As a researcher with extensive experience in the cryptocurrency market, I find the recent developments in Bitcoin ETFs intriguing. The sudden surge of inflows into BlackRock’s IBIT, making it the largest crypto ETF, came as a surprise to many in the industry. While Bitcoin’s price remained relatively stable during this period, there was a noticeable shift in market sentiment.
As a crypto investor, I’ve been keeping a close eye on the Bitcoin ETF market lately. To my surprise, significant new investments have poured into BlackRock’s IBIT ETF, making it the largest crypto ETF in the game. According to SoSoValue, more than $103 million in daily net inflows were reported just Tuesday.
BlackRock’s IBIT Flips Grayscales GBTC ETF
Despite a rise in the purchase of most goods, Grayscale’s GBTC recorded another day with outflows amounting to $105 million. In contrast, Bitcoin ETFs collectively experienced net inflows of only $45 million on a daily basis, which is much lower than the $250 million recorded on Monday.
As a researcher, I’d put it this way: IBIT, BlackRock’s Bitcoin trust, surpassed GBTC, Grayscale’s Bitcoin trust, with a net asset value of $19.68 billion. Conversely, GBTC saw a decrease in assets and now trails behind with $19.65 billion. Notably, Grayscale has experienced significant outflows, resulting in a loss of approximately $18 billion since its inception in January.
Investors have deposited $16 billion in IBIT since the ETFs started trading in the US.
Ladies and Gentlemen!: The BlackRock Bitcoin ETF, represented by the ticker symbol $IBIT, has surpassed Grayscale’s Bitcoin Trust, signified by the ticker symbol $GBTC.
— HODL15Capital (@HODL15Capital) May 29, 2024
When Grayscale switched from the Bitcoin Trust, they owned around 620,000 Bitcoins. This represented about 3% of the entire Bitcoin supply then in existence. Yet, it’s widely speculated that their unwillingness to reduce their fee from 1.5%, which is significantly higher than the industry average of 0.2%, is the primary reason for the recent wave of investors leaving the company.
At the conversion on January 10, 2024, Grayscale possessed approximately 620,000 Bitcoins, representing over 3% of the total circulating supply. Despite this, they remained unwilling to reduce their fee from 1.5%, which was significantly higher than the 0.2% charged by other peers. This stance did not sit well with investors who withdrew over 330,000 Bitcoins as part of their dissatisfaction. The much-touted “differentiated” strategy seemed to falter in the face of these developments.
— HODL15Capital (@HODL15Capital) May 29, 2024
As a crypto investor, I’ve noticed that Bitcoin ETFs have seen impressive growth, bringing in a total of $13.73 billion in net inflows so far. Additionally, the value traded on these ETFs reached a significant figure of $1.6 billion.
Can Bitcoin Price Win The Battle To Breakout?
Last week’s SEC approval of Ethereum ETFs fueled a strong upward trend for Bitcoin, pushing its price to hit a roadblock at $72,000. However, the bitcoin market took a correction and dipped below the significant support level of $70,000. The price continues to decline gradually in search of new liquidity that could potentially trigger another bullish run.
As a crypto investor, I believe that the market may continue its downtrend until the Relative Strength Index (RSI) drops to around 53, signaling a return to the neutral zone. This could be the most likely scenario based on current market conditions.
Currently, Bitcoin is sitting above its 20-day Exponential Moving Average (EMA) on the daily chart, which lies at approximately $67,094. Should this support level hold, a potential rebound could ensue, pushing the price towards levels above $70,000.
If Bitcoin (BTC) manages to surpass its 20-day Exponential Moving Average (EMA) support, investors should be prepared for a more significant correction towards the next resistance at $66,000. The 50-day EMA acts as a barrier at $65,535, helping prevent potential declines to the $65,000 mark.
Although the market has shown optimism over the past fortnight, it’s important to remember that its unpredictable nature could lead to a significant drop in price, potentially reaching $60,000. The critical support levels from earlier in May at $56,500 remain relevant as potential anchors during this potential downturn.
As a researcher studying the trends of Bitcoin’s market price, I can tell you that for Bitcoin to hit new all-time highs around $80,000, it first needs to surmount the resistance level at $72,000.
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2024-05-29 17:08