Bitcoin Holds $52K; ETFs Continue To Surge
By Laxmikant Khanvilkar
Virtual digital assets (VDA) are continuing with their price rise in the last 24-hours as the fund inflows into the recently launched spot Bitcoin (BTC) exchange traded funds (ETFs) reached record highs. The top four ETF issuers namely BlackRock, Fidelity, ARK 21Shares and Bitwise now have at least $1 billion in assets. The trend demonstrates investor interest for such products. This also reflects in price action.
Bitcoin (BTC), the largest cryptocurrency by market capitalisation, has managed to defend $52,000 level successfully even though the recent rally is showing the signs of weakness. It is currently trading at $52,203 up 1%.
Bitcoin surpassed $52,000 last week and regained the $1 trillion market capitalization for the first time since Dec. 2021. The rally was led by spot BTC ETFs attracting nearly $500 million daily net inflows. BTC is up 22% over the past month.
Another interesting update which is surely boosting the investor sentiment is the latest Chainalysis’ Crypto Crime Report that shows crypto money laundering dropped 30% in 2023. It seems the efforts of Crypto compliance and advance traceability tools are yielding favourable results.
Meanwhile, broader market are largely staying positive led by the Ethereum (ETH), Binance token Solana and others.
The second largest cryptocurrency, is eyeing $3,000 mark. Most recently it traded at $2,858 up 2.5%. Cardano’s ADA (ADA) and Ripple’s XRP are among gainers.
The global crypto market cap increased 1.4% to $1.97 trillion in the last 24 hours. Simultaneously, the total crypto market volume rose 7.2% to $64.4 billion. Total volume in DeFi is currently $5.5 billion, and all stablecoins are $58.1 billion, representing 8.5% and 90.2%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 51.9%, down 0.31% over the day.
The IC15 index, the barometer of the top fifteen tokens, surged 1.6% to 66,672.
Meanwhile, the latest rally of Bitcoin shows a distinct pattern, which is perplexing. The grand old cryptocurrency rallied ignoring the strength in the dollar index and Treasury yields. Historically, bitcoin has been negatively correlated with the U.S. dollar, posting sharp rallies only during bouts of dollar weakness. Given the U.S. dollar’s dominance in global trade and finance, the strengthening of greenback prompts tightening measures worldwide, thus disincentivizing investment in risky assets like technology stocks, cryptocurrencies and commodities like gold.
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