Overview
The market capitalization of Bitcoin soared to $1 trillion on Feb. 14, driven by the high demand for the recently introduced spot Bitcoin exchange-traded funds. Recent data indicates that there has been a significant influx of over $500+ million into the ETFs. Bitcoin ETFs acquired a significantly larger amount of Bitcoin compared to the quantity generated by miners. The significant surge in Bitcoin has caused the Crypto Fear and Greed Index score to exceed 70, indicating a high level of greed in the market. In mid-November 2021, the index reached the extreme greed zone as Bitcoin soared to its all-time high of $69,000
Fundamental Updates
Let’s delve into the significant developments shaping the crypto market landscape:
- Fear & Greed Index Hits Record High Since Bitcoin’s 2021: The Fear & Greed Index for Bitcoin is currently at 72 out of 100, marking its highest score since Bitcoin reached $69,000 in November 2021. This index takes into account various factors such as market momentum, volatility, volume, and social media activity.
- Experienced traders understand the importance of timing their purchases based on market sentiment. They tend to be more inclined to buy when there is a sense of fear in the market, and exercise caution when greed is more prevalent. The index has consistently remained above 70, the threshold associated with excessive desire, since October of the previous year. The price dropped significantly after the approval of bitcoin ETFs in January, which ended up being a sell-the-news event.
- Starknet’s STRK Maybe Debut With $1B Market Cap: Scaling solution for layer 2 Starknet, with a strong emphasis on enhancing the efficiency of decentralised applications on Ethereum, is preparing to introduce its native token STRK on Feb. 20. This will be done through an airdrop or the free distribution of over 700 million tokens to approximately 1.2 million wallets.
- The pre-debut futures listed on decentralised Aevo suggest that the much-awaited token might make its debut with a market capitalization exceeding $1 billion, as price discovery takes place. The upcoming distribution of 728 million tokens accounts for approximately 7% of the overall supply. Therefore, the pre-listing price of $1.65 suggests a fully diluted market cap (FDV) exceeding $16 billion. FDV represents the estimated market capitalization once all the tokens in a project have been released into circulation.
Key Data Points
- Total market capitalization: The total market capitalization of the crypto market is currently around $2.049 trillion. This is a net $169 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 50.1%. This is 0.2% 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 15.9%. This is 3.14% up from last week.
Bitcoin Price Analysis:
Bitcoin has entered a new phase of its upward movement following its successful breakout above the $48,975 resistance level. The bears attempted to pull the price below the breakout level in an effort to trap the aggressive bulls. However, the buyers demonstrated strong purchasing activity at lower levels. The bulls may face a significant challenge around the $53,850 level. If the price reverses from the overhead resistance and drops below $48,975, it would indicate the possibility of a short-term peak. A break below this support level would imply that the bullish momentum is weakening. The Fear & Greed Index for Bitcoin is currently at 72 out of 100, marking its highest score since Bitcoin reached $69,000 in November 2021.
BTC Technical Indicator:
Macro Updates:
- Japan entered a recession in 2023 after a second straight quarter of economic contraction, surrendering its position as the world’s third-largest economy to Germany.
- U.S. CPI inflation exceeded expectations in January, delaying the collective prediction for interest-rate reductions in 2024. Markets forecast a decrease in June, and Federal Reserve rate hikes may resume.
- The core CPI, which excludes volatile food and energy components, climbed 0.4% last month to match December’s move and end a year of dropping inflation.
- Interest-rate futures showed a 10% likelihood that the Federal Open Market Committee will decrease its rate goal next month, down from over 80% a month.
- The monthly inflation readings will continue to have a significant impact on the markets, as the ongoing debate about the trajectory of inflation intensifies
Bitcoin returns were 17% for this week. The Alpha Blue Chip Focused Strategy returns were 9.37% during the same period (08 February -14 February). The Top Cap Digital Assets Strategy and Arbitrage Opportunities & Balanced Strategy returns were -2.58% and -4.08%, respectively.
Thanks for your support and trust.
