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Crypto Expert Predicts Bitcoin Will Reach $650,000 Due To This Reason

A crypto analyst has made a bold prediction about Bitcoin, anticipating that the pioneer cryptocurrency could surge to $650,000 as the Spot Bitcoin ETF market continues to grow. 

BTC’s Next Price Target Expected At $650,000

In an X (formerly Twitter) post published on Monday, Willy Woo, a popular analyst and crypto expert with over 1 million followers, predicted Bitcoin’s next price target, fueled by the growth and demand of Spot Bitcoin ETFs.

According to Woo, Spot Bitcoin ETFs could propel the price of BTC to $91,000 at bear market bottoms, while during bull market tops, the cryptocurrency could skyrocket as high as $650,000. It’s important to note that at the time of writing, Bitcoin haD not even reached $100,000, and is trading at $63,408, according to CoinMarketCap.

Woo has explained that BTC’s surge to this exponential level can only be possible when ETF investors completely utilize their capital. He highlights that a total capital deployment typically takes time, emphasizing that his price predictions are not constrained to the current crypto market cycle. 

The crypto analyst also predicted that BTC will eventually flip gold’s market capitalization as the asset manager’s capital is deployed. Basing his forecast on gold’s 12-year bull run after the launch of its ETF, Woo disclosed that Bitcoin could have a similar bullish trend soon.  

How Bitcoin Will Surge To $650,000

To efficiently explain his predictions, Woo provided a brief but clear insight into the potential impact Spot Bitcoin ETFs could have on the price of Bitcoin. He provided “back-to-envelope calculations” that could be used to fully understand how BTC could surge to $650,000.

During his calculations, the crypto analyst estimated the total capital managed by asset managers at $100 trillion. He mentioned that the current allocation recommendation was 2% for Bitcoin, and given the total amount of assets managed, it would mean $2 trillion could potentially flow into BTC. 

Presently, Bitcoin holds about $561,159,959 of investments that can be measured on-chain. By adding the potential inflow from asset managers, the total investment in BTC would rise to $2.56 trillion. 

Woo also introduced a Market Value to Realized Value (MVRV) ratio, which compares the total market capitalization of Bitcoin to the amount of funds invested into it. The crypto analyst claimed that historically, this ratio usually surges by 5x during bull market tops and by 0.7x during bear market bottoms. 

Based on this ratio, Woo calculated the potential market capitalization of BTC, estimating a price of $12.8 trillion during bull tops and $1.8 trillion during bear bottoms. Dividing this total market capitalization by the amount of Bitcoin in circulation would position BTC’s price per coin at $650,000 and $91,000 respectively. 

Bitcoin price chart from Tradingview.com

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Bitcoin ETF Issuers Push Holdings To 4.27% Of BTC Supply Amid Crash To $61,000

There’s no denying the launch of Spot Bitcoin ETFs has done wonders for the price of Bitcoin and other cryptocurrencies in general. These ETFs have now unlocked institutional demand into the world’s largest crypto asset to change the dynamics ahead of the next halving. On the other hand, recent tensions between Iran and Israel have seen Bitcoin falling to as low as $61,000 in the past 24 hours to undo weeks of price increases. 

Bitcoin ETF Wallets Now Whale Addresses

The institutional demand for Bitcoin has been ramping up since the beginning of the year from the issuers of the various Spot Bitcoin ETFs. These fund providers have been scooping up Bitcoin left and right, now holding 4.27% of the total BTC supply, as noted by on-chain analytics platform IntoTheBlock.

These whale wallets have now joined an extensive list of whales on the Bitcoin network who collectively own 11% of the total circulating supply.

It is noteworthy to mention that BlackRock’s IBIT and Fidelity’s FBTC ETFs have positioned themselves as the lead of the pack. According to data from BitMEX Research, these two spot ETFs now hold 405,749 BTC at the close of the trading session on April 12. 

This surge of institutional money has fueled Bitcoin’s meteoric rise to a new all-time high of $73,737 and underscored its potential as a mainstream asset class. However, a brewing conflict between Iran and Israel seems to be undoing months of this price increase. Particularly, Bitcoin has seen a noteworthy drop to $61,000 from $67,800 in the past 24 hours. 

Fundamentals, however, point to this price drop being temporary and the crypto is already reversing the majority of this loss. At the time of writing, Bitcoin is trading below the $65,000 price mark.

Changing Halving Dynamics

One of such fundamentals pointing to a steady Bitcoin price increase in the coming months is the approaching Bitcoin halving. Investors are steadily approaching the outcome of this halving, with the Bitcoin blockchain now less than 1,000 blocks to the next event.

Past halvings on their own have led to a price increase for Bitcoin in the days post-halving. Bitcoin went on a surge of over 7,000% in the months after the first halving in 2012. The halving in July 2016 led to a 3,000% price surge in the months after. The most recent halving in May 2020 led to a surge of almost 1,000% in the months after.

As noted by IntoTheBlock, the approaching halving is different from previous ones. Unlike the last three halvings, there’s “a new source of demand coming from the institutional sector” through Spot Bitcoin ETFs. A repeat of past halving outcomes could see Bitcoin easily surging above the $100,000 price level.

Featured image from Pixabay, chart from TradingView

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CEO Throws Cold Water On May Ethereum ETF Approval – Impact On Price

The much-anticipated arrival of spot Ethereum exchange-traded funds (ETFs) in the US seems to be hitting a snag. Industry leaders are voicing growing concerns about the likelihood of securing regulatory approval from the Securities and Exchange Commission (SEC), with a deafening silence from the agency fueling anxieties.

Jan van Eck, CEO of investment firm VanEck, recently cast a shadow of doubt on the possibility of SEC approval for spot Ether ETFs in May. In a CNBC interview, van Eck expressed his belief that their application would likely be rejected, citing a complete lack of communication from the regulatory body.

This sentiment finds an echo in the words of Eric Balchunas, a Senior Bloomberg ETF analyst, who has significantly downgraded his odds of approval to a mere 35%. Balchunas attributes this pessimism to the ongoing “radio silence” between the SEC and fund issuers.

Ethereum ETF Applications Languish In SEC Limbo

The SEC’s lack of response extends beyond van Eck’s application. Seven other proposals for spot Ether ETFs are currently gathering dust, with no indication of progress. This regulatory purgatory is fueling skepticism among industry commentators. CoinShares CEO Jean-Marie Mognetti believes that approval for any of these applications is unlikely “this side of the year,” further amplifying the prevailing uncertainty.

The current roadblock for Ethereum ETFs stands in stark contrast to the success story of Bitcoin ETFs. The SEC’s green light for Bitcoin ETFs offered a glimmer of hope for the cryptocurrency market. Van Eck highlights the growing interest in Bitcoin as a “maturing asset class,” with significant untapped investor demand.

Notably, VanEck’s own spot Bitcoin ETF, known by the ticker HODL, has witnessed significant inflows since its launch in mid-January, signifying a strong investor appetite for crypto exposure.

Lack Of Clarity Creates Murky Investment Landscape

The lack of interaction from the SEC is a major concern for James Seyffart, another analyst in the field. He emphasizes that “zero comments or interactions from the SEC is a bad sign.” This sentiment suggests a troubling trend in the approval process, further dampening hopes for a swift resolution on the Ethereum ETF front.

Despite the current cloud of uncertainty surrounding Ethereum ETFs, the cryptocurrency market continues to experience growth and gain wider acceptance. This indicates that opportunities for investment diversification in the digital realm are on the rise.

However, until the SEC sheds light on its stance, investors and industry stakeholders will be forced to navigate a landscape fraught with uncertainty and intense regulatory scrutiny.

The path forward for Ethereum ETFs remains shrouded in doubt. The SEC’s silence is deafening, and industry leaders are bracing for potential rejection. With a lack of clear communication and mounting skepticism, investors are left facing a blank wall, waiting for a sign from the SEC.

Featured image from Micoope, chart from TradingView

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Bitcoin Dips, But Don’t Panic: ETFs See Three Days Of Bullish Inflow

The recent approval of Bitcoin exchange-traded funds (ETFs) by the SEC sent jitters through the financial world. Initial concerns about fading demand seem unfounded as Bitcoin ETFs continue to shatter trading volume records. This is further bolstered by three consecutive sessions of net inflows into these investment vehicles.

Bitcoin ETF Inflows Signal Long-Term Investor Appetite

A recent dip in ETF activity sparked fears that the initial excitement might be short-lived. However, those fears have been quelled by a resurgence in inflows.

According to data from SoSoValue, yesterday saw a net inflow of $203 million into Bitcoin spot ETFs, marking the third straight day of positive inflow.

This sustained green streak suggests that investors remain interested in gaining exposure to the top crypto through ETFs, potentially anticipating a price surge due to the upcoming Bitcoin halving – a pre-programmed code update that cuts production in half, historically leading to price increases.

BlackRock’s Bitcoin ETF Leads The Pack

BlackRock, the world’s largest asset manager, has emerged as a frontrunner in the crypto ETF space. Their iShares Bitcoin Trust (IBIT) recorded the highest net inflow on a single day, exceeding $144 million.

This impressive figure has pushed IBIT’s total net inflow over the past two weeks to over $14 billion. BlackRock’s commitment to Bitcoin ETFs is further underscored by their recent decision to include prominent Wall Street institutions like Goldman Sachs, Citigroup, Citadel Securities, and UBS as Authorized Participants (APs) in their spot Bitcoin ETF prospectus.

These additions position these banking giants as first-time participants in the ETF market, joining established players like JPMorgan and Jane Street.

The inclusion of such heavyweights is seen as a significant vote of confidence in the future of Bitcoin ETFs and a potential catalyst for further mainstream adoption.

Volatility On The Horizon For ETFs

While the recent surge in demand paints a bullish picture for Bitcoin ETFs, experts warn that volatility may be lurking on the horizon. CryptoQuant, a cryptocurrency analysis platform, points to signals in the futures market that suggest potential price swings in the near future.

A consistently high premium often signifies strong institutional buying pressure, particularly in light of the recent inflows witnessed in US Bitcoin ETFs. This increased institutional activity can contribute to price fluctuations, creating opportunities for both gains and losses.

Despite the potential for short-term volatility, the overall outlook for Bitcoin ETFs remains positive. The sustained demand, coupled with the backing of major financial institutions like BlackRock, suggests that these investment vehicles are poised to play a significant role in bridging the gap between traditional finance and the cryptocurrency world.

Featured image from Vegavid Technology, chart from TradingView

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Bitcoin ETF Outflows Are Ramping Up Again, What Does This Mean For BTC Price?

Bitcoin ETF outflows are on the rise once again after a change in the tide last week. These outflows, given the ETFs’ correlation with the Bitcoin price, have a substantial impact on how well the cryptocurrency performs over time. So, as outflows are ramping up, will it trigger a crash in the BTC price?

ARK Invest And Grayscale Lead Outflows

While Grayscale’s Spot Bitcoin ETF has been the natural culprit for ETF outflows due to its high fees, another fund has joined the trend in a surprising turn of events. Cathie Wood’s ARK Invest saw a substantial outflow from its ETF, leading to a new record for the investment firm.

The Ark 21Shares Fund (ARKB) saw a record $87.5 million leave its fund on Tuesday, April 2. Interestingly, the fund’s outflows were even higher than that of Grayscale, which saw around $81.9 million in outflows in the same day.

For both these funds, it marked the second consecutive day of outflows, although it was more concerning on the part of the Ark 21Shares Fund. This is because Grayscale saw a decline in outflows between Monday and Tuesday, going from $302.6 million to $81.9 million. Whereas the ARK Invest fund saw outflows go from $0.3 million on Monday to $87.5 million on Tuesday, resulting in a 29,000% increase in outflows in a single day.

Only these two funds have experienced outflows this week though, as the other ETFs continue to see upside. While Monday’s net flows ended up being negative to the tune of $85.7 million, Tuesday’s numbers looked better with positive net flows of $40.3 million.

How Will This Affect Bitcoin Price?

Since the Spot Bitcoin ETFs were approved in January, their effect on the Bitcoin price has been positive overall. However, there have been points where outflows from the funds have affected the BTC price, causing it to crash.

A few instances of this is back in January, a week after the ETFs were first approved. Outflows had plagued the funds and the Bitcoin price had declined as a result. Then again, in March, when outflows turned negative between March 18 and March 22 and the Bitcoin price crashed from $73,000 to $61,000.

Given BTC’s performance during periods where outflows prevail in Spot ETFs, this current trend does not bode well for the price. There has been a recovery in the BTC price after inflows turned positive on Tuesday. But unless they stay positive through the end of the week, the BTC price could see further crashes toward the $60,000 level.

Bitcoin price chart from Tradingview.com

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Cardano Rides The ETF Wave: Inflows Surge To Over $1 Million – Details

Cardano (ADA) has recently emerged as a focal point of investor attention, experiencing both a surge in inflows and mounting concerns over its performance. According to the latest data from CoinShares, Cardano-centric investment products witnessed a staggering $1.1 million influx over the past week, marking a notable reversal from the $3.7 million outflows recorded just a week prior.

Cardano Sees Massive Inflows

This sudden influx catapults Cardano to the forefront of investor interest in similar products, reflecting a growing prominence for the cryptocurrency within the crypto investment landscape. Despite experiencing a reduction in positions in March, fresh data suggests a positive trajectory for Cardano by the end of the month, hinting at resilience amidst market fluctuations.

The resurgence of investor interest in Bitcoin ETFs has also contributed to a broader increase in crypto investment activity, with total crypto investment inflows since the beginning of the year surpassing $13 billion. Bitcoin ETFs absorbed the majority of these inflows, totaling $12 billion, indicating robust investor confidence in the leading cryptocurrency.

Amidst these developments, speculation looms regarding the possibility of a Cardano ETF. While Cardano’s ability to attract investment amid a competitive market landscape underscores its growing prominence, the prospect of a Cardano ETF remains speculative, particularly given the ongoing situation with Ethereum.

However, as capital continues to flow into ADA-oriented investment products, Cardano’s position on the financial markets is likely to strengthen, positioning it as a notable contender in the ongoing crypto ETF boom.

ADA Tells A Different Narrative

Despite the positive inflows, concerns linger over Cardano’s recent performance compared to other assets. ADA has seen sluggish performance, with losses of 3.50% and only 6.40% gains year-to-date, according to CoinMarketCap.

Analysis reveals a drop in the percentage of ADA’s total supply in profit, from 80% to 75%, indicating a trend of selling activity and raising concerns about ADA’s trajectory amidst bullish market trends.

Furthermore, there’s a notable decrease in the number of wallets holding substantial amounts of ADA, signaling a shift in investor behavior. This decrease could potentially reflect a lack of confidence in ADA’s future prospects or a desire among investors to reallocate their assets to other cryptocurrencies or investment vehicles.

The juxtaposition of increased investor interest and concerns over performance paints a nuanced picture of Cardano’s current standing in the cryptocurrency market. While the surge in inflows highlights growing investor confidence and recognition of Cardano’s potential, the challenges posed by sluggish performance and shifting investor sentiments underscore the need for vigilance among ADA investors.

Featured image from Jeremy Bishop/Unsplash, chart from TradingView

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Investor Alert: Ethereum Q2 Potential Promises Double-Digit Gains – Analyst

Ethereum investors are navigating the second quarter of 2024, cautiously embracing optimism, leveraging insights from historical trends and market data to anticipate potential gains.

Santiment’s recent analysis reveals that the number of Ethereum addresses holding coins has reached highs of more than 118,000, with midterm MVRV suggesting a mild bullish signal. These indicators, combined with past data indicating Ethereum’s tendency for robust performance during Q2, fuel hopes for another season of positive returns.

Ethereum: Historically Strong Q2 Performance

Crypto analyst Ali Martinez recently shared a screenshot of Ethereum’s quarterly returns on social media platform X, highlighting the cryptocurrency’s significant spikes during previous second quarters, notably in 2017 and 2019. These spikes, with increases of 450% and over 100% respectively, have intrigued investors and led them to closely monitor Ethereum’s performance in the current quarter.

Several key financial players, including BlackRock, Fidelity, and Grayscale, have expressed interest in launching a spot Ethereum ETF. However, the regulatory hurdles present significant challenges, raising questions about Ethereum’s integration into traditional financial markets.

Market indicators reflect Ethereum’s current state, with nearly 5% decline in the last 24 hours, trading at $3,380. Despite this dip, Ethereum briefly surpassed $3,500 over the weekend, showcasing resilience amidst market fluctuations.

While market indicators point towards a potentially bullish period for Ethereum, uncertainty looms over the regulatory landscape, casting a shadow of caution over investors’ optimism.

The impending decision by the Securities and Exchange Commission regarding the approval or rejection of the spot Ethereum ETF by May 23 is eagerly anticipated. Analysts cautiously estimate a modest 25% likelihood of approval, acknowledging the regulatory complexities surrounding cryptocurrency investment vehicles.

ETF Approval: Boon For Ether?

Approval of the ETF could herald a new era for Ethereum, opening the floodgates for increased institutional investment and potentially igniting heightened market demand.

Institutional investors, previously hindered by regulatory uncertainties and limited investment avenues, would gain access to a regulated and transparent platform, thus bolstering Ethereum’s legitimacy within traditional finance. Such a development could fuel a surge in Ethereum’s market value, attracting both seasoned investors and newcomers alike.

Related Reading: Get Ready For A Bitcoin Cash Revolution: Analyst Forecasts Historic Breakout

Conversely, a rejection or further delay in approval may deliver a blow to Ethereum’s short-term prospects, potentially triggering short-term volatility and denting investor sentiment. The market, accustomed to swift movements and rapid changes, may experience a period of turbulence as investors reassess their strategies in light of regulatory setbacks.

Ethereum’s second quarter outlook is marked by a delicate balance between historical performance patterns, regulatory uncertainties, and market dynamics. While past trends hint at potential gains, the pending decision on the spot Ethereum ETF introduces a level of unpredictability to the market.

Featured image from Gary Bendig/Unsplash, chart from TradingView

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The Bulls Are Back: Spot Bitcoin Inflows Surge With New Records

Bitcoin bulls look to be firmly back in the driver’s seat following weeks of seeing BTC suffer a bearish sentiment with its price dips. The current bullish outlook for the flagship crypto is evident in the fact that the Spot Bitcoin ETFs are again recording an impressive amount of inflows. 

Spot Bitcoin ETFs Record $243 Million In Inflows

Farside Investors revealed in an X (formerly Twitter) post that the Spot Bitcoin ETFs recorded $243 million in inflows on March 27. This record was primarily thanks to BlackRock’s iShares Bitcoin Trust (IBIT) and the ARK 21Shares’ Bitcoin ETF (ARKB), which saw individual inflows of $323.8 million and $200.7 million, respectively. 

These inflows were enough to overshadow the $299.8 million that Grayscale’s Bitcoin ETF GBTC recorded on the day. Meanwhile, this marks the third consecutive day that these Spot Bitcoin ETFs have recorded net inflows, having seen net outflows throughout last week. These funds recorded an inflow of $418 million and $15.4 million on March 26 and 25, respectively. 

This is undoubtedly a welcome development for the crypto community, considering that analysts at JPMorgan already predicted that the wave of profit-taking from the BTC ETFs could last until Halving. Therefore, seeing sustained inflows into these ETFs could mean that the sentiment among these ETF investors has changed. 

Irrespective of the current outlook for these ETFs, there is reason to be confident about their future trajectory and how much funds could still flow into the Bitcoin ecosystem. Matt Hougan, the Chief Investment Officer (CIO) at Bitwise, recently suggested that the demand for these Bitcoin ETFs is far from its peak. That means that these funds could still witness an astonishing amount of inflows.

BTC Still Primed For More Upside Move Before Halving

The current bullish sentiment towards BTC suggests that the flagship crypto move could see further moves to the upside before the Halving event in mid-April. Besides the Spot Bitcoin ETFs, which are back to recording net inflows, other fundamentals hint at a price surge for BTC soon enough. 

NewsBTC recently reported that the supply of BTC on centralized exchanges (CEX) has been declining lately, which means that the sell pressure for the crypto token has reduced significantly. With Bitcoin whales cooling off on selling, that leaves room for BTC to embark on an upward trend. 

At the time of writing, BTC is trading at around $70,300, up in the last 24 hours according to data from CoinMarketCap.

Bitcoin price chart from Tradingview.com

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Bitcoin Spot ETFs See 4 Consecutive Days Of Outflows, Here’s What Happened Last Time

Bitcoin Spot ETF outflows have ramped up this week and has seen the week characterized by price declines throughout the crypto space. These outflows, like before, are being led by the Grayscale Spot ETF as investors believe their fees are too high. This has led to four consecutive week of outflows, which is the second time it is happening since Spot ETFs were approved for trading. So, where does the Bitcoin price go from here?

Bitcoin Spot ETFs Hit 4 Consecutive Days Of Outflows

The outflows began on Monday and continued into subsequent days. So far, the highest single-day outflow happened on Tuesday, March 19, with total net flows for the day coming out to $326.2 million, a new record for Bitcoin funds.

Subsequent days have seen lower figures when it comes to overall net flows but they continue to come out in the negative. On Wednesday, net flows were $261.5 million, and on Thursday, March 22, net flows came out to $94 million. This marked the second time that the Spot Bitcoin ETFs are seeing four consecutive days of outflows this year.

The vast majority of these outflows, as mentioned above, are coming from the Grayscale Bitcoin ETF. In the last day alone, the fund saw outflows of 5,900 BTC, which translates to $339 million at current prices. Then, over the last week, Coinglass data shows that 28,207.5834 BTC has left the fund, causing its total BTC under management to fall by 7.35% in one week.

Other funds have also seen outflows during this time but to a much lower degree. For example, the Invesco Galaxy Bitcoin ETF saw the second-highest outflow of all the funds, but only 667 BTC flowed out of the fund in the last day. The WisdomTree Bitcoin Fund saw 10.8.2635 BTC in outflows, while all other outflow figures came in below 100 BTC.

What Happened To BTC The Last Time?

The last time that Spot Bitcoin ETFs saw four consecutive days of outflows was in January, lasting from January 22 to January 25. This also bears some similarities to the current outflow trend in some was, one of which was the outflows began at the start of the week and carried through to the end.

However, a difference between both times is that the ETFs had just begun trading with trading days fluctuating between inflows and outflows. Meanwhile, the current trend has come after almost two consecutive weeks of inflows, something that could have an impact on the BTC price going forward.

In January, after four days, the outflows had begun to slow down, and by Friday, there was a change in direction, with inflows beginning to dominate. Once the tide turned and ETF inflows began to rise, the BTC price followed sharply.

With the climb came a more established rally in the Bitcoin price, causing it to go from $40,000 to over $70,000 in the space of two months. If this trend repeats and inflows into Spot BTC ETFs outpace outflows, then the BTC price is expected to start climbing again. However, if the outflows continue, then the BTC price could be in for further crashes.

Bitcoin price chart from Tradingview.com

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What’s Next for Crypto?

The approval of Bitcoin ETFs in January was a catalyzing event for crypto, says Gregory Mall, head of investment solutions at AMINA bank. How will the upcoming halving affect markets going forward and which projects are likely to win out over the long-term?

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Crypto Fever: Bitcoin Smashes Records, Approaching $73,000 Milestone

Bitcoin has set a new record by surpassing $71,000, solidifying its status as the digital counterpart to gold and overtaking the market capitalization of silver.

Bitcoin A Tad Close To $73K

This achievement, occurring with remarkable frequency since early March, saw Bitcoin registering a new all-time high of $72,750 today, marking a 5% daily increase and an 12% gain over the past week. The cryptocurrency’s consistent climb underlines its relentless ascent in the financial world.

Amid the UK financial regulator’s announcement that it would permit the trading of cryptocurrency-backed securities, the price of Bitcoin surged to a new all-time high of nearly $73,000. The leading cryptocurrency erased its previous peak of nearly $69,000 set in November 2021.

On Monday, the Financial Conduct Authority disclosed that it would not raise any objections to investment exchanges establishing a market segment for cryptoasset-backed exchange traded notes [cETNs], a stock-like financial instrument, on the UK list.

This increase in value also occurs in the few months since the alpha crypto asset surpassed Tesla, Meta, and Berkshire Hathaway, solidifying its status as the eighth-largest asset in terms of market capitalization, which presently stands at a noteworthy $1.4 trillion. Although it is still in the shadow of industry titans such as Microsoft, Apple, and Amazon, Bitcoin’s rise has been nothing short of spectacular.

The FCA said it maintains its stance that cryptoassets are mainly unregulated and “high-risk investments.” and that Investors should anticipate the complete loss of their capital, the regulator said in a statement.

Neil Wilson, chief analyst at the brokerage Finalto, described the FCA’s action regarding the cryptocurrency market as “positive.” In reference to steep price increases, he further stated that “parabolic” market movements tended to conclude with a significant pullback, but “we can no longer be certain with bitcoin,” he pointed out.

Bitcoin ETF Frenzy: Record $2.7-B Weekly Inflows Propel Crypto Markets

The surge in US spot bitcoin ETF inflows remains a key driver of cryptocurrency price dynamics, as reported by CoinShares, with record-breaking weekly inflows of $2.7 billion and a year-to-date total of $10 billion, approaching the 2021 annual record of nearly $11 billion.

Simultaneously, increased leverage in the crypto market has resulted in the most significant price fluctuations in almost a year. Funding rates, reaching their highest levels since January 2021, and record-breaking bitcoin open interest contribute to the heightened volatility in the cryptocurrency space.

Meanwhile, a notable catalyst propelling this bullish upswing is the forthcoming halving of Bitcoin, which NiceHash estimates will take place in around 35 days. This occurrence, which has transpired on three separate occasions prior to this one, involves a decrease in the compensation provided to Bitcoin miners for the processing of newly added blocks on the network.

The incentive will decrease from 6.25 BTC to 2.125 BTC as a result of this fourth halving, further reducing the supply of new coins.

Comparable to the scarcity of gold, this scarcity-driven paradigm has long been regarded as a fundamental component of Bitcoin’s value trajectory. In the same way that the scarcity of gold serves as the foundation for its value, the halving of new Bitcoin supply events strengthens Bitcoin’s allure as a store of value in the digital era.

Featured image from Belle Co/Pexels, chart from TradingView

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Cloudy Future For Ethereum ETFs – What’s Casting Doubt On Their Fate?

The fervor surrounding the eagerly awaited Ethereum spot Exchange-Traded Fund (ETF) has hit a roadblock as regulatory silence between the US Securities and Exchange Commission (SEC) and asset managers raises doubts about the imminent approval.

Regulatory Riddles Surrounding Ethereum’s Fate

Despite the crypto market’s optimistic outlook for Ethereum’s spot ETF, the SEC’s noticeable lack of commentary has set off alarm bells. Eric Balchunas, Bloomberg’s senior ETF analyst, has flagged this radio silence as a “negative sign,” pointing out that the SEC had previously commented on Bitcoin spot ETFs.

The absence of dialogue is viewed as a factor diminishing the approval odds each passing day, contributing to an air of uncertainty within the cryptocurrency community.

Adding a layer of complexity is the SEC’s ambiguous stance on Ethereum’s status. SEC Chair Gary Gensler’s recent remarks on whether Ethereum should be considered a security or commodity have created a foggy landscape. This uncertainty becomes a pivotal factor as Ethereum’s potential spot ETF awaits regulatory approval.

Unique Position In The Crypto Ecosystem

Investors, eager for a diverse range of investment opportunities beyond Bitcoin, have turned their attention to Ethereum. The second-largest cryptocurrency’s appeal lies in its multifaceted use cases, unlike Bitcoin’s primary function as a store of value.

Ethereum’s versatility, particularly highlighted by its upcoming “Dencun” upgrade on March 13, promises to enhance transaction processing capacity, reduce costs, and foster a more dynamic ecosystem with varied applications.

The correlation dynamics between Ethereum spot and futures ETF are under scrutiny, with indications that it is weaker compared to Bitcoin. This divergence in correlation adds a layer of pessimism to the market sentiment, prompting investors to carefully navigate the uncertainties surrounding Ethereum’s regulatory approval.

Ethereum: Market Dynamics And Institutional Interest

As Ethereum gains momentum, institutional heavyweights like BlackRock and Grayscale have expressed interest in Ethereum spot ETFs, mirroring the trend seen with Bitcoin.

Investors, sensing a potential approval on the horizon, have begun shifting their focus from Bitcoin to Ethereum.

This shift is not only influenced by speculation but also by Ethereum’s fundamental strengths, including ongoing network upgrades and a vibrant decentralized finance (DeFi) ecosystem.

Contrary to earlier predictions, Standard Chartered’s foresight places Ethereum’s ETF approval by May 23. This timeline aligns with expectations that the SEC might follow a similar pattern to the drawn-out process witnessed with Bitcoin.

The research suggests a trajectory of cautious deliberation, leading to a probable green light.

Ether’s Market Surge And Altcoin Potential

In the midst of regulatory uncertainties and market speculations, Ethereum’s price has recently broken through the $4,000 mark, reflecting investor confidence.

This surge is supported by Ethereum’s robust fundamentals, ongoing upgrades, and its pivotal role as a bellwether for altcoin potential.

Ethereum’s price trajectory and market dominance are becoming increasingly intertwined with the broader cryptocurrency landscape, shaping the narrative of its imminent spot ETF approval.

Featured image from Pixabay, chart from TradingView

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Bitcoin Blasts Past $70,000 In Wild Week To Register New All-Time High

The price of bitcoin has shattered records by briefly surging past the $70,000 mark earlier today, signaling a renewed wave of enthusiasm among investors. The top cryptocurrency experienced a steady climb throughout the week with a sustained 12% rally, aided by the introduction of spot bitcoin exchange-traded funds (ETFs) in the United States.

At the time of writing, Bitcoin has settled within the $69K level, and trading at $69,436 with a 2% gain the last 24 hours, data from Coingecko shows. Bitcoin reached a peak of $70,171, surpassing its previous record set earlier in the week.

Notably, the upswing aligns with the opening of the US stock market, indicating a synchronization of significant crypto movements with traditional stock trading hours. This milestone comes as a result of growing market optimism and anticipation surrounding the upcoming halving event.

ETF Surge And Investor Sentiment

The recent introduction of Bitcoin ETFs by prominent financial institutions such as BlackRock and Fidelity has undoubtedly played a significant role in the latest price surge. These ETFs have garnered immense attention and investor interest, with a staggering inflow of $900 million recorded this week alone.

Despite the highly volatile market conditions, the successful launch and functioning of these ETFs have instilled confidence in crypto market enthusiasts, reinforcing their belief in the potential of bitcoin.

Bitcoin Halving Event And Supply Cap

Bitcoin’s upcoming halving event has been a major topic of discussion among cryptocurrency enthusiasts. This event, which occurs approximately every four years, involves cutting the reward for mining new blocks in half.

The purpose of this process is to gradually reduce the rate at which new bitcoins are generated, ultimately capping the total supply at 21 million, as outlined in the cryptocurrency’s original white paper. The anticipation surrounding the halving event has contributed to the positive sentiment and gradual ascent of bitcoin’s price.

Volatility And Market Corrections

While bitcoin’s recent surge to new heights is undoubtedly impressive, it is essential to acknowledge the inherent volatility of the cryptocurrency market. As Antoni Trenchev, co-founder of crypto exchange Nexo, aptly puts it, “Navigating old highs is notoriously tricky, and the bitcoin dam doesn’t tend to burst at the first time of asking.”

The recent sell-off in bitcoin, characterized by sudden price drops, is considered by Trenchev as a healthy and necessary correction before further gains can be achieved. This volatility is a defining characteristic of bitcoin bull markets, and investors should brace themselves for potential sudden fluctuations.

Bitcoin’s Impact On Traditional Markets

It is worth noting that bitcoin’s price movements are increasingly intertwined with traditional stock trading hours, particularly in the United States. The introduction of spot bitcoin ETFs has led to a convergence of crypto and stock market activities during regular trading hours.

This shift has significant implications for investors and traders, as it expands the opportunities for synchronized trading strategies and potentially increases market liquidity.

Looking Ahead

With bitcoin’s recent surge beyond $70,000, the cryptocurrency market is buzzing with anticipation. As the world’s first-ever digital currency continues to mirror optimism and gradually approaches new heights, investors and enthusiasts keep a close eye on the progress..

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Bitcoin Bulls On Alert: Top Analyst Anticipates A Big Spike In The Cards

Cryptocurrency enthusiasts are buzzing after renowned analyst Willy Woo ignited the community with a bullish prediction for Bitcoin (BTC). Woo, known for his past forecasting successes, suggests a monumental surge is on the horizon, fueled by a recent development – the long-awaited approval of spot Bitcoin ETFs.

These exchange-traded funds allow traditional investors to gain exposure to Bitcoin without the complexities of directly acquiring and holding the digital asset. Woo believes this will act as a dam breaking, unleashing a torrent of capital into the cryptocurrency.

Bitcoin: Arrival On Major Exchanges Forges Ties With Traditional Markets

The traditional markets hold a staggering $100 trillion, Woo stated on X (formerly Twitter), and with Bitcoin now listed on some of the world’s biggest exchanges, we’re witnessing a bridge being built between these two financial giants.

At the time of writing, Bitcoin was trading at $67,182, up 0.5% and 8.4% in the daily and weekly charts, data from Coingecko shows.

He draws parallels between the current scenario and the pivotal moment in 2010 when Bitcoin found its footing on the Mt. Gox exchange platform.

This initial exposure to global liquidity propelled the fledgling digital asset to a tenfold increase within five days, followed by a staggering 1,000x growth over the next two years.

Echoes Of The Past: Will History Repeat Itself?

Woo argues that the current situation presents a similar opportunity, albeit on a much grander scale. He highlights the recent all-time high of $69,000 for Bitcoin, followed by a period of stability that suggests resilience in the face of market corrections.

This, coupled with the positive sentiment in the crypto community, paints a picture ripe for a potential boom.

However, while the prospect of replicating Bitcoin’s astronomical rise in 2010 is undeniably alluring, it’s crucial to remember that past performance is not a guarantee of future results.

Technical analysis charts, currently indicating an overbought market, could be overwhelmed by the sheer volume of capital inflow predicted by Woo.

Yet, this scenario is not without its skeptics. Some analysts caution against overenthusiasm, pointing out that the technical indicators might still play a role in determining the price trajectory.

Featured image from Pexels, chart from TradingView