Bitcoin (BTC) recently fell below the crucial $70,000 level, hitting an intraday low of $69,939 before dropping to around $69,229. The drop was mainly due to reduced investor demand amid uncertainty over a possible Fed rate hike in September. Moreover, recent ETF flow data shows mixed sentiment, with net inflows dropping significantly to $15.7 million. Investors appear cautious as they await approval of a U.S. ETH spot ETF, which could impact Bitcoin's performance.
Key Takeaways
Potential Ethereum ETF Approval: Jeff Kendrick, head of FX and digital assets research at Standard Chartered Bank, predicts that Bitcoin could surpass its all-time high of $73,798 by the end of the week. He attributes this potential rise to the expected approval of a spot Ethereum ETF, which he believes will boost Bitcoin's legitimacy and performance. Kendrick is optimistic that Bitcoin could reach $150,000 by the end of 2024 and $200,000 by the end of 2025. Recent inflows into the Spot Bitcoin ETF hit an all-time high of $12.9 billion, further supporting his bullish outlook. Inflows into BlackRock's Bitcoin ETF: BlackRock's Spot Bitcoin ETF swept the U.S. market on May 21, accounting for 95% of the $300 million inflows, with $290 million flowing into iShares Bitcoin Trust. The surge marks the highest since April 5, reversing previous low inflows. Recent data shows that over $1 billion has flowed into the spot Bitcoin ETF over the past four days amid Bitcoin's volatile rally. BlackRock's fund has seen total inflows reach $16 billion since inception, approaching Grayscale's $20 billion level. Potential Ethereum ETF Approval: Anticipated approval of an Ethereum ETF could further spur interest in Bitcoin ETFs. These large inflows could reignite interest in Bitcoin ETFs and contribute to Bitcoin's price rally.
Technical Analysis
Bitcoin (BTC/USD) is trading at $69,675 and little changed with a -0.03% move, traders should keep an eye on key price levels.
Pivot Point: $69,675 (important benchmark) Nearby Resistance Levels: $70,560, $71,944, $73,300 (potential upside targets if bullish momentum continues)
Bitcoin Price Drop: What's Behind the Recent Drop?
Bitcoin (BTC) has experienced a sharp decline recently, with several factors contributing to this drop. To understand what's going on, let's take a closer look at the latest news from May 23rd. Strong US Manufacturing Data and Dollar Index: Strong US manufacturing data sparked a drop in Bitcoin's price. The data pushed the US Dollar Index above 105.00 for the first time in nearly five months.
The US Dollar Index measures the strength of the US Dollar against other major global currencies such as the Japanese Yen (JPY), the British Pound (GBP), and the Euro (EUR).
Interest Rate Forecast
Recent reports have shown stronger U.S. economic data and accelerating inflation, significantly reducing expectations of an interest rate cut by the Federal Reserve. Rising interest rates are expected to weigh on digital asset markets, including Bitcoin, and investors are adjusting their positions accordingly.
Cryptocurrency Market Correction and Altcoin Drop: Bitcoin's drop in May was its worst month since November 2022, when cryptocurrency exchange FTX ran into difficulties. Ether (ETH) also experienced an 18% drop this month. Smaller cryptocurrencies such as SOL, DOGE, and AVAX suffered even deeper corrections, with losses ranging from 35% to 40%. Overall Market Cap: The cryptocurrency market cap fell by around 18% in May, marking its biggest drop since June 2022.
Economic data, interest rate expectations, and broader market trends have all contributed to Bitcoin's recent decline. It is always wise to look out for new opportunities that could prove to be the best cryptocurrency for 10x gains. We've covered it all in the next section.
Hot VR coin 5thScape raises over $6.1 million in presale
>>5thScape presale page is here
Trending VR coin 5thScape has taken the crypto community by storm after exceeding its $6.1 million target during its pre-sale phase. The innovative project aims to revolutionize the world of virtual reality (VR) gaming by combining cutting-edge hardware, ultra-realistic gameplay, and a community-centric token ecosystem.
5thScape is essentially a platform that brings together bespoke hardware and unique gaming experiences. Let's take a closer look at the key elements of the project plan.
1. Ultra-realistic VR games
5thScape offers a diverse range of VR games designed to push the boundaries of technology, immersing players in captivating virtual worlds, from adrenaline-pumping combat in Cage Conquest to high-speed racing in Thrust Hunter. These games are poised to redefine the VR gaming experience.
2. Advanced VR Hardware
5thScape is developing its own line of advanced VR hardware to enhance gameplay. Notable products include:
VR Ultra Headset: Boasting incredible virtual realism, this headset is compatible with all 5thScape games. 5thScape VR Chair: With rapid motion support and haptic feedback, it delivers a sense of presence in the Metaverse.
Investors are excited about the potential of these hardware products that are expected to improve the gaming experience.
Token Economics
5thScape's native token, 5SCAPE, plays a key role in the ecosystem. Key tokenomic details include:
Total supply: 5.21 billion tokens Presale allocation: 80% (for early buyers) Remaining allocations: Finance and development: 10% Exchange liquidity: 10%
The community-centric approach fosters long-term growth and organic price volatility. Notably, 40% of presale investments will be unlocked in a Token Generation Event (TGE), followed by an 8-week lock and 8-month vesting period.
Listing and market capitalization
Once the presale concludes, 5SCAPE will be listed on several major exchanges. The expected listing price is $0.01, a 365% increase from the current presale price. With an expected market cap of $15 million, 5thScape is poised for crypto success.
Final conclusion on the best cryptocurrencies to invest in now
Bitcoin is highly volatile and unpredictable. Moreover, the recent drop has caused chaos among BTC investors. Against this backdrop, innovative projects like 5thScape have captured the interest of the crypto community. By raising over $6.1 million in its presale phase, it has demonstrated the potential of combining cutting-edge VR technology with a community-centric token ecosystem.
The project's advanced VR hardware and ultra-realistic gameplay are poised to redefine the virtual reality gaming experience, making it a compelling opportunity for investors looking to diversify their portfolios in the ever-expanding cryptocurrency space. The confluence of Bitcoin's potential resurgence and 5thScape's breakthroughs provides a compelling situation for experienced and new investors alike.
Additionally, experts predict that early investors could see a 600x return on 5thScape investors by 2025.