Increased Bitcoin ETF Adoption Propels BTC Dominance To Highest Level Since 2021

Bitcoin’s dominance within the cryptocurrency market has reached a three-year high, signaling strong demand for US spot Bitcoin ETF holding the largest digital asset and a challenging period for smaller tokens. Bitcoin accounted for nearly 55% of the $2.4 trillion digital asset market at the end of last week, a level not seen since April 2021. On Saturday, in particular, BTC’s dominance jumped to 57% as it briefly touched the $67,000 mark.  The next largest tokens by market share include Ethereum (ETH), Tether’s USDT stablecoin, Binance exchange’s native token Binance Coin (BNB), and Solana (SOL). BTCs Rise Fueled By Successful US Bitcoin ETF Launches According to Bloomberg, the recent success of the recently approved US spot Bitcoin ETFs from prominent issuers such as BlackRock and Fidelity Investments has played a significant role in Bitcoin’s rise.  These ETFs have garnered approximately $56 billion in assets, making their debut one of the most successful in fund category history. Related Reading: XRP Poised For Takeoff: Analysts Predict Huge Gains After Bitcoin Halving The inflows into these ETFs drove BTC to its current all-time high (ATH) of $73,798 in mid-March, a clear resistance level for the largest cryptocurrency on the market, as evidenced by its inability to consolidate above the $70,000 level following this achievement.  Although BTC is down about 6% since then, smaller digital assets such as Avalanche (AVAX), Polkadot (DOT), and Chainlink (LINK) have seen more significant declines of nearly 30% over the past month.  This drop coincided with reduced expectations for looser US monetary policy settings, often fueling speculative gains. Hong Kong-Listed ETFs Boosts Bitcoin And Ethereum Institutional investors’ allocations to the US Bitcoin ETF have greatly influenced Bitcoin’s performance relative to the rest of the market. Benjamin Celermajer, director of digital-asset investment at Magnet Capital, noted that strong institutional demand is a key driver. On Monday, Bitcoin and Ethereum, the second-largest cryptocurrency, saw notable price jumps following indications that asset managers are preparing to launch Hong Kong-listed ETFs on both tokens. Bitcoin rose 4.3% to $66,575, while ETH jumped 6.2% to $3,260.  These rallies had a positive impact on the broader crypto market, lifting other notable tokens such as Polygon (MATIC), Cardano (ADA), the dog-themed meme coin Dogecoin (DOGE), and Solana, which is now the top 5 cryptocurrency market winner, up over 8% on Monday. Related Reading: Shiba Inu Insider Reveals Top 5 Shibarium Investment Rules Interestingly, the Bloomberg Galaxy Crypto Index, which measures the performance of the largest digital assets traded in US dollars, has more than tripled since the beginning of last year, marking a significant rebound from the bear market experienced in 2022. Lastly, investors and traders eagerly anticipate the upcoming Bitcoin Halving, an event that will cut the new supply of the token in half, expected around April 20th.  Previous Halving events have acted as a tailwind for prices, although there are growing doubts about whether history will repeat itself given BTC’s recent all-time high achievement.  BTC has successfully maintained its position above the $66,000 threshold and has consolidated in this range. However, it is important to note that losses have accumulated over longer time frames.  Over the past fourteen and thirty days of trading, the cryptocurrency has experienced significant declines of over 21% and 24% respectively. Featured image from Shutterstock, chart from TradingView.com

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Is The Bull Run Nearing its End? Marathon CEO Asserts Bitcoin Halving Rally Already Priced In

In anticipation of the upcoming Bitcoin Halving event, which is expected to occur later this month, Marathon Digital CEO Fred Thiel believes that the price impact may already be factored into the market to a certain extent.  Thiel shared his insights in a recent interview with Bloomberg, in which he discussed the potential catalysts for further price increases and their implications for the mining industry. Related Reading: From Hat To Heights: Dogwifhats $17 Crypto Leap Electrifie Investors Bitcoin Halving Impact Mitigated By ETF Surge?  The “halving” event, a software code update that occurs approximately every four years, is often regarded as a key driver of Bitcoin’s price appreciation. The update will reduce the block reward for miners by half, meaning they will receive fewer Bitcoins as a reward for validating transactions on the blockchain.  However, Thiel noted that the impact of The Halving may not be as significant this time, as the recent approval of Bitcoin exchange-traded funds (ETFs) has already attracted substantial capital to the market. Thiel explained:  The ETF approval, which has been a huge success, has attracted capital into the market and essentially brought forward what could have been the price appreciation we typically would have seen three to six months post-halving. So I think we are seeing part of that now already and that has put forward some of the demand. While the halving event is expected to reduce the daily supply of new Bitcoins by approximately 450, Thiel believes the price impact may be relatively modest.  However, the Marathon CEO expressed excitement about the positive price trend leading up to the halving, stating:  As miners, we are very excited to go into a halving, where for once prices have not declined prior to the halving rather prices have gone up so everybody is obviously maximizing to that. Balancing ETF Inflows And Previous Halving Patterns Thiel’s observations come amidst the noteworthy inflows into Bitcoin ETFs, which have amassed nearly $12 billion in just three months of trading in the United States.  While these inflows may have contributed to the current price appreciation, historical data reveals that Bitcoin still possesses considerable growth potential leading up to The Halving. To gain a comprehensive understanding, it is crucial to examine the recent surge in Bitcoin’s value, which has soared by nearly 370% from its bear market low of $15,400 to an all-time high (ATH) of $73,700 on March 14, 2024.  In conjunction with this surge, past halving events provide valuable insights into Bitcoin’s price movements and the likelihood of surpassing the significant milestone of $100,000. During the first halving in November 2012, Bitcoin’s price experienced a remarkable surge from a low of $13 to a peak of $1,152 the following year, illustrating an impressive increase of 8,753%.  Similarly, the second halving event in July 2016 witnessed Bitcoin’s price ascending from $664 to a new ATH of $17,760, reflecting a surge of 2,580% after the halving.  The most recent Halving event in May 2020 saw Bitcoin’s price reach a significant milestone of $67,000, surging from a low of $9,730, which accounted for a substantial increase of 593% following the halving. Related Reading: Ethena (ENA) Is The LUNA Of This Cycle With 20x Potential: Expert In perspective, while the potential scenario outlined by Thiel suggests that The Halving may be partially priced in due to the influence of ETF inflows, historical patterns suggest that Bitcoin still has plenty of room to run before the event.  Several market pundits have also set their price targets for this bull run at the coveted $100,000 level in light of the upcoming halving event. However, it remains to be seen how the price of Bitcoin will react, taking into account factors such as the influx of capital through ETFs, historical data, and potential market dynamics. Currently, BTC is trading at $68,400, down 0.4% from yesterday’s price.  Featured image from Shutterstock, chart from TradingView.com

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Bitcoin ETF Frenzy: BlackRock Smashes Expectations With $788 Million Inflows In One Day

BlackRock’s Bitcoin ETF, IBIT, achieved a remarkable milestone on March 5. Attracting a staggering $788 million, it exceeded its previous record of $612 million in inflows in a single day. This surge in investment coincided with Bitcoin reaching a new all-time high (ATH) of $69,300, surpassing its previous ATH set in 2021. Bitcoin ETF Trading Volumes Reaches Record $10 Billion Shortly after Bitcoin hit its new milestone, the market experienced a notable price correction, dropping below $60,000. However, this dip seemed to entice ETF buyers who saw it as an opportunity to accumulate Bitcoin at a discounted price.  As a result, the Bitcoin price has quickly recovered and reached the $65,200 level, positioning itself for further price gains and consolidation above its ATH. Related Reading: Can DOGE Avoid A Dive? Sell Pressure Puts Memecoin To The Test According to Bloomberg ETF expert Eric Balchunas, the ten Bitcoin ETFs traded a staggering $10 billion in volume on the same day, breaking the previous record set just a week ago.  The expert noted that this surge in trading activity is not entirely unexpected, as volatility and volume often go hand in hand with ETFs. Balchunas also highlighted that several ETFs, including Blackrocks IBIT, Fidelity (FBTC), Bitwise (BITB), and Arkham (ARKB), achieved record-breaking trading volumes. Interestingly, while the Bitcoin ETFs experienced a surge in inflows, the Grayscale Bitcoin Trust (GBTC) continued its trend of outflows since the ETFs launched on January 11.  Balchunas noted that GBTC has seen nearly $10 billion in outflows, yet its total assets under management remain unchanged since its launch. This phenomenon can be attributed to the bull market subsidy, wherein investors continue to hold assets despite outflows, generating revenue for the trust. A Temporary Halt Before Further Gains? Bitcoin’s recent price action has encountered resistance at its ATH level of $69,000, signaling a temporary rejection from this crucial point. This coincides with the activation of the Golden Ratio Multiplier, the first and only cycle top indicator to have fired thus far. Related Reading: Fetch.AI (FET) Price Gains Another 15% Following This Big News The Golden Ratio Multiplier, an indicator often used in technical analysis, has seen its cycle top band (level 5) rise to $69,099, aligning perfectly with Bitcoin’s recent peak. However, considering this is the sole indicator predicting a cycle top, some analysts, including Crypto Con, believe that a significant market correction may not have occurred yet. According to Crypto Con, this current phase represents a temporary resting place for Bitcoin’s early parabolic ascent. Crypto Con suggests that once Bitcoin breaks through the ATH, it will begin a new phase characterized by heightened market activity and potential price gains.  Featured image from Shutterstock, chart from TradingView.com

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Crypto Markets Monster Cycle: $7.5 Trillion Market Value By 2025, Bitcoin Targets $150,000

In a recent Bloomberg report, it has been revealed that the market value of crypto assets is expected to witness a remarkable surge, nearly tripling to $7.5 trillion by 2025.  Wall Street Firm Predicts Monster Of A Crypto Cycle The next few years are likely to usher in a monster of a crypto cycle, according [...]

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MicroStrategy Increases Bitcoin Bet With $822M Purchase, Adds 12,000 BTC To Treasury

As Bitcoin (BTC) continues its unprecedented uptrend, surging to a new all-time high (ATH) of $72,300, software company MicroStrategy remains steadfast in its vision. It is reaping substantial rewards from its strategic investment in the largest cryptocurrency in the market.  MicroStrategy, led by renowned Bitcoin supporter and former CEO Michael Saylor, recently made a major acquisition, further solidifying its position in the digital asset market. MicroStrategy Bitcoin Investment Pays Off According to a filing with the US Securities and Exchange Commission (SEC), MicroStrategy acquired approximately 12,000 BTC between February 26, 2024, and March 10, 2024, for approximately $821.7 million in cash. The average purchase price per Bitcoin was $68,400.  Additionally, MicroStrategy recently completed an offering of convertible senior notes due 2030, raising $800 million in funds. With this latest acquisition, MicroStrategy’s Bitcoin holdings now stand at a staggering 205,000 BTC, acquired for $6.9 billion. Related Reading: Record $1 Billion In Shorts Risk Liquidation If Bitcoin Hits This Price MicroStrategy’s stock trades at $1,557, representing a remarkable 9% gain within 24 hours. The company’s shares have demonstrated a sustained and continuous upward trajectory since February 26, coinciding with Bitcoin’s $50,000 consolidation phase breakthrough.  Over two weeks, Bitcoin surged to its present trading price, establishing a notable correlation between the leading cryptocurrency and MicroStrategy. This correlation has further solidified the company’s strategy and contributed to its stock’s performance. MicroStrategy’s strategic investment in Bitcoin has yielded remarkable results. The company now boasts a profit of $7.7 billion on its Bitcoin holdings, which translates to a remarkable return of 112% so far as Bitcoin breaks new all-time highs. ETF Expert Astounded By Bitcoin ETF Success The rapid rise of Bitcoin Exchange-Traded Funds (ETFs) has surpassed even the most optimistic projections. Bloomberg ETF expert Eric Balchunas highlighted the growth of these funds in a recent post on social media site X (formerly Twitter). The expert noted that assets under management (AUM) surpassed $55 billion, and trading volume reached an impressive $110 billion.  Balchunas acknowledged that achieving such numbers in just two months was nothing short of absurd, far exceeding what would normally be considered successful even at the end of a full year. Related Reading: Crypto Analyst Unveils 7 Memecoins To Turn $1,000 Into $1 Million In addition, in a surprising turn of events for the ETF expert, Blackrock’s IBIT ETF and Fidelity’s FBTC have emerged as the leaders among all ETFs in terms of year-to-date (YTD) flows through the middle of March. This unexpected feat positions these Bitcoin ETF offerings as major players in the ETF market, attracting the attention and interest of investors seeking exposure to the digital asset. Currently, BTC continues its uptrend, aiming to solidify and consolidate above the $70,000 threshold, which would put the cryptocurrency in a good position to reach the $100,000 mark in the rest of the year.  Featured image from Shutterstock, chart from TradingView.com

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Bitcoin ETF Breaks Records: BlackRocks IBIT Joins Elite $10 Billion Club Amidst Soaring Demand

The demand for spot Bitcoin exchange-traded funds (ETFs) has surged since their recent approval on January 10, with BlackRock’s IBIT Bitcoin ETF leading the way. This ETF has reached impressive milestones in less than two months, attracting significant investor interest and opening doors for various market participants to invest in the largest cryptocurrency directly.  As institutional and retail investors flock to these new investment vehicles, market experts predict a bullish trend and anticipate a potential price surge. Bitcoin ETF Frenzy According to Bloomberg ETF expert Eric Balchunas, BlackRock’s IBIT Bitcoin ETF has quickly joined the esteemed “$10 billion club,” reaching the milestone faster than any other ETF, including Grayscale’s Bitcoin Trust (GBTC), noting that only 152 ETFs out of 3,400 have crossed the threshold. Balchunas notes that IBIT’s ascent to this club was primarily driven by significant inflows, which accounted for 78% of its assets under management (AUM). This reflects the growing appetite for Bitcoin exposure among investors seeking diversified and regulated investment options. In particular, the current trajectory of the ETF market paints a picture of resilience and bullish sentiment in the market. Equity ETF flows, and leveraged trading levels are positive indicators, although they have not yet reached the euphoria seen in 2021, Balchunas notes.  However, Bloomberg’s new BI ETF Greed/Fear Indicator, which incorporates various inputs, highlights the optimistic outlook shared by ETF investors, as seen in the chart below. Related Reading: Fetch.AI (FET) Surges 21%: Why This Rally Is Just Getting Started On this matter, crypto analyst “On-Chain College” went to social media X (formerly Twitter) to emphasize the significant demand for Bitcoin as evidenced by its rapid departure from exchanges.  In its analysis, On-Chain College highlights that Bitcoin ETFs buy approximately ten times the daily amount of BTC mined. At the same time, the upcoming halving event will further reduce the mining supply. The analyst predicts when demand will exceed available supply, leading to potential upward price pressure. Highest Monthly Close Since 2021 Bitcoin’s recent market performance has caught the attention of wealth manager Caleb Franzen, who highlights the significance of the highest monthly close since October 2021.  Franzen further emphasizes the bullish momentum by pointing out that the 36-month Williams%R Oscillator has closed above the overbought level for only the fourth time in history. Historical data reveals impressive returns following such signals, indicating the potential for substantial gains in the coming months.  Additionally, Franzen notes the changing dynamics of the market, with increased institutional participation and the ease of retail onboarding through ETFs. Franzen presents a compelling case for the bullish nature of overbought signals, urging market participants to view them as momentum indicators rather than signals to fade. Previous instances of overbought signals have resulted in significant Bitcoin price appreciation: February 2013: +3,900% in 9 months December 2016: +1,900% in 12 months November 2020: +260% in 12 months While acknowledging diminishing returns in each cycle, Franzen highlights the unprecedented level of institutional participation and the ease of retail access through ETFs.  Related Reading: XRP Poised for Growth: Analyst Forecast Bullish Movement Ahead Even if Bitcoin were to match the +260% gain from the November 2020 signal, it would reach a price of $180,000, surpassing Franzen’s minimum cycle target of $175,000.  Ultimately, Franzen notes that bull markets are typically characterized by a rising ETHBTC ratio and a falling BTC.D (Bitcoin dominance). While these characteristics have yet to manifest fully, Franzen suggests that a multi-quarter rally in the broader cryptocurrency market may be on the horizon. Featured image from Shutterstock, chart from TradingView.com

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Bitcoin Price Soars, Smashing Through $45,000 On The Back Of Two Key Factors

In the past 14 days, the Bitcoin price has displayed a significant uptrend of 14.5%, signaling a resurgence in bullish sentiment. This rally comes as Bitcoin spot exchange-traded funds (ETFs) have been trading for nearly a month, with the market already factoring in this development. As a result, Bitcoin is back on its natural course, gaining momentum ahead of the scheduled halving in April. Currently, Bitcoin has not only regained its bullish momentum after a brief dip to the $38,500 level but has also surpassed the $45,300 mark. It now edges closer to its 25-month high of $49,000, with the $50,000 milestone within reach.  Achieving this level would significantly narrow the gap between the current price and Bitcoin’s all-time high (ATH) of $69,000. However, what are the main catalysts behind this uptrend, and how far can the Bitcoin price climb? Reduction Of GBTC Flows And Net Positive BTC Spot ETF Inflows According to the latest analysis by QCP Capital, two key factors are driving Bitcoin’s upward trajectory:  Daily outflows from the Grayscale Bitcoin Trust (GBTC) have decreased from $500-600 million to $100-200 million. Simultaneously, total inflows across all Bitcoin ETFs are now positive. This shift in the GBTC flows, and the emergence of net positive BTC spot ETF inflows contribute to the current bullish trend, according to the crypto trading firms analysis Related Reading: Ethereum Breaks Above $2,400: This Metric Points To Further Upside Additionally, notable price movements have been observed around spot ETF fixings. Between 3-4 pm EST, QCP has recorded that the Bitcoin price tends to tick higher, possibly due to the one-hour observation window used by the BlackRock ETF (IBIT) to calculate its Net Asset Value (NAV).  Conversely, downward pressure is typically observed after 4 pm EST as GBTC employs a point fix, leading market makers to sell around and after the fix. Strong Performance In US Equities Despite the Federal Reserve’s hawkish stance and higher US yields driven by robust February Non-Farm Payroll data (353k actual vs. 180k expected), US equities continue outperforming.  Companies like NVDA and META have rallied due to strong earnings and positive headlines. Underallocated investors will likely continue buying any equities dips as they chase returns.  According to the analysis, this bullish sentiment is expected to spill over into BTC and Ethereum (ETH), further fueled by the upcoming BTC halving and the ETH spot ETF narratives. Ultimately, the trading firm assesses significant interest in accumulators, which enable investors to purchase Bitcoin or ETH at a substantial discount to the current spot price. This strategy is believed to present an attractive opportunity for bullish investors looking to build long positions throughout the year. Bitcoin Price Faces Strong Barriers On Its Way To $50,000 Despite the uptrend, notable resistance levels could impede further upward movement and potentially lead to a consolidation phase for Bitcoin.  To assess the nearest-term resistances accurately, the 1-hour chart indicates potential price paths for Bitcoin in the coming days if these bearish thresholds are breached. In the immediate time frame, the $45,500 level emerges as Bitcoin’s next resistance level. This level previously marked a correction in the Bitcoin price shortly after the introduction of ETF trading. Subsequently, the next target would be the $46,600 level if the immediate resistance at $45,500 is surpassed. However, while these two thresholds may present challenges, no significant resistance levels are evident on Bitcoin’s hourly chart until the $48,500 level.  This particular level represents the final hurdle for Bitcoin before reclaiming its previous high reached on January 11, immediately following the approval of ETFs by the US Securities and Exchange Commission (SEC). Related Reading: Shiba Inu Price Breaks 2-Month Downtrend, Eyes New Peaks Considering the combined factors of Grayscale’s reduced sell-off and the overall performance of the equity market, alongside renewed investor sentiment, Bitcoin could potentially surge to previous highs and even surpass them, marking new highs since the end of the crypto winter.  The key factor to be seen is how Bitcoin’s price will respond when encountering these highlighted resistance walls and whether the buying pressure will be sufficient to propel Bitcoin back on track toward the bullish momentum observed at the beginning of 2024. Featured image from Shutterstock, chart from TradingView.com

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Bitcoin ETFs Threaten Golds Dominance As Digitalization Trends Gain Momentum

In just over a month since their approval by the US Securities and Exchange Commission (SEC), Bitcoin ETFs have swiftly gained traction in the market, posing a formidable challenge to the long-standing dominance of gold ETFs. Bitcoin ETFs Gain Ground on Gold ETFs The rapid rise of Bitcoin ETFs has led to a convergence in [...]

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US Banks Rally For Updated Crypto Guidelines As Digital Asset Prices Surge

Amidst a significant surge in cryptocurrency prices, which propelled the total crypto market capitalization to a high of $1.93 trillion on Thursday, influential interest groups are urging the US Securities and Exchange Commission (SEC) to revise accounting guidance that imposes higher costs on US banks for holding digital assets on behalf of their customers. Banking Trade Groups Urge SEC To Revise Crypto Accounting Rules According to a Bloomberg report, a coalition of trade groups, including the Bank Policy Institute, the American Bankers Association, the Securities Industry and Financial Markets Association, and the Financial Services Forum, sent a letter to the SEC on Wednesday outlining their desired changes.  The existing guidance requires public companies, including banks, to treat cryptocurrencies they hold in custody as liabilities on their corporate balance sheets. Consequently, banks must allocate assets of a similar value to comply with capital requirements and protect against potential losses. According to Bloomberg, the trade groups have requested the SEC to consider the following key changes: Exclude certain assets from being classified under the broad crypto umbrella. This includes traditional assets recorded or transferred using blockchain networks, such as tokenized deposits, as well as tokens underlying SEC-approved products like spot Bitcoin exchange-traded funds (ETFs). Grant regulated lenders an exemption from the current balance sheet requirement while maintaining the disclosure of crypto activities in financial statements. The trade groups argued that if regulated banking organizations are unable to provide digital asset-safeguarding services at scale, it would negatively impact investors, customers, and the broader financial system.  However, the SEC has defended its accounting guidance, citing the “unique risks” and uncertainties posed by cryptocurrencies compared to other assets held by banks.  Limiting Custody Expansion? The specific guidance in question, known as Staff Accounting Bulletin No. 121, has faced criticism from banks since its publication in 2022.  Lenders argue that the bulletin limits their ability to expand digital asset services for customers due to the associated high costs. Consequently, banks missed out on providing custody services for recently approved Bitcoin exchange-traded funds, with Coinbase emerging as the preferred custodian for the majority of ETF issuers. The trade groups also highlighted additional challenges resulting from the guidance, including a “chilling effect” on plans to utilize blockchain technology for traditional assets. While the SEC described SAB 121 as non-binding staff guidance, it acknowledged that following it enhances disclosure to investors regarding firms safeguarding crypto assets for others. Related Reading: These Are The Altcoins Drawing Whale Interest, Santiment Reveals As the SEC faces mounting pressure, there have been efforts by lawmakers to repeal the guidance.  A resolution was introduced in the House Financial Services Committee, spearheaded by Representatives Mike Flood and Wiley Nickel, while Senator Cynthia Lummis sponsored identical legislation in the Senate. These measures aim to remove the SEC’s authority in making rules that impact bank custody. The outcome remains uncertain, as the legislation’s success depends on garnering sufficient support, particularly among Democrats and within the White House.  However, the collective efforts of trade groups, lawmakers, and industry stakeholders could potentially lead to regulatory changes that alleviate the burden on banks holding digital assets, facilitating their participation in the evolving cryptocurrency landscape. Furthermore, the recent endeavors undertaken by US institutions exemplify a growing interest and eagerness to adopt and invest in cryptocurrencies, particularly Bitcoin.  This heightened institutional involvement has significantly contributed to the swift success of Bitcoin spot ETFs, which gained regulatory approval merely a month ago. Featured image from Shutterstock, chart from TradingView.com

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