RISING BITCOIN ETF VOLUMES LINKED TO BTC’S SURGE TO $68K?

On Tuesday, Bitcoin nearly matched its highest price ever against the U.S. dollar, coming to within 1% of the record high set in November 2021.

Early trading on March 5 in Asia saw Bitcoin’s price hit $68,551, barely 0.7% below its record high of $69,044 set on November 10, 2021, as per CoinGecko data.

The cryptocurrency gained an additional 7% over the last day, though sell-off pressure brought it down to $67,000 as of the latest update.

A March 4 article by CryptoPotato highlighted that Bitcoin has also reached new highs in various other currencies, including the British Pound, Euro, Australian Dollar, Chinese Yuan, and Canadian Dollar.

Technical analysis expert Willy Woo remarked that the current market trend does not yet indicate a bull market.

Spike in Bitcoin ETF Volumes

Bitcoin’s recent 60% increase over the past month has been significantly influenced by the trading of spot ETFs, which have been aggressively accumulating the cryptocurrency and registering record daily trading volumes.

Since their introduction in mid-January, the new nine spot ETFs have seen over $7.5 billion in total BTC inflows, despite significant withdrawals from Grayscale’s GBTC fund after its conversion.

Eric Balchunas, an ETF analyst at Bloomberg, noted that March 4 marked the second-largest volume of trades for these ETFs, totaling about $5.5 billion.

Notably, BlackRock’s IBIT fund accounted for $2.4 billion of that volume and has surpassed $11 billion in assets under management, according to Balchunas.

Ki Young Ju, CEO of CryptoQuant, predicted a potential “sell-side liquidity crisis” in the market this year due to the influx into ETFs.

The ‘Macro Scope’ financial news outlet has reported that more ETF applications from significant investment companies are expected throughout the year.

“Expect to see more Bitcoin ETF filings by Wall Street companies for their investment funds in the near future,” they stated.

Bitcoin’s Performance and the Wider Crypto Market

The total market capitalization rose by 5.5% to $2.63 trillion, yet it’s still 15% below the peak, indicating altcoins are lagging as Bitcoin progresses.

Ethereum has climbed 4%, reaching $3,600 for the first time in two years, though it’s still 26% below its peak.

Meme cryptocurrencies DOGE and SHIB notably surged by 25% and 87%, respectively. Meanwhile, other altcoins experienced modest gains as they struggled to keep pace with Bitcoin’s growth.

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