Welcome to Storyflo Daily Crypto. I'm Cole. Today, we start with the big question: is Bitcoin due for a rally? A buy zone that led to 660% and 1,700% rallies in previous cycles has been detected by crypto pundit Vivek, and while analysts predict that BTC risks dropping to $70,000, this development could be a bullish signal. According to Newsbtc, Vivek stated that a parabolic rally is next, seeing as the same setup has appeared again, and this could be the catalyst that gets investors excited about Bitcoin once more.
However, other analysts, including CryptoSherpa, are not as optimistic. They point to a fragile market structure shaped by multiple layers of sell-offs, with Bitcoin's price dropped by 11% over the last 14 days. Data from CryptoQuant shows that selling pressure in the derivatives market has reached its highest level since March, with net taker volume plunging to -$948 million. Furthermore, US spot market participants are reducing exposure, and ETF outflows continue to accelerate.
But, as Newsbtc reports, even outflows can be bullish in the long run. According to Santiment, the recent market exit represents a similar market build-up for a bullish price breakout, and the spot ETFs by design are financial products that track the real-time price of Bitcoin by owning actual BTC. They provide an indirect, regulated access to engaging the Bitcoin market and are a major gauge of institutional investor sentiment.
Away from Bitcoin, we have a major development from Texas, where the state has broken away from BlackRock's iShares Bitcoin Trust to build its own BTC system. This move is a significant shift towards greater self-sufficiency and could be a game-changer for the crypto market, as reported by Bitcoinist. The state's comptroller office has released a request for proposals on custody and liquidity providers, and the winning firm will have 60 days after contract signing to move the existing IBIT holdings into directly custodied Bitcoin.
In the DeFi space, Circle has frozen $12.6 million in confidential USDC, which has raised questions about issuer control over privacy-focused DeFi protocols. As BeInCrypto reports, the freeze prevents holders of confidential USDC (cUSDC) from redeeming the tokens for standard USDC. This development has significant implications for the decentralized finance ecosystem.
Finally, we have a concerning story from Gravity Bridge, which has lost $5.4 million in suspected signing key compromise. According to BeInCrypto, the attackers drained roughly $4.3 million in USDC and 274 ether (ETH) worth $553,000. This incident serves as a reminder of the importance of secure custody practices in the crypto space.
And that's not all - the US Treasury Secretary has disclosed that the US has quietly seized roughly $1 billion in digital assets tied to Iran, as reported by Newsbtc. This development adds to the growing body of evidence highlighting the importance of digital assets in international sanctions enforcement.
The crypto markets are a complex and ever-changing space, and today's news is a testament to that. As we continue to monitor the markets and follow the latest developments, one thing is certain: the crypto world is full of surprises, and only time will tell what the future holds.
Cole out.
