Overview:
Bitcoin’s surged over 10% to reach a new high for 2024 at $64,000. The majority of this month’s 50% price increase is being credited to investors’ excitement about the upcoming supply halving event, which usually leads to significant upward price movement. The consistent inflows into the newly introduced spot Bitcoin exchange-traded funds (ETFs) are believed to have a significant impact on Bitcoin’s price movements. Bitcoin’s resilience is expected to boost sentiment in the cryptocurrency market, providing opportunities for certain alternative coins. With Bitcoin nearing its peak, there is a possibility of a pullback as some investors attempt to halt the upward trend.
Fundamental Updates:
Let’s delve into the significant developments shaping the crypto market landscape:
Record-breaking volume for Bitcoin ETFs:
BlackRock’s bitcoin ETF (IBIT) set a new volume record for the third day in a row, with more than 96 million shares – valued at around $3.3 billion, traded during the day, according to Nasdaq data. This amount is more than double Tuesday’s previous high of $1.35 billion, surpassing Monday’s record of $1.3 billion.
The ten spot BTC ETFs collectively generated $7.7 billion in trading volume, surpassing the previous record of $4.7 billion set on their first trading day on Jan. 11. Grayscale’s GBTC and Fidelity’s FBTC both exceeded the $1 billion milestone. The excitement in market activity occurred as bitcoin surged above $60,000 before U.S market hours for the first time since Nov. 2021, and reached as high as $64,000 before dropping 7% below $60,000. The biggest cryptocurrency in terms of market value surged by 44% in just one month.
Morgan Stanley considers spot Bitcoin ETFs:
Morgan Stanley, a major player on Wall Street, is currently conducting research to potentially include spot bitcoin ETF products on its brokerage platform, as reported by two individuals familiar with the situation. The firm has been considering providing spot bitcoin ETFs to clients following the approval by the Securities and Exchange Commission in January.
Despite the significant amount of money already poured into these products, the floodgates of investment may not fully open until bitcoin ETFs are available through major registered investment advisor (RIA) networks and broker-dealers platforms like Merrill Lynch, Morgan Stanley, Wells Fargo, and others.
Currently, there are 10 spot bitcoin ETFs available for trading in the U.S. Grayscale’s GBTC, BlackRock’s IBIT, and Fidelity’s FBTC have the highest amount of assets. It’s uncertain which options Morgan Stanley is considering for its clients.
Key Data Points
- Total market capitalization: The total market capitalization of the crypto market is currently around $2.431 trillion. This is a net $356 Billion change from last week.
- Bitcoin dominance: Bitcoin dominance, which tracks the percentage of the total market capitalization that is held by Bitcoin, is currently at around 50.50%. This is 3.2% up from last week.
- ETH dominance: ETH dominance, which tracks the percentage of the total market capitalization that is held by Ethereum, is currently at around 17.4%. This is 0.57% down from last week.
Bitcoin Price Analysis:
Bitcoin surged past the $60,000 overhead resistance following a period of consolidation in a narrow range over the past few days. It indicates that the market is still being dominated by buyers. If buyers manage to keep the price above $60,000, the BTC/USDT pair may gain momentum and rise towards $65,000, where the bears are anticipated to defend the all-time high area.
There are multiple levels of support on the lower end. If $60,000 is reached, it could signal the beginning of a small correction towards $56,500.
BTC Technical Indicator:
Macro Updates:
- Officials from the Federal Reserve stress that future interest rate cuts will be based on economic data. New York Fed President John Williams, Boston Fed President Susan Collins, and Atlanta Fed President Raphael Bostic underscore the importance of data in determining the pace of rate cuts.
- This new approach differs from past rate reduction cycles, showing a responsive reaction to changing economic conditions.
- The plan is careful and adaptable, striving for steady prices and full employment while managing possible economic uncertainties.
- The Fed’s dedication to adjusting monetary policy based on current economic data guarantees a measured reaction to inflation and economic well-being.
Bitcoin returns were 21% for this week. The Alpha Blue Chip Focused Strategy returns were 11% during the same period (22 February -29 February). The Top Cap Digital Assets Strategy and Arbitrage Opportunities & Balanced Strategy returns were -5.78% and -7.35%, respectively.
Thanks for your support and trust.
