Bitcoin (BTC) remained relatively stable at
$68,780 on Wednesday, masking the significant volatility experienced in the
preceding two days. On Monday, BTC surged by 5.5% to $72,880, nearing its
all-time high at $73,864, only to plummet the following day to $68,825,
showcasing a tumultuous ride akin to a rodeo.
This volatility resulted in substantial losses
for traders, with short positions incurring $124 million in losses on Monday,
followed by long trades suffering $175 million in losses the next day. Despite
this, the market continues to be buoyed by capital inflows, with IBIT from
BlackRock and FBTC from Fidelity reporting net capital inflows of $977.6
million last week. Additionally, ProShares Bitcoin Strategy (BITO) saw net
inflows of $16.8 million, contributing to a positive balance this week.
However, some investors foresee an impending
correction in the crypto market. Former BitMEX CEO Arthur Hayes predicts a
potential 50% slump in Bitcoin prices in the second half of April due to
constrained U.S. Dollar liquidity, coinciding with the Bitcoin halving event.
While some remain optimistic about the event's impact, others caution against
overlooking potential downsides, especially amidst overbought market
conditions.
Furthermore, the crypto world was rocked by a
scandal reminiscent of a Hollywood plot. Crypto trader Avi Eisenberg
orchestrated a scheme to pump Mango token prices by 1300% in just 20 minutes in
October 2022, using anonymous accounts to execute trades with himself.
Eisenberg managed to abscond with $110 million in deposited funds before being
apprehended upon his return to Puerto Rico. He now awaits trial to determine
his legal culpability.