Recent analysis from on-chain intelligence platform CryptoQuant has found that large entities’ total bitcoin (BTC) holdings have grown to a level last seen in July 2022 due to their unwavering accumulation of the digital asset.
According to CryptoQuant’s weekly crypto report, the BTC holdings of these entities have grown significantly from 3.694 million in December 2022 to 3.964 million at the time of writing. Analysts said large investors expanding their holdings correlate with BTC’s higher prices as they indicate increasing demand for investment purposes.
Large Entities Continue BTC Accumulation
Some large entities accumulating BTC are the new spot Bitcoin exchange-traded funds (ETFs), excluding Grayscale’s GBTC. They have become a primary demand source for the leading digital asset, holding approximately 300,000 BTC at the time of writing.
Although a few large entities have offloaded their assets in large quantities, selling as much as 300,000 BTC per day in the last few days, the new ETFs and other major holders have absorbed the BTC.
While large entities continue accumulating, Bitcoin miners’ selling activity has remained low. CryptoQuant analysts found that daily selling by miners has been less than 100 BTC in the last few weeks, a stark contrast from November-December 2022 levels of 1,000 BTC and above.
“Miner selling activity has remained low as higher Bitcoin prices have somehow offset the sharp decline of transaction fees. Miner Profit/Loss Sustainability is now signaling miners are being fairly paid after they were extremely underpaid in early January (blue area), when the Bitcoin price declined to $38K,” CryptoQuant said.
Short-term Holders Start Offloading
On the other hand, short-term BTC holders, who are traders, have begun to sell their assets to realize high profits recorded as BTC surged past $50,000. The unrealized profit margin of this cohort of investors rose substantially as BTC crossed the $50,000 mark, although it is still halfway from extreme levels.
The unrealized profit margin, currently at 22%, may signal a price correction at approximately 40%, as traders selling at a high-profit margin have historically triggered a decline. A price correction can also be triggered if the unrealized profit margin crosses below its 30-day moving average.
Meanwhile, the primary risks for BTC selling may come from short-term Bitcoin holders and derivative markets, as high funding rates have made opening new long positions expensive.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
Crypto financial services platform Matrixport has made another bullish prediction for the Bitcoin price. This time, they predicted that Bitcoin would rise to $63,000, including when the flagship crypto token hits this target. Matrixport had previously predicted that BTC would rise to $50,000 by the end of January, although that didn’t happen.
Bitcoin Will Rise to $63,000 By March!
Matrixport mentioned in their latest report that BTC will rise to $63,000 by March this year. Although this price level seems ambitious, the crypto platform noted that it is achievable with certain factors in mind. One includes the Spot Bitcoin ETFs, which were approved over a month ago.
These Bitcoin ETFs have so far contributed largely to BTC’s resurgence (even before they were approved). They have continued to record an impressive demand, which has led to a significant accumulation of BTC by the fund issuers. Interestingly, Bitcoin maximalist Samson Mow recently argued that BTC would have been down as much as 20% if not for these ETFs.
Meanwhile, Trading firm QCP Capital shares similar sentiments with Matrixport as they noted in a previous report how Bitcoin could rise to as high as $69,000 thanks to these Spot Bitcoin ETFs. Then, they stated that BTC revisiting its all-time high (ATH) will depend on the “genuine flow the actual ETF will bring in the first few weeks of trading.”
The Spot Bitcoin ETFs have not disappointed, recording $2.8 billion in net inflows during the first 21 trading days. Bitcoinist also reported how these funds saw $2.2 billion in inflows last week.
Other Catalysts That Will Contribute To Bitcoin’s Rise To $63,000
Matrixport also mentioned the Bitcoin Halving, interest rate decisions, and the US presidential election as factors that could make BTC rise to $63,000. The Bitcoin Halving, expected to take place in April, continues to be projected as an event that could cause Bitcoin’s price to increase exponentially.
In Matrixport’s case, they expect that the hopium around the event will cause BTC to rise to $63,000 even before it occurs. It is not uncommon for the flagship crypto token to get priced in ahead of a much-anticipated event like the Bitcoin Halving. Moreover, Bitcoin historically makes significant gains pre-halving.
Furthermore, the Federal Reserve is expected to cut interest rates as inflation cools. However, it is uncertain how much this could impact Bitcoin’s rise to $63,000, considering that the Fed’s minutes showed they are still cautious about cutting rates too quickly (at least not as soon as March).
Matrixport also stated that the US presidential election could influence Bitcoin’s price. Just like the interest rate decision, it is unlikely that the election, slated for November 2024, will impact Bitcoin’s trajectory in the short term.
Featured image from Cointribune, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Despite the landmark launch of spot Bitcoin Exchange-Traded Funds (ETFs) spearheaded by industry behemoths BlackRock and Fidelity—ranking among the top five ETF launches in their initial month of all time—BTC’s price response has been notably subdued. Prior to the launch of these EFTs, BTC soared to a peak of $49,040 on January 11.
Fast forward to today and BTC is currently settling at $51,000, marking a modest appreciation of 4.3%. This tepid performance has puzzled market observers, particularly in light of massive net inflows of $5.278 billion into all Bitcoin ETFs within a mere six-week span. These could have been even significantly higher if there would have been $7.398 billion in outflows from Grayscale’s GBTC.
The Bombshell Discovery
Yet, CryptoQuant CEO Ki Young Ju may now have found the “real” reason that has had an even bigger impact on Bitcoin’s price action in recent weeks. Ju’s analysis highlights the transfer of over 700,000 BTC to Over-The-Counter (OTC) desks predominantly utilized by miners in the weeks succeeding the spot Bitcoin ETF approvals—an equivalent of approximately $35.6 billion at current prices.
He shared the below chart and stated: “700K BTC has moved to OTC desks used by miners over the past three weeks following spot Bitcoin ETF approval.” This revelation has sparked a reevaluation of the impact of such substantial transfers on the market dynamics of Bitcoin.
BTC OTC transactions | Source: X @ki_young_ju
Ju later corrected his statement slightly and explained, “Got some questions about the data accuracy. These OTC addresses are not only used by miners. It could be used by other whales. We’ll let you know what addresses caused this spike,”acknowledging the complexity and multifaceted nature of these transactions.
The Bitcoin OTC Mechanism Explained
OTC desks facilitate direct transactions between two parties, unlike open exchanges where orders are matched among various participants. This method of trading can handle large volumes of Bitcoin without immediately affecting the market price.
When substantial amounts of BTC are bought or sold on public exchanges, the sudden increase in supply or demand can lead to significant price volatility. By opting for OTC transactions, large buyers, such as ETF issuers, can accumulate Bitcoin in vast quantities without triggering a steep price increase that would inevitably follow if these purchases were made on spot markets.
Thus, Ju theorizes that the issuers behind the newly launched Bitcoin ETFs are strategically purchasing Bitcoin via OTC desks. This approach serves a dual purpose: it allows these entities to fulfill the demand from ETF investors by securing enough Bitcoin to back the ETF shares while simultaneously mitigating the immediate price impact that such large-scale purchases would have if conducted on open exchanges.
The essence of Ju’s claim is that if the 700,000 BTC had been bought on the spot market instead of through OTC channels, the influx of demand would have likely propelled Bitcoin’s price significantly higher than the observed 4.3% increase. This subdued price action, therefore, could be attributed to the strategic use of OTC transactions by ETF issuers and other large-scale buyers.
However, there is also a silver lining. What will happen if the miners can only sell half of the current supply following the upcoming BTC halving in April, but the demand remains? Moreover, this constraint isn’t limited to miners alone.
Given that the OTC supply is finite and likely depleting rapidly, it appears inevitable that a supply shock could impact the market once the OTC reserves are fully tapped. When entities like BlackRock and others are compelled to purchase Bitcoin on the open market to back up their ETFs, the BTC price could react swiftly.
Featured image created with DALL·E, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Reddit said it acquired major cap cryptocurrencies, including Bitcoin, for varying reasons and has received digital asset payments for limited services since at least 2022.
Social network Reddit holds Bitcoin (BTC), Ethereum (ETH), and Polygon (MATIC) according to its initial public offering (IPO) filing with the U.S. SEC on Feb. 22. The company said it experiments with blockchain technology and crypto tokens, complying with disclosure requirements as it plans to go public under the ticker RDDT.
We invested some of our excess cash reserves in Bitcoin and Ether and also acquired Ether and Matic as a form of payment for sales of certain virtual goods, which we may continue to do in the future. Ether and Matic received from the sales of virtual goods was not material for the years ended December 31, 2022 and 2023.
IPO SEC filing
The company also said that its product and engineering teams leverage cryptocurrencies for specific use cases. Earlier this year, the social media giant confirmed its forthcoming IPO slated for March. Reddit plans to offer 10% of its shares after being valued at $10 billion in 2021.
Our users have a deep sense of ownership over the communities they create on Reddit. We want this sense of ownership to be reflected in real ownership; for our users to be our owners. Becoming a public company makes this possible.
Steve Huffman, Reddit co-founder
The social network is a hub for blockchain discourse and crypto alpha, with over 850 million monthly active users recorded last year. A CoinWire report said 80% of Reddit’s crypto conversations in 2023 were positive.
However, the platform has not been without crypto controversy as the site’s administrators received backlash over a decision to sunset its blockchain-powered community points program.
Bitcoin’s price tumbled to a weekly low of $50,664 on Feb. 21, narrowly avoiding massive liquidations; on-chain data analysis pinpoints the likely causes of the recent pullbacks.
After a remarkable 27% February uptick that saw Bitcoin (BTC) hit a 3-year peak of $52,985 on Feb. 20, Bitcoin is struggling to maintain momentum.
With miners ramping up profit-taking ahead of the upcoming halving event, a decline in ETF inflows threatens to scuttle the BTC price rally.
Bitcoin miners sold BTC worth $8.2 billion in previous 30 days
Bitcoin price dipped $50,664 on Feb. 21, sparking concerns of widespread liquidations as the bears looked to break below $50,000 for the first time since the Valentine’s Day rally. Market data shows the Bitcoin miners’ selling trend, and a slight blip in ETF inflows this week contributed to the pullback.
Bulls have managed to stage an instant rebound toward $51,500 at press time on Feb. 22, but a closer look at the on-chain data trail suggests the bull rally is not yet back on track.
Cryptoquant’s miner reserves metric monitors real-time balances held by BTC miners. It shows that BTC validators hold a cumulative balance of 1,824,201 BTC as of Feb. 22, a 160,000 BTC decline from the balances held on Jan. 31.
Bitcoin (BTC) miners cut reserves by 160,000 BTC (~$8.2 billion) between Jan. 31 to Feb. 22, 2024 | Source: CryptoQuant
Valued at about $51,500 per coin, the recently-traded 160,000 BTC are worth approximately $8.2 billion. Notably, the chart illustrates how the miners had intensified the selling frenzy by $102 million after BTC’s price hit a local peak of $52,858 on Feb. 15.
Typically, a sell-off among miners indicates a bearish sentiment among a significant bloc of stakeholders. With approximately 10% of the total circulation supply in their custody, the BTC miners significantly influence Bitcoin price action.
Without a commensurate demand surge, it is unsurprising that the latest wave of miners’ sell-off has coincided with Bitcoin prices tumbling to a weekly low.
Bitcoin ETFs have not kept up last week’s demand
The BTC price rally in the first half of February was attributed to the Bitcoin ETF making record-breaking inflows.
Ahead of the ETF’s weekly trading opening on Feb. 19, BTC hit a new 2024 peak in the early GMT hours as strategic investors looked to front-run potential gains if the ETFs pick up the buying trend from where they left off in the previous week. But that has not happened.
Bitcoin ETFs dialed down their buying trend this week. Feb. 19 – Feb. 22 | Source: TheBlock
For context, TheBlock’s ETF on-chain flow chart above shows historical changes in BTC balances held by Bitcoin ETF.
Unlike last week’s 17,480 BTC accumulation, Bitcoin ETFs have slowed the buying trend by 73%, acquiring only 4,680 BTC between Feb. 19 and Feb. 22.
In summary, there has been a decline in ETF demand this week, while miners are intensifying their selling spree ahead of the halving.
The two critical factors have been pivotal to BTC price tumbling towards $50,000 rather than breakout towards a new all-time high above $60,000 as the bulls anticipated, with the rapid accumulation ahead of the ETF trading hours on Feb. 19.
Price forecast: Bitcoin can hold above $48,500
Amid dwindling ETF demand and miner’s mounting selling frenzy, BTC price looks likely to hold above $48,500 if it loses the $50,000 psychological support level in the short term.
The Bollinger Band technical indicator further underscores this outlook by providing insights into potential support and resistance levels for Bitcoin’s short-term price movement.
With the 20-day Simple Moving Average (SMA) price currently at $48,560, it is a crucial support level below the $50,000 threshold.
This suggests that if the price were to drop below $50,000, the $48,560 level may act as a significant area of support, potentially halting further downward momentum.
Bitcoin (BTC) Price Forecast, February 2024 | Source: TradingView
If bullish momentum prevails and Bitcoin reclaims the $53,000 level, the upper Bollinger band indicates that the bears may emerge again, establishing a sell-wall at around $55,830.
This signifies a key resistance level that could impede upward movement, potentially leading to a consolidation phase or a pullback.
Given these technical dynamics, strategic swing traders may consider setting short-term stop-loss orders around the $45,000 area to manage risk in case of a breakdown below the $48,560 support level.
Conversely, bullish traders may target take-profit orders around the $55,000 mark, anticipating potential resistance near $55,830 and aiming to capitalize on any further upward movement.
Bitcoin has come a long way since its inception, transforming from a digital curiosity into a formidable currency that you can use for a surprising variety of purchases.
Whether you’re an enthusiast looking to spend your stash or a newbie curious about the practical uses of Bitcoin, you’ll find this guide packed with fascinating insights. Let’s explore 14 unexpected ways to use Bitcoin in 2024.
Can You Buy Anything with Bitcoin?
Absolutely! While direct cryptocurrency payments might not be ubiquitous yet, services like the BitPay Card bridge the gap, making almost any purchase possible. Here’s how you can splurge your digital coins.
1. High-Tech Gadgets and Electronics
Fancy the latest iPhone or need a new gaming laptop? Retailers like Newegg accept Bitcoin directly for all your electronic needs, from smartphones by Apple, Samsung, and Google to gaming accessories.
Alternatively, Walmart and Amazon gift cards can be bought through the BitPay app, opening a vast inventory of tech goodies.
2. Betting
For those interested in the evolving world of crypto betting, bitedge.com offers a comprehensive guide to navigating this dynamic landscape, ensuring you’re well-equipped for your next wager.
3. Fashion Finds with a Digital Wallet
Revamp your wardrobe with Bitcoin. Various brands and retailers allow you to purchase clothing directly with Bitcoin or through gift cards. Imagine walking into a store, scanning a QR code, and walking out with a brand-new outfit paid for with digital currency.
4. From Daily Brew to Luxury Yachts
Yes, you read that right. Your morning coffee can now be bought with Bitcoin using the BitPay Card at any MasterCard-accepting coffee shop.
And for those dreaming bigger, luxurious yachts and boats are available for purchase with Bitcoin through Denison Yachting.
5. Real Estate and Precious Metals
Bitcoin is not just for small-ticket items; it’s making waves in big investments too. Through BitPay-partnered brands like Pacaso and Condos.com, you can invest in real estate.
Precious metals like gold and silver are also accessible through Bitcoin transactions, offering a secure way to diversify your investment portfolio.
6. Diamonds Are Forever, and So Is Bitcoin
Add sparkle to your life with diamonds and jewelry from trusted retailers like Idoneus and Icebox, paying with Bitcoin. It’s a modern twist on investing in timeless treasures.
7. Video Games and In-Game Purchases
Gamers rejoice! Video games, in-game purchases, and gaming accessories can be bought with Bitcoin.
Platforms like Steam and Xbox offer gift cards through the BitPay app, ensuring you’re always ready for the next virtual adventure.
8. Booking Your Next Getaway
Thinking of a holiday? Hotels, boutique stays, and even flights can be booked with Bitcoin.
Use gift cards for Airbnb or book directly at crypto-friendly hospitality groups, making travel easier and more secure.
9. Groceries and Dining Out
Bitcoin extends to your daily necessities too. Grocery shopping can be done using the BitPay Card at local stores or by purchasing gift cards for Amazon Fresh and Whole Foods.
Dining out? Use your BitPay Card at local restaurants or buy gift cards for your favorite food delivery apps.
10. Home Sweet Home
Furnishing a home or tackling a DIY project? Furniture and home improvement items can be bought with Bitcoin through gift cards for stores like Pottery Barn and Home Depot.
It’s a seamless way to use digital currency for tangible home enhancements.
11. Donations to Nonprofits
Bitcoin makes it easy to support causes close to your heart. Donating to nonprofits and charities with Bitcoin not only simplifies the process but also offers tax benefits, making generosity more rewarding.
12. Education and Web Services
Investing in knowledge and online presence has never been easier. Web services like domain names, web hosting, VPNs, and servers can be paid for with Bitcoin through providers like NameCheap and ExpressVPN.
This shift towards cryptocurrency payments in the digital sphere highlights Bitcoin’s growing influence beyond just physical goods.
13. Entertainment on Demand
Your leisure time can also benefit from Bitcoin. Pay for your TV service subscriptions through Dish TV and Sling TV using BitPay.
Moreover, movie buffs will be thrilled to know that AMC theaters now welcome crypto payments, making your next movie outing a bit more futuristic.
14. Timepieces and High-End Vehicles
Luxury purchases including high-end cars like Lamborghinis and Ferraris, as well as luxury watches from brands like Jomashop and CRM Jewelers, are now within the Bitcoin spender’s reach.
Dealerships and retailers partnered with BitPay facilitate these extravagant buys, offering a seamless blend of luxury and technology.
The Social Impact of Bitcoin Spending
Empowering Nonprofits
Bitcoin’s role in philanthropy is growing. Many nonprofits now accept Bitcoin, recognizing its potential to streamline donations and maximize the impact of each contribution. This shift not only benefits the organizations but also encourages a culture of giving within the Bitcoin community.
The Convenience of Prepaid Cards
Prepaid debit cards, purchasable with Bitcoin, offer another layer of convenience, making it easier to manage finances and spend digital currency. These cards function just like any other debit card, bridging the gap between digital and fiat currency for everyday use.
The Evolution of Gift Giving
Bitcoin has transformed the way we think about gift-giving. With the ability to purchase gift cards for a wide array of retailers, from Amazon to Foot Locker, Bitcoin makes it easy to find the perfect gift for any occasion, all without the need for a traditional bank account.
FAQs
Can I pay for my gym membership with Bitcoin?
Yes, some gyms have started accepting Bitcoin payments directly or through third-party payment processors like BitPay, allowing you to use Bitcoin for your fitness expenses.
Is it possible to use Bitcoin for educational tuition fees?
While not universally accepted, a growing number of educational institutions around the world are beginning to accept Bitcoin as payment for tuition fees, especially for online courses and digital learning platforms.
Can I buy pet supplies with Bitcoin?
Yes, you can buy pet supplies with Bitcoin either directly from online retailers that accept cryptocurrency or by purchasing gift cards for pet supply stores through the BitPay app.
Are there any Bitcoin-friendly cities where I can use Bitcoin for public transport?
Some cities have started experimenting with accepting Bitcoin for public transport services.
However, this is still quite rare and often facilitated through specific apps or payment systems designed to convert Bitcoin to local currency.
Can I use Bitcoin to purchase insurance policies?
A few insurance companies are beginning to accept Bitcoin for premium payments, particularly for digital and tech-related insurance products, though this practice is not yet widespread.
Is it possible to pay taxes with Bitcoin?
Some jurisdictions and local governments have started to explore the possibility of accepting Bitcoin for tax payments through third-party payment processors. However, this is still not a common practice and varies significantly by region.
Final Thoughts
Bitcoin’s versatility is expanding, bridging the gap between digital currency and everyday transactions. From the simplicity of buying a cup of coffee to the complexity of purchasing a yacht or real estate, Bitcoin is proving to be more than just an investment—it’s a currency for all facets of life.
As we move further into 2024, the possibilities for using Bitcoin continue to grow, making it an exciting time to explore what else you can do with your digital coins.
Bitcoin traders are exhibiting cautious optimism as they refrain from “substantial short positions,” expecting continued price surges, according to analysts from Bitfinex this week’s Alpha report.
Despite Bitcoin’s notable surge that brought the asset to trade as high as above $52,000 for the first time since 2021, analysts note a decrease in the short-squeeze ratio compared to previous years. The reason behind this declining short-squeeze ratio is revealed in the report.
Whales Shun Short Positions Amid Bullish Sentiment
Analysts at Bitfinex Alpha report that large whale investors are refraining from “substantial short positions” due to their belief that prices will only continue to increase further.
The current market conditions are characterized by “tightening supply and increasing demand,” further supporting the bullish sentiment among traders.
According to the Bitfinex Alpha report, the behavior of Bitcoin holders suggests the emergence of early bull-market conditions. This is evidenced by a reduction in the volume of long-term holder supply experiencing losses, a trend that correlates with the ongoing rise in the asset’s price.
This observation suggests a positive outlook for Bitcoin’s price trajectory in the near term. The report noted:
Currently, less than 6% of the aggregate long-term holder supply by individual entities are held at a loss. Historically, similar instances where the long-term holder cohort held a comparable volume of Bitcoin in loss have been indicative of early bull market conditions.
Bitcoin Trajectory And Investor Sentiment
In the past 24 hours, Bitcoin has experienced a slight retracement of nearly 2%, following a week-long uptrend that propelled its price to trade above $52,000 for the first time since 2021. Despite this retrace, investors remain optimistic, with ongoing asset accumulation amid bullish predictions from analysts and experts.
Renowned financial guru Robert Kiyosaki recently made headlines with his bold prediction that Bitcoin will reach $100,000 by June 2024, further fueling optimism in the crypto community.
Moreover, recent whale activity in the Bitcoin market has caught the attention of analysts and investors alike. Crypto analyst Ali Martinez recently revealed that a specific class of Bitcoin investors, holding between 1,000 and 10,000 BTC, has accumulated the digital asset in recent weeks.
Data from on-chain analytics firm Santiment shows that whales in this category have added over 140,000 coins to their holdings in the last three weeks, equivalent to a substantial $6.16 billion.
This accumulation trend among whales reflects confidence in Bitcoin’s long-term potential and is a positive indicator for its future price trajectory.
Featured image from Unsplash, Chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
The price of Bitcoin has been on a tear in recent weeks, surging over 30% and breaching the $50,000 mark. At the time of writing, Bitcoin was trading at $52,377, up 1.3% and 8.8% in the daily and weekly timeframes, data from Coingecko shows.
This bullish momentum has ignited fresh optimism among investors, with many wondering if the world’s leading cryptocurrency is poised for another assault on its all-time high of $69,000.
Analysts point to several key technical factors that could propel Bitcoin towards new heights in the coming months. Here are three of the most prominent:
Halving Frenzy
April 2024 marks the next Bitcoin halving, a highly anticipated event that occurs roughly every four years. During this event, the block reward for miners, currently 6.25 BTC, is slashed in half, effectively reducing the rate at which new Bitcoins enter circulation. This engineered scarcity has historically triggered significant price rallies, and analysts predict a similar outcome this time around.
Source: IntoTheBlock
IntoTheBlock, a quantitative crypto analysis firm, estimates a surge to a new all-time high just one month after the halving. They reason that miners, better prepared for the halving’s impact this time, will hold onto their rewards, limiting selling pressure and potentially boosting the price. Additionally, the halving reduces Bitcoin’s inflation rate from 1.7% to 0.85%, further enhancing its store-of-value appeal.
We give Bitcoin 85% odds of hitting all-time high in the next 6 months. Curious what’s behind this prediction? read our latest newsletter👇https://t.co/acx2Fbi1Dw
The CEO of Sound Planning Group and an investment adviser representative, David Stryzewski, gave an explanation of his belief that the price of bitcoin is about to experience a significant upswing on the Schwab Network on Thursday.
He clarified that the triggers for the rising price momentum for bitcoin are the impending halves of the cryptocurrency and the recently introduced spot exchange-traded funds (ETFs) that the U.S. Securities and Exchange Commission (SEC) approved last month.
Macroeconomic Tailwinds
The Federal Reserve’s dovish monetary policy stance, aimed at combating deflationary pressures, is another factor buoying Bitcoin’s prospects. The anticipation of interest rate cuts and increased liquidity injections into the financial system could benefit Bitcoin alongside other risk assets.
Bitcoin market cap remains in the $1 trillion territory. Chart: TradingView.com
ETF Explosion
The long-awaited approval of Bitcoin Exchange-Traded Funds (ETFs) in late 2023 has opened the floodgates for institutional investors to enter the crypto market. These investment vehicles, which track the price of Bitcoin without requiring direct ownership, have already attracted billions of dollars in inflows. This surge in institutional participation is expected to continue in Q2 2024, potentially pushing the price of Bitcoin even higher.
The Impact Of US Elections
Furthermore, the upcoming US presidential election in November 2024 could provide an additional tailwind. If a Bitcoin-friendly candidate emerges victorious, it could lead to policies that accelerate cryptocurrency adoption and further legitimize Bitcoin as an asset class.
Not Without Risks
The remarkable surge of Bitcoin as it tries to go a notch higher to the vaunted $70,000 level can be attributed to a convergence of key technical factors, propelling the cryptocurrency into uncharted territory. The relentless growth of the hash rate, improved scalability solutions, and ongoing developments in the blockchain ecosystem are collectively fueling this rally.
Featured image from Freepik, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
On-chain data from Glassnode shows that the Bitcoin short-term holders have recently participated in a massive $647 million profit-taking event.
Bitcoin Short-Term Holders Have Realized Large Net Profits Recently
According to data from the on-chain analytics firm Glassnode, the short-term holders have given a strong reaction to the $52,000 break. The “short-term holders” (STHs) here refer to the Bitcoin investors who bought their coins within the past 155 days.
Statistically, the longer an investor holds onto their coins, the less likely they become to sell at any point. The STHs have a relatively low holding time, so they easily sell during price rallies or crashes.
On the other hand, the “long-term holders” (LTHs), which make up the rest of the userbase (that is, those withholding time greater than 155 days), tend to carry a strong resolve.
Since the STHs are fickle-minded, it’s not surprising that they have made some selling moves after the latest rally in the asset. One way to gauge the reaction of this cohort is through the “Net Realized Profit/Loss” metric.
This indicator keeps track of the net profit or loss the investors realize across the network. The metric finds this value by going through the on-chain history of each coin being transferred right now to check the price it was moved at before.
Assuming that a change of hands occurred in the previous transfer and that another such change is happening with the current one, then the coin’s sale would realize a profit or loss equal to the difference between the two prices.
The Net Realized Profit/Loss sums up all such profits and losses and outputs the net value. Now, here is a chart that shows the trend in this indicator specifically for the Bitcoin STHs over the past few years:
Looks like the value of the metric has been significantly positive in recent days | Source: Glassnode on X
As displayed in the above graph, the Bitcoin STH Net Realized Profit/Loss has spiked to highly positive levels recently, implying that these investors’ profits have significantly outweighed the losses.
This cohort has realized $647 million in net profits during this latest selling spree. The chart shows that the last time the indicator was at higher positive values was back around the formation of the 2021 all-time high.
The current values aren’t off this mark, but the STH Net Realized Profit/Loss levels that hit back during the first half of the 2021 bull run are still far away. For perspective, the peak in the metric achieved back then was $2.5 billion, which remains the all-time high for the indicator.
BTC Price
Since the rapid surge above $52,000, Bitcoin has calmed down slightly, as it has moved sideways in the past few days. At present, BTC is trading at around $52,500.
The price of the asset seems to have slowed down in the last two days or so | Source: BTCUSD on TradingView
Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, Glassnode.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
The recent Bitcoin rally, propelling its price to the $52,000 level, has positively impacted the stock of US-based cryptocurrency exchange Coinbase (COIN). After experiencing a notable dip to $115 at the start of February, Coinbase’s stock rose to $172 on Thursday, following a significant upgrade by a JPMorgan analyst.
Improved Prospects For Coinbase Amid Crypto Rally
According to a Bloomberg report, JPMorgan analyst Kenneth Worthington abandoned his bearish view on Coinbase weeks after downgrading the stock.
As Bitcoin traded higher, Coinbase shares gained as much as 7.8% following the upgrade. Worthington believes the exchange will likely benefit from the recent rally in digital asset prices, prompting him to shift his rating back to neutral.
This change in stance comes after Worthington’s January downgrade, where he predicted a potential deflation of enthusiasm for Bitcoin exchange-traded funds (ETFs).
However, contrary to his previous forecast, Bitcoin ETFs have been successful in terms of trading measures, and the price of Bitcoin has surged beyond $52,000, reaching its highest level since 2021. In a note to clients on Thursday, Worthington explained:
Given the acceleration in recent days of flows into Bitcoin ETFs and the significant price appreciation of Bitcoin and now Ethereum, we are returning to a Neutral rating on Coinbase as we see the higher cryptocurrency prices not only sustaining but improving activity levels and Coinbase’s earnings power as we look to 1Q24.
The daily chart shows COIN’s 4% uptrend in the past 24 hours. Source: COIN on TradingView.com
Coinbase’s stock experienced an 8% dip at the beginning of the year, following an impressive 400% surge in 2023. Analyst opinions on the stock remain divided, with buy, hold, and sell recommendations being roughly evenly split.
Worthington maintained his $80 price target on the stock ahead of the company’s earnings report, which is scheduled to be released after the market closes on Thursday.
Worthington emphasized that Coinbase’s business is closely tied to token prices, with its core revenue being transaction-based. As the value of tokens increases and trading activity gains momentum, fees based on the value traded are expected to drive higher trading volumes, ultimately contributing to improved revenue for Coinbase.
Bitcoin ETFs Witness Significant Trading Volume
On February 14th, the trading volume of Bitcoin ETFs showcased notable figures, with Blackrock’s IBIT recording the lead with $721 million in volume.
Grayscale’s Bitcoin Trust (GBTC) followed closely with $619 million, while Fidelity’s FBTC secured the third spot with $456 million. On the other hand, Ark Invest accumulated a volume of $169 million.
The nine ETFs’ total trading volumeamounted to approximately $1.5 billion. Notably, the largest ETFs experienced higher trading volume than the previous day, with IBIT surpassing $700 million and GBTC exceeding $600 million.
Bitcoin ETF’s February 14 trading volumes with Blacrock’s IBIT leading the pack. Source: AlexOtta on X
Intriguingly, before the trading session, GBTC sent less than half of the Bitcoin it sent to Coinbase the previous day. Despite this decrease, GBTC’s total trading volume was 50% higher.
As the demand for Bitcoin continues to surge, ETFs play a crucial role in facilitating institutional and retail investors’ participation in the cryptocurrency market. The increased trading volume of Bitcoin ETFs highlights investors’ growing interest and confidence in digital assets.
Currently, Bitcoin is trading at $51,900 and encountering a critical resistance level at $52,000.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Galaxy Digital analysts forecast a potential reduction of 20% in network hash rate due to the impending Bitcoin halving in April.
The analysts predict that the halving will affect eight specific mining machine models, dropping the network’s hash rate.
The halving will decrease per-block mining rewards from 6.25 to 3.125 bitcoin, prompting miners to seek increased efficiency and cost reduction to mitigate the impact of lower rewards. The current hash rate is approximately 515 exahashes per second (EH/s).
The affected models were identified in a report released on Wednesday.
We estimate that roughly 15-20% of the network hashrate at the conclusion of 2023 (86-115 EH) could come offline at the time of the halving. Based on our analysis, we expected 2024 network hashrate to end in a range between 675 EH and 725 EH. pic.twitter.com/a6F6lrUQ7s
This projection is based on an analysis considering the new block subsidy, transaction fees constituting 15% of rewards, and a Bitcoin (BTC) price of $45,000, with the current price of around $52,000.
The analysis also considered future power prices and costs from public miners. The variance in hash rate is attributed to the sensitivity of breakeven points for these ASIC models to fluctuations in bitcoin price and transaction fee proportions.
The report suggests miners with older, less efficient machines may use custom firmware to enhance ASIC efficiency or sell their equipment to miners with lower power costs.
Compass Point Research & Trading, through senior analyst Chase White, anticipates a slightly smaller decline in hash rate to an average of 500 EH/s in May from a projected 565 EH/s in April, factoring in a $55,000 average bitcoin price before the halving and an expected rise to $57,500 afterward.
The anticipation of the halving and a market rebound in the second half of 2023 has driven significant investments in mining infrastructure, with companies like Riot Platforms and Bitfarms expanding their mining capabilities through substantial purchases of mining equipment.
“We think miners who have low or no debt, bottom quartile power costs and efficient mining fleets will be fine,” White said. “Though we certainly expect there to be pain for everyone, especially early on, as miners on the margin of profitability try to wait each other out before shutting down.”
In contrast to Bitcoin-tracking exchange-traded funds (ETFs), gold-tracking ETFs have witnessed significant outflows this year.
On February 14, Eric Balchunas, an analyst at Bloomberg Intelligence, disclosed that gold ETFs in the top 14 rankings have experienced a combined outflow of $2.4 billion since January.
Gold ETFs Experience $2.4 Billion Outflows
BlackRock’s iShares Gold Trust Micro and iShares Gold Trust experienced significant outflows, with $230.4 million and $423.6 million lost, respectively. These outflows coincided with a 3.4% decline in gold prices since the beginning of the year, reaching a two-month low of $1,993 per ounce on February 14.
Only a few leading gold ETFs deviated from this trend, as VanEck Merk Gold Shares, FT Vest Gold Strategy Target Income ETF, and Proshares UltraShort Gold recorded minor inflows.
According to research conducted by the World Gold Council dated February 7, this downward trend contributed to a 2% decline in total assets under management (AUM), falling to $210 billion, and a 1% decrease in gold prices at that time.
Meanwhile, according to data from Lookonchain, Bitcoin ETFs have garnered significant inflows, accumulating a total of 705,566 BTC this year across nine approved funds.
Feb 14 Update:#iShares(#Blackrock) added 10,003 $BTC($518M) today and currently holds 105,280 $BTC($5.45B).
February 14 alone saw ETF inflows totaling a solid $631 million, with BlackRock’s ETF reaching the $5 billion mark. Bitcoin’s price has also experienced an increase, surging by 23.5% over the same period, reaching a two-year high of $52,483 on February 14.
Analysts Weigh In
Portfolio manager “Bitcoin Munger” remarked on the significant shift in investment preferences, highlighting BTC’s appeal alongside the substantial AUM losses faced by gold ETFs.
However, analysts like Balchunas cautioned against interpreting this as a mass migration from gold to Bitcoin, attributing it to a fear of missing out (FOMO) in the U.S. equity market.
Bitcoin pioneer Jameson Lopp, on the other hand, shared a chart comparing the performance of the two ETFs, inquiring about the status of gold advocate and Bitcoin skeptic Peter Schiff.
Earlier this month, the World Gold Council shed light on the global gold ETF outflows, citing a reduction in speculative positioning and headwinds from long-term Treasuries and the U.S. dollar as contributing factors to gold’s lackluster performance.
These developments contradict the prediction by Bloomberg senior commodity strategist Mike McGlone, who anticipated gold outperforming Bitcoin in 2024.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
Bitcoin’s (BTC) price broke above $51,000 on Feb. 14 to form a rare Valentine’s Day winning pattern, while ETF fund inflows suggest a possible $55,000 retest.
Bitcoin made history on Valentine’s Day as BTC prices rose to a new-yearly peak of $52,040 within the daily time frame on Feb. 14.
Bitcoin enters five-year Valentine’s Day winning streak
Thanks to an unusually high buying trend among institutional investors, BTC price crossed the $52,000 mark for the first time since 2021, bringing its month-to-date gains to 20%.
The data shows that Bitcoin price has generated 1.3%, 3.03%, 1.13%, and 1.9% gains in the last four Valentine’s Days, respectively, dating back to 2020.
BTC price rallied 3.66% to peak at $52,040 within the daily timeframe on Feb. 14, extending its Valentine’s winning streak to five consecutive years.
Bitcoin (BTC) price performance, Valentine’s Day 2024 Source: TradingView
Breaking it down further, starting in 2020, holders who bought a BTC the night before Valentine’s Day and sold it at midnight would have earned a total profit of $4,196.
Looking beyond the price charts, BTC spot ETFs have received significant capital inflows this week, which could drive the rally toward $55,000.
Bitcoin ETFs AUM crosses $10 billion
In another bullish Valentine’s Day record, BTC spot ETFs saw a record $631 million in net inflows. As the initial uncertainty heralded the Grayscale’s (GBTC) billion-dollar sell-off cools, investors have intensified capital inflows in the spot ETF derivatives products this week.
As of Feb. 14, the cumulative Asset Under Management (AUM) of all 10 newly-launched spot ETF products has hit $10.9 billion.
Bitcoin (BTC) Spot ETFs Asset Under Management | Source: TheBlock
The ETF entities captured in TheBlock’s computation include BlackRock, Fidelity, ARK Invest/21Shares, Bitwise, Franklin, Invesco/Galaxy, VanEck, Valkyrie, WisdomTree, and Hashdex.
At the end of the first trading day on Jan. 11, the total AUM of these firms stood at $851 million. This implies the capital stock has grown by 1,150% over the last 31 days at a cumulative daily growth rate of about 9.2%, or $77 million daily.
Effectively, the chart shows that investors are growing more confident after an initial few weeks of uncertainty, reflected in the accelerated capital inflows.
If this buying trend continues at its current rate, BTC price looks poised to enter another leg-up towards the $55,000 area in the coming days.
The Crypto Fear and Greed Index, a tracking tool for market sentiment in crypto, has surged as high as 79 out of 100, hitting a level not seen since Bitcoin peaked at $69,000 in November 2021.
The increase, observed on February 13, comes as Bitcoin surpassed the $50,000 mark a day earlier.
Crypto Fear and Greed Index Hits ‘Extreme Greed’
For the first time in more than two years, the Crypto Fear and Greed Index is in the “extreme greed” zone, which happens when the value of the index exceeds 74.
Previously, the Index reached extreme levels of “greed,” touching 76 on January 11 amid the excitement surrounding the potential approval of spot Bitcoin exchange-traded funds (ETFs) in the United States.
The recent increase in greed occurs a month after the launch of U.S. ETFs, which suggests that the short-term selling associated with the approval news of those financial products has subsided. Cathie Wood, CEO of ARK Invest, had previously anticipated that investors might “sell the news” shortly after approval but emphasized that it would be a temporary phenomenon.
The current “extreme greed” indicator comes as Bitcoin hit $50,000 yesterday, with only around 13% of the total supply now held at a loss.
Based on data from Glassnode, approximately 87% of Bitcoin was acquired below the $48,000 threshold. There is also a notable concentration of short-term holders, defined as those holding for less than 155 days, clustered within the $40,000 to $45,000 range. As for long-term holders, they primarily constitute the remaining 13% of the supply held in a loss position.
The Crypto Market Sentiment Has Been Improving
In June 2022, following the collapse of the UST stablecoin from Terraform Labs, the Crypto Fear and Greed Index plummeted to a minimum value of 9 points, indicating the extreme fear prevalent among investors during that time.
Subsequently, when FTX filed for bankruptcy in November 2022, the index ranged between 23 and 30 points, showing fear.
However, by mid-October 2023, the sentiment began to recover alongside BTC’s price, with the index reaching a neutral level of 52 points. As November and December came about, the anticipation surrounding the potential approval of spot Bitcoin ETFs fueled further growth in the “greed” zone of the metric.
Notably, the Crypto Fear and Greed Index is derived from various signals that influence the behavior of traders and investors, including metrics such as Google Trends, surveys, market momentum and dominance, social media trends, and market volatility.
SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
Wall Street titan and Asset manager Franklin Templeton has applied for an Ethereum Spot Exchange-Traded Funds (ETF) after a struggle to gain approval for their Bitcoin Spot ETF in early January.
Asset Manager Files For Spot Ethereum ETF
Asset managers have gravitated toward the Ethereum spot ETF since the United States Securities and Exchange Commission (SEC) approved the Spot Bitcoin ETF. Franklin Templeton is the latest manager to apply with the SEC to get approval for this financial product.
The asset manager’s move came after successfully introducing the BTC spot ETFs. This is a notable step toward making more crypto investment products accessible to institutional and individual investors.
James Seyffart, a senior analyst from Bloomberg Intelligence, also shared the update with the crypto community on X (formerly Twitter). Seyffart’s X post included a screenshot of the asset manager’s filing and data regarding other applicants.
According to the post, Franklin Templeton is the eighth company in the cryptocurrency market to file for product approval. Previous asset managers to file applications for Ethereum ETFs include Hashdex, BlackRock, Fidelity, Ark and 21Shares, Grayscale, VanEck, Invesco, and Galaxy.
Per the official filing, a Delaware statutory trust is how the Franklin Ethereum Trust is set up. The ETF aims to give investors access to ETH in a regulated manner by allowing them to store it directly through a custodian.
It states in the company’s S-1 filing that the proposed “Franklin Ethereum Trust” will hold ETH and “may, from time to time, stake a portion of the fund’s assets through one of the more trusted staking providers.”
Staking is the act of locking up digital currency to maintain the operations of a blockchain network. They plan to stake some of the ETF’s ETH holdings to supplement its income through staking rewards.
The Price Of ETH Rallies Amidst The Update
Franklin Templeton’s spot Ethereum ETF application was made in light of the price of ETH experiencing an uptick. However, no solid proof exists that the latest development impacted the price of crypto assets.
Ethereum was trading at $2,661 as of press time, indicating an increase of over 7% in the past 24 hours. Data from CoinMarketCap shows that its market capitalization is also on the upside, marking an increase of over 7%.
Meanwhile, its trading volume has increased significantly by over 172% in the past day. Due to the rise, ETH now ranks third in the entire crypto market by trading volume.
ETH trading at $2,679 on the 1D chart | Source: ETHUSDT on Tradingview.com
Featured image from iStock, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
Franklin Templeton has recently filed for a spot ether ETF, joining the competitive landscape of companies aiming to bridge traditional finance with digital assets.
According to their filing, the proposed ETF aims to provide investors with a convenient alternative to directly acquiring, holding, and trading Ethereum.
This move comes after the Securities and Exchange Commission (SEC) approved issuers for Bitcoin ETFs earlier in January, with Franklin being among the nearly a dozen firms to launch such a product.
The firm expressed interest in staking the ether held by the fund, a strategy also considered by Ark 21Shares, which updated its prospectus to include staking language—a feature not present in BlackRock’s filings.
Franklin’s filing suggests the fund could engage in staking through trusted providers, potentially earning staking rewards of ether tokens (ETH), which could be treated as income.
Approximately 25% of the total ETH supply is currently staked. With a decision on spot ETH ETFs anticipated in May, Bloomberg Intelligence analyst James Seyffart estimates a 60% chance of SEC approval.
On Feb. 12, Mechanism Capital partner Andrew Kang predicted that long-term Bitcoin demand flows this year would be between $40 billion and $130 billion.
There is a huge amount of global wealth and income that could potentially flow into crypto, he said, stating that the global aggregate income is around $52 trillion.
Current crypto ownership is around 10% globally. Even if crypto owners only allocate 1% of their income to digital assets annually, that’s still $52 billion flowing into the asset class per year and $150 million per day, he added.
Huge Bitcoin Inflows Expected
These estimates are conservative, he continued, as allocation is likely higher than 1% for many true believers, and business or institutional flows aren’t included.
Moreover, major sell flows like Mt.Gox and miner emissions are dwarfed by estimated buy flows. ETF inflows will further boost demand, and recent inflows have exceeded even the upper bounds of estimates.
The total inflow so far for all ETFs is $2.65 billion, according to Farside. This is the aggregate, which includes the Grayscale outflows, now beginning to slow. Both BlackRock and Fidelity have had more than $3 billion inflows each.
BlackRock themselves estimated an inflow of $150 billion to $200 billion over the next three years.
“People seem to forget that there has been massive consistent demand for Bitcoin even before these ETFs were approved.”
Long term $BTC demand flows this year I approximate to be $40-130B+
One of the most common cardinal sins of crypto investors/traders is underappreciating the amount of wealth/income/liquidity in the world and its spillover into crypto. We hear stats about the market cap of gold,… https://t.co/9HhqxSE6s2pic.twitter.com/9zFed3BJhP
He predicted that Bitcoin’s price will not spend much time below $40,000 and will rise to between $50,000 and $60,000 this month, hitting a new all-time high by March.
Previous ATH Pre-Halving
On Feb. 11, Bitcoin analyst Jamie Coutts also predicted that BTC “has the potential to reach previous all-time high pre-halving.”
All the extreme leverage and positioning from the fourth quarter has been cleansed for now, he stated. Moreover, options open interest is down 40%, and futures funding rates are “still positive but less exuberant.”
“ETFs continue to outpace supply by at least 2:1 and the halving is still months away.”
The final bullish factor is that only 10% of the volume moved at prices above the current level. “If BTC breaches $48.2k, there is scant overhead resistance,” he said.
🚀Why this #Bitcoin rally has the potential to reach prev ATH pre-halving;
1. All the extreme leverage and positioning from Q4 has been cleansed (for now). Options OI is down 40%, and Futures funding rates are still positive but less exuberant 2. ETFs continue to outpace… pic.twitter.com/zP9nYraSyF
Bitcoin price surged above $48,000 on Feb. 9 and again on Feb. 11. Historical market trends suggest Super Bowl LVIII will further intensify investor interest in BTC.
The affinity between Bitcoin and the National Football League (NFL) Super Bowl emerged in 2022 when companies like FTX and Coinbase placed landmark ad campaigns introducing cryptocurrencies to a teeming global audience.
Historical data trends suggest that with the corporate interest generated by the recent BTC spot ETF approval, Super Bowl 2024 could impact Bitcoin and other cryptocurrency’s prices.
Will BTC go up after Super Bowl 2024?
Bitcoin and cryptocurrency prices look set to witness significant price swings thanks to the Super Bowl 2024 event. According to official data from the NFL, approximately 200 million viewers — 60% of all people in the U.S. — watched the 2023 Super Bowl, making it the second most-watched sporting event in the world, behind the FIFA World Cup.
In 2022, Bitcoin made its big debut at the Super Bowl, with a retinue of crypto ads featuring A-list celebrities. FTX drew skepticism for its ad featuring the likes of Steph Curry, Naomi Osaka, Tom Brady and Larry David. Its 7.54 BTC giveaway worth $317,000 in market value also raised eyebrows.
Whether the growing spate of crypto ads during landmark sporting events has increased public interest in crypto is anyone’s guess. However, historical data shows that Bitcoin price has formed a conspicuous pattern around each Super Bowl event since 2022.
The chart below illustrates BTC price action and large investors’ trading activity before and after the last two Super Bowls.
Bitcoin (BTC) price action during and after Super Bowl 2022 to 2024 Source: Santiment
The chart above shows a strikingly conspicuous pattern. In 2022, crypto whales entered a buying spree as crypto companies like FTX and Coinbase ran viral ads in the buildup to the main event.
In effect, BTC price rose 22% between the last week of January to the Super Bowl date on Feb. 13, 2022. Interestingly, the Bitcoin prices began to decline as the euphoria surrounding the event wore off. Between Feb. 15 and Feb. 23, 2023, BTC tanked 17%.
Ahead of the 2023 Super Bowl, this pattern reared its head again. Bitcoin price rallied 18% between Jan. 18, 2023, and the Feb. 13 Super Bowl date. This was also quickly followed by a 17% correction between Feb. 20 and March 10, 2023.
If this conspicuous historical pattern repeats, BTC holders can expect the 24% price rally from Jan 23 2024 to be followed by a pullback after the Super Bowl 2024.
Aside from price projections, betting and commercials are other major ways that the Super Bowl is expected to impact the cryptocurrency world.
Crypto commercials during Super Bowl 2024
Thanks to colorful half-time musical performances, the Super Bowl has become a big hit outside North America over the years, making it a holy grail for corporate entities jostling for coveted ad placements.
In 2022, FTX wasn’t the only crypto-related firm with a viral ad. Coinbase launched a 60-second ad featuring a floating and colorful QR code that directed the audience to a link offering $15 in Bitcoin to those who sign up for a Coinbase account before Feb. 15.
The ad proved so popular that the app eventually crashed.
Due to a biting crypto winter, crypto commercials were scarce during last year’s Super Bowl. That could change in 2024. With the recent approval of the Bitcoin spot ETFs in the U.S., public interest has grown even more.
Where to bet on the Super Bowl with Bitcoin?
Stake.com, Cloudbet, Rocketpot and Fairspin are among the more popular gambling platforms where users can place bets on this year’s Super Bowl using Bitcoin and other cryptocurrencies.
Prominent Platforms to Bet on the Super Bowl Using Bitcoin and Crypto | Source: Bitcoin.com
Thanks to the proliferation of GambleFi, users can place bets using Bitcoin, altcoins or fiat through various forms of blockchain technology solutions.
The term GambleFi covers a wide range of decentralized gambling platforms from accepting cryptocurrency-denominated bets to leveraging smart contracts to ensure fairness, transparency, and security in the gambling industry.
Unique GambleFi Users on Arbitrum, March 2023 to February 2024 | Source: DuneAnalytics
According to user “cryptokoryo” on Dune analytics, the total number GambleFi users on the Arbitrum Layer-2 network has increased by an astonishing 2,200% between March 2023 and February 2024.
This figure could grow further if the Super Bowl further bolsters public interest in GambleFi.
What cryptocurrencies to buy after the Super Bowl?
According to an industry survey, an estimated $23.1 billion could be wagered on Super Bowl LVIII. That’s up from $16 billion last year.
And during big sporting events like the Super Bowl, Bitcoin and other large mega-cap Layer-1 cryptocurrencies like Ethereum (ETH), Ripple (XRP), Solana (SOL) often attract the most attention.
If the crypto GambleFi sector captures a fraction of this value, tokens like Casinocoin (CSC), WINk (WIN) and FUNToken (FUN) could be in for positive price action. See below.
Top-ranked Crypto Gambling Tokens, February 2024 | Source: CryptoSlate
In summary, historical data shows that Bitcoin has enjoyed a double-digit price rally in the weeks leading up to the last two Super Bowls, but subsequently entered a pullback.
A repeat of that pattern could see the BTC price drop well below $40,000 in the weeks ahead.
Kevin Svenson, a crypto analyst on YouTube, recently provided an analysis of the future price trajectory of Bitcoin, predicting a strong surge to $100,000 this year. According to the analyst, BTC is poised to go parabolic after its halving in April as the crypto is looking very bullish on the weekly chart.
The halving cuts the block reward for Bitcoin miners in half, reducing the supply of new Bitcoins in circulation. With demand remaining steady or increasing, the reduced supply has been historically known to drive up the price of BTC.
Bitcoin Parabolic Surge Not Far Off
Bitcoin is currently leading a crypto market surge after four weeks of lackluster action following the launch of spot Bitcoin ETFs in the US. Bitcoin recently broke above $47,000 for the first time this year, pushing the narrative of the return of a strong crypto market bull run.
Svenson noted in his YouTube video that Bitcoin is yet to close above $44,000 on the weekly timeframe this year. However, recent price action indicates this is about to change, giving the highest weekly close so far in the current cycle. The analyst noted that if Bitcoin were to successfully clear trapped liquidity around the wicks, it could lead to the crypto reaching the first step of the $60,000 price level.
On a larger timeline, Svenson looked at past Bitcoin halvings to note a recurring trend before and after each halving. History shows that the price of BTC has always trended up in the months leading to the halving and then going on a parabolic trend in the months after.
Of course, past performance does not necessarily guarantee future price action, but Svenson believes several factors are lining up that could send Bitcoin surging past its all-time high once again.
“There’s no reason for me to not think that we’re just going to do what we’ve been doing in these past cycles,” he said.
Now, looking forward, the analyst noted past halvings were set up by Satoshi to correlate with election years in the US, which have always led to a spike in the financial markets.
In addition, Svenson mentioned that the profitability of Bitcoin has always increased until 80 weeks following each halving, which marks the beginning of a new bear market. If history repeats itself, an 80-week timeline after the upcoming halving should be around October 2025, which is when a new bear market cycle is expected to begin.
Institutional interest in Bitcoin is surging, contributing to a 9.57% surge in the past seven days. Bitcoin is trading at $47,211 at the time of writing.
‼️JUST IN: #Bitcoin ETFs are the most successful ETFs 1 month after launch EVER! 🚀
(out of 5,535 total launches in 30 years)
They hold the #1 ($IBIT), #2 ($FBTC), #20 ($ARKB), and #22 ($BITB) spots.
Featured image from Dall.E, chart from Tradingview.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
For the first time since the spot ETFs’ debut trade on January 11, Bitcoin (BTC) has surpassed $46,000. According to data from Coingecko, BTC had increased 3.4% in the previous day to $46,075 at the time of publication, maintaining a 6% increase over the previous seven days.
Bitcoin Flexes Muscles, Reclaims $46K Level
Despite the approval of several eagerly awaited exchange-traded funds that were meant to strengthen its institutional legitimacy, Bitcoin’s 2024 has had a rough start. However, things are improving as Bitcoin is now again trading above the $46k territory.
Laurent Ksiss, a specialist in crypto Exchange-Traded Products (ETPs) at CEC Capital, mentioned that if the current upward trend continues, breaking the $45,000 mark could bring early investors in the BTC ETF close to being profitable. He also suggested that this momentum might lead to some investors taking profits, potentially triggering a reversal and testing the $42,000 to $40,000 level.
After the introduction of 10 ETFs in January, the price of BTC experienced an unanticipated decline. The value plunged after momentarily touching $49,000 when one of the funds, Grayscale, began transferring significant portions of their cryptocurrency to Coinbase.
BTCUSD currently trading at $46,165 on the daily chart: TradingView.com
This was due to the fact that, before Grayscale converted the Bitcoin Fund ETF to an open-ended fund, investors had to hold their shares for a minimum of six months before they could cash out. Many of the investors were eager to cash out and redeem their shares when it became an ETF in January.
Whale Appetite Up For BTC
As a result, Grayscale sold enormous quantities of Bitcoin, which dropped in price. It was trading below $39,000 at one point. However, it appears that the sell-off is ended, and Bitcoin is rising once more, partly due to large holders acquiring the asset.
Meanwhile, Markus Thielen, head of research at Matrixport and founder of 10x Research, says that Bitcoin (BTC) is headed towards $48,000 in the near future following its breakout driven by a solid track record of gains during the Chinese New Year festival.
Since bitcoin often rises by more than 10% around Chinese New Year, beginning on February 10, the following few days are extremely important statistically, according to Thielen’s research from Thursday.
Every time traders acquired bitcoin three days prior to the start of the Chinese New Year and sold it 10 days later, the price of bitcoin has increased during the previous nine years, according to Thielen.
Bitcoin Seen Hitting $50K
In a related development, LMAX Digital stated that it anticipates bitcoin to continue rising, maybe hitting the $50,000 mark.
According to LMAX Digital, technically speaking, bitcoin has broken out of a range and may be aiming for a surge to a new yearly high through $50,000.
Using Elliott Wave theory, a technical study that presupposes that prices move in repeating wave patterns, Thielen projected greater upside for bitcoin in the future.
The concept states that price trends evolve in five stages, with waves 1, 3, and 5 serving as “impulse waves” that indicate the primary trend. Retracements between the impulsive price movement occur in waves two and four.
Thielen said Bitcoin has started its final, fifth impulsive stage of its rally, aiming to reach $52,000 by mid-March, after completing its wave 4 retracement and correcting to $38,500.
Featured image from Adobe Stock, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
