Crypto bros are reeling from a major slump in cryptocurrency prices this week as retail traders stepped back from the crypto mania. Bitcoin (BTC-USD), the largest cryptocurrency in the world, has dropped by nearly 6% over the past five sessions, even as the cryptoverse throws up some interesting developments.
A Prison Sentence ETF Outflows, and PayPal’s Moves
The most notable development this week was the four-month sentence handed to Changpeng Zhao, the founder of crypto exchange Binance (BNB-USD). Still, the prison term ended up being much lower than the three-year sentence sought by prosecutors. Zhao now plans to focus on philanthropic education and become a passive investor.
While Zhao plans for a post-prison future (he is set to become the richest U.S. inmate ever), the frenzy surrounding crypto-based ETFs seems to be cooling off. The recent rally in crypto prices has been largely driven by optimism around the entry of spot crypto ETFs and the Bitcoin halving. However, the halving event is now in the rearview mirror and BTC-ETFs are seeing record outflows. According to Bloomberg, investors pulled out nearly $564 million from multiple funds on Wednesday. Curiously, the withdrawals coincided with Hong Kong listing its first crypto ETF this week.
Even as crypto-ETFs slowly gain ground in multiple markets, PayPal (NASDAQ:PYPL) is going full throttle to enable its over 426 million users to access more than 100 cryptocurrencies. The digital payments giant is teaming up with crypto-payments infrastructure provider Moonpay. This partnership will enable PayPal’s customers to purchase cryptocurrencies without the requirement of providing their personal or card details to Moonpay. The partnership substantially expands the number of cryptocurrencies accessible to PYPL’s users.
Will the Price of Bitcoin Go Up or Down?
Meanwhile, the recent weakness in BTC prices, one of the most volatile assets globally, could point to waning investor appetite for risk and potential turmoil in global financial markets. Not surprisingly, the TipRanks Technical Analysis tool is already flashing a Strong Sell signal for BTC on a daily timeframe.
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