BTC Miners Balance Increases; ProShares Releases New ETF to Short BTC

Chart of the Day

The broader crypto market consolidated its gains on Monday, with BTC continuing to fluctuate within a narrow range after stabilizing above the $20k key psychological support level and the 100-hour moving average. As of the time of writing, the largest crypto by market cap is trading slightly below the $21k handle with a 4% gain in the last 24 hours. A connecting bullish trend line with support near the $20.7k level is taking shape on BTC's hourly chart, while the immediate overhead resistance sits at the $21k region. A decisive break above this level will likely accelerate BTC's upside momentum. On the flip side, BTC may retest the $20k support level should it fail to clear the $21k resistance. 

The recent liquidity crises have put miners under extensive financial pressure, leading to massive outflows from their treasuries at a scale that is comparable to the capitulation event during the 2018 to 2019 bear run. However, after the weekend sell-off, miners halted their spending and returned to the accumulation phase, with balances increasing at a rate of 2.2k BTC per month.

In a similar vein, ETH has established a stronger foothold above the $1,100 handle after jumping by 6% in the same period. Most major altcoins have posted gains, with SOL and MATIC leading the surge on double-digit percentage increases in a similar time frame. 

Talk of the Town

Exchange-traded fund (ETF) provider ProShares has announced a new product to allow investors to hedge their crypto exposure in a bear market. Being the first of its kind in the U.S., ProShares Short BTC Strategy ETF is scheduled to begin trading under BITI on the New York Stock Exchange later today. It seeks to provide investors with an opportunity to profit from weakening BTC spot prices during a bearish cycle. The new product comes just eight months after the firm launched its first BTC futures-backed ETF in November 2021.