Bitcoin hits new high above $72,000 – Forbes Advisor India

Bitcoin or BTC – the world's largest cryptocurrency was hovering around the $70,000 level on March 12th. BTC soared past its all-time high, setting a new record of $72,738, giving it a market capitalization of approximately $1.41 trillion.

Cryptocurrency fear and greed index is in the zone of extreme greed. Bitcoin price has soared to $72,738, setting a new all-time high and surpassing its previous peak. Bitcoin recently hit $72,000, even before the much-anticipated Bitcoin halving event, which is expected to take the cryptocurrency to unprecedented heights.

Bitcoin price reaches two-year high, setting new record of $72,000

Bitcoin price has hit a new all-time high of $72,738 for the first time in two years, with the rally being driven by increased interest in spot Bitcoin ETFs. Since the Securities and Exchange Commission approved the ETF at the beginning of the year, it has soared to an impressive $6.7 billion, according to data from Pharside Investors. On average, these Bitcoin ETFs attract approximately $332 million in daily inflows.

Over the past few months, this surge has been driven by institutional allocation, as well as increased retail participation due to spot filings for Bitcoin ETFs in the US and, of course, the upcoming Bitcoin halving. Meanwhile, this surge has coexisted with a broader rally in the crypto market. ETH also reached the $4,035 level.

Parth Chaturvedi, Head of Investments at CoinSwitch Ventures, said it is important to track these flows as increased demand due to upcoming supply reduction (due to the fourth halving) could lead to higher prices. says it should be a strong indicator of future price trends.

However, individual participation is still far from the frenzy seen in 2021. “We expect interest in cryptocurrencies as an asset class to become more mainstream,” Chaturvedi said.

How will the $678 million inflow into the Bitcoin ETF affect the price of Bitcoin?

Last month was a great performance for Bitcoin ETFs, with approximately $678 million in inflows by the end of the month. This massive inflow comes as BlackRock iShares – ETF alone witnessed inflows of $520 million.

According to BitMEX research data, the BlackRock iShare ETF is currently leading spot Bitcoin ETF inflows, with approximately $678 million in net inflows through the end of February, with the BlackRock iShare ETF alone There was an inflow of approximately $520 million. All nine Spot Bitcoin ETFs received huge trading volumes, which happened to be the third largest inflow leading up to the launch. Net inflows into the ETF amounted to over $6.5 billion, and asset holdings remained at over 141,000 BTC. Fidelity Bitcoin ETF had net inflows of $126 million and Ark21 Shares had net inflows of $5.4 million. Other spot ETFs have also seen solid inflows, indicating strong bullish sentiment among both institutional and retail investors.

Meanwhile, Grayscale's GBTC witnessed outflows of $125.6 million, up from outflows of $22.4 million, dashing hopes for standard migration.

After witnessing an unusual price spike on March 11, 2024, BTC reached the $72,000 level, breaking the all-time high before the Bitcoin halving. Since then, the Spot Bitcoin ETF has experienced a significant decline, with total net flows going from $678.67 million on February 29 to $332.8 million on March 7, 2024, as reported by The Block. It decreased to $10,000.

As BTC continues to hit new all-time highs, investments by major institutional investors such as BlackRock and MicroStrategy appear to be paying off.

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Business intelligence company MicroStrategy has significantly expanded its digital asset portfolio, outpacing BlackRock. BlackRock currently holds 197,943 BTC, while MicroStrategy has accumulated 205,000 BTC worth approximately $821.7 million.

FCA – Cryptocurrency Exchange Trading Notes for Professional Investors

On Monday, the UK's financial watchdog announced it would allow recognized investment exchanges to issue crypto-backed exchange traded notes (cETNs), making it the latest regulator to pave the way for digital assets. Become.

The Financial Conduct Authority (FCA) has stipulated that these products are only available to professional investors such as credit institutions and investment companies authorized to operate in the financial markets. But the FCA warned that cETNs, which are bonds issued by financial institutions that track the performance of the underlying assets, could harm retail investors.

The FCA said exchanges must continue to ensure sufficient controls to enable professional investors to trade in an orderly and well-protected manner. cETNs must meet all the conditions of the UK listing regime, including continuous disclosure and a prospectus. The FCA considers cETN and virtual currency derivatives to be harmful and therefore inappropriate for retail consumers.

As a result, the prohibition on the sale of cETNs to retail consumers remains in place. The FCA continues to remind investors that digital assets are risky and largely unregulated.

BTC hits $72,000 – is this a sign of a bull market or bull trap?

Investors should be wary of the sharp rise in Bitcoin prices and the new all-time high of $72,738, the first in two years, as a sign of a bull market or bull trap. Bitcoin has been trading very well, with some traders believing this to be a bullish trap and some taking an optimistic approach to Bitcoin's rally.

The virtual currency market is in great shape, but investors should be careful as a sudden spike could be a bull trap. There are many reasons why BTC has skyrocketed to new all-time highs. Reasons include Spot Bitcoin ETF, Bitcoin Halving, ETH Dencun upgrade, etc.

The last time BTC price exceeded $57,000 was in 2021, when the price peaked and was beginning a reversal into a prolonged bear market. By the beginning of 2022, the price had fallen to $32,987, a drop of almost 42%. The current market is showing similar trends and could become a bull trap. Forbes Advisor India advises investors to be cautious when trading BTC.

conclusion

Excessive excitement surrounding the US approval of a Bitcoin futures ETF has spread optimism across the crypto industry. This opened the door wide open for investors to jump on the Bitcoin bandwagon, driving up the price and demand.

This is a good opportunity to take advantage of the Bitcoin surge caused by the Bitcoin halving event and the ETH Dencun upgrade, but it should be done with extreme caution. As we all know, the cryptocurrency market is highly unpredictable, and the fact that BTC price has fallen by more than a third in value reflecting past price fluctuations means that BTC is highly volatile. History has proven that. The current rally may just be a bull-trap of conceit, but who knows?