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The approval of Bitcoin ETFs has been long awaited in crypto markets. The day the ETFs were launched, Bitcoin rose to $49,021. Thus, BlackRock Inc. and Fidelity Investments have joined the crypto investment arena.
However, this excitement about Bitcoin was short-lived. Bitcoin is currently trading at $39,000. The major cryptocurrency is showing a weekly decline of 9.6 percent and a monthly decline of 11.8 percent. To understand the factors behind market turbulence, let’s dive into the details.
What’s Causing Bitcoin’s Decline?
Bloomberg analysts attribute Bitcoin’s recent difficulties to financial conditions such as higher interest rates, a stronger dollar desire and increased selling pressure. This pressure was further exacerbated by investors closing Grayscale Bitcoin Trust (GBTC) arbitrages and selling FTX bankruptcy assets.
Since Bitcoin was now traded on the exchange, investors began selling their GBTC, resulting in an outflow of more than $2 billion in a short period of time. Demand seems to be high for new funds issued by companies such as BlackRock and Fidelity. According to the post by Bloomberg Intelligence’s senior ETF analyst Eric Balchunas, a total of $1.2 billion inflow was made into these funds in the first six days.
Vanguard’s assets grew by $1.2T last yr to reach $8.6T a new all time high, they now have 86% of the aum BlackRock has (up from 61% ten years ago) which has them on pace to pass them for #1 spot by end of decade-ish altho the two of them in league of own, both double #3 Fidelity pic.twitter.com/QPkaPDtEOJ
NEWS CONTINUES BELOW— Eric Balchunas (@EricBalchunas) January 22, 2024
It is known that FTX reduced its GBTC ownership to zero and the value of the 22 million shares it sold was close to $ 1 billion. In theory, FTX is now done selling its significant holdings. Sean Farrell, Head of Digital Asset Strategy at Fundstrat Global Advisors, believes that these sales could ease the oversupply, which could reduce the intense selling pressure on GBTC.
According to many analysts, the emergence of the ETF could provide a good entry point for Bitcoin believers. Attention is also drawn to the upcoming Bitcoin halving and the expected interest rate cut. Despite the current decline in the price of BTC, these developments may be important macro factors that will bring water to the Bitcoin mill in the near future.
While markets are abuzz about Bitcoin’s latest situation, Bitcoin alternative coins continue to rake in millions of dollars. Bitcoin ETF token purchase and Meme Kombat token purchase options are attracting the attention of investors. Let’s look at the features of these coins.
Bitcoin ETF Token – New Token That Closely Followed the ETF Approval Process
The Bitcoin ETF token combines the excitement of Bitcoin ETF adoption with unique tokenomics and community building. It continues its pre-sale successfully. Like Bitcoin, the Bitcoin ETF token has a limited supply. This attracts the attention of those looking for deflationary investments.
Bitcoin ETF token has a staking mechanism that offers passive rewards to users. This not only encourages community participation, but also reduces the current supply of BTCETF, strengthening the balance of supply and demand.
Distribution of BTCETF token rewards will occur at the rate of 119 BTCETF tokens per Ethereum (ETH) block. These rewards will be distributed over a five-year period and will be calculated based on your stake in the pool and annual percentage return.
Additionally, many analysts, including Jacob Bury and Crypto Boy, remain bullish on BTCETF. Bury describes the project as a “Bitcoin alternative” as Bitcoin-related assets often outperform market leaders. The reason for this is that the market size is relatively small and the tokens can be staked easily. Additionally, 5 percent of BTCETF supply will be destroyed at the five major Bitcoin ETF milestones. It is highly appreciated that this type of combustion mechanism has been integrated into the project.
Bitcoin ETF can be considered a crypto movement beyond just a financial instrument. To join this crypto movement, simply purchase Bitcoin ETF tokens. Additionally, the project’s website even has news sections where you can learn all about the latest Bitcoin ETF developments.
Meme Kombat Stands Out With Its Intention to Become a Long-Term Project
Meme Kombat, a meme token based on the Ethereum blockchain, has attracted significant attention and successful pre-sales since its debut in August 2023.
Purchasing Meme Kombat tokens enables participation in organized meme games organized by artificial intelligence. The platform allows token holders to use their MK tokens in fights. Players can bet on the outcome of battles with tokens and earn additional rewards by participating in special grand battles.
Meme Kombat’s project leader, Matt Whitemann, sees MK not only as an object of investment, but also as an element of participation in a much larger and interactive community. Experts’ predictions for Meme Kombat are also positive.
As for token economics, 50 percent of the total token supply is allocated for pre-sale. This provided a quick start for the platform. The other 30 percent of the token supply is allocated to staking and battle rewards to keep the ecosystem balanced and exciting. Additionally, 10 percent of the total token supply is allocated to a liquidity pool on a decentralized exchange. The remaining 10 percent will serve as community rewards.
Meme Kombat is known as an innovative play-to-win project that strives to drive community participation through token staking.
Click to review Meme Kombat token.