bitcoin

Bitcoin's Decline and Potential Buying Opportunity: Comparisons to 2016 Bull Run, Record Trading Volume, and Hedge Fund Investment

The Big Whale

— 1 min read
  • Bitcoin's decline post-halving resembles 2016 bull run, says trader Peter Brandt.
  • Recent slump mirrors 2015-2017 cycle, with 26% decline from post-halving price.
  • Analysts warn of further drops as BTC falls below $50,000.
  • US Bitcoin and Ether ETFs see $6 billion in trading volume amid market turmoil.
  • Fear and Greed Index shows extreme fear, signaling potential buying opportunity.
  • Capula Management invests nearly $500 million in Bitcoin ETFs amid market drawdown.

Summary :


Bitcoin's decline since the April 2024 halving is being compared to the market movements before the 2016 bull run by veteran trader Peter Brandt. He noted that the depth of the market corrections since the halving dates are very similar. Some analysts warn that Bitcoin could drop even lower, but others believe that crypto assets could recover quickly, similar to what was seen in 2020. On August 5, the US Bitcoin and Ether ETFs recorded nearly $6 billion in trading volume amid the market turmoil. The spot Bitcoin ETFs registered a total daily volume of $5.24 billion, with more than half coming from BlackRock's iShares Bitcoin Trust. The spot Ether ETFs recorded $715.3 million in trading volume, led mainly by Grayscale's Ethereum Trust and BlackRock's iShares Ethereum Trust. The Fear and Greed Index for Bitcoin sentiment has dropped to a near "extreme fear" level, suggesting a potential buying opportunity for investors. The recent market sell-off has been attributed to factors such as the unwinding of the yen-carry-trade and fears of a global recession. Despite the decline, some analysts believe that this could be a buying opportunity for Bitcoin. Europe's fourth-largest hedge fund, Capula Management, has invested nearly $500 million in Bitcoin ETFs. Bitcoin ETFs have seen significant inflows since their listing, with over $50 billion in net investor inflows.

Sources :

- CoinTelegraph
- CoinTelegraph
- Bankless
- Bankless
- Bitcoinmagazine
- Decrypt
- Coindesk
- CoinTelegraph

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