Bitcoin

CoinShares Report: Crypto Funds See $28.5 Million Inflows, Bitcoin Takes the Lead

A substantial chunk of this influx, around $27 million, found its way into Bitcoin. This marks a significant shift from the previous three weeks during which Bitcoin had faced net outflows of approximately $144 million.

Published

9 months ago

August 15, 2023

Temitayo Olukoya

After a three-week period of relative stagnation, the cryptocurrency market is showing renewed signs of life with a surge in fund inflows, most of which are pouring into Bitcoin (BTC).

This resurgence in interest comes hot on the heels of the release of July’s inflation figures, which were pleasantly surprised by exceeding expectations, Investors King gathered.

Bitcoin Sees Inflows, Reversing Previous Trend
CoinShares, a leading digital asset tracking platform, published its weekly report on crypto fund flows, revealing a total of $28.5 million pouring into these funds in the past week.

Among other digital assets, Ethereum (ETH) and XRP also saw modest inflows, receiving $2.5 million and $0.5 million, respectively. Notably, XRP has now experienced sixteen consecutive weeks of inflows, witnessing a remarkable 127% growth in assets under management since the start of the year.

Market Sentiment Improves Post-Inflation Data
Experts at CoinShares attribute this improved market sentiment to recent US inflation data, which turned out to be slightly better than anticipated. This data point signifies that the possibility of a rate hike in September has diminished, contributing to a more favorable outlook for cryptocurrencies.

Federal Reserve’s Impact on Crypto Market
The decline of Bitcoin and other digital assets throughout the preceding year can be largely attributed to the aggressive rate hike strategy implemented by the Federal Reserve. The central bank took swift measures to curb soaring inflation, resulting in consistent downturns in the cryptocurrency market.

As the year progresses and the Consumer Price Index (CPI) retracts to a 3.2% year-over-year growth rate, indications suggest that the Federal Reserve’s rate hike campaign might have peaked. This development could indicate an opportune moment for investors to enter the market. According to the CME FedWatch Tool, market expectations indicate an 88% likelihood that the Federal Reserve will maintain interest rates at 5.25% during its upcoming September meeting.

ETF Enthusiasm Fuels Canadian and Swiss Inflows
The Bank of Canada, closely aligned with the Federal Reserve’s policies, is also anticipated to maintain a steady 5% interest rate until the year’s end. Notably, the majority of last week’s crypto inflows, amounting to $24 million, were directed towards Canada’s Purpose ETF, the world’s pioneering Bitcoin spot ETF.

Switzerland also witnessed substantial inflows, totaling $7.9 million. The excitement surrounding the potential approval of a US Bitcoin spot ETF began gaining momentum in June, stimulated by filings from major players like BlackRock and Fidelity. This excitement had a palpable impact on the cryptocurrency market, propelling Bitcoin above the $30,000 mark and resulting in consecutive weeks of substantial fund inflows amounting to $742 million.

Prospects of Bitcoin ETF Approval
Bloomberg’s ETF analysts currently assign a 65% likelihood of a Bitcoin spot ETF gaining approval in 2023, further bolstering expectations of positive market developments.

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Bitcoin

Bitcoin (BTC) Holds Steady Above $70,900 as Grayscale Bitcoin Trust (GBTC) Outflows Increase

Published

2 weeks ago

April 12, 2024

Samed Olukoya

bitcoin to Nigerian Naira - Investors King

Bitcoin (BTC) maintains its stronghold above $70,900 despite increasing outflows from the Grayscale Bitcoin Trust (GBTC).

As reported by CheckonChain, a total of $124.9 million flowed out of GBTC recently, contrasting with modest inflows into other investment vehicles like Fidelity’s FBTC and Bitwise’s BITB.

This trend has prompted speculation within the market regarding its impact on Bitcoin’s price dynamics.

While some believe that continued outflows from GBTC may exert selling pressure on BTC, driving down prices, others adopt a more cautious approach.

They argue that such outflows are expected from GBTC, given its relatively higher fee structure compared to alternative investment options.

Traders, however, seem to be pricing in a degree of stability for Bitcoin in the coming weeks, with optimistic forecasts on platforms like Polymarket.

According to predictions, there’s a 60% chance that BTC will reach $75,000 by the end of April, while the likelihood of it hitting $80,000 stands at 32%.

Despite the varying sentiments among market participants, Bitcoin’s resilience above the $70,900 mark underscores its status as a cornerstone asset in the crypto space.

Investors continue to monitor developments closely, navigating through the complex interplay of factors influencing Bitcoin’s price trajectory.

Bitcoin

Bitcoin Tests $66,000 Amidst Volatility Forecast

Published

1 month ago

March 22, 2024

Samed Olukoya

As Bitcoin surged to a $66,000 price level during Asian trading hours, cryptocurrency markets brace for heightened volatility, with market observers predicting turbulent times ahead.

The cryptocurrency’s price volatility has been a subject of much discussion, particularly in light of recent events.

Semir Gabeljic, Director of Capital Formation at Pythagoras Investments, who highlighted the ongoing volatility cited a recent drawdown of 10% fueled by spot Bitcoin ETF outflows from GBTC, totaling approximately $300 million on March 20.

Gabeljic emphasized that such drawdowns typically occur in the lead-up to Bitcoin halving events, signaling a potential for increased volatility in the near future.

Meanwhile, the CoinDesk 20 (CD20), which tracks the world’s most liquid digital assets, experienced a minor dip of 0.5%.

However, amidst this overall market movement, CoinDesk’s Digitization Index (DTZ) saw a notable uptick, led by protocols like Ethereum Name Service (ENS), which rose by 2.7% during Asia trading hours.

Singapore-based trading firm QCP Capital noted the current consolidation in the market, with Bitcoin and Ethereum trading within a relatively tight range.

They suggested that the market might see a pause in activity over the weekend following the volatility leading up to the previous weekend’s Federal Open Market Committee (FOMC) meeting.

Also, QCP Capital highlighted the continued outflows from the Grayscale Bitcoin Trust (GBTC), expecting a fourth consecutive day of BTC spot exchange-traded fund net outflows.

The firm also pointed out a widening discount on Grayscale’s Ethereum Trust (ETHE) and the market’s diminishing expectations for the approval of a spot Ethereum ETF.

With Bitcoin’s test of $66,000 and ongoing market dynamics, cryptocurrency investors and analysts remain vigilant, anticipating further fluctuations in the days to come.

Bitcoin

Binance CEO Forecasts Bitcoin Surge Beyond $80,000 on Institutional Inflows

Published

1 month ago

March 18, 2024

Samed Olukoya

Binance Chief Executive Officer Richard Teng has set his sights on Bitcoin surging beyond the $80,000 price level on the back of rising institutional investments into crypto-backed exchange-traded funds (ETFs).

Speaking at an event in Bangkok on Sunday, Teng highlighted the significant impact of the launch of Bitcoin ETFs in the United States earlier this year.

He noted that this development has attracted a considerable influx of institutional investors, propelling fresh funds into the cryptocurrency market.

Teng expressed confidence in Bitcoin’s upward trajectory, emphasizing that “we’re just getting started.”

Initially estimating Bitcoin to reach around $80,000 by the end of the year, Teng now believes that the cryptocurrency’s price will surpass this milestone.

He attributed this bullish outlook to a combination of decreasing supply and sustained demand within the market.

However, he cautioned that the rally wouldn’t be without its fluctuations, suggesting that the market’s ups and downs would ultimately benefit its overall health.

Bitcoin has already surged by an impressive 56% this year, reaching a record high of nearly $73,798 last week.

Despite concerns among some investors about a potential bubble, Teng remains optimistic about Bitcoin’s future trajectory.

Teng’s forecast comes in the wake of his appointment as CEO of Binance, succeeding co-founder Changpeng Zhao in November following the company’s $4.3 billion settlement with US authorities.

With relentless inflows into US spot Bitcoin ETFs since their approval in January, Teng expects further institutional adoption in the near term, with more endowments and family offices anticipated to increase their allocations into Bitcoin ETFs.