Bitcoin Resume Rally; Supply/Demand Dynamics Drive Prices
By Laxmikant Khanvilkar
Virtual digital assets (VDA) have commenced the new week on a positive note. It is demand/supply dynamics that are driving prices of Bitcoin (BTC), Ethereum (ETH), and other leading protocols higher. However, analysts are calling for caution as they see the current rally as too bullish and expect prices to drop post halving.
Bitcoin (BTC), the largest cryptocurrency by market capitalisation, recently quoted at $63.651 gaining 3% over the last 24-hours.
Last week, it claimed towards $64,000 before retreating to $58,800 led by liquidation pressure in perpetual trade.
The blistering rally of Bitcoin produced record inflow into spot BTC exchange traded funds (ETFs).
BlackRock Inc.’s iShares Bitcoin Trust (IBIT) and Fidelity Investments’ Wise Origin Bitcoin Fund (FBTC) have captured 79% of total inflows into the “Newborn Nine” — a popular name for the group of new ETFs that invest directly in Bitcoin — since the US Securities and Exchange Commission approved the assets Jan. 10.
Interestingly, the grand old cryptocurrency is currently at a 19% increase in the past seven days and a 43% increase in the past 30 days, its highest percentage gain in over a year. As a result, a huge number of BTC addresses have been pushed into the profitability zone. For the first time in over two years, 97% of all Bitcoin addresses are now in profit.
Broader VDA market is witnessing mixed trend.
Ethereum (ETH), the second-largest crypto asset, has surpassed the crucial level of $3,500. It recently exchanged hands at $3,493 adding 1.8% over the last 24-hours.
Other large tokens such as Binance’s BNB, Solana’s native token (SOL), SHIB, WIF, FLOKi recorded strong gains.
The global crypto market cap increased 1.65% to $2.38 trillion in the last 24 hours. Simultaneously, the total crypto market volume rose 5% to $97.3 billion. Total volume in DeFi is currently $9.08 billion, and all stablecoins are $84.6 billion, representing 9.3% and 86.9%, respectively, of the total crypto market 24-hour volume. Bitcoin’s dominance is currently 52.26%, up 0.28% over the day.
The IC15 index, the barometer of the top fifteen tokens, surges 2.74% to 81,320.
Meanwhile, taking aim at crypto’s rally is China’s Economic Daily – the mouthpiece of the Chinese Communist Party. It says the “wild fluctuations in bitcoin’s value remain the norm, and cryptocurrencies have yet to enter the mainstream”.
In recent times, Crypto seems to have gained more popularity and is increasingly going mainstream. Apparent rise in demand and price, Grayscale believes. On the other hand, JP Morgan analysts project Bitcoin price will drop to $42,000 after halving.
You need to login in order to Like
