10
Apr, 2025
Crypto trading firm warns of 'classic bull trap' as Bitcoin tags $82.7K
Altcoin News, Bitcoin News, Crypto Analytics, Crypto Industries & Currency Updates
Bitcoin (BTC) risks becoming part of a “classic bull trap” when the US-China trade war takes its next step, analysis warns.
In its latest bulletin to Telegram channel subscribers on April 10, trading firm QCP Capital cautioned over the latest crypto price rebound.
QCP: Chinese “countermeasures” may leave crypto bulls stranded
Bitcoin and altcoins joined global stock markets in rallying over the past 24 hours thanks to a decision by US President Donald Trump to pause many of his new trade tariffs.
China was a clear exception to the policy, with Trump doubling down on those tariffs while alleviating pressure on other countries.
For QCP, now is the time not for relief, but to brace for China’s next move.
“With China singled out so explicitly, market participants are bracing for Beijing’s counterpunch,” it said.
“Should retaliation materialise in force, the exuberant rally could quickly morph into a classic bull trap.”
BTC/USD 1-hour chart. Source: Cointelegraph/TradingView
Such a scenario would form a repeat of market behavior already seen this week. As Cointelegraph reported, an earlier rumor of a tariff pause that failed to find official confirmation sparked whipsaw stock moves never seen before.
“The surprise policy pivot temporarily soothed market anxiety, driving short-end crypto vols lower. Still, we advocate caution,” QCP continued.
“Our desk continues to observe topside selling in May and June, suggesting that market makers are using the rally as an opportunity to offload unwanted positions.”
Bitcoin to get “meaningful slice” of yuan outflows
Others noted potential tailwinds for Bitcoin in the form of Chinese yuan devaluation as a stopgap measure in the trade dispute. USD/CNY hit 18-year lows of 7.35 on the day.
Related: Crypto stocks see big gains alongside US stock market rebound
No deal, PBOC continues a very gradual yuan weakening. Shit ‘bout to get spicy. Luckily $BTC loves money printing and associated ccy weakness. pic.twitter.com/RcVkSj54O3
— Arthur Hayes (@CryptoHayes) April 10, 2025
“China beginning currency devaluation is more than just an economic signal—it’s a trigger,” Sina, co-founder of asset management firm 21st Capital, told X followers in part of a post on the topic.
“Historically, when the yuan weakens, capital doesn’t stay put. It escapes. Some of it flows into gold, some into foreign assets—and a meaningful slice finds its way into Bitcoin.”
USD/CNY 1-month chart. Source: Cointelegraph/TradingView
Sina suggested that the macroeconomic reality would make BTC exposure more attractive going forward.
“Now layer on rising tariffs, slowing global trade, and a deepening crisis of confidence in traditional financial systems. The result? A growing demand for neutral, borderless, incorruptible assets,” he concluded.
“Bitcoin isn’t just a hedge anymore. It’s becoming a necessity in a world looking for stability outside the control of any one nation.”
In subsequent discussions, he acknowledged that Bitcoin had probably not yet seen a long-term price bottom.
Previously, Cointelegraph reported on various BTC price targets for a sustained rebound, with many of these focusing on $70,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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Learn MoreCrypto trading firm warns of 'classic bull trap' as Bitcoin tags $82.7K
10
Apr, 2025
OpenAI Counter-Sues Elon Musk, Accusing Him of Spreading Misinformation
Altcoin News, Bitcoin News, Crypto Industries & Currency Updates
OpenAI has announced a counter-lawsuit against Elon Musk, alleging that his ongoing actions against the organization are bad-faith tactics aimed at undermining its operations and seizing control of its AI innovations for personal gain. In a statement on X, OpenAI accused Musk of spreading false information about the organization, asserting that it is committed to […] …
Learn MoreOpenAI Counter-Sues Elon Musk, Accusing Him of Spreading Misinformation
10
Apr, 2025
Crypto stocks see big gains alongside US stock market rebound
Altcoin News, Bitcoin News, Crypto Analytics, Crypto Industries & Currency Updates
Crypto stocks have surged as part of a broader recovery in the US stock market on April 9 following President Donald Trump’s 90-day pause on sweeping global tariffs.
The Wednesday, April 9 trading day closed with Michael Saylor’s Strategy up 24.76% to $296.86, while crypto exchange Coinbase (COIN) closed up 17% to $177.09, according to Google Finance data.
Crypto mining companies also saw gains, with MARA Holdings (MARA) up 17%, Cipher Platforms (CIFR) up 16.59%, and Riot Platforms (RIOT) rising 12.77%.
Michael Saylor’s Strategy, formerly known as MicroStrategy, surged 24.76% during the trading day. Source: Google Finance
Most of the gains in crypto stocks and the broader US market came in the final three hours of the day’s trading session, spurred by an afternoon post from Trump on his social media platform, Truth Social.
In the post, Trump announced a 90-day pause on his global “reciprocal tariffs,” instead lowering the tariff rate to 10% on every country besides China, which he increased to 125% due to the country’s counter-tariffs against the US.
The S&P 500, which tracks the 500 largest public US companies, closed 9.52% higher, its third-largest single-day gain since World War II, according to reports. Meanwhile, the Nasdaq 100 posted a 12.02% gain over the trading day.
APAC markets and Bitcoin see gains
Asia Pacific markets saw an uptick as trading began on Thursday, April 10, local time. Australia’s ASX 200 index is up 4.55% at the time of writing, while Japan’s Nikkei 225 opened the trading day almost 10% higher.
Related: Bitcoin, stocks crumble after ’90 day tariff pause’ deemed fake news — BTC whales keep accumulating
Although Trump’s initial mention of tariffs in early February shook the markets and was a key catalyst in Bitcoin dropping below the $100,000 price level, it was his major escalation in early April that triggered significant volatility across the markets.
On April 4, the US stock market lost $3.25 trillion — around $570 billion more than the entire crypto market’s $2.68 trillion valuation at the time of publication.
It came only two days after Trump signed an executive order establishing reciprocal tariffs on trading partners and a 10% baseline tariff on all imports from all countries.
Meanwhile, Bitcoin (BTC) has also experienced an uptrend. At the time of publication, Bitcoin is trading 7.52% higher than 24 hours ago, at $82,065, according to CoinMarketCap data.
Magazine: 3 reasons Ethereum could turn a corner: Kain Warwick, X Hall of Flame
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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Learn MoreCrypto stocks see big gains alongside US stock market rebound
10
Apr, 2025
3 reasons why Ethereum price keeps falling
Altcoin News, Bitcoin News, Crypto Analytics, Crypto Industries & Currency Updates
Ether’s (ETH) most recent sell-off saw it lose the crucial $1,500 support level, and a number of technical indicators suggest that ETH may witness a deeper correction before embarking on a sustained recovery.
Data shows Ether’s price dropped below its realized price — an onchain metric that recalculates the market value of a cryptocurrency based on the price at which each coin last moved on the blockchain.
According to CryptoQuant contributor, theKriptolik, ETH price trading below this metric, which is historically a bearish sign. When the realized price is above the spot price, it usually acts as resistance and places “most holders suddenly in a loss position,” the analyst said.
The analyst added:
“Drops below the realized price often mark the capitulation phase, where investors lose confidence and begin selling en masse.”
Ethereum realized price for accumulation addresses. Source: CryptoQuant
In June 2022, Ether’s realized price fell below the spot price, preceding a 51% drop in ETH price following the Terra Luna market crash. A similar scenario was witnessed in November 2022, when the metric fell below the price before Ether dropped 35% following the FTX collapse.
Now that a similar scenario is playing out, the current setup loosely echoes those prior bearish continuation phases, with ETH price at risk of a deeper correction.
Spot Ethereum ETF flows remain weak
Spot Ethereum ETFs continue to weaken, with more than $3.3 million in net outflows on April 8. In fact, these investment products have recorded $94.1 million in outflows over the last two weeks against $13 million in inflows.
The lack of investor interest is concerning, especially since institutional demand was considered a key part of Ether’s appeal and played a role in the gains accrued in May 2024 as investors bet on an ETF approval from the US Securities and Exchange Commission.
Spot Ether ETF flows table. Source: Farside Investors
This is also reflected across all other Ether products, with the report from CoinShares pointing out that flows into Ethereum investment funds align with the bearishness seen across the market, with $37.4 million outflows recorded during the week ending April 4.
ETH open interest is low, and funding rates are negative
Another factor weighing Ether’s price down is the lack of enthusiasm in its derivatives market, evidenced by low open interest and negative funding rates.
Open interest (OI)—the total number of outstanding futures and options contracts—remains low, indicating reduced trader participation and speculative activity. Currently, at $16.7 billion, the metric is 48% below its peak of $32.3 billion witnessed on Jan. 24.
Declining OI signals waning investor confidence or interest, which can exacerbate the price decline as buying pressure dries up.
ETH open interest across all exchanges. Source: CoinGlass
Compounding this issue are negative funding rates in Ether’s perpetual futures markets, which are hovering below 0%, indicating that bearish sentiment dominates the market.
Related: Ethereum whale sells ETH after 900 days, missing $27M possible peak profit
When rates turn negative, it means shorts (bets against the price) are paying longs to keep their positions open, suggesting a dominance of bearish sentiment.
ETH funding rates across all exchanges. Source: Glassnode
Competing layer-1 blockchains outpace Ethereum network activity
Ethereum’s high gas fees offer an opportunity for competing layer-1 blockchains focusing on high scalability to eat into its market share in the space. While a fraction of the activity has moved to Ethereum layer-2 solutions, some users and developers opt for other top layer-1 alternatives such as the BNB Chain, Solana, Avalanche and Tron.
As a result, Ethereum’s network activity growth has fallen behind that of its rivals.
Top blockchains ranked by 24-hour DApps volume, USD. Source: DappRadar
Ethereum’s unique active wallets (UAW) — addresses engaging with decentralized applications (DApps) on the platform — declined by over 33% over the last 30 days compared to just a 16% decrease on Solana and a 16% increase on Tron.
Similarly, the total number of transactions deployed on the Ethereum network dropped by 40.5% during the same period, while transactions on the BNB Chain, Solana and Avalanche decreased by 16%, 30% and 23%, respectively. Transactions on Tron and Fantom increased by 23% and 16%.
There’s no indication that the factors weighing on Ether’s price — such as declining network activity and low demand for its spot ETF products — will reverse anytime soon.
While this doesn’t guarantee that Ether’s price will remain in an extended downtrend, the technical setup suggests that ETH’s price may bottom at $1,000.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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