial market confidence.
ETFs’ ability to alleviate sell pressure could effectively act as a market restructuring tool, akin to an additional halving event, potentially fostering continued price growth as the market adjusts to these new dynamics introduced by ETFs.
Nigeria Implements Cryptocurrency Regulations to Fight Financial Crimes
Adedeji Owonibi, co-founder of A&D Forensics, underscores the critical need for cryptocurrency regulation in Nigeria to curb financial crimes such as money laundering.
Following the Central Bank of Nigeria’s reversal of its ban on cryptocurrency transactions, there is a concerted effort to educate compliance specialists to ensure banks can operate with Virtual Assets Service Providers (VASPs) within regulatory guidelines.
Owonibi highlights the importance of compliance in deterring illicit activities. With the new regulations, VASPs are permitted to open bank accounts under CBN’s regulations, yet there’s a call for the Nigerian Securities and Exchange Commission to revise its crypto licensing rules to legitimize local exchanges.
Exciting update from Champion News on 3CS Training!
A&D Forensics just wrapped up training a new batch of Cryptocurrency Compliance Specialists.
Read insights from our facilitators and participants here!https://t.co/pdXHIo9nm0#CryptoComplianceTraining #NigerianTrainings
— A&D Forensics (@ForensicsD) February 10, 2024
Such regulatory advancements could bolster Bitcoin’s market by enhancing its credibility and investor confidence.
Properly defined regulations are poised to elevate Bitcoin’s value and adoption, attracting more investors and institutions into the cryptocurrency space.
Metaco’s Leadership: Ripple-Owned Crypto Custody Firm’s CEO and Product Chief Insights
Following Ripple’s acquisition of Metaco in May 2023, the company saw the departure of its Chief Product Officer Peter DeMeo and CEO Adrien Treccani.
Ripple has recognized their significant contributions to the digital custody sector, underlining that custody remains a cornerstone of its crypto business offerings.
Metaco, known for securing a deal with HSBC and its popularity among European banks for digital asset custody, faces scrutiny over potential reassessments of bank partnerships post-acquisition.
SCOOP: The CEO and chief product officer of @metaco_sa, the cryptocurrency custody firm acquired by @Ripple last year, have left the company.@IanAllison123 reportshttps://t.co/8PkKaVsUDS
— CoinDesk (@CoinDesk) February 11, 2024
This development, reflecting wider cryptocurrency industry trends, could indirectly influence Bitcoin’s perception.
Ripple’s focus on custody underscores the importance of institutional acceptance of digital assets, potentially affecting market sentiment.
Changes in leadership at key custodial firms like Metaco might signal shifts in institutional strategies towards cryptocurrencies, impacting the broader viewpoint of Bitcoin among traditional financial entities and investors.
Bitcoin Price Prediction
In the 4-hour timeframe, Bitcoin encounters a significant resistance at the $48,500 level. The formation of dubious and spinning top candles just beneath this threshold signals a potential bearish correction.
The Relative Strength Index (RSI) illustrates this sentiment as it retreats from 80, stabilizing around 60 with a downward trajectory. This indicates the likelihood of a bearish correction, as buying pressure for Bitcoin appears to wane.
On the downside, Bitcoin’s immediate support is anticipated at $47,195. Should the market breach this level, the next target could be $45,900, with a further break potentially driving the price down to $44,950, a level underscored by a historical resistance line.
Bitcoin Price Chart – Source: Tradingview
The 50-day Exponential Moving Average (EMA) is poised to curb Bitcoin’s descent around the $45,900 mark, marking it as a crucial support zone.
Conversely, an uptick in demand could propel Bitcoin beyond the $48,500 resistance, aiming for $49,676. Sustained buying interest might further elevate its price to $50,700.
Therefore, the critical juncture lies at the $48,500 mark; below this, a bearish stance is advisable, whereas above it, bullish positions become viable. This forecast emphasizes the importance of monitoring the $48,500 level for trading cues.
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