- Bitcoin (BTC) Price Swings: Bitcoin experienced notable price fluctuations, rising from around $42,000 to nearly $44,000, then dropping back.
- Solana (SOL) Market Activity: Solana’s SOL also showed volatility, momentarily surpassing $100 before dropping to $94. Analysts offer varied predictions for its future price movements.
- Shiba Inu (SHIB) Token Burns: SHIB has significantly increased its burn rate, removing over 9 billion coins from circulation since January 1, 2024. This effort aims to reduce supply and potentially boost the asset’s value.
BTC’s Price Swings
The cryptocurrency market has experienced enhanced volatility in the past few days, with Bitcoin (BTC) hovering in a wide price range. It was trading at around $42,000 at the start of the week before soaring to almost $44,000 (per CoinGecko’s data) on January 31.
The subsequent drop to the current level of $42,100 could be attributed to the latest Federal Open Market Committee (FOMC) meeting, during which the US central bank kept interest rates unchanged at 5.25% to 5.5%.
Some experts believe the Fed would start pivoting on its anti-inflationary policy by decreasing the benchmark in the following months. The next FOMC meeting is scheduled for March, with Chairman Jerome Powell saying it is unlikely that the rate-cutting cycle would begin then.
The former White House official – Anthony Scaramucci – and Galaxy Digital’s CEO – Mike Novogratz – are among the prominent figures who think BTC could thrive once the Federal Reserve shifts its monetary regime.
Another factor that might positively impact the price of the primary cryptocurrency in the near future is the upcoming halving, which will slash the miners’ rewards in half. It causes a reduced supply growth that could prompt a rally for the asset (assuming the demand stays the same or rises). Those willing to learn more about the halving can take a look at our dedicated video below:
Where Is SOL Headed?
Solana’s SOL has also passed through severe turbulence as of late, with its value briefly surpassing the $100 mark but eventually slipping to $94.
The popular analyst using the X (Twitter) handle, Ali, described the current price zone as a major resistance level that could propel an increase toward $113 in the near future.
Prior to that, Bluntz argued that SOL has charted a specific trajectory called the “B wave triangle,” indicating a possible plunge to the “low 70s.” The analyst remained unfazed by the potential decline, viewing it as an excellent buying opportunity.
The second-largest meme coin has recently made the headlines thanks to its impressive burn rate spike. Over 9 billion tokens have been removed from circulation since the beginning of the year, with a notable increase on January 30.
The program aims to reduce the total circulating supply of SHIB, making it scarcer and potentially more valuable in time. Every time a transaction is made on the network, a certain percentage of the transaction fee is transferred to a null address, with the process including manual and automated burns.
Last week, the team behind Shiba Inu and the layer-2 blockchain solution Shibarium introduced “a transformative token burning mechanism” designed to automate the entire system.
BTC Rejected Off $64,000 As Crypto Market Suffers $600 Million Of Liquidations
The price of Bitcoin (BTC) experienced massive volatility on Wednesday, soaring to nearly $64,000 before sinking again to $60,500 within one hour.
Amid the chaos, crypto traders have experienced $638 million in liquidation over the past 24 hours, including $391 million of liquidations in the past 4 hours alone.
- According to Coinglass, about $55 million of liquidations in the last hour impacted a consortium of little-known altcoins, while $96 million was liquidated on BTC trades directly.
- Meanwhile, ETH traders suffered $45 million of liquidations, and DOGE traders lost $29 million.
- In the past 24 hours, a massive 168,988 traders were liquidated. The largest single liquidation occurred on OKX on a BTC-USDT trade for $9.45 million.
- The price of BTC is $61,400 at writing time, up 21% within the past five days alone.
- Many credit the asset’s recent surge to the launch of several bitcoin ETFs last month.
- BlackRock’s Bitcoin ETF – the largest of all newcomers – now holds over $8 billion in BTC, and absorbed a record $520 million of flows on Tuesday.
BlackRock Bitcoin ETF Smashes Daily Inflow Record, Ranks 2nd In United States
BlackRock’s Bitcoin (BTC) ETF has cracked a new daily inflow record, helping push Bitcoin’s above $60,000 for the first time since November 2021.
The iShares Bitcoin Trust (IBIT) absorbed another $520 million on Tuesday, bringing the fund’s total flows since launch above $6.5 billion. Furthermore, thanks to Bitcoin’s rising price during that period, the value of the firm’s Bitcoin stash has appreciated to over $8 billion.
BlackRock Breaking Record
By comparison, Fidelity’s Bitcoin ETF now holds $5.6 billion in BTC, but absorbed a much smaller $126 million flow on Tuesday.
Meanwhile, Grayscale – IBIT’s largest competitor – suffered another $125 million of outflows. Though Grayscale still bears a significant lead in total assets at $25 billion, BlackRock’s ETF is slowly gaining ground against the incumbent fund due to its much lower management fee.
According to Bloomberg ETF analyst Eric Balchunas, BlackRock’s stellar inflow figure made it the number two ETF for inflows in the United States yesterday, only behind BlackRock’s iShares Core S&P 500 ETF (IVV).
“This means a good portion of that massive volume was new buying vs arb/algo,” Balchunas wrote to X on Tuesday.
The analyst also noted that individual trades for IBIT’s ETF surpassed those of both the SPY and QQQ. This suggests that a large component of buyers trading the ETFs are retail-based – an unexpected finding given the ETF’s popularity as an institutional trading ground.
Bitcoin ETFs And Surging Price
The price of Bitcoin has skyrocketed by over 25% in the past five days, now trading at over $63,000 at writing time. Many analysts credit its success to the launch of Bitcoin spot ETFs, which have collectively absorbed over $6.7 billion of flows since going live on January 11.
After 30 days, BlackRock and Fidelity’s Bitcoin funds had already broken records as the two most successful ETF launches in history based on flows. BlackRock also tapped a new daily high for trading volume on Monday, surpassing $1.3 billion and entering into the top 11 ETFs in the country by volume.
Bitcoin now approaches its all-time high of $69,000 USD, though, in some currency denominations, it has already broken its prior records. For instance, one BTC is now worth over 95,000 Australian dollars, compared to $87,000 at its peak in November 2021.
3 Catalysts That Suggest More Gains for Bitcoin After Price Broke $60K
Bitcoin surged above $61,000 on Wednesday, marking its highest level since November 2021. The rally seems fueled by significant inflows into US-based spot Bitcoin ETFs.
With bullish momentum building, all eyes are on the leading crypto asset’s trajectory, and data suggest that it might be able to break its previously established all-time high of $69,045.
MVRV Ratio Signals Buying Opportunity
The MVRV Ratio, derived from dividing an asset’s market capitalization by its realized capitalization, serves as a pivotal metric in cryptocurrency trading. When below 1, it indicates most holders are at a loss, signaling a potential buying opportunity.
On the other hand, a rising ratio suggests increased profit-taking, potentially leading to selling pressure and market corrections.
Historically, an MVRV Ratio nearing 4 signaled market tops, though this threshold has decreased in each cycle. According to Intotheblock’s latest observation, the value stands at 2.22, essentially hinting at a bullish market that is not yet excessively overheated.
Subdued Retail Crowd
Despite Bitcoin’s remarkable price movement, current data suggests an absence of retail investors. While there has been a rise in the number of new addresses, Intotheblock said it is likely attributed to active market participants engaging with Ordinals.
However, new addresses have since declined and remain relatively consistent. The same pattern is observed with active addresses. Both Google trends and app store data show no significant surge in retail interest yet.
On-chain volume is gradually increasing, reminiscent of the early phases of the 2021 bull market, but it has not reached the frenzy levels seen during the peak.
This implies that institutional investors might be driving this phase, with attention focused on ETFs as potential accumulators.
Despite Bitcoin’s incredible price movement, current data indicates a quiet retail front💤
➖While there was a boost in new addresses, this was likely related to active market participants engaging with Ordinals. New addresses have dropped since and remain relatively stable. The… pic.twitter.com/uS1Gxd3Rg2
— IntoTheBlock (@intotheblock) February 28, 2024
Meanwhile, those monitoring altcoins are speculating on whether renewed retail interest will shift Bitcoin’s upward trend towards broader market movements. However, the upcoming halving could change this dynamic and push the crypto asset to a new peak.
Bitcoin Halving: A Major Catalyst
The analysis from ITB suggests that the upcoming Bitcoin halving in April typically triggers a surge in price according to historical patterns. However, in the current cycle, the price rally has occurred earlier than anticipated.
This deviation may imply that investors are aware of the potential impact of the halving and are adjusting their investments accordingly ahead of time. In short, these market players are anticipating and acting upon the expected price movement associated with the halving event well before it actually takes place.
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