In today’s bitcoin and cryptocurrency news, learn that according to the crypto data analytics business, “digital asset investment products saw inflows reach a disappointing $2.5 million, with trading volumes in investment products plummeting by 33% from the previous week.” Meanwhile, the cryptocurrency exchange Binance, which has been the target of a lawsuit from American authorities, declared on Tuesday that it is expanding its services to Argentina and allowing users to buy and sell virtual currencies using local pesos. On the other hand, this year, crypto investors have gotten more ‘greedy,’ yet skepticism persists about the durability of the current bitcoin (BTC) movement. Lastly, as Shiba Inu, the mascot for the Dogecoin cryptocurrency, replaced the bird emblem on Elon Musk’s Twitter site on Monday, Dogecoin prices soared by roughly 36%, reaching a high of $10.46 per token.
Newest Fund Flows Data Reveals Investors Purchase Bitcoin
Original Source: Investors Continue Buying Bitcoin, Latest Fund Flows Report Shows – Here’s Why BTC Could Dominate Institutional Crypto Demand
According to CoinShares’ monthly Digital Asset Fund Flows data, one week after digital asset investment products recorded their greatest weekly inflow since July 2022 of $160 million, inflows have nearly stopped.
“Digital asset investment products saw inflows reaching a disappointing US$2.5m, with trading volumes in investment goods declining by 33% compared to the preceding week,” the crypto data analytics business reported.
“This was replicated in the larger bitcoin market as trade volumes on trustworthy exchanges plummeted by 61%,” CoinShares said.
The Block reported a seven-day moving average of volumes of $22.5 billion on Monday, down from $46 billion in mid-March.
Reduced volumes occur at a time when Bitcoin and other cryptocurrencies have remained rangebound around $28,000.
Behind the hood, Bitcoin sentiment is more favorable than expected.
Short Bitcoin investment products lost $2.5 million while the top cryptocurrency by market capitalization gained $8.8 million.
“At their peak since the bankruptcy of 3 Arrows Capital in June 2022 at US$23.5bn,” CoinShares stated, Bitcoin prices have increased.
Litecoin, Tron, Solana, XRP, and Polygon had moderate inflows, while Ethereum and multi-asset packages lost $5.8 million.
“Inflows into short-Ethereum (US$0.5m) imply investors were apprehensive for the imminent Shanghai upgrade which would permit un-staking (yield distribution),” CoinShares said.
After US banks failures in mid-March, alternative crypto analytics business CryptoQuant, which uses on-chain data, found that digital asset managers, such as trusts and exchange-traded products, have been buying Bitcoin.
On of Sunday, CryptoQuant reported fund holdings of 692,000 BTC (worth $20 billion at current rates), up from 688,000 on March 14.
From a mid-March slump to sub-$20,000, Bitcoin’s price has risen dramatically to above $28,000.
Experts attribute the cryptocurrency’s strong return to 1) safe-haven demand amid fears about a US (and worldwide) financial crisis and 2) wagers that the Fed is nearly done with its tightening cycle and may soon decrease interest rates, which has been dragging on US bond yields and the US dollar (and boosting crypto in general).
According to CryptoQuant, investors in Bitcoin trust and exchange-traded products drove the price climb.
More Bitcoin going to these investors signals increased institutional acceptance, which has been cited as a long-term driver of crypto price appreciation.
Bitcoin Might Rule Institutional Crypto Demand
Bitcoin may dominate institutional demand in the next bull market.
That’s not simply because many believe Bitcoin, the world’s first, oldest, and most secure cryptocurrency, is the strongest defense against a traditional financial system banking collapse.
Bitcoin is also regulated less than other cryptocurrencies.
Example: SEC. Bitcoin is a digital commodity, while most other cryptocurrencies are securities.
Ethereum, which pays Ether token holders, may be considered a security by the SEC.
Cryptocurrencies can be considered securities for reasons other than staking.
In 2020, Ripple was sued by the SEC for distributing XRP coins unregisteredly, highlighting another danger.
Bitcoin is currently the only cryptocurrency in the clear (though for the same reasons, there is also a very strong argument that the likes of Litecoin and Dogecoin are also digital commodities).
It implies investors may prefer Bitcoin to Ethereum, Cardano, Solana, and other smart-contract-enabled, proof-of-stake layer-1 blockchains.
Binance, a Cryptocurrency Exchange, is Expanding in Argentina
Original Source: Crypto exchange Binance expands in Argentina
On Tuesday, crypto exchange Binance, which has been sued by U.S. regulators, said that customers in inflation-hit Argentina may buy and sell digital currencies directly using pesos.
Argentines can utilize a local partner to transfer pesos to Binance and buy cryptocurrencies. Binance has previously solely acted as a broker in Argentina.
On Tuesday, Maximiliano Hinz, Binance’s Southern Cone director, told Reuters that Argentina was a major market.
He added local consumers may transfer pesos to Binance and check their balance in local currency to buy bitcoin.
While Binance faces U.S. and international regulatory attention, it expands in Argentina, where annual inflation exceeding 100% has made cryptocurrencies more appealing despite their volatility and danger.
The CFTC sued the business and CEO Changpeng Zhao last month for operating a “illegal” exchange and a “sham” compliance program.
Zhao, a Chinese millionaire who immigrated to Canada at 12, termed the CFTC’s lawsuit “surprise and disappointed.”
Binance has lost certain financial partners for on-ramp, off-ramp fiat currency operations due to regulator scrutiny. In March, Paysafe withdrew from sterling payments.
Argentina does not oversee crypto exchanges, but the central bank has frequently cautioned about the hazards of cryptocurrencies and markets regulator CNV is supporting a plan to create a register of virtual asset providers.
The Chainalysis report ranked the South American country, which has strong capital controls that impede foreign currency transactions, among the top 15 crypto adopters last year.
Hinz claimed Argentines understand crypto.
Crypto investors get “Greedier” as the price of bitcoin rises
Original Source: Crypto Investors Get ‘Greedier’ As Bitcoin Price Goes Up
Fear and greed indices can indicate crypto mood, but nobody knows if bitcoin will rise or fall.
This year, crypto investors have grown “greedy,” but Bitcoin momentum is still uncertain.
One broad crypto Greed and Fear Index puts investor risk appetite at 62, up 30% from one month ago, approximately the same as bitcoin, and more than twice since Jan. 1.
Once Silicon Valley Bank collapsed, the index peaked at 68 in the second half of March.
A number above 50 suggests mild greed, and 100 shows excessive greed, which is a signal to sell. Fear and purchasing opportunities are indicated by values below 50 and zero.
Crypto market volume, volatility, social media, token dominance, and Google Search trends are supposedly used in the statistic. These indices act as market thermometers and can be both leading and trailing indicators, making their accuracy difficult to assess.
Ilya Volkov, CEO of Swiss Web3 business YouHodler, told Blockworks that greed cooling off might allow for more upward.
Volkov noted that “on-chain data indicators imply that this trend is quite likely to persist for a long.” “Crypto derivatives trading volume is also increasing and open interest in crypto options is at its peak.”
Bitfinex analysts warned the market is in transition in their April report.
Bitfinex remarked, “As bitcoin’s non-zero balance addresses approach unprecedented heights, on-chain analytics highlight the need to be careful.” “Despite an infusion of new market entrants, the durability of this phenomena of both fast expanding non-zero balances and tight range-trading for bitcoin remains uncertain.”
Fear and greed are tracked by other sites in the digital asset market. LookIntoBitcoin, for instance, examines exclusively BTC emotions. But greed hasn’t returned to pre-Terra levels, it’s following the same local trajectory.
For what it’s worth, the index reached all-time greed (about 95) many times between December 2020 and February 2021, when BTC exploded from around $18,000 to almost $60,000.
Ethereum Rises Before Network Upgrade
Original Source: Cryptocurrency Prices And News: Ethereum Gains Steam Ahead Of Network Upgrade
After Elon Musk’s Twitter changed the site bird emblem to a Shiba Inu, the cryptocurrency’s mascot, Dogecoin rose over 36% to 10.46 cents per token on Monday. Musk has posted Dogecoin memes and promoted the cryptocurrency. Last June, a $258 billion racketeering lawsuit accused him of running a meme coin pyramid scheme.
DOGE currency dropped down to 9.67 cents late Tuesday and traded at 7.7 cents before the logo upgrade.
9,861 Silk Road-seized bitcoin were auctioned for $215.7 million by the U.S. authorities on March 14. According to a Friday court filing, the government aims to liquidate 41,490 bitcoin in four groups over the rest of the year.
The Commodities Futures Trading Commission accused Binance and CEO Changpeng Zhao for trading irregularities on Monday.
Despite financial crisis, cryptocurrency prognosis improves. You could be surprised by bitcoin’s market growth.
Price Action in Cryptocurrency
Bitcoin recovered from its overnight low of $27,272 to $28,200 Tuesday afternoon. March was Bitcoin’s greatest month since January, when it gained 38.7%. Bitcoin hit its highest level since June 10 on March 30 at $29,173. It’s up 70% this year.
Ethereum reached its highest level since mid-August late Tuesday, rising 3.3% to $1,870. ETH’s Shanghai upgrade on April 12 will complete its shift to proof-of-stake from proof-of-work. March saw 10.6% growth for the #2 crypto, which is up 56% year-to-date.
Summary of today’s bitcoin and cryptocurrency news
To sum it up, at this time, only Bitcoin appears to be risk-free among cryptocurrencies. As a result, Bitcoin may attract more capital than Ethereum, Cardano, Solana, and other significant layer-1 blockchain competitors that also have smart contracts and rely on proof-of-stake.
Meanwhile, the exchange is under regulatory examination in the United States and abroad, where it is expanding into Argentina, where annual inflation of over 100% has made cryptocurrencies more enticing despite their volatility and danger.
On the other hand, As Bitcoin’s price jumped from around $18,000 to almost $60,000 in the space of two months between December 2020 and February 2021, the index hit an all-time greed (about 95) on many occasions.
Lastly, ETH is picking up pace in the run-up to the April 12 Shanghai upgrade, which will finalize the network’s switch from proof-of-work to proof-of-stake.