As investors continue to digest yesterday’s higher-than-expected consumer price index report and its implications for interest rates and future risk assets, trading activity on Thursday remained calm and cryptocurrency market volatility decreased.
Bitcoin
Bitcoin remained in consolidation around $70,000, with the trading range for Thursday, as shown by terminal data, between $69,560 and $71,310. Neither bulls nor bears gained the upper hand. At the time of writing, the trading price of Bitcoin was $70,197, with a 1% increase in the past 24 hours.
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The altcoin market saw mixed movements. Bittensor (TAO) led the gains with a 15.3% increase after listing on Binance, followed by MANTRA (OM) with a 12.5% rise, Neo (NEO) with a 10.3% increase, Nervos Network (CKB) with a 13.7% decrease, Saga (SAGA) with a 13.6% decrease, and Uniswap (UNI) with an 11.5% decrease after receiving a Wells notice from the SEC yesterday.
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The US stock market rebounded driven by the technology sector, pushing the Nasdaq index higher. At the close, the Dow Jones Industrial Average was near flat, the S&P 500 index rose 0.74%, and the Nasdaq rose 1.68%.
ETF
Stable Flows
Over the past few weeks, the consolidation of Bitcoin prices has coincided with stable inflows into Bitcoin exchange-traded funds (ETFs), which had set records for inflows and trading volume in the first two months of trading.
In recent days, several US spot Bitcoin ETFs have seen net outflows, but overall, the total assets under management have continued to rise. Data from Dune Analytics shows that net flows for these ETFs have reached $12.5 billion since their launch, currently holding 839,000 Bitcoin, with a value of approximately $58.9 billion.
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As shown in the chart above, the inflows appear to be consolidating. According to some analysts, inflows may start to rise again soon due to some bullish developments. Jan van Eck, CEO of VanEck, stated that retail investors dominate the inflows into US spot Bitcoin ETFs, and significant investments from traditional financial (TradFi) participants are also underway.
Van Eck said in an interview at Paris Blockchain Week: “I’m surprised by the initial success of the ETF, but I don’t think it’s traditional investors yet. I still think 90% of the flows are retail, and there are some Bitcoin whales and other institutions that have allocated parts of their portfolios, but they are the group that already directly holds Bitcoin.”
Jan van Eck stated that so far, no US bank has formally approved or allowed their financial advisors to recommend Bitcoin, although next month, we may see some major institutional investments coming from banks and traditional companies. However, the landscape for Bitcoin ETFs is still in its early stages.
Van Eck also pointed out that the significant price increase in BTC in early April did not occur during US trading hours, indicating an increasing influence of the Asian market. For example, Hong Kong is about to launch a spot Bitcoin ETF product, which may further drive up demand.
BTC Bulls “Hesitant” around $71,000
Meanwhile, market observers have noted that despite the recent price rebound of BTC, funding rates remain at relatively low levels.
Philip Swift, co-founder of the statistical platform Look Into Bitcoin, summarized, “Since BTC surpassed $70,000, the Bitcoin funding rate finally looks healthy. Bitcoin needs this consolidation of volatility to shake out those trying to leverage long positions, which is an encouraging sign for the bulls.”
Daan Crypto Trades stated that traders are now “hesitant” to go long on BTC due to multiple rejections in the journey towards the all-time high. Analysts believe that “breaking and holding above $71,500 is very important, and if successful, a new all-time high should be just a matter of time.”
Keith Allen, co-founder of Material Indicators, stated on the X platform that the upcoming halving of block subsidies and the current Bitcoin price structure are the more important focus for the future. He said, “The bullish case for Bitcoin is built around a series of higher lows. The core of the bearish case is that the bulls have failed to validate the R/S flip at the trendline, $69,000, or the 21-day moving average. $69,000 is still the most critical level to watch.”
The Bitcoin halving is expected to occur between April 19 and 20. Currently, the total market capitalization of cryptocurrencies is $2.62 trillion, with Bitcoin’s market cap accounting for 53%.
Author: BitpushNews Mary Liu
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Tags:
2023 market trend
CPI
ETF
Halving
Bitcoin
Bull market
Spot Bitcoin ETF
Market trend
Inflation
Rate cut
Note: All articles from Bitpush represent the author’s viewpoint and do not constitute investment advice.
Original article link: https://www.bitpush.news/articles/6597085
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