Bitcoin’s value has been on an impressive rise over the past month, and by the start of the week, the leading digital currency surpassed the $57,000 range for the first time since Nov. 2021. This upward trend in value has stimulated bitcoin-based derivatives, causing open interest in bitcoin futures to hit an unprecedented level, exceeding […]
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Bitcoin rose above $57,000 on Monday to its highest level since November 2021, as exchange-traded funds investing directly in the cryptocurrency attract more capital into the space, while investors await the upcoming “halving” event, which has historically been bullish for bitcoin prices.
Bitcoin
BTCUSD,
rose almost 10% during the past 24 hours, according to CoinDesk data. It is roughly off 17% from its record high at $68,990, reached in November 2021.
Investors have seen significant inflows into bitcoin after the U.S. Securities and Exchange Commission approved 10 bitcoin ETFs for the first time in January.
They are also looking forward to the so-called “halving” event, which is expected to happen in April.
Halving is a mechanism written in the blockchain’s algorithm to control the supply of bitcoin, which has a cap of 21 million. At halvings, the reward for bitcoin mining is cut in half, meaning that miners will receive 50% fewer bitcoins for verifying transactions.
Halvings are scheduled to happen after every 210,000 blocks that are mined, or about every four years, until the maximum supply of 21 million bitcoins are all released. Historically, bitcoin has seen price appreciation months after halvings.
From the technical perspective, as bitcoin broke out of its sideways trading range that has been intact since Feb. 10, “this price gain should likely reach targets near $58.4 initially with a possibility of $62k which should be the last real area of resistance ahead of a possible challenge of former all-time highs,” Mark Newton, head of technical strategy at Fundstrat Global Advisors, wrote in a Monday note.
On-chain data shows the Bitcoin supply in profit has reached levels that led to some tops in the past, like the peak of the April 2019 rally.
As pointed out by an analyst in a CryptoQuant Quicktake post, Bitcoin supply in profit has hit very high levels after the asset’s latest rally. The “supply in profit” here refers to a metric that measures the percentage of the total circulating BTC supply that’s currently carrying some amount of unrealized gain.
This indicator works by going through the transaction history of each coin (more precisely, each UTXO) on the blockchain to see what price it was last moved at. Assuming that the previous transfer of the coin was the last time it changed hands, the price at that instance would act as its current cost basis.
As such, if the previous transfer price for any coin was less than the spot value of the cryptocurrency right now, then that particular coin would be holding a profit currently. The supply in profit sums up all such coins and calculates what percentage of the total supply they make up for.
A counterpart indicator called the “supply in loss” does the same for coins of the opposite type (that is, those with a cost basis lower than the current price). This metric’s value can also simply be found by subtracting the supply in profit from 100 (since the total supply must add up to 100%).
Now, here is a chart that shows the trend in the Bitcoin supply in profit over the past few years:
The value of the metric seems to have been going up in recent days | Source: CryptoQuant
As displayed in the above graph, the Bitcoin supply in profit has naturally shot up recently as the asset’s price has gone through its rally. After the latest continuation of the run towards the $57,000 level, the metric has hit the 95% mark.
This means that 95% of all UTXOs in existence is carrying a profit at the moment. This may not entirely be a positive thing, however, if history is anything to go by.
As the quant has highlighted in the chart, the BTC rally that started in April 2019 topped out just as the supply in profit hit the same high levels as right now. Similarly, the local top in 2020 at the beginning of the last bull market also coincided with these levels.
The reason behind this pattern is likely to be the fact that investors in profit are more likely to sell their coins at any point. Thus, when a large percentage of holders are carrying gains, the probability of a mass selloff can spike up.
That said, in the 2017 and 2021 bull runs, as well as during the November 2021 peak, the indicator did manage to surpass these levels for a while before the top was encountered.
As such, it remains to be seen if the current rally is similar to the likes of the April 2019 run, in which case a top might be hit here, or if it’s a proper bull run, meaning that there might still be a while to go before the peak.
At the time of writing, Bitcoin is trading around the $56,500 level, up 8% over the past week.
Looks like the price of the asset has enjoyed a sharp rally today | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, CryptoQuant.com, chart from TradingView.com
Disclaimer: The article is provided 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. Use information provided on this website entirely at your own risk.
Seven days after the new Bitcoin ETFs launched, I analyzed how they could put pressure on Bitcoin’s supply dynamics in an article called “If BlackRock continues 6k BTC daily buys, we get a supply crunch within 18 months; here’s why.’ On the day of publication, Jan. 18, Bitcoin closed at $41,248 after falling from a high of $49,000 on Jan. 11. Since then, the flagship digital asset has soared 37% to break $57,000.
While Bitcoin had fallen consistently after the ETF launched, CryptoSlate noted the persistent BTC inflows, which, at the time, averaged around 6,266 BTC per day for BlackRock alone. The analysis identified that were such inflows continue, the liquid supply of Bitcoin could be absorbed this year, with the exchange balances or very liquid supplies targetable by mid-2025.
As noted at the time, the analysis was purely hypothetical and did not consider the outflows from Grayscale GBTC. Additionally, it only looked at BlackRock, the largest fund’s inflows, to simplify the data at that point. The exercise aimed to emphasize the potential for a supply squeeze and the lack of liquid Bitcoin to facilitate persistent ETF pressure on the supply. On Jan. 18, BlackRock had 25,067 BTC under management, valued at $1 billion.
Interestingly, while the inflows into BlackRock did not maintain the 6,266 BTC daily average pressure, inflows into the Newborn Nine have surpassed this level. BlackRock currently has 130,231 BTC under management, whereas the fund would have 275,707 BTC if it continued at 6,266 BTC daily. However, on Jan. 18, 6,266 BTC was valued at $258 million, which would now represent an inflow of $357 million, given the dramatic price surge.
It’s important to remember that the spot Bitcoin ETFs are purchased with dollars and denominated in dollars in a brokerage account. Thus, while inflows into the ETF have been consistent in dollar terms, they have been reduced in terms of Bitcoin purchases.
Across the Newborn Nine, 303,002 BTC is now held under management per K33 Research. Looking at the CryptoSlate table used for the Jan. 18 article, this aligns with inflows projected for BlackRock by March 2, 2024.
Using this data, should the Newborn Nine continue to absorb Grayscale’s declining outflows and purchase additional Bitcoin from the broader market at this pace, 1 million BTC could be under management by June. Further, this rate would swallow the BTC equivalent of the entire current liquid supply of Bitcoin (roughly 1.3 million BTC) by September.
On Feb. 8, I discussed the potential for the ‘Mother of all Supply Squeezes‘ for Bitcoin, which is akin to the GameStop saga but even more effective. The price has surged 29% since that article went live in just 19 days, an average of 0.65% per day. Bitcoin ETFs have continued to buy, and Grayscale’s outflows are slowing.
The requirements for a supply squeeze appear to be present; the only question I see is, at what level does the demand become affected by the price? Do Bitcoin ETF purchasers continue to buy if Bitcoin is at $100,000? Well, at that price, BlackRock’s IBIT would be around $60 per share. That doesn’t sound quite as expensive to new investors now, does it?
I am a value investor. That means two things: First and most obviously, I like stocks that sell for reasonable prices relative to their growth prospects. And second, I’m extremely suspicious of buying into hot growth stocks that are “going up” a lot — stocks like Intuitive Machines (LUNR -0.66%).
Two weeks ago, if you recall, Intuitive Machines launched a Nova-C class lunar lander named Odysseus on a course to the moon. On Thursday last week, Odysseus conducted a mostly successful soft landing on the moon — the first American spacecraft to accomplish this feat in more than 50 years.
— Intuitive Machines (@Int_Machines) February 22, 2024
No sooner had this news been announced than Intuitive Machines stock exploded 25% higher. And now, I’m giving serious thought to buying Intuitive Machines stock for myself.
Why would I consider doing this — and seemingly breaking a cardinal rule of value investing in the process? Well, let me explain first why I might not buy Intuitive Machines stock.
Intuitive Machines went public in the middle of the space SPAC frenzy back in February 2023. IPO’ing at $10 a share, the stock surged past $80 in a matter of days, before turning tail and giving back all its gains. By April 2023, the stock was back trading below its IPO price — and didn’t return to that IPO price until just this month.
But what an exciting month it has been!
From Feb. 7, about a week before the launch, to Feb. 21, a few days after the launch took place, Intuitive Machines stock roughly tripled in price, surging from just $3.50 per share to well over $10. Pulling back just a bit as investors held their breath and awaited the landing attempt, Intuitive Machines surged ahead 16% on Friday, closing the week just below $10 a share. And then on Monday, the stock gave back a lot of those gains, falling to just over $6.25.
At its last recorded stock price, Intuitive Machines sells for less than 2 times trailing sales, which sounds cheap. Problem is, the company is still racking up operating losses (negative $37 million over the last 12 months), burning cash (negative $25 million in free cash flow), and according to data from S&P Global Market Intelligence, is expected to keep on losing money and burning cash for at least the next four years.
But what if it doesn’t?
Few value investors would give a stock like Intuitive Machines a second glance. It’s burning cash. It’s not profitable today. It’s not (supposed to be) profitable anytime soon. It lacks either a trailing P/E ratio or even a forward P/E ratio on which to value the shares.
And yet, this tiny space stock just became the first American company to ever land a spacecraft on the moon. Granted, the landing wasn’t a 100% success. Post-landing reports indicate that Odysseus probably landed sideways, tripping over a rock and toppling over. Intuitive Machines will definitely want to tweak future attempts to prevent this from happening. Quibbles with the quality of the landing aside, though, Intuitive Machines is still unique among space companies. It’s also in a uniquely advantageous position to keep on winning contracts from NASA and other companies wanting to put payloads on the moon – especially as it works the bugs out of its landing procedure.
Indeed, over the next 10 months, Intuitive Machines plans to launch and land two more spacecraft on the moon for NASA. Its 2024 revenue looks likely to nearly quadruple in comparison to 2023, and forecasts for outlying years — which don’t yet figure in the effects of last week’s lunar success — are probably conservative relative to the contracts Intuitive Machines might now win. If revenue rises fast enough, there’s the potential for Intuitive Machines to turn profitable sooner than anyone thinks.
While there’s no guarantee the stock will be a winner, at a valuation of less than 2 times sales — which is toward the low end of what space stocks have been selling for lately — I believe Intuitive Machines stock is cheap enough to buy.
Yes, even for value investors.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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Reports have revealed that institutional investors are shifting their focus to Ethereum, displaying a preference compared to the largest cryptocurrency, Bitcoin. Despite Bitcoin’s recent rally to over $55,000, Ethereum’s unique features and potential developmental capabilities continue to capture institutional players’ interest.
On February 24, cryptocurrency exchange, Bybit, published a research report on its users’ asset allocation. The research examined investors’ hodling and trading behaviours, covering the period from July 2023 to January 2024. Bybit’s report also provided valuable insights into investors’ asset allocation across cryptocurrencies such as altcoins, stablecoins and meme coins, shedding light on the specific coins users are currently bullish or bearish on.
According to the research report, Ethereum has unexpectedly emerged as the primary cryptocurrency choice for institutional investors. The report revealed that “institutions are betting big on Ethereum,” allocating more of their funds to ETH compared to BTC.
Bybit has disclosed that the recent rise in interest in Ethereum began in September 2023, when ETH was still trading around $2,000. Subsequently, Ethereum’s market sentiment became more bullish, experiencing a surge in investor interest to about 40% by January 2024. The crypto exchange has confirmed that, as of January 31, ETH has become the single largest cryptocurrency held by institutions.
Bybit’s report also revealed that institutional investors’ interest in Bitcoin began to wane following the United States Securities and Exchange Commission (SEC) approval of Spot Bitcoin ETFs on January 10, 2024. At the time, Bitcoin had experienced massive selling pressures, resulting in investors trimming their BTC holdings to favour other cryptocurrencies.
The excessive allocation of Ethereum is reportedly attributed to investors anticipating a favourable outcome from Ethereum’s upcoming Decun Upgrade, slated to launch in March 2024.
Notably, Bybit has disclosed that it is still being determined if the recent shift to Ethereum is a short-term manoeuvre or a more prolonged move. However, the approaching Bitcoin halving in April potentially adds a layer of bearish risks, as projections indicate Bitcoin’s significant rise in value to new all-time highs during the halving phase.
ETH price rises to $3,230 | Source: ETHUSD on Tradingview.com
Bybit’s research report also examines the asset allocation trend for retail investors on the cryptocurrency exchange. The report revealed that retail investors are significantly more bullish on Bitcoin than Ethereum, allocating more funds into BTC than ETH despite Ethereum’s recent surge in value.
Over the past week, Ethereum has experienced a substantial hike in its price, jumping over 7% and outpacing Bitcoin, suggesting a potential for a more extensive upward trajectory. At the time of writing, Ethereum is trading at $3,227, reflecting a 4.05% increase in the last 24 hours, according to CoinMarketCap.
While Ethereum’s massive rally has successfully elevated the sentiment among institutional investors, retail investors remain less swayed, opting to hold onto or incorporate additional Bitcoin into their diversified portfolio of digital assets.
Featured image from Cointribune, chart from Tradingview.com
Disclaimer: The article is provided 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. Use information provided on this website entirely at your own risk.
For nearly six decades, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) CEO Warren Buffett has been dazzling Wall Street with his investing prowess. Even though he and his team aren’t going to be right 100% of the time, the ability to locate plain-as-day values has led to an aggregate return on Berkshire’s Class A shares (BRK.A) of greater than 5,000,000% since becoming CEO in the mid-1960s.
Professional and retail investors tend to pay particular attention to Berkshire Hathaway’s quarterly 13F filings, which provide a snapshot of what Buffett and his team have been buying and selling, as well as Berkshire’s quarterly operating reports, which offer insight into how Buffett and his team have deployed their company’s capital, as a whole.
Although the $371 billion portfolio Buffett and his investing aides, Todd Combs and Ted Weschler, oversee at Berkshire Hathaway has been a source of inspiration for investors spanning the course of many decades, the last five quarters (since Oct. 1, 2022) have given optimists little to cheer about.
If there’s one pretty consistent takeaway from the 47 years of shareholder letters the Oracle of Omaha has written to his investors, it’s that betting on America to thrive over long periods is a smart move. Buffett has always gravitated toward businesses with strong brands, time-tested management teams, and sustained competitive advantages. It’s why he’s been holding continuous stakes in companies like Coca-Cola and American Express since 1988 and 1991, respectively.
But just because Warren Buffett wouldn’t bet against America, it doesn’t mean he’s willing to overpay for perceived-to-be high-quality businesses.
During the December-ended quarter, Berkshire Hathaway purchased $7.32 billion in equity securities. By comparison, Buffett’s company sold $7.845 billion in equity securities. Though this works out to “just” $525 million in net-equity sales, it’s been a theme for Buffett and his aides for five consecutive quarters. For example:
For the quarter ended Sept. 30, 2023, Buffett was a net-seller of $5.253 billion of equities.
For the quarter ended June 30, 2023, Buffett and his team oversaw $7.981 billion in net-equity security sales.
For the quarter ended March 31, 2023, Buffett and his aides completed $10.41 billion in net-equity security sales.
For the quarter ended Dec. 31, 2022, Buffett’s team was a net-seller of $14.64 billion of equities.
Added together, Buffett, Combs, and Weschler have overseen an aggregate of $38.8 billion in net-equity security sales in a 15-month stretch. That’s a roughly $39 billion silent warning that Wall Street appears to be ignoring at the moment.
It’s no secret why the Oracle of Omaha and his team have been pressing the sell button far more often than the buy button since October 2022: Stocks are pricey.
Although Buffett isn’t the type of investor to make downside predictions in the stock market, his latest annual letter to shareholders speaks volumes. Said Buffett:
Though the stock market is massively larger than it was in our early years, today’s active participants are neither more emotionally stable nor better taught than I was in school. For whatever reasons, markets now exhibit far more casino-like behavior than they did when I was young. The casino now resides in many homes and daily tempts the occupants.
To reiterate, Warren Buffett would never, ever advocate investors bet against America. But he pretty clearly laid out in his latest shareholder letter why he and his team aren’t being more aggressive with their capital: Namely, there aren’t many good deals.
The most telling valuation indicator that suggests equities could be in trouble is the S&P 500‘s Shiller price-to-earnings (P/E) ratio, which is also known as the cyclically adjusted price-to-earnings ratio (CAPE ratio). This is a valuation tool based on average inflation-adjusted earnings from the previous 10 years, which means it helps to smooth out one-time events, such as the COVID-19 pandemic.
For more than 150 years, the Shiller P/E has averaged a reading of 17.09. On Feb. 23, it closed at roughly double this value (34.25). It’s one of the highest readings during a bull market rally in history.
What’s even more telling is what’s happened the previous five times the S&P 500’s Shiller P/E surpassed 30 during a bull market rally. Eventually, the S&P 500 and/or Dow Jones Industrial Average went on to lose 20% to 89% of their respective value following each prior instance. Although the Shiller P/E ratio isn’t a timing tool and can’t forecast when the broader market will head lower, history suggests that an expensive market eventually corrects lower in a big way.
While Buffett rarely, if ever, thinks short term, five consecutive quarters of net-selling from Berkshire Hathaway speaks volumes.
As of the end of 2023, Berkshire’s cash pile swelled to an all-time record $167.6 billion. Having this much capital that could be put to work and not doing so may be viewed as a major disappointment by Berkshire’s shareholders and the investing community as a whole. But in the eyes of Warren Buffett and his team, which until recently included the affably named “Architect of Berkshire Hathaway,” Charlie Munger, there’s solid reasoning behind this approach.
In Warren Buffett’s recently released letter to shareholders, he reiterated an investing rule that his company simply will not break:
One investment rule at Berkshire has not and will not change: Never risk permanent loss of capital. Thanks to the American tailwind and the power of compound interest, the arena in which we operate has been — and will be — rewarding if you make a couple of good decisions during a lifetime and avoid serious mistakes.
Even though Berkshire’s brightest investment minds are well aware that downturns in the U.S. economy and stock market are perfectly normal, they recognize that periods of growth for the U.S. economy last substantially longer. Whereas no recession since the end of World War II has surpassed 18 months in length, two periods of economic expansion have reached the decade mark during this span. This demonstrates the power of the “American tailwind,” as well as the value of time and perspective on the part of individual investors.
It’s a similar story for the broader market. According to data released last year by researchers at Bespoke Investment Group, the average S&P 500 bear market has lasted just 286 calendar days since the start of the Great Depression in September 1929. By comparison, the typical S&P 500 bull market has stuck around 1,011 calendar days, which is 3.5 times longer than the average bear market.
Furthermore, the Oracle of Omaha isn’t looking to make smaller investments. He and his aides are after needle-moving, wonderful companies at a perceived-to-be fair price. They’re willing to sit on their hands until a large-scale opportunity presents itself.
Although Warren Buffett being a net-seller of stocks over the past five quarters may not have been on many investors’ bingo cards, he and his team have a boatload of cash that should eventually get put to work.
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Warren Buffett Just Sent a $39 Billion Silent Warning to Wall Street was originally published by The Motley Fool
Vertex Pharmaceuticals (VRTX 0.78%) has built a cystic fibrosis (CF) treatment empire that brings in billions of dollars in earnings annually. And just recently, the company demonstrated it could successfully expand beyond this specialty when it won approval for a gene-editing treatment for blood disorders. Casgevy, for beta thalassemia and sickle cell disease, may become another source of billion-dollar revenue for Vertex and partner CRISPR Therapeutics.
Investors have rewarded the biotech giant by piling into the shares, helping them rise to a record high. Over the past year, Vertex stock has climbed almost 50%. Now you may be wondering if, after those gains, it’s too late to get in on this exciting biotech story. Well, I’ve got good news for you: It isn’t. In fact, there are three reasons to load up on Vertex shares right now.
Image source: Getty Images.
Vertex isn’t done expanding beyond its CF specialty area. The biotech recently reported positive pivotal trial data on VX-548, a candidate to treat one of the most common problems around: pain. Vertex aims to file a regulatory submission by midyear, so if all goes smoothly, we could be looking at a new — and significant — revenue opportunity in the near term.
VX-548 is a non-opioid pain candidate, acting on a sodium channel that plays a key role in pain signaling. This potential treatment could be big because, today, pain treatment options are limited. Over-the-counter medications often aren’t strong enough, and prescription opioids carry the risk of addiction. VX-548 could fill the gap, offering patients a compelling option — and eventually reach peak annual revenue of at least $5 billion, according to analyst forecasts.
Vertex hopes to win regulatory approval with a broad moderate-to-severe acute pain label and in the future gain approval in chronic pain, too. So, this could be a key growth product for the biotech.
Vertex sells a portfolio of therapies that have improved the quality of life and extended the lives of CF patients. And this portfolio is led by blockbuster Trikafta, which helped Vertex generate more than $9.8 billion in revenue last year.
But there may be competition ahead, and this competition comes right out of Vertex’s laboratories. The company recently reported pivotal trial data for a candidate known as “the vanza triple,” a therapy that tops even the superstar Trikafta. In trials, it did a better job than Trikafta at lowering sweat chloride levels in CF patients. These levels are typically high in those with CF because these patients have trouble clearing chloride from the cells.
The vanza triple is a once-daily pill compared to the twice-daily Trikafta regimen, making it a more attractive option.
Trikafta’s patent implies CF dominance through 2037, but if the vanza triple wins regulatory approval, investors could expect an even longer period of leadership in this billion-dollar market. Vertex plans to file for regulatory review by the middle of this year.
As mentioned above, Vertex shares have climbed, even touching a record high in recent weeks. In spite of the gains, though, Vertex’s valuation still looks reasonable — the stock trades for 25x forward earnings estimates — considering its near-term revenue growth drivers, mentioned above, and long-term prospects.
It’s important to remember the new potential products for pain and CF, as well as Casgevy, could drive significant revenue growth for a number of years. And today’s valuation, even based on forward earnings estimates, doesn’t take all of that into account.
As for the coming five years, Wall Street predicts the company will deliver double-digit annual growth.
All of this means that right now, even after the stock’s gains and even as it trades close to record high levels, Vertex remains a bargain for the long-term investor. And that’s a great reason to buy this top biotech like there’s no tomorrow.
Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends CRISPR Therapeutics and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
According to data from Lookonchain, an on-chain analytics platform, Ethereum (ETH), whales have withdrawn roughly $64.2 million worth of ETH from major exchanges.
This significant movement of funds coincides with a notable uptick in the price of ETH, indicating an increasing interest in the asset.
According to Lookonchain’s findings, much of the ETH supply has been shifted from exchange wallets to custodial wallets. The on-chain analytics platform reported that an Ethereum address labeled 0x8B94 had withdrawn an amount of 14,632 ETH, valued at approximately $45.5 million, from Binance.
Lookonchain states these funds have been actively staked within six days, indicating a deliberate move towards adopting long-term investment strategies.
The analysis from the platform also points out that another two fresh whale wallets have transferred 6,000 ETH, amounting to $18.7 million, from Kraken to undisclosed wallet addresses over the last two days.
Whales are accumulating $ETH!
0x8B94 withdrew 14,632 $ETH($45.5M) from #Binance and staked it in the past 6 days.
2 fresh whale wallets withdrew 6K $ETH($18.7M) from #Kraken in the past 2 days.https://t.co/0kEvOmiv3hhttps://t.co/90fqjJXsSu pic.twitter.com/J0ewl8S3OX
— Lookonchain (@lookonchain) February 26, 2024
This trend suggests an increase in major investors to secure substantial amounts of Ethereum away from exchange platforms, potentially as a means of positioning for long-term asset appreciation.
Further echoing this is a recent analysis from CryptoQuant’s Quicktake, which underscores a notable trend regarding Ethereum withdrawals from exchanges over the past few weeks. This observation relies on the “Exchange Reserve” metric, which monitors the quantity of ETH tokens held in the wallets of all centralized exchanges.
When the value of this metric increases, it signifies that investors are depositing more assets than withdrawing them from centralized exchanges, indicating a buildup of Ethereum reserves. Conversely, a decline in the metric suggests a net outflow of assets from these platforms.
According to data from CryptoQuant, over 800,000 ETH, equivalent to roughly $2.4 billion, has exited cryptocurrency exchanges since the beginning of the year. Such substantial outflows from these platforms typically indicate a surge in investor confidence in the Ethereum network and its native token.
Meanwhile, Ethereum’s price has displayed bullish momentum, witnessing a 5.5% increase in the past week and reclaiming the crucial $3,000 mark.
Financial guru Raoul Pal has drawn attention to Ethereum’s potential for a major breakout, pointing to a “dual-chart pattern” observed on the ETH/BTC chart.
The ETH/BTC chart is an absolute stunner…and ready for the next big move the break of the mega wedge…lets see how is pans out… pic.twitter.com/5x4tJLjtJy
— Raoul Pal (@RaoulGMI) February 25, 2024
Pal highlights a “mega wedge” pattern alongside an inner descending channel, indicating a consolidation phase with bullish potential.
Featured image from Unsplash, Chart from TradingView
Disclaimer: The article is provided 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. Use information provided on this website entirely at your own risk.
