Bitcoin’s Weekend Rollercoaster: A $400 Million Liquidation Event

Bitcoin’s Weekend Rollercoaster: Weekend Recap and Future Outlook

Crypto News- Over the weekend, Bitcoin’s price remained relatively stable after a tumultuous Friday that saw a $400 million liquidation event. The price dropped from over $71,000 to under $69,000 following stronger-than-expected U.S. non-farm payrolls data, which led to a decrease in open interest and trading volume.

Since Friday, unsettled futures contracts across various tokens have decreased from $99 billion to $60 billion, indicating that traders have significantly reduced their bets. However, analysts at Presto Research believe that market volatility will likely return in the coming week, especially with macroeconomic events like the CPI release scheduled for Wednesday. As of early European hours, Bitcoin was trading around $69,450. The CoinDesk 20 Index (CD20) has fallen approximately 0.5% in the past 24 hours.

According to asset manager CoinShares, crypto investment products attracted nearly $2 billion in inflows last week, marking the fifth consecutive week of inflows and bringing the total to over $4.3 billion. Trading volumes in exchange-traded products rose to $12.8 billion for the week, a 55% increase from the previous week.

Crypto Investment Trends and Market Analysis: Highlights from CoinShares Analyst

Bitcoin led the investment activity with over $1.97 billion in inflows, while Ether saw its best week of inflows since March, with nearly $70 million. CoinShares analyst James Butterfill noted that inflows were observed across almost all providers, with a continued slowdown in outflows from existing players. He also mentioned that positive price movements pushed total assets under management (AUM) above the $100 billion mark for the first time since March. Butterfill attributed the increase in ETH buying to the SEC’s surprising decision to allow spot Ether ETFs.

Investment bank Architect Partners stated that the acquisition of Bitstamp signifies the growing importance of crypto in Robinhood’s business. According to their report, this acquisition instantly expands Robinhood’s global reach, ensuring its participation regardless of U.S. regulatory actions. Despite receiving a Wells Notice from the SEC last month, Robinhood is continuing to expand its digital asset offerings.

Robinhood’s Strategic Expansion

The acquisition of Bitstamp will also enhance Robinhood’s institutional offering, positioning it as one of the few publicly traded companies in the crypto space that can serve institutional clients. Architect Partners also noted that the $200 million cash acquisition price represents a significant discount compared to Bitstamp’s $500 million valuation from the majority investment in 2018.

The chart included in the report shows Bitcoin’s price along with Bollinger bands, which are volatility bands placed two standard deviations above and below the price’s 20-day moving average. Currently, the Bollinger bands indicate a state of contraction, suggesting a period of low market volatility. It is commonly believed that the longer the Bollinger bands squeeze, the greater the eventual volatility explosion.

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