CNA Weekly Roundup 19.01.24
Bitcoins ETF Volume Surges to New Heights
Bitcoin ETF makes a splash with whopping eight-figure trading volumes in just three days!
Hold onto your hats, the latest Bitcoin ETFs have taken the market by storm, clocking in a jaw-dropping US $10 billion (AUD $15 billion) in volume in the first three days of trading since their debut on January 11.
According to data wizard James Seyffart from Bloomberg Intelligence, spot ETF volumes soared past the $10 billion mark by January 16. It’s like Bitcoin ETFs entered the trading scene with a bang, leaving everyone in awe. James goes on to mention “how insane $10b in volume is in the first 3 days. There were 500 ETFs launched in 2023. Today, they did a Combined $450m in volume. The best one did $45m.”
Hold on, why is the Grayscale Bitcoin Trust (GBTC) experiencing net outflows of over $1.1 billion? Well, some savvy investors are playing musical chairs between ETF products, probably because of those slightly higher fees.
Bullish surge unfolded as anticipation mounted for the BTC Spot ETF, but the classic “buy the rumour, sell the news” phenomenon ensued, leading to a cooling off in the market fervour. Investors are poised for the upcoming halving period, anticipated to act as the catalyst for the next surge with price targets set at $148,000 USD per Bitcoin. This event is expected to attract a fresh wave of enthusiastic investors, igniting a new wave of excitement and potentially triggering another mini bull run.
IMF Has Warned You About Crypto!
“Our view is that we have to differentiate between money and assets. When we talk about crypto, we are actually talking about an asset class. It could be backed up and in that sense, more secure and less risky, or it could be not backed up and, therefore, a riskier investment. But it is not exactly money. It’s more like a money management fund,” IMF managing director Kristalina Georgieva told Yahoo Finance Live.
This tidbit from Georgieva dropped right before the US Securities and Exchange Commission (SEC) gave the green light to spot Bitcoin ETFs. And guess what? The big shots in finance (Fidelity and BlackRock), wasted no time launching these ETFs. It’s like they handed investors a golden ticket to the crypto wonderland without needing a map for direct ownership.
Georgieva argues that BTC and other cryptocurrencies don’t quite make the cut as “real money”; instead, they’re seen more as investment vehicles. However, she isn’t entirely closing the door on digital assets, emphasising the significance of diversification.
Bitcoin Experiences Inaugural Weekly ‘Golden Cross,’ Seen as Bullish Sign by Some.
The 50-day Simple Moving Average (SMA) and the 200-day SMA are commonly used technical indicators in trading and investment analysis by summing up the closing prices of an asset over the past 50 days and then dividing the total by 50. It provides a smoothed average of the price data over a shorter time frame, the same thing plays out for the 200-day SMA.
The relationship between these two moving averages is significant. When the 50-day SMA crosses above the 200-day SMA then market enthusiasts call it a “golden cross,” indicating a positive shift in asset prices.
The marker has finally appeared on the bitcoin weekly price chart, signalling a potential bullish trend.
Presently, Bitcoin (BTC) is facing selling pressure, leading to a decline in short-term prices. However, zooming out to the weekly timeframe reveals a more optimistic picture, as a golden cross has emerged. This golden cross, occurring on the larger scale of the weekly chart, is a positive signal for long-term trends, suggesting a bullish outlook for Bitcoin investors in the overall market landscape.