📉 Ethereum & Bitcoin Hit Historic Lows on Exchanges: What It Means A crucial new report from Santiment reveals a fascinating and significant trend in on-chain data:
🔸 Ethereum's supply on centralized exchanges has plunged to an all-time low. 🔸 Bitcoin's exchange balance has hit its lowest point since November 2018.
🧠 Why is this significant for the market? When large amounts of crypto assets move off exchanges:
✅ Holders are not planning to sell anytime soon, indicating long-term conviction. ✅ This signals a strong trend of long-term accumulation (HODL behavior). ✅ There's growing interest in staking and secure cold storage. ✅ The overall available supply on the market decreases.
⚠️ Crucially, this means that even a minor surge in demand could lead to a liquidity crunch and a sharp increase in prices. This effect is amplified amidst positive news, market hype, or new capital inflows. 📌 Historical Context: Similar movements were observed in 2020 and early 2021, just before the start of powerful bull rallies. We are now seeing a comparable pattern emerge. 🔍 What Does This Mean for Traders & Investors? 📊 Decreasing exchange supply + increasing holding interest = 💥 Significant upside potential with the slightest catalyst. 💼 A scenario that frequently plays out in the early phases of a new market cycle. 📈 This trend is particularly relevant given:
Expectations of new inflows into crypto ETFs. Potential easing of monetary policy by the Federal Reserve. Growing institutional interest, especially in Ethereum.
🧭 Summary:
📉 Exchange balances for both Ethereum and Bitcoin are rapidly declining. 🔥 This could be the "fuel" for the next major market surge. 📆 Keep an eye on upcoming events and demand levels – the market is gearing up for a move.
💰 Bitcoin Illiquid Supply Hits All-Time High Above 14 Million BTC A significant milestone has been reached on the Bitcoin chart: the Illiquid Supply has climbed to a new record level of over 14 million $BTC . This crucial metric indicates that more than 66% of the total circulating Bitcoin supply is held in wallets with very little history of sending coins out. 📊 Understanding the Trend: Data tracking illiquid supply, often visualized alongside the BTC price, shows the volume of Bitcoin held in wallets where coins are rarely moved. 📈 Accumulation Strong Since 2023: Since the beginning of 2023, the trend of accumulation has notably accelerated, demonstrating strong holder conviction despite market volatility.
💡 What This Accumulation Means:
❄️ "Frozen" Coins: It signals increasing confidence among long-term holders and investors who are holding onto their BTC.
🔐 Moving Off Exchanges: A larger amount of BTC is being withdrawn from exchanges and potentially moved into secure cold storage.
💥 Supply Shock Potential: With a significant portion of supply becoming illiquid, even modest increases in demand can lead to considerable price surges due to reduced selling pressure.
📌 Historical Context: Previous peaks in illiquid supply have historically preceded significant Bitcoin price rallies, notably in 2020 and early 2021. Conversely, a sharp decline in this metric during 2022 coincided with the onset of the "crypto winter." The current upward trend underscores that the market is firmly back in a phase of accumulation and long-term holding by a large segment of participants.
💰 Institutional Momentum: Crypto Funds See $6.7 Billion Inflow Year-to-Date According to the latest report from CoinShares, crypto investment funds registered a net inflow of $882 million during the week of May 3-9. While lower than the previous week's exceptional $2.03 billion, this still indicates robust and sustained investor interest. 📊 Key Investment Highlights:
Cumulative inflows into crypto funds have now reached an impressive $6.7 billion since the start of the year. Total Assets Under Management (AUM) across these funds have risen to $169.3 billion. Analysts attribute the ongoing momentum to several factors, including:
Global expansion of the money supply. Potential risks of stagflation in the U.S. economy. Approval by several U.S. states for cryptocurrencies to be used as a reserve asset.
📈 Asset-Specific Details:
Bitcoin products dominated inflows, bringing in $867 million (down from $1.84 billion the week prior). Ethereum saw a modest inflow of $1.5 million, a significant drop from $149.2 million the previous week. Among altcoins, XRP stood out with $1.4 million in inflows, while Sui attracted a notable $11.7 million. Interestingly, Sui's year-to-date inflows ($84 million) have now surpassed those of Solana ($73 million).
📈 #Bitcoin Blasts Past $100,000 – Market Celebrates, But Nearly $1 Billion Liquidated $BTC finally broke the psychologically significant $100,000 level on May 8, the first time since March. While many celebrated the milestone, a brutal wave of liquidations swept across the market, catching thousands of traders off guard.
📊 The Numbers Speak (Past 24 Hours): * Over 190,000 trading positions liquidated. * Total #liquidation volume reached nearly $970 million. * A staggering $836 million of this total came from short positions that were squeezed by the price surge. * This marks the largest single-day liquidation event for short sellers since 2021.
🔥 Open Interest Hits Record Highs: * Open Interest for Bitcoin futures has soared to a new all-time high of $67.4 billion. * Historically, exceeding the $65 billion mark has often preceded a market correction – the risk of a similar pullback remains.
⚠️ Outlook: Beware of Overheating: * Bitcoin's current rally appears heavily driven by market emotion. * With the market potentially overheated and a large build-up of long positions, conditions are ripe for a sharp correction designed to "shake out" leveraged traders. * If the #price drops below $98,000, the volume of potential long liquidations could exceed $3.45 billion. 📌 Context: Fundamentals vs. Technicals: * Underlying support for BTC's growth comes from fundamental factors like a weaker U.S. dollar, sustained inflows into BTC ETFs, and easing regulatory pressure. * However, from a technical perspective, the market shows clear signs of being overextended, making a rapid price retracement a distinct possibility.
🚀 Coinbase is making a massive splash in the crypto derivatives market with its largest acquisition to date. The exchange has reached an agreement to buy Deribit, the leading platform by volume for Bitcoin options trading.
📊 Key Deal Facts: * Acquisition Price: A staggering $2.9 billion * Payment Structure: Composed of $700 million in cash and 11 million shares of Coinbase stock. * Expected Completion: The deal is anticipated to close by the end of Q3 2025, pending regulatory approvals.
📈 Why This Acquisition Matters: * Deribit is a dominant force, controlling over 85% of the global BTC options trading volume. * The platform also offers popular futures and spot trading products. * Integrating Deribit is expected to significantly strengthen Coinbase's position in the derivatives segment, challenging established leaders in the space.
🗣️ Comment from Coinbase: * Greg Tusar, Coinbase's Vice President of Institutional Products, stated: "This transaction will make us a leader in the derivatives space." He added that the integration is planned to accelerate Coinbase's international expansion efforts.
📌 Broader Market Context: * This acquisition is the largest in Coinbase's history and highlights a trend of consolidation among major crypto players in 2025: * Earlier this year, Kraken acquired the futures trading platform NinjaTrader for $1.5 billion. * Ripple also announced a significant purchase, acquiring the lending and brokerage platform Hidden Road for $1.25 billion.
✨ This deal underscores the growing importance of the derivatives market in crypto and signals a significant shift in the competitive landscape among top exchanges.
US Regulators Give Green Light: Banks Can Fully Engage with Crypto – No Prior Approval Needed
The U.S. banking regulator, the Office of the Comptroller of the Currency (OCC), has officially confirmed: Banks are now permitted to conduct cryptocurrency transactions, offer custodial services through third-party providers, and handle tax reporting for digital assets.
📍 Key Regulatory Shifts: No longer requires prior approval from the OCC for banks to engage in crypto activities. Rescinds previous restrictive interpretations issued in 2021. Allows banks to work with digital assets directly or via infrastructure partners.
🗓️ Broader Context – Recent Developments: January: The controversial SAB 121 accounting rule, which complicated banks holding crypto, was reversed. March: The FDIC clarified that banks can engage in digital asset activities without needing specific supervisory approval. April: The Federal Reserve withdrew guidance that had effectively deterred banks from entering the crypto space.
🚫 Significant Change in Tone: Crucially, the three major regulators – the OCC, FDIC, and Federal Reserve – have withdrawn their previous joint statements that warned of "significant risks" and potential "fraud" in the crypto industry, as well as potential harm to investors.
✅ The Big Picture: The U.S. financial system is clearly opening its doors wider to the crypto ecosystem. This move removes major regulatory uncertainties, allowing large traditional banks to confidently explore and enter the digital asset industry without facing excessive red tape or fear of regulatory backlash.
📈 $BTC Back Above $97,000 - But Watch for Cautionary Signals!
Bitcoin gained +2.5% over the past week, breaking above the $97,000 mark for the first time since February. This movement was partly fueled by strong earnings reports from major US companies (including Microsoft), which boosted appetite for risk assets.
⚠️ However, the macroeconomic outlook shows potential red flags: — US GDP saw a 0.3% decline (YoY). — Jobless claims rose to 241,000, exceeding forecasts. — The market is increasingly factoring in expectations of a recession and potential Fed rate cuts. 💰 Despite macro concerns, inflows into BTC Spot ETFs totaled a solid $1.13 billion last week.
📊 Fear & Greed Index: 67 (Greed).
🪙 Ethereum Up 3.2%, Yet Trader Sentiment Skews Pessimistic. $ETH is currently trading above $1800. However, internal market views differ, with 38% of traders expecting a drop to $1000 by year-end. Reasons cited for this pessimism include subdued network activity and the token's inflationary characteristics. The Fusaka hard fork is anticipated in the second half of 2025, though some planned EVM updates have reportedly been cancelled.
👀 Institutional Interest Turning Towards #SUI? While SUI is currently slightly down by -0.94%, institutional attention is growing. Asset manager 21Shares has filed for a spot SUI ETF. Separately, Grayscale is exploring the SUI network's potential, viewing it as a possible bridge between Web2/Web3 technologies and Artificial Intelligence. #Bitcoin #BTC #Ethereum #ETH #SUI #crypto #cryptonews #marketanalysis #ETF #macroeconomy
🚀 Tether Challenges PayPal and Cash App with New Payment Product!
Here's some interesting news: Tether, the company behind the largest stablecoin USDT, is planning to enter the payment solutions market. According to Tether CEO Paolo Ardoino, they are developing an innovative product, likely focused on payments. The ambitious goal is to compete with giants like PayPal's Cash App, targeting institutional use.
This could be a significant move for Tether and the broader crypto market, potentially expanding the utility of stablecoins beyond just trading on exchanges.
What are your thoughts? Can Tether successfully make a mark in the payments space? Share your opinions in the comments below! 👇 $ #Tether #USDT #crypto #cryptonews #payments #stablecoins
Binance is featuring Hyperlane as its 15th #HODLer Airdrop project, distributing tokens to users holding $BNB in certain products. What is Hyperlane? It's a permissionless interoperability protocol designed to connect different blockchains securely, allowing assets and data to move between them. Think of it as infrastructure for building cross-chain applications. Why it's interesting: * It aims to solve blockchain fragmentation. * Allows anyone to connect chains without permission. * Offers flexible security options for developers. * Supported across many chains and has attracted investors. Potential downsides: * The interoperability space is highly competitive. * Cross-chain security is a significant challenge in the industry. In short: #Hyperlane is a promising technical solution for connecting blockchains, backed by Binance and investors. However, like all projects in this complex area, it faces tough competition and inherent security risks. Research is key.
Over the Last 6 Years, #Bitcoin Have Lagged #Gold Dynamics by Approximately 100 Days.
If this positive correlation still holds and there are no major market shocks, another upward move for Bitcoin is not out of the question. Strong surges in gold prices have typically preceded the start of active BTC price growth. This appears particularly relevant after a correction in Bitcoin has concluded.
📈 Bitcoin's Realized Capitalization Hits Record $872.2 Billion — A Signal for Growth?
On April 14th, Bitcoin's realized capitalization updated its all-time high, reaching $872.2 billion. Analysts at CryptoQuant consider this a bullish signal, indicating that more investors are holding onto their $BTC despite the sideways price movement.
🔍 What is Realized Capitalization? This metric is based on the last recorded price at which each coin moved on the blockchain. It reflects the total investment in U.S. dollars across all accounted #BTC.
📊 What This Means for the Market: * The increase in realized capitalization points to BTC accumulation by investors. * The absence of a corresponding price increase suggests potential preparation for a new impulse move.
📌 Conclusion: Bitcoin's record realized capitalization could be a sign of underlying market strength and a precursor to future growth. However, investors should exercise caution and patience while awaiting trend confirmation.
📈 Bitcoin Back as a Safe Haven — Are Institutional Investors Returning? $BTC
Bitcoin has shown a strong recovery above $87,000, recouping a significant portion of the losses triggered by Donald Trump's "Liberation Day." Analysts at QCP Capital note that Bitcoin is regaining its status as a safe-haven asset amidst gold reaching new highs and ongoing declines in the stock market.
📊 What's Happening: * Funds are flowing back into BTC ETFs, suggesting renewed confidence. * The options market is exhibiting balanced activity after weeks of being skewed towards short puts.
📉 Dollar Weakness — A New Driver for BTC Growth: * Matrixport highlighted that recent statements from Trump regarding a potential resignation of Fed Chair Powell have increased pressure on the dollar. * The inverse correlation between USD and BTC is strengthening: a decline in the dollar fuels demand for "digital gold."
📌 Focus on the $88,800 Resistance Level — A break above it could pave the way to new all-time highs.
🔮 Nansen's View: They believe the market will reach a local bottom by June, with future movement determined by US trade negotiations with trading partners regarding tariffs.
Crypto Exchange Trading Volume Drops to Six-Month Low as Investors Shift to Derivatives.
On April 20th, the combined trading volume on major centralized exchanges, including Binance, Coinbase, and Bitfinex, fell to $30 billion – its lowest level since October 2024. This figure represents a drop of over 75% from the peak of $132 billion recorded in early December 2024.
A similar trend is observed on decentralized exchanges (DEXs), where April's trading volume is also poised to be the lowest since October.
Investors Pivot Towards Derivatives
The ratio of Bitcoin spot to futures trading volume has declined to 0.19, the lowest level since August 2024. For Ethereum, this ratio has dropped to 0.2, marking a low not seen since December 2023. This data suggests a growing inclination among investors towards derivatives like futures and options, which offer tools for hedging risks and utilizing leverage.
In contrast to Ethereum $ETH , decentralized exchange volumes on Solana are on the rise. Weekly trading volume on Solana DEXs has surpassed that on Ethereum, indicating increasing interest in the Solana ecosystem.
Conclusion
The decrease in spot market trading volume and the corresponding increase in interest in derivatives signal a shift in investor behavior amid heightened volatility. The market appears to be entering a phase of caution, where hedging instruments are becoming a priority.
In 2024, stablecoin transactions hit $14T, outpacing Visa’s $13T, signaling their growing role in global finance.
Growth Drivers: Political Backing: Trump’s executive order for a U.S. Bitcoin reserve boosted crypto confidence.
Regulatory Relief: The SEC dropped lawsuits against major crypto firms, improving the regulatory environment.
Crypto Market: Despite stablecoin gains, the broader market corrected—Bitwise 10 Large Cap Crypto Index fell 18%, and Ethereum dropped 45%.
Outlook: Stablecoin assets reached a record $218B, up 13.5% from last quarter, with transactions rising 30.14%. Offering fast, cheap, 24/7 global transfers, stablecoins gain traction amid economic uncertainty.
Donald Trump called for Federal Reserve Chair Jerome Powell’s resignation, citing “reckless statements.” Polymarket pegs the odds of Powell’s exit in 2025 at 20%, a yearly high.
Trump’s Stance: On Truth Social, #Trump criticized Powell, claiming his resignation is overdue amid falling oil and food prices and rising U.S. tariff wealth.
Market Reaction: Analyst Alex Kruger warns Powell’s ousting could crash stocks and crypto but boost gold and Bitcoin, as Bitcoin shifts toward a hybrid risk/protective asset.
Bitcoin’s Trend: Since April 12, Bitcoin trades steadily between $83,000–$85,500, unmoved by Trump$BTC ’s remarks, currently at ~$84,600 (CoinMarketCap, April 18). $ Asset Correlations: Bitcoin’s correlation with NASDAQ100 and S&P500 remains strong, but its link with gold is rising (from -0.07 to 0.12 since February, per IntoTheBlock). Gold surged 26% in 2025, hitting $3,350, while Bitcoin and stocks dipped.
Takeaway: Political uncertainty and potential Fed leadership changes could shake markets, potentially positioning Bitcoin as a hedge amid volatility.