Analysts say Bitcoin prices are "hard to keep down"; FTX Sells $11.9 Billion in SOL, Aave Founder May Turn on the "Fee Switch"

Crypto Daily Summary: Analysts Say Bitcoin Price Is "Hard to Push Down"; FTX Sells $11.9 Billion in SOL, Aave Founder May Turn on the "Fee Switch"

Let's start with the trading activity of Bitcoin ETFs, according to Farside Investor data, last Friday (April 5) the Grayscale Bitcoin Spot ETF (GBTC) continued to see large outflows of $198.9 million, while the Fidelity Bitcoin Spot ETF (FBTC) saw $83 million inflows, the Bitwise Bitcoin Spot ETF (BITB) saw $7.4 million inflows, and the iShares Bitcoin spot ETF saw inflows ETF (IBIT) inflows amounted to $308.8 million.

Bitcoin has retreated from an all-time high close to $74,000, but in percentage terms, its recent correction has been relatively modest and is now trading at $69482.01.

According to on-chain analyst Checkmate, this is even more evident compared to historical bull markets. He points out the fact from the data uploaded by his charting suite, Checkonchain, that despite the massive profit-taking and reverse selling at the highs, the sellers only caused the market to fall by 20% at best.

This happened only once, in mid-September last year, and the subsequent pullback did not exceed 15.8%. "The market is absorbing hundreds of millions of dollars from sellers in a day, while the bears still haven't been able to achieve a 20% pullback. ”

After the collapse of the crypto exchange FTX, the price of Solana fell to a low of around $10. However, the coin saw a rally in early 2024. Solana reached an all-time high market capitalization of $81 billion in mid-March. According to Bloomberg, citing sources familiar with the matter, FTX has paid off its debt by selling about $1.9 billion worth of SOL, which has saved the crypto exchange from collapse.

The sale involves approximately two-thirds of the SOL assets, with a total value of approximately $2.6 billion. The auction includes up to 30 million SOLs priced at $64 each. These tokens are sold at a discounted price because they are locked, which means they take a while to sell.

The report also noted that the FTX Estate SOL sale was delayed. FTX holds a total of 41 million locked SOLs in its assets, with a total value of about $7.5 billion. According to The Block's Solana price page, Solana is trading at $174.2 as of 1 p.m. ET today, after a nearly 7% 24-hour decline.

Aave, a decentralized lending platform, may turn on "fee conversion". According to a post on the X platform by Marc Zeller, founder of the Aave Chan Initiative, a vote may soon be held on whether to enable the "fee switch" and distribute fees to holders.

Zeller noted that the Aave DAO's current net profit totals about $60 million per year, and in order to boost the network's activity, "an interim check will be conducted next week to activate the 'fee switch,'" Zeller noted. He had previously teased the idea of activating fees for Aave stakers in another article on Platform X. "The new version of the security module will propose to the governance layer to allocate fees to stakers," he wrote on March 16.

If the Aave DAO chooses to activate the fee, they will follow in the footsteps of Frax, a decentralized stablecoin protocol. Meanwhile, finance recently voted in favor of a proposal to re-implement its fee conversion. Meanwhile, decentralized exchange Uniswap's fee conversion proposal is in the final stages of preparation and is expected to be presented in mid-April.

Market Analysis: The overall market is volatile and upward, and APT will usher in a large unlock

Market Trend

Today, the price of BTC is still around $69,500, and the overall market is showing a volatile upward trend. On the macroeconomic front, U.S. equities are rebounding, with only a 7% probability of a rate cut in May.

MARKET HOTSPOT

1. BTC ECOSYSTEM TOKENS CONTINUE TO SOAR: TOKENS IN THE BTC ECOSYSTEM, SUCH AS CKB, LEVER, RUNESTONE, ETC., CONTINUE TO RISE SHARPLY. Among them, SEAL, the first RGB+++ asset protocol token released by CKB, has risen by hundreds of times. Lever has also launched a BTC cross-chain bridge. With the BTC halving just around the corner, miners are driving the growth of the BTC ecosystem in order to prevent a significant reduction in revenue, which has a positive effect on the prosperity of the entire ecosystem.
2. Old DeFi concept tokens performed strongly: Old DeFi tokens such as FARM, ALCX, CREAM, WING, and others also saw significant gains. The rally of established DeFi tokens means that the unilateral rally may be over for the time being, and the market has entered a volatile phase. This could mean that investors are starting to look for new investment opportunities or closing profits.
3. This Week's Important Unlock Data: One of the most important events of the week is that Aptos will unlock 24.84 million APT at 15:59 on April 12, worth about $330 million, or 6.23% of the circulating supply. Before and after a large number of tokens are unlocked, the APT price may fluctuate greatly. This event could have an important impact on the price movement of the APT token, as well as investor sentiment, and needs to be closely monitored.

Overall, the cryptocurrency market is currently showing a volatile upward trend. The strong performance of the BTC eco-token has added a lot of vitality to the market. However, investors need to be wary of the market volatility that may be brought about by this week's important unlock data in order to develop a suitable trading strategy. At the same time, for the overall trend of the market, it is necessary to continue to pay attention to changes in macroeconomic factors, especially the trend of the US stock market and changes in interest rate cut expectations, which may have a significant impact on the cryptocurrency market.

Macro: Strong jobs data brings positive sentiment, Wall Street closes higher on expectations for Asian markets

On April 5, Reuters reported that the U.S. stock market is at a two-year high, with the S&P 500 up more than 9% year-to-date after its strongest first-quarter performance since 2019.

In recent weeks, signs of inflation have lowered expectations of how much the Fed will cut interest rates this year. However, a stronger-than-expected jobs report on Friday further boosted the market's rally. At the same time, the performance of some large companies such as Nvidia, META and Microsoft has diverged, which may affect investor sentiment.

According to the U.S. Department of Labor, employers added much more jobs than expected in March, and wages continued to rise steadily, suggesting that the economy ended the first quarter on a solid footing.

The Dow Jones Industrial Average added 307.06 points, or 0.80%, to 38,904.04, the S&P500 added 57.13 points, or 1.11%, to 5,204.34, and the Nasdaq Composite added 199.44 points, or 1.24%, to 16,248.52. All major sectors of the S&P 500 saw gains, with communication services, industrials and technology sectors seeing the most significant gains.

However, this week's mixed economic data, including a soft services activity report and a strong manufacturing report, led to a decline in the index this week.

In Asia, Japan's Nikkei 225 is expected to rebound from Friday's 2% decline, after falling 3.4% last week, its biggest drop since December 2022. The exchange rate and the threat of Tokyo's pro-yen intervention will continue to have a significant impact on the Japanese stock market.

On Monday, the positive sentiment on Wall Street is likely to extend to Asian markets, but it is unclear whether the market will feel the pressure. These signs suggest that the stock market is currently in a high-level consolidation phase, rather than a profit-taking phase.

The ECB is scheduled to meet later this week and is widely expected to keep interest rates steady. Investors generally believe that there is little chance of a rate cut on April 11, but a possible rate cut in June has been fully factored in, as well as two or three more rate cuts that could occur later this year.

Geopolitical tensions may ease for the time being, and a team sent by Israel and Hamas to Egypt to negotiate a possible ceasefire ahead of the Eid al-Fitr holiday has helped ease tensions in the Middle East. Oil prices rose more than 4% last week on concerns about supply disruptions.

In commodities, U.S. crude fell 2.32% to $84.89 a barrel, while Brent fell 2.5% to $88.89 a barrel.

Spot gold fell 0.5% to $2,317.09 an ounce. Gold broke through all-time highs last week.

Author:Sherry S. & Icing. This article represents the views of the author only and does not constitute any trading advice. The content of this article is original, the copyright is owned by Gate.io, if you need to reprint, please indicate the author and source, otherwise you will be held legally responsible.