Bitcoin Hovers Near $52K; Fund Inflow Sets Floor
By Laxmikant Khanvilkar
Virtual digital assets (VDA) were consolidating in the last 24-hours as recent rally gave way to profit taking amid Grayscale linked redemption pressure. However, the U.S. investor’s are seen lapping up Bitcoin as certain government officials, especially the Federal Reserve officials, changing their narrative in favour of stablecoins.
Bitcoin (BTC), the largest cryptocurrency by market capitalisation, continues to hold the psychologically important levels of $50,000.It is currently trading at $52,026 down 0.7%.
Bitcoin surpassed $52,000 this week regaining the $1 trillion market capitalization for the first time since Dec. 2021, while spot BTC ETFs attracted nearly $500 million daily net inflows. BTC is up 22% over the past month.
An interesting twist was added to the on-going debate over stablecoins by the Federal Reserve Governor Christopher Waller arguing that stablecoins’ dependence on the dollar could actually strengthen the U.S. fiat currency as decentralized finance (DeFi) catches on. Several government officials are of the opinion that crypto could undermine the dollar.
The stablecoin sector – dominated by Tether (USDT) and Circle (USDC) – is at the center of crypto trading, acting as steady assets used to trade in and out of more volatile tokens.
Waller’s remark will certainly add weight to the cause of crypto being reliable asset class and may trigger increase in adoption.
Meanwhile, broader market are continuing to witness smart up move led by the Ethereum (ETH), Binance token BNB and others.
The second largest cryptocurrency, is not far from $3,000 mark. Most recently it traded at $2,852 up 1.8%. Cardano’s ADA (ADA) and Ripple’s XRP are among gainers.
The global crypto market cap increased 0.6% to $1.95 trillion in the last 24 hours. Simultaneously, the total crypto market volume rose 8.7% to $93.6 billion. Total volume in DeFi is currently $7.7 billion, and all stablecoins are $85.5 billion, representing 8.3% and 91.4%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 52.2%, down 0.34% over the day.
The IC15 index, the barometer of the top fifteen tokens, eased 0.3% to 65,954.
Meanwhile, an interesting trend has emerged recently. The so-called “Coinbase Premium Index” – which measures the price difference for bitcoin on Coinbase compared to Binance, the leading exchange by trading volume – rose to 0.12 Thursday, its highest reading since May 2023, according to data from analytics firm CryptoQuant. High premium indicates a strong investor demand.
Coinbase has reported its first quarterly profit since 2021 on sturdy trading volume due to the resurgence of interest in VDAs, popularly known as crypto.
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