Bitcoin Approaches $66K Amidst Analysts’ Anticipation of Heightened Volatility Prior to Stability
Singapore’s QCP Capital Suggests the Market (Bitcoin) Could Experience a Respite This Weekend
Bitcoin (BTC) tested the $66,000 mark during Friday’s Asian trading hours, with market analysts anticipating heightened volatility ahead for the leading cryptocurrency.
Semir Gabeljic, Director of Capital Formation at Pythagoras Investments, highlighted the ongoing volatility in Bitcoin, attributing a recent 10% drawdown to spot Bitcoin ETF outflows from GBTC totaling around $300 million on March 20. He noted that this drawdown falls within the expected range of 10-20%, typically observed before Bitcoin halving events, indicating further volatility leading up to the next halving.
DTZ showed positive performance during Asian trading hours, particularly with protocols like Ethereum Name Service (ENS) gaining 2.7%. However, the sources measuring the world’s most liquid digital assets experienced a 0.5% decline.
Also, read- Dogecoin Surges 18% on Optimism for DOGE Futures, Bitcoin Approaches $68,000
In a morning note on Friday, Singapore-based QCP Capital mentioned that the market is currently consolidating, with Bitcoin and Ether trading within a relatively narrow range. They suggested that the market might see a slowdown over the weekend following the pre-FOMC volatility observed last weekend.
QCP Capital also highlighted the significant outflows from the Grayscale Bitcoin Trust (GBTC), with $358.8 million leaving the fund. They anticipated a fourth consecutive day of net outflows from BTC spot exchange-traded funds.
Regarding Ether (ETH), QCP observed a widening discount in the Grayscale ETH trust, from -8% to -20% over the past two weeks. They noted that the market is beginning to discount the likelihood of a spot Ether ETF approval in the near future.
Prediction markets, such as Polymarket, reflect this sentiment, with a contract asking whether an Ethereum ETF will be approved by May 31 currently trading with a 21% probability of approval.
The Ethereum Foundation is currently under investigation by a state authority, believed to be the Securities and Exchange Commission (SEC). The investigation raises questions about whether the SEC considers Ether security, although the Commission’s stance remains unclear as it hasn’t been responsive to FOIA requests for key documents regarding the issue.
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