Record U.S. ETF Inflows, Bitcoin Weekend Volatility, and Crypto Mining Machines on Sale


It’s the weekend and the crypto market is volatile again.

Over the past few weeks, weekends have been bearish, and so it is this time around as prices are trading around $ 35,000 as they continue to hover between $ 32,000 and $ 42,000. Eth is also down to $ 2,400 and the total market cap is around $ 1.5 trillion.

In the midst of that, on Friday, Scott Minerd, the CIO of Guggenheim Partners, decided to pass on knowledge that the crypto market had already known for weeks.

Minerd, known in the crypto community for his poor take on the price of Bitcoin, has warned crypto investors of a volatile weekend.

The crypto market would have liked to share similar warnings about the traditional stock market as the market hit 90.44, but unlike crypto, they are not open 24x7x365.

Nothing is really affected by the latest Bitcoin price drop, although there is still a lot going on in the market. With low volume, especially on weekends, it is easier to move prices.

According to Ian Rogers, Director of Experience at Ledger SAS, volatility is a feature and not a bug for cryptos; As he explained in his interview with Bloomberg, during volatility people switch from Bitcoin to stablecoins and back to BTC when they think the cryptocurrency has bottomed.

“If you invest in cryptocurrency, it’s a long-term game,” meaning a four-year time horizon, as crypto as a global asset class “will grow for the foreseeable future.” , he added.

Money Flow While China remains a price risk in the short term, there is no clarity from the country on the ban on crypto mining. Chinese state media, meanwhile, is collectively launching attacks on highly leveraged futures contracts and citing screenshots of Binance futures contracts.

In addition, minors remain cautious and move abroad. Miners are also selling their equipment, where the cost of the Antminer S19 has dropped from its previous high of $ 12,000 to now a low of $ 8,000, and continues to drop as more machines come on the market.

This sale is by miners who “are concerned about the government’s subsequent anti-mining policy,” local publication Wu Blockchain noted.

Bitcoin’s hash rate, however, shows no noticeable weakness, currently at 142 Th / s, down from around 171 Th / s the all-time high since May 13, according to Bitinfocharts.

At the same time, US President Joe Biden is gearing up for a big $ 6 trillion budget for the next fiscal year, further increasing the valuation of risky assets.

All currency impressions due to loose monetary policy have led to investments in U.S. exchange-traded funds (ETFs) at record highs, $ 324 billion in the first four months of this year, according to data from Refinitiv . This is a 180% increase over the same period last year.

The Joe Biden administration’s proposal to increase the US capital gains tax has also fueled interest in ETFs. Apart from tax obligations, what makes ETFs attractive are their lower fees, benign passive management, and their reimbursement mechanism called ‘transfer in kind’, which does not involve paying in cash but rather delivering the money. asset that cannot be taxed.

“The relaxation of the exemption rule requirements has allowed ETFs to be structured to cover narrower segments of the market such as marijuana stocks, high conviction, crypto-focused stocks, etc.”, said Warren Ward, founder of financial planning firm Warren Ward Associates. And when you can have a basket, why would you choose just one stock, he added.

This growth can also be seen in Bitcoin ETFs and Ether ETFs in Canada, and such products in the United States are expected to have similar dramatic results, but the SEC has yet to approve a single one.

  • Bitcoin BTC

  • $ 33,768.96
  • -5.68%
  • Ethereum ETH

  • $ 2,253.25
  • -9.38%

Record U.S. ETF flows, Bitcoin weekend volatility, and crypto mining machines on sale first appeared on BitcoinExchangeGuide.

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