btc dominance
Evidence of Greater Traditional Finance Participation in Bitcoin – Blockchain News, Opinion, TV and Jobs
Published
6 months agoon
By
adminLast week, Bitcoin (BTC) closed at around $37,000, up by 5.9% compared to the previous week’s closing value of $35,000. The week showcased robust price action, witnessing BTC’s fluctuations with consecutive daily price increases from Monday to Friday. The highest trading price was observed on Thursday, nearly reaching $38,000. Following this peak, the price experienced a slight dip, stabilizing around $37,000 from Friday until the week’s end.
BTC dominance, measuring Bitcoin’s market capitalization against the total digital asset market, decreased for the second consecutive week, settling at approximately 52.3%. This represents a 0.7% reduction compared to the preceding week, emphasizing the ongoing dispersion of liquidity among more speculative assets—a characteristic of a phase where investors express confidence and trust in the market, engaging in riskier trades.
Trading activity has continued to surge, with the daily cumulative volume on centralized exchanges, calculated on a 7-day moving average, reaching $31.4 billion. This figure, the highest since the end of March, reaffirms that the recent uptrend is driven by robust trading activity.
A noteworthy aspect is the substantial involvement of traditional finance in the recent uptrend. For the first time, the BTC open interest on Chicago Mercantile Exchange (CME) exceeded 100,000 contracts, surpassing Binance and becoming the leading venue in terms of open interest for BTC. This strong presence of traditional finance investors is also evident in the narrowing discount of the Grayscale Bitcoin Trust (GBTC), currently at 10.3%, the lowest level recorded since August 2021.
The increased traditional finance activity associated with BTC underscores the confidence that market investors currently hold regarding a future BTC Spot ETF approval. It is important to note that the first final deadline for a decision from the SEC is scheduled for January 10, 2024, concerning the 21Shares BTC Spot filing. Most likely, the SEC will make a definitive decision—approval or denial—before this date, approving or denying all the filings, to avoid providing any issuer with a first-mover advantage. Furthermore, there is a continuous stream of filings for digital asset spot ETFs, with recent news revealing Blackrock’s submission for an ETH Spot ETF, following Grayscale’s decision to file for the conversion of the Ethereum Grayscale Trust (ETHE) into an ETH Spot ETF a few weeks ago.
The surge in price and trading activity, particularly through traditional finance channels, coupled with the consistent decrease in GBTC discount and the notable net inflow observed in ETPs with digital assets as underlying, suggests that market investors are placing their bets on an approval. Securing approval from the SEC would likely draw significant investments from traditional finance, ushering in a fresh influx of investors that could fortify and elevate digital assets to a more recognized asset class. Conversely, a rejection would probably trigger a short-term downturn, given the prevailing expectations favouring approval and the subsequent positioning of market participants heavily influenced by this anticipation.
Source link
You may like
Insight Into The Timing And Factors
Bitcoin About To ‘Blow Higher’ Despite This Week’s Pullback, According to Glassnode Co-Founders – Here’s Why
Azuro and Chiliz Working Together to Boost Adoption of Onchain Sport Prediction Markets – Blockchain News, Opinion, TV and Jobs
Robinhood Bleeds 164 Million Dogecoin
AIGOLD Goes Live, Introducing the First Gold Backed Crypto Project – Blockchain News, Opinion, TV and Jobs
Analyst Benjamin Cowen Warns Ethereum ‘Still Facing Headwinds,’ Says ETH Will Only Go Up if Bitcoin Does This
Insight Into The Timing And Factors
Bitcoin About To ‘Blow Higher’ Despite This Week’s Pullback, According to Glassnode Co-Founders – Here’s Why
Azuro and Chiliz Working Together to Boost Adoption of Onchain Sport Prediction Markets – Blockchain News, Opinion, TV and Jobs
Robinhood Bleeds 164 Million Dogecoin
AIGOLD Goes Live, Introducing the First Gold Backed Crypto Project – Blockchain News, Opinion, TV and Jobs
Analyst Benjamin Cowen Warns Ethereum ‘Still Facing Headwinds,’ Says ETH Will Only Go Up if Bitcoin Does This
Tron Price Prediction: TRX Outperforms Bitcoin, Can It Hit $0.132?
Ethereum-Based Altcoin Leads Real-World Assets Sector in Development Activity, According to Santiment
Here’s Why This Analyst Is Predicting A Rise To $360
Hackers With $182,000,000 Stolen From Poloniex Starts Moving Funds to Tornado Cash
Cardano Faces Make-Or-Break Price Level For Bullish Revival
A Premier Crypto Exchange Tailored for Seasoned Traders – Blockchain News, Opinion, TV and Jobs
Crypto Whale Withdraws $75.8 Million in USDC From Coinbase To Invest In Ethereum’s Biggest Presale – Blockchain News, Opinion, TV and Jobs
CFTC Chair Says ‘Another Cycle of Enforcement Actions’ Coming As Crypto Enters New Phase of Asset Appreciation
Spectral Labs Joins Hugging Face’s ESP Program to advance the Onchain x Open-Source AI Community – Blockchain News, Opinion, TV and Jobs
Bitcoin Dropped Below 2017 All-Time-High but Could Sellers be Getting Exhausted? – Blockchain News, Opinion, TV and Jobs
What does the Coinbase Premium Gap Tell us about Investor Activity? – Blockchain News, Opinion, TV and Jobs
BNM DAO Token Airdrop
NFT Sector Keeps Developing – Number of Unique Ethereum NFT Traders Surged 276% in 2022 – Blockchain News, Opinion, TV and Jobs
New Minting Services
Block News Media Live Stream
A String of 200 ‘Sleeping Bitcoins’ From 2010 Worth $4.27 Million Moved on Friday
SEC’s Chairman Gensler Takes Aggressive Stance on Tokens – Blockchain News, Opinion, TV and Jobs
Friends or Enemies? – Blockchain News, Opinion, TV and Jobs
Enjoy frictionless crypto purchases with Apple Pay and Google Pay | by Jim | @blockchain | Jun, 2022
Block News Media Live Stream
How Web3 can prevent Hollywood strikes
Block News Media Live Stream
XRP Explodes With 1,300% Surge In Trading Volume As crypto Exchanges Jump On Board
Block News Media Live Stream
Trending
- Altcoins2 years ago
Bitcoin Dropped Below 2017 All-Time-High but Could Sellers be Getting Exhausted? – Blockchain News, Opinion, TV and Jobs
- Binance2 years ago
What does the Coinbase Premium Gap Tell us about Investor Activity? – Blockchain News, Opinion, TV and Jobs
- Uncategorized2 years ago
BNM DAO Token Airdrop
- BTC1 year ago
NFT Sector Keeps Developing – Number of Unique Ethereum NFT Traders Surged 276% in 2022 – Blockchain News, Opinion, TV and Jobs
- Uncategorized3 years ago
New Minting Services
- Video2 years ago
Block News Media Live Stream
- Bitcoin miners2 years ago
A String of 200 ‘Sleeping Bitcoins’ From 2010 Worth $4.27 Million Moved on Friday
- Bitcoin1 year ago
SEC’s Chairman Gensler Takes Aggressive Stance on Tokens – Blockchain News, Opinion, TV and Jobs