Content:
Bitcoin Now, How and Where?
Personal Journey Update
Weekly Fact
Quote of the Week
Bitcoin ETFs Hit Historic $7.7B Trading Volume
Bitcoin ETFs in the U.S. have surged to a historic trading volume of $7.7 billion, marking a significant milestone in investor engagement.
Key Points:
Record-Breaking Volume:
U.S. Bitcoin ETFs achieved a record trading volume of $7.69 billion on February 28, doubling the previous high set on their launch day.
BlackRock Leads the Charge:
BlackRock’s iShares Bitcoin ETF (IBIT) contributed 43.5% of the total volume, with $3.35 billion in trades, twice its prior daily best.
Significant Contributions:
The Grayscale Bitcoin Trust (GBTC) and Fidelity Wise Origin Bitcoin Fund (FBTC) each doubled their previous records, with $1.86 billion and $1.44 billion in trades, respectively.
Broad Participation:
Nine new ETFs (excluding Grayscale’s) broke their past volume records within the first half of the trading day, reaching $5.8 billion by day's end.
Authentic Investor Interest:
Market makers confirmed that the surge in volume was driven by genuine investor interest rather than algorithmic trading.
Coinciding Market Movement:
The volume peak aligned with Bitcoin's value soaring over 10% to a two-year high of $64,000 before retracting slightly to trade above $62,000.
GBTC Outflows:
GBTC experienced its highest outflow in February, with $216.4 million leaving the fund on the same day, underscoring the dynamic nature of Bitcoin ETF investments amidst market fluctuations.
Personal Thoughts:
The ETFs are making it really easy to invest in Bitcoin.
We’ve seen so many traditional investors flock to get their hands on some. This for now is the main contributor to Bitcoin’s massive pump.
We have seen a slight pullback in price more recently but this is natural and healthy for Bitcoin’s continued trajectory past its all-time high.
One thing that we must also remember is Bitcoin’s halving event in April. This may have already been priced in, similar to what we saw with the anticipated ETFs.
So don’t be surprised if we see a slight drop during the event. Like with the ETFs though simple supply and demand mechanics will soon kick in shortly after.
This is when things get really crazy.
Bitcoin Pump Fueled by Institutional Accumulation
Bitcoin has surged past the $60,000 mark, reaching levels not seen since November 2021. Let’s look and see what exactly is driving this upward momentum.
Key Points:
Price Surge:
Bitcoin's price has surged to $60,512.68, marking an 18.7% increase in the last seven days, according to CoinGecko. This surge has propelled Bitcoin to levels last observed on November 20, 2021.
Liquidation:
The price gains led to over $120 million in liquidations, primarily from traders anticipating a price correction. Ethereum contracts also experienced significant liquidation, with over $50 million in short contracts being liquidated.
Institutional Accumulation:
Ben Caselin, CMO of crypto exchange VALR, attributes the price surge to institutional accumulation, driven by entities like BlackRock and MicroStrategy. He believes this could be just the beginning, especially considering the impending Halving event.
Global Impact:
Bitcoin's price surge has not only approached its previous all-time high of $69,000 but has also set new highs in countries like South Africa, Nigeria, and Japan, indicating concerns about the global economy.
Market Analysis:
Trader Rekt Capital suggests that deeper pullbacks in Bitcoin's price are unlikely at this stage, foreseeing a sustained rally leading up to the Halving event. Major resistances at $61,000 and $65,000 are seen as potential hurdles before new all-time highs.
ETF Impact:
The introduction of spot Bitcoin ETFs in the US is expected to stabilize price declines following the peak of the current cycle, similar to the effect seen after the launch of gold ETFs. However, analysts caution investors to assess various market metrics before making definitive investment decisions.
Bitcoin Price Could Reach $200K Post Halving Due to Huge Supply-Demand Imbalance
Bitwise Asset Management’s Chief Investment Officer, Matt Hougan, discussed the impact of spot Bitcoin ETFs on the cryptocurrency market and predicted significant price increases for Bitcoin post-halving in a recent CNBC interview.
Key Points:
Spot Bitcoin ETFs Driving Rally:
The recent surge in Bitcoin's price, reaching highs of $64,000, is largely attributed to the introduction of US-listed spot Bitcoin ETFs, described as an "IPO moment" for Bitcoin by Matt Hougan.
Diverse Demand:
Demand for Bitwise Bitcoin ETF and other spot Bitcoin ETFs spans retail investors, hedge funds, and independent financial advisors (RIAs), with anticipation of increased demand from major wirehouses in the future.
Supply-Demand Imbalance:
The significant rally in Bitcoin is fueled by a massive supply-demand imbalance created by spot Bitcoin ETFs, which purchased 30,000 Bitcoins in one week, surpassing the 3,000 Bitcoins produced by miners.
Revised Price Predictions:
Initial predictions of Bitcoin surpassing $80,000 in 2024 are now deemed conservative, with forecasts ranging from $100,000 to $200,000 or even higher, especially with the upcoming halving event in April further reducing new Bitcoin supply.
Market Expansion:
Hougan foresees long-term support for six to seven successful spot Bitcoin ETFs, with Bitwise aiming to introduce spot Ethereum ETFs by the end of the year, capitalizing on the success of spot Bitcoin ETFs.
Increasing Scarcity:
Bitwise CEO Hunter Horsely highlighted the increasing scarcity of Bitcoin, with approximately 1.35 million Bitcoins remaining to be mined over the next century, emphasizing the importance of persuading current holders to sell their holdings to meet new demand.
Forecast:
Bitfinex analysts offer a conservative forecast, predicting Bitcoin to reach between $100,000 and $120,000 by Q4 2024. They attribute this surge to the introduction of spot Bitcoin ETFs, which have brought in passive demand from investors perceiving Bitcoin as a store of value.
Personal Journey: My in and Outs
So I’ve finally got around to going through all of last year’s bank transactions.
After listening to The Making Money Podcast with Damien from the Damien Talks Money YouTube channel. I thought it was a good idea after hearing it from one of their guests, Financial Advisor Lisa Conway-Hughes.
She spoke of many great ways to get your money more prepared for the future. Ways to understand your actual ins and outs and where you can allocate your money more effectively so you can achieve your goals within the time period you have chosen.
For most, this goal is financial freedom or to at least give ourselves more time to do the things we enjoy most.
Going through a whole year's worth of transactions is a great way to understand what you can cut back on to free up more cash.
Cash to use to build up that emergency fund, or to increase your investments that will hopefully allow you to retire early.
Whatever your goals may be, no doubt you’ll need cash to achieve them. Your income is your greatest weapon. The most effective strategy is to try and increase that income either by some clever career changes or creating a side hustle.
While you work on those you must make sure the money you get from your current income is being used effectively.
It’s been a really fun task getting it all laid out in a colourful Excel spreadsheet. It makes it so much easier to see what you need to do differently. It’s also been a bit of an eye-opener, like seeing how much am spending on Pokemon Cards, I’d be lying if I said it didn’t make me recoil a little.
Now I have everything laid out I can start to move some numbers around to ensure my money is being put to good use.
Looking to see what subscription services I can cancel and putting time into finding better deals on various insurances.
Of course, I’ll still allocate a little towards Pokemon cards. The only difference now is I’ll know when to stop buying. I know exactly how much I can spend to ensure I still have enough funds to allocate towards more important things, things that will create a better future for myself and my family.
The idea is to then do the same next year, compare it with the year before and see how much my spending habits have improved and of course to see where I can improve them even more.
I have linked the podcast that explains this method and others that will help you get more financially prepared for the future. The link is at the top of the personal journey section of this Newsletter.
I have no affiliate to the podcast it’s just one I recommend as I get a lot out of it myself.
Weekly Fact
As of June 2022, more than 500 hours of video were uploaded to YouTube every minute.
This equates to approximately 30,000 hours of newly uploaded content per hour. The amount of content on YouTube has increased dramatically as consumer’s appetites for online video has grown. In fact, the number of video content hours uploaded every 60 seconds grew by around 40 percent between 2014 and 2020.
Quote of the Week
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