Daily News | Analysts Say BTC Price is "Difficult to Lower"; FTX Sold $11.9 Billion of SOL; The Founder of Aave May Activate the "Cost Switch"

2024-04-08, 03:14

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## Crypto Daily Digest: Analysts say Bitcoin prices are "difficult to keep down"; FTX sells $11.9 billion in SOL; The founder of Aave may activate the "cost switch"
First, let's examine the trading activity of <a href="/fr/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> ETFs. According to Farside Investor data, last Friday (April 5), Grayscale Bitcoin spot ETF (GBTC) funds continued to <a href="/fr/price/flow-flow" target="_blank" class="blog_inner_link">Flow</a> out significantly, reaching $198.9 million; Meanwhile, Fidelity Bitcoin spot ETF (FBTC) inflow was $83 million, Bitwise Bitcoin spot ETF (BITB) inflow was $7.4 million, and iShares Bitcoin spot ETF (IBIT) inflow was $308.8 million.

Bitcoin has fallen from its historical high of nearly $74,000, but in terms of percentage, its recent adjustment has been relatively mild. It is currently reporting $69,482.01.

According to on-chain analyst Checkmate, this is more evident than in historical bull markets. He pointed out a fact from the data uploaded from his chart suite Checkonchain: despite large-scale profit consolidation and reverse selling at high levels, sellers only caused the market to decline by up to 20%.

This situation only occurred once, in mid-September last year, and the subsequent pullback did not exceed 15.8%. "The market is absorbing hundreds of millions of dollars' worth of funds from sellers within the day, while bears have yet to achieve a 20% pullback."

After the collapse of the crypto exchange FTX, <a href="/fr/price/solana-sol" target="_blank" class="blog_inner_link">Solana</a>'s price fell to a low of around $10. However, the token rebounded in early 2024. Solana reached a historic high market value of $81 billion in mid-March. According to sources cited by Bloomberg, FTX has cleared its debt by selling approximately $1.9 billion worth of SOL, which has helped the crypto exchange overcome its collapse.

This sale involves approximately two-thirds of SOL assets with a total value of roughly $2.6 billion. The auction includes up to 30 million SOLs, each priced at $64. These tokens are sold at a discounted price because they are locked in, which means they need some time to be sold.

The report also pointed out that FTX Estate SOL sales have been delayed. FTX holds 41 million locked SOLs, with a total value of approximately $7.5 billion. According to The Block's <a href="/fr/price/solana-sol" target="_blank" class="blog_inner_link">Solana price</a> page, after experiencing a nearly 7% 24-hour decline, as of 1 pm Eastern Time today, Solana's trading price is $174.2.

The decentralized lending platform <a href="/fr/price/aave-aave" target="_blank" class="blog_inner_link">Aave</a> may activate "fee conversion.” According to the post posted by Marc Zeller, founder of Aave Chan Initiative, on the X platform, a vote may soon be held to decide whether to activate the "fee switch" and allocate fees to holders.

Zeller pointed out that the current net profit of Aave DAO is approximately $60 million per year. To increase the activity of the network, "a temporary inspection will be conducted next week to activate the cost switch..." He had previously teased the idea of activating fees for Aave stakers in another article on the X platform. "The new version of the security module will propose to the governance team to allocate fees to stakers," he wrote on March 16.

If Aave DAO chooses to activate fees, they will follow in the footsteps of the decentralized stablecoin protocol <a href="/fr/price/frax-frax" target="_blank" class="blog_inner_link">Frax</a>. Meanwhile, finance recently voted in favor of a proposal to reimplement its cost conversion. At the same time, the fee conversion proposal for the decentralized exchange <a href="/fr/price/uniswap-uni" target="_blank" class="blog_inner_link">Uniswap</a> is in the final stage of preparation and is expected to be presented in mid-April.

## Market Trends: The overall market is fluctuating upwards, and APT will experience a large unlocking
Today, the BTC price remains around $69,500, and the overall market shows a volatile upward trend. Regarding macroeconomics, the US stock market is rebounding, and the market expects a probability of interest rate cuts in May to be only 7%.
### Market Hotspots
The BTC ecosystem token continues to soar: Tokens in the BTC ecosystem, such as CKB, LEVER, RUNESTONE, etc., continue to see significant increases. Among them, CKB's first RGB++asset protocol token SEAL has seen an astonishing increase, reaching hundreds of times. Levers also launched BTC cross-chain bridges. With the upcoming halving of BTC, miners are promoting the development of the BTC ecosystem to prevent a significant decrease in income, which positively promotes the prosperity of the entire ecosystem.

The performance of old DeFi concept tokens is strong: old DeFi tokens such as FARM, ALCX, CREAM, and WING have also seen significant increases. The rise of veteran DeFi tokens means that the unilateral upward trend may temporarily end, and the market is entering a volatile phase. This may mean investors are looking for new investment opportunities or closing out for profits.

Key unlocking data for this week: One of the week's most meaningful events is that <a href="/fr/price/aptos-apt" target="_blank" class="blog_inner_link">Aptos</a> will unlock 24.84 million APTs at 7:59 (UTC) on April 12, valued at approximately $330 million, accounting for 6.23% of the circulating supply. Before and after unlocking a large number of tokens, there may be significant fluctuations in APT prices. This event may significantly impact the price trend of APT tokens and investor sentiment, and requires close attention.

Overall, the crypto market is currently showing a volatile upward trend. The strong performance of BTC ecosystem tokens has added a lot of vitality to the market. However, investors must be vigilant about the market fluctuations arising from this week's important unlocking data to develop appropriate trading strategies. At the same time, for the overall trend of the market, it is necessary to continue to pay attention to changes in macroeconomic factors, especially the trend of the US stock market and changes in expected interest rate cuts, which may have a significant impact on the crypto market.

## Macro: Strong employment data brings positive emotions; Wall Street's gains give Asian markets expectations
On April 5, Reuters reported that the US stock market is at a two-year high, with the S&P 500 index rising over 9% this year after its strongest first-quarter performance since 2019.

In recent weeks, signs of inflation have lowered people's expectations for the Fed's rate cut this year. However, due to Friday's stronger-than-expected employment report, it further drove the market up. At the same time, some large enterprises such as Nvidia, META, and Microsoft have shown divergent performance, which may affect investor sentiment.

According to data from the US Department of Labor, the number of new jobs added by employers in March far exceeded expectations, and wages continued to rise steadily, indicating that the economy ended on a solid foundation in the first quarter.

The Dow Jones Industrial Average rose 307.06 points to 38904.04 points, or 0.80%; The S&P 500 index rose 57.13 points to 5204.34 points, or 1.11%; The Nasdaq Composite Index rose 199.44 points to 16,248.52, or 1.24%. All major sectors of the S&P 500 index have seen gains, with the telecommunications services, industrial, and technology sectors showing the most significant gains.

However, this week's economic data showed a mixed trend, including reports on soft service activities and strong manufacturing reports, leading to a decline in the index.

In the Asian market, it is expected that the Nikkei 225 index in Japan will rebound from last Friday's 2% decline. The index fell 3.4% last week, the largest drop since December 2022. The threat of exchange rates and Tokyo's support for yen intervention will continue to impact the Japanese stock market significantly.

On Monday, the positive sentiment on Wall Street may continue into the Asian market, but it is unclear whether the market will feel the pressure. These signs indicate that the stock market is currently in a high consolidation stage rather than a profit-taking stage.

The European Central Bank is scheduled to hold a meeting later this week and is widely expected to maintain stable interest rates. Investors generally believe there is almost no possibility of a rate cut on April 11 but have fully considered the possible rate cut in June and the possibility of two to three more rate cuts later this year.

The geopolitical tension may need to be temporarily eased, and teams sent by Israel and Hamas have gone to Egypt to negotiate a possible ceasefire before the Eid al Fitr holiday, which will help alleviate the tension in the Middle East region. Last week, due to concerns about supply disruptions, oil prices rose by over 4%.

Regarding commodities, US crude oil fell 2.32% to $84.89 per barrel, while Brent crude oil fell 2.5% to $88.89 per barrel.

Spot gold fell 0.5% to $2,317.09 per ounce. Last week, gold broke through historical highs.

<div class="blog-details-info">
<div>Author:**Sherry S. & Icing**, Gate.io Researcher
<div>Translator:Joy Z.
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
</div>

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