Bitcoin

Bitcoin Could Test Record Highs Next Week in ETF Flows, Says Analyst; Coinbase appears in the update

Published

8 months ago

20 May, 2024

Bitcoin Could Test Record Highs Next Week in ETF Flows, Says Analyst; Coinbase appears in the update

Cryptocurrency prices rose on Friday, with bitcoin rising to near $67,000. Institutional investors poured hundreds of millions of dollars into spot bitcoin ETFs last week. This could push bitcoin towards its record highs as early as next week, an analyst said. Meanwhile, COIN shares rose after Coinbase received an upgrade and large price target increase from BofA.

More than 600 investment firms last week revealed significant holdings in spot bitcoin ETFs, CoinTelegraph reported Thursday. The list included major banks and hedge funds such as Morgan Stanley (IN), JPMorgan Chase (JPM), Wells Fargo (Wordfast) It is UBS (UBS). The group collectively owns $3.5 billion in bitcoin ETFs. Hedge fund Millennium Management is the largest investor, with $1.9 billion invested.

Millennium’s holdings include $844.2 million in the BlackRock iShares Bitcoin Trust (I BITE), $806.7 million in Fidelity Wise Origin Bitcoin Fund (FBTC) and $202 million from the Grayscale Bitcoin Trust (GBTC). The company also invested $45 million in the ARK 21Shares Bitcoin ETF (ARKB) and $44.7 million in the Bitwise Bitcoin ETF (BITB).

“Traditional institutions are here – and bitcoin ETFs are a key part of the story,” wrote Nathan McCauley, co-founder and CEO of Anchorage Digital, in a note to IBD. Anchorage Digital is a cryptocurrency infrastructure provider that offers investment and custody services to institutions.

“The recent 13F filings are a testament to the type of institutional participation that bitcoin ETFs promised to unlock. From hedge funds and endowments to governments and pension funds, traditional players are generating hundreds of millions of dollars in ETF inflows,” McCauley said.

More institutions are expected to participate in crypto markets as bitcoin liquidity increases, says McCauley.

Bitcoin ETF Entry Sequence

Meanwhile, spot bitcoin ETFs have seen inflows of $726.8 million so far this week, with four consecutive days of inflows through Thursday, according to UK-based Farside Investors.

FBTC led inflows in the period with US$245.1 million in the week, followed by ARKB with US$233.7 million. Since launching on January 11, total spot bitcoin ETF flows stood at $12.409 billion as of Thursday. IBIT has been the clear leader, with $15.596 billion in inflows. However, Grayscale has seen outflows of $17.65 billion since its conversion to a spot ETF, which reduced total inflows to $12.409 billion.

FXPro senior market analyst Alex Kuptsikevich believes the increase in flows and institutional demand could push bitcoin to test its record highs near $74,000 next week. CoinDesk reported Friday.

“If cryptocurrencies gain support from global risk appetite on Friday, bitcoin (price) could surpass $70,000 by the weekend,” Kuptsikevich wrote. “A test of the $71,000 to $74,000 highs area, in our opinion, could happen as early as the beginning of next week, triggering a new episode of FOMO (fear of missing out).”

Coinbase appears in the update

BofA Updated Friday Coin base (COIN) to low-performing neutral, The Fly reported. The current macroeconomic environment has been positive for crypto market capitalization gains and trading volume growth, the company wrote. Meanwhile, Coinbase has demonstrated expense discipline and benefited from higher operating leverage following major cost cuts in 2022. BofA expects the higher operating leverage to help maintain profitability. Coinbase’s increased revenue distribution should also reduce earnings volatility, the company added. BofA raised its price target from 110 to 217 – a level that Coinbase had surpassed in November.

COIN shares jumped 4.2% on Friday on the update. Shares are trading below their 10-week moving averages after falling steadily from a two-year high of 283.48 in late March. Still, Coinbase shares are up about 19.4% this year.

Crypto Price Action

Bitcoin traded around $66,900 on Friday after rising to $67,458, marking a gain of nearly 3% in the last 24 hours. On March 14, Bitcoin reached a new all-time high of $73,798. The cryptocurrency is off its previous peak of $68,990 set in November 2021. Bitcoin is up nearly 11% this week and is up nearly 59% in 2024.

Ethereum soared 5.1% in the last 24 hours on Friday, trading near $3,100. Ethereum is now a good distance away from its March 12 52-week high of $4,092, and well below its November 2021 peak above $4,800. On March 8, ETH surpassed the $4,000 level for the first time in 26 months. The number 2 crypto soared 35% in 2024.

About that, Microstrategy (MSTR), which holds about $13 billion worth of bitcoin, jumped another 10% on Friday. The software company’s shares are up more than 34.2% this week after Bloomberg Tuesday reports that MSTR shares will join the MSCI World Index at the end of the month. MSCI made the decision based on market value after a review of its indices. The change will take effect after the market closes on May 31.

MSTR shares have soared nearly 151% year to date.

You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison

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Bitcoin

Bitcoin (BTC), Stocks Bleed as China’s Surprise Rate Cut Signals Panic, Treasury Yield Curve Steepens

Published

6 months ago

25 July, 2024

AltcoinUpdates Staff

Bitcoin (BTC), Stocks Bleed as China’s Surprise Rate Cut Signals Panic, Treasury Yield Curve Steepens

Risk assets fell on Thursday as China’s second rate cut in a week raised concerns of instability in the world’s second-largest economy.

Bitcoin (BTC)the leading cryptocurrency by market cap, is down nearly 2% since midnight UTC to around $64,000 and ether (ETH) fell more than 5%, dragging the broader altcoin market lower. The CoinDesk 20 Index (CD20), a measure of the broader cryptocurrency market, lost 4.6% in 24 hours.

In equity markets, Germany’s DAX, France’s CAC and the euro zone’s Euro Stoxx 50 all fell more than 1.5%, and futures linked to the tech-heavy Nasdaq 100 were down slightly after the index’s 3% drop on Wednesday, according to the data source. Investing.com.

On Thursday morning, the People’s Bank of China (PBoC) announced a surprise, cut outside the schedule in its one-year medium-term lending rate to 2.3% from 2.5%, injecting 200 billion yuan ($27.5 billion) of liquidity into the market. That is the biggest reduction since 2020.

The movement, together with similar reductions in other lending rates earlier this week shows the urgency among policymakers to sustain growth after their recent third plenary offered little hope of a boost. Data released earlier this month showed China’s economy expanded 4.7% in the second quarter at an annualized pace, much weaker than the 5.1% estimated and slower than the 5.3% in the first quarter.

“Equity futures are flat after yesterday’s bloody session that shook sentiment across asset classes,” Ilan Solot, senior global strategist at Marex Solutions, said in a note shared with CoinDesk. “The PBoC’s decision to cut rates in a surprise move has only added to the sense of panic.” Marex Solutions, a division of global financial platform Marex, specializes in creating and distributing custom derivatives products and issuing structured products tied to cryptocurrencies.

Solot noted the continued “steepening of the US Treasury yield curve” as a threat to risk assets including cryptocurrencies, echoing CoinDesk Reports since the beginning of this month.

The yield curve steepens when the difference between longer-duration and shorter-duration bond yields widens. This month, the spread between 10-year and two-year Treasury yields widened by 20 basis points to -0.12 basis points (bps), mainly due to stickier 10-year yields.

“For me, the biggest concern is the shape of the US yield curve, which continues to steepen. The 2- and 10-year curve is not only -12 bps inverted, compared to -50 bps last month. The recent moves have been led by the rise in back-end [10y] yields and lower-than-expected decline in yields,” Solot said.

That’s a sign that markets expect the Fed to cut rates but see tighter inflation and expansionary fiscal policy as growing risks, Solot said.

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Bitcoin

How systematic approaches reduce investor risk

Published

6 months ago

25 July, 2024

AltcoinUpdates Staff

How systematic approaches reduce investor risk

Low liquidity, regulatory uncertainty and speculative behavior contribute to inefficiency in crypto markets. But systematic approaches, including momentum indices, can reduce risks for investors, says Gregory Mall, head of investment solutions at AMINA Bank.

July 24, 2024, 5:30 p.m.

Updated July 24, 2024, 5:35 p.m.

(Benjamin Cheng/Unsplash)

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Bitcoin

India to Release Crypto Policy Position by September After Consultations with Stakeholders: Report

Published

6 months ago

25 July, 2024

AltcoinUpdates Staff

“The policy position is how one consults with relevant stakeholders, so it’s to go out in public and say here’s a discussion paper, these are the issues and then stakeholders will give their views,” said Seth, who is the Secretary for Economic Affairs. “A cross-ministerial group is currently looking at a broader policy on cryptocurrencies. We hope to release the discussion paper before September.”

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Bitcoin

Bitcoin (BTC), Ether (ETH) slide as risk aversion spreads to crypto markets

Published

6 months ago

25 July, 2024

AltcoinUpdates Staff

Bitcoin (BTC), Ether (ETH) slide as risk aversion spreads to crypto markets

Ether, the second-largest token, fueled a slide in digital assets after a stock rout spread unease across global markets.

Ether fell about 6%, the most in three weeks, and was trading at $3,188 as of 6:45 a.m. Thursday in London. Market leader Bitcoin fell about 3% to $64,260.

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