Tuesday, 12 March 2024

Market Summary

Market Summary 12 March 2024

Bitcoin Price: US$72,078.10 (+4.53%)
Ethereum Price: US$ 4,064.80 (+4.80%)

Bitcoin soared to a record-breaking high of $71,415 on March 11, following a 2.62% increase in the 24 hours leading up to 08:05 am UTC, with its remarkable surge over the past week and month attributed to bullish momentum. This milestone coincided with Ether surpassing the $4,000 mark for the first time since December 2021, just 36 days before the eagerly awaited Bitcoin halving event set for April 20. Meanwhile, the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States has fueled institutional interest, with these ETFs amassing over 4% of the current Bitcoin supply, totalling $56.9 billion in on-chain holdings. Additionally, the London Stock Exchange’s decision to accept applications for Bitcoin and Ether crypto exchange-traded notes (ETNs) further validates the growing acceptance and regulation of digital assets. Meanwhile, MicroStrategy’s completion of an $800 million convertible note offering has been used to acquire an additional 12,000 BTC, bringing its total Bitcoin holdings to 205,000 BTC, highlighting the company’s continued bullish outlook on Bitcoin as a store of value and investment asset.

Two prominent figures in the cryptocurrency space, entrepreneur Balaji Srinivasan and author Robert Kiyosaki, have urged their followers to invest in Bitcoin, gold, and silver amidst concerns over the soaring national debt in the United States. Srinivasan argues that Bitcoin offers a solution to escape the consequences of unsustainable government spending and potential asset confiscation, particularly as U.S. national debt continues to rise to record levels of $34.5 trillion. He warns of the looming risk of asset seizures by the state, citing recent events like the freezing of Russian assets and the weaponisation of legal mechanisms against public figures. Similarly, Kiyosaki advises preparing for economic instability by investing in assets like Bitcoin, gold, and silver. Meanwhile, Bitwise, a crypto asset manager, reports that institutions representing trillions of dollars in assets are gearing up to invest in spot Bitcoin exchange-traded funds (ETFs) by mid-year, contributing to Bitcoin’s price surge since the ETFs’ inception in January. Bitfarms, a Canadian Bitcoin miner, has purchased over 51,000 additional ASIC miners amidst the ongoing bull market, aiming to expand its mining capacity despite challenges posed by the upcoming Bitcoin halving event in April.

Asset manager VanEck has announced a significant fee reduction for its Bitcoin Trust ETF, slashing all sponsor fees to zero for the first $1.5 billion of funds until March 31, 2025. This move reflects VanEck’s confidence in Bitcoin’s potential, with the ETF already boasting nearly $300 million in assets under management and a return of 87.7% since its inception two months ago. Meanwhile, the spot Bitcoin ETF market continues to flourish, with ten ETFs amassing a combined $55 billion in assets under management and $110 billion in total volume traded, prompting discussions about their potential impact on traditional investment sectors. Despite Bitcoin reaching new all-time highs, the number of new daily Bitcoin millionaire wallets remains relatively modest compared to previous bull runs, attributed in part to cautious investor behaviour amidst the launch of spot Bitcoin ETFs and the possibility of whales storing holdings with custodians rather than personal wallets. In the political sphere, former U.S. President Donald Trump hinted at a more positive stance on cryptocurrency if re-elected, contrasting with the Biden administration’s regulatory approach and potential openness to a U.S. central bank digital currency (CBDC).

The eagerly awaited Ethereum Dencun upgrade, scheduled for release on March 13, is generating significant anticipation due to its potential to revolutionise layer-2 scaling solutions. Comprising nine Ethereum Improvement Proposals (EIPs), the upgrade merges the Cancun and Deneb upgrades, focusing on enhancing transaction processing and network consensus. While it promises to bolster scalability, efficiency, and security, its immediate impact may not directly alleviate gas fees on the Ethereum mainnet. Nevertheless, Ethereum’s recent surge to $4,000, attributed in part to anticipation surrounding the upgrade, underscores its significance for the cryptocurrency ecosystem. In parallel, layer-2 blockchain network Arbitrum is poised to unlock $2.32 billion worth of vested tokens on March 16, sparking speculation about potential price fluctuations. Amidst these developments, Telegram co-founder Pavel Durov discusses the messaging service’s financial prospects, hinting at a possible IPO to capitalise on its growing user base and recent monetisation efforts, despite previous legal challenges and regulatory hurdles.

Source: https://cointelegraph.com

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