Bitcoin (BTC) is rising by 3.7% to $68,750,
although it was at $59,447 earlier on Wednesday. Despite this retreat, the
upside perspectives for BTC remain optimistic.
The crypto market faced pressure on Monday due
to the German government selling BTC and the ongoing payouts from the defunct
Mt. Gox crypto exchange to its clients. Investors were initially alarmed by the
German authorities' $900 million BTC transfer to a crypto exchange for sale.
However, $200 million of this amount was returned to the wallet, signaling that
the German government is not desperate to sell its BTC at any price. This
development helped relax crypto investors.
Spot Bitcoin ETFs received more than $300
million in fund inflows on Monday, marking the largest single-day inflow since
early June. BlackRock's IBIT and Fidelity's FBTC were among the leading
beneficiaries, while Grayscale's GBTC saw outflows of $86.5 million. This
suggests that large investors are buying on dips.
The crypto Fear & Greed index fell to 29
points, the lowest since early 2023, when Bitcoin was priced at $17,000-18,000
per coin. While this does not rule out further declines, the consensus sees the
bottom price now at $50,000-55,000. This could also indicate that the market
has already bottomed out. To confirm an upside scenario, Bitcoin prices need to
climb above $60,000.
In other news, spot Ethereum ETF applicants
have filed an amended S-1 form, hinting at a potential launch of the new asset,
possibly as soon as this Friday. The U.S. Securities and Exchange Commission
(SEC) is expected to respond by the end of the day, with a likely positive
outcome.
Meanwhile, soccer legend Lionel Messi
unexpectedly promoted the Solana memecoin Water coin. In collaboration with the
Bitget crypto exchange, he featured the WATER logo on his Instagram, causing
WATER prices to surge by 350% to $0.00146 within hours. Prices later rolled
back to $0.00100 and further down to $0.00082 on Wednesday. Nevertheless, this
represents an impressive 156% jump from $0.00032 just before Messi's Instagram
post.
While the crypto community is often critical
of such manipulations, celebrity endorsements do draw attention to the crypto
market. Increased attention could boost the chances of another rally.