Bitcoin (BTC) price had a strong start into the week, rising to multi-month highs following a spike in institutional flows led by MicroStrategy, meanwhile fears of rising inflation continued to draw in more capital. Bitcoin Market Movers: MicroStrategy and Metaplanet Accumulate BTC MicroStrategy made headlines by adding $764.9 million worth of BTC to its treasury, right after a class action lawsuit was filed accusing the firm of breaching federal securities laws. Source: PomerantzLLP Japanese investment firm Metaplanet also acquired $104.8 million in Bitcoin which brought its total holdings close to the $1 billion mark. The two transactions by MicroStrategy and Metaplanet likely had the largest impact on the asset’s surge to $107,148. Investors See Bitcoin as a Hedge Against Rising Inflation Apparently, investors are hellbent on using Bitcoin as a hedge amid a growing concern of inflation and the potential of hawkish monetary policies. In their latest earnings call, Walmart… Read More at Coingape.com
On Tuesday, institutional investors continued to pour capital into spot Bitcoin ETFs, marking the eighth consecutive day of inflows.
Total net inflows across all US-listed Bitcoin ETFs exceeded $170 million for the day, reinforcing the bullish sentiment that has gripped the market since last week.
Bitcoin ETFs Log 8th Straight Day of Inflows
Yesterday, BTC-backed funds posted another net inflow, totaling $172.78 million. This signaled sustained confidence in the asset class.
Total Bitcoin Spot ETF Net Inflow. Source: SosoValue
BlackRock’s iShares Bitcoin Trust (IBIT) once again led the pack, recording the highest daily inflow among all issuers. On Tuesday, the fund recorded a daily net inflow of $216.73 million, bringing its total historical net inflow to $42.39 billion.
IBIT has consistently dominated in recent sessions, reflecting BlackRock’s influence in the crypto ETF space and sustained institutional trust in its offerings.
Meanwhile, Bitwise’s spot Bitcoin ETF (BITB) recorded the highest net outflow among all issuers on Tuesday, with $24.39 million exiting the fund. Nevertheless, BITB’s total historical net inflows remain strong at $2.05 billion.
Leverage Cools in the Bitcoin Market
Open interest (OI) in the Bitcoin futures market has seen a modest decline today. This suggests a degree of cooling among leveraged positions, as some traders are closing out positions.
It stands at $61.81 billion at press time, plunging by 3% over the past 24 hours. During that period, BTC’s price noted a 1% uptick.
When an asset’s price rises while open interest falls, traders take profits or de-risk, suggesting caution despite the uptick. This trend points to a lack of conviction in BTC’s rally, with fewer participants willing to take on new leveraged positions.
However, broader market sentiment remains optimistic. BTC’s funding rate is currently at 0.004%, indicating that long positions are still willing to pay to maintain leverage.
The funding rate is a periodic payment between long and short traders in perpetual futures contracts, used to keep the contract price aligned with the spot market. When the funding rate is positive, longs are paying shorts, indicating that more traders are betting on the price going up, a sign of bullish market sentiment.
Moreover, the increase in call option volume suggests that traders are positioning for further upside in the coin’s price.
While derivatives activity shows minor signs of uncertainty, the persistent inflows into spot Bitcoin ETFs point to a market still leaning bullish in the near term.
Immutable’s (IMX) price has been on a significant downtrend recently, falling to multi-year lows. The token has suffered a sharp decline, and its price is currently hovering around $0.433.
If the current trend continues, there is a possibility that IMX could form a new all-time low (ATL).
Immutable Investors Are Giving Up
The supply of Immutable on exchanges has risen dramatically in the past two weeks. A total of 30 million IMX tokens have been added, increasing the overall supply to 165 million IMX. This surge in supply is worth approximately $13 million and indicates a shift in investor sentiment.
As investors begin to sell off their holdings, this suggests growing skepticism about the token’s future prospects. The trend has led to an increase in selling pressure, which further exacerbates the current price decline.
The overall macro momentum for Immutable appears to be unfavorable at this point. Active addresses, which measure the number of unique addresses engaging with the network, are at a low level. The lack of participation reflects investor hesitation and reduced confidence in the token’s potential.
When fewer addresses are interacting with the network, it generally indicates a lack of new capital entering the market. As a result, this decline in activity has contributed to the negative sentiment surrounding IMX.
IMX price is down nearly 40% over the past two weeks, with the 30 million token sell-off playing a significant role in the decline. At the time of writing, the price is at $0.433, holding just above the critical support level of $0.400. If this support is broken, the price could fall further, potentially reaching $0.375 or below, resulting in a new all-time low.
The continued drawdown suggests that the token may not see a recovery soon unless the market conditions improve. If IMX manages to hold above $0.400, there is a slim chance it could stabilize before testing further resistance levels. However, breaking through the $0.400 support would likely lead to more losses.
For a more optimistic scenario, IMX would need to reclaim the support level of $0.508. This could pave the way for a potential recovery, allowing the price to rise toward $0.684.
A successful breach of these levels could invalidate the bearish outlook and offer some hope for reversing recent losses.
PI has shed half its value over the past seven days, signaling deepening bearish sentiment among its holders. At the time of writing, the altcoin trades at $0.72, marking a steep decline from last week’s price high of $1.67.
Technical indicators suggest that the downtrend may not be over as selling pressure remains significant.
PI Faces Heavy Selling Pressure
PI’s BBTrend remains in the red on the daily chart, confirming that bearish forces are firmly in control. Observed on a one-day chart, the indicator is currently at -19.36.
The BBTrend measures the strength and direction of a trend based on the expansion and contraction of Bollinger Bands. When BBTrend values are positive, it signals a strong uptrend, while negative values indicate increasing bearish momentum.
PI’s negative BBTrend suggests that its price consistently closes near the lower Bollinger Band, reflecting sustained selling pressure and hinting at the potential for further downside.
Furthermore, the token’s Elder-Ray Index supports this bearish outlook. At press time, the indicator returns a negative value of -0.12.
The Elder Ray Index measures the strength of buying and selling pressure in the market, using two key components: Bull Power and Bear Power.
When the index is negative, sellers dominate the market. This signals a bearish trend and hints at a continued downward momentum for PI.
Resistance at 20-Day EMA Caps Recovery Hopes
The PI token trades below its 20-day exponential moving average (EMA), which forms dynamic resistance above it. The 20-day EMA measures an asset’s average price over the past 20 trading days, giving more weight to recent prices.
When an asset trades below its 20-day EMA, recent price action is weaker than the short-term trend. This is a bearish signal indicating a lack of buying momentum.
