After a massive week for Bitcoin, the leading digital currency of the world is entering the weekend with a degree of uncertainty. Just within the last 24 hours, Bitcoin has traded as high as $73.426 and as low as $65.848 and with such a massive market cap, the decrease in valuation wiped approximately $140 billion off its market cap at most.
The NBX Visa credit card offers up to 4% cashback in Bitcoin.
Despite the setback, crypto enthusiasts all over the world experienced a joyful week, as Bitcoin broke its ATH several times, topping out above the $75.500 mark. The surge in Bitcoin price, starting Monday, caused a ripple effect that spread throughout the entire market, as the total market cap of crypto almost reached $2.8 trillion. Though the market is down and may continue downwards, the price action we have experienced leading up to the Bitcoin halving is unprecedented and sets a new standard for Bitcoin. Many analysts have pointed out that a correction is long overdue and healthy, even if Bitcoin continues to tumble downwards.
Much of the Bitcoin rally that began towards the end of October of last year is attributed to the fact that the spot Bitcoin ETFs were catching a lot of attention as it seemed more and more likely that they would be approved.
As for the downturn within the last 24 hours, pinpointing an exact reason is impossible to do. It is noteworthy that Blackrocks spot Bitcoin ETF, IBIT, set a new record in terms of volume yesterday as volume topped $3.9 billion. Despite the record volume, the total net inflow to the US-based spot ETFs was only $132,7 million yesterday according to Farside Investors, the lowest number since March 1st. Compared to the day before, March 13th, net inflows were $683,7 million, so the sudden drop in buy-side pressure into the ETFs is apparent. The inflow from Monday through Wednesday was $744,7 million on average and from March 1st up until Wednesday, the average net inflow was $481,4 million.
It will be exciting to see how the US market react after the opening bell rings this Friday. Most of the drop in Bitcoin`s price happened as the stock market was closed - so the question remains if investors sees this as an opportunity or not.
This text is intended to inform and is not an investment recommendation.
Best regards,
Adam Jakobsen.
NBX.
