Cryptocurrency Breakdown: Bitcoin Hits $95K, Altcoins Shine
Bitcoin's exchange supply reaches a seven-year low, coinciding with a surge in demand for Bitcoin ETFs
Breaking down the latest crypto market trends, here's what you need to know:
Bitcoin Bull Run:
- BlackRock's IBIT ETF pumps $1 billion into Bitcoin, driving the cryptocurrency toward $95,500
- Exchanges are seeing a 7-year low in Bitcoin supply, reducing selling pressure
- The US JOLTS data indicates fewer job openings, signaling a potential Federal Reserve rate cut that could boost Bitcoin
- Fidelity Digital Assets views Bitcoin as "undervalued" despite the recent price rise
- Altcoins, such as Ethereum and Cardano, are outperforming Bitcoin, suggesting increased risk appetite
As institutional investors maintain their buying momentum, Bitcoin holds steadfast above the $95,000 level. The cryptocurrency market's total capitalization remains at a sturdy $3.1 trillion, with Bitcoin exhibiting resilience despite facing resistance near $95,500.
Bitcoin's Institutional Demand:
BlackRock's Bitcoin ETF (IBIT) recorded a massive $1 billion inflow on Monday, marking its second-largest daily inflow since its January 2024 launch. This surge in institutional interest helped offset redemptions from Fidelity and Ark Invest ETFs, resulting in aggregate deposits of $591 million.
As other market participants may follow suit, BlackRock's strong demand could potentially lead to increased Bitcoin positions in the coming days. Since April 22, IBIT has amassed over $4.5 billion in net inflows and now controls roughly 51% of the US spot Bitcoin ETF market with $54 billion in assets under management.
On-Chain Metrics:
Data from CryptoQuant shows that Bitcoin supply on centralized exchanges has declined to a 7-year low of approximately 2.492 million BTC. Over the past week, Coinglass data recorded about 56,164 BTC being withdrawn from exchanges, indicating investor accumulation and decreased selling pressure. The percentage of Bitcoin supply in profit has surpassed 85%, although experts caution that exceeding 90% could signal "historic euphoria" and potential correction.
Altcoins Show Strength:
While Bitcoin's price movement has slowed slightly, altcoins have begun to outshine the market leader. After a week of consolidation, major altcoins like Ethereum and Cardano broke above key resistance levels on Tuesday, each posting 2% gains, outpacing Bitcoin's 0.6% increase. This rotation of capital into altcoins indicates growing investor risk appetite in the cryptocurrency market.
Among the top 20 cryptocurrencies, Bitcoin Cash (BCH) experienced a 6% rally, possibly due to increased interest in privacy coins amid ongoing controversies surrounding Monero (XMR). Hyperliquid, a Real World Asset protocol, showed even stronger performance with an 18.4% gain, demonstrating rising demand for tokenized instruments.
Market Outlook:
With Bitcoin testing the $95,500 level, many analysts maintain positive outlooks. Matrixport suggests Bitcoin's upward momentum is strengthening and approaching the $106,000 resistance level, while Willy Woo believes Bitcoin's fundamentals have shifted to a bullish state.
A recent Coinness report reveals that 45.4% of South Korean investors expect Bitcoin to outperform gold in the next six months. Meanwhile, ARK Invest maintains its long-term forecast that Bitcoin's price could reach $2.4 million by 2030, driven by ETF growth and increasing institutional adoption.
In other news, Circle has received regulatory approval from Abu Dhabi's Financial Services Regulatory Authority to expand operations across the Middle East and Africa, advancing its strategy to promote stablecoin adoption in emerging markets. Additionally, decentralized exchange aggregator 1inch has launched its Fusion protocol on Solana, enabling MEV-protected token swaps for over one million Solana-based assets.
As Bitcoin inches closer to the $100,000 psychological barrier, investors keep a close eye on its potential breakout.
- BlackRock's IBIT ETF, with a recent inflow of $1 billion, has propelled Bitcoin towards $95,500, demonstrating institutional demand for cryptocurrencies.
- Notably, altcoins such as Ethereum and Cardano are outperforming Bitcoin, suggesting increased risk appetite in the cryptocurrency market.
- In the face of such altcoin strength, Bitcoin continues to hold steadfast above the $95,000 level, maintaining its resilience despite facing resistance.
- Furthermore, Matrixport predicts Bitcoin's upward momentum is strengthening and suggests it could soon approach the $106,000 resistance level.
- The total capitalization of the cryptocurrency market remains at a sturdy $3.1 trillion, emphasizing the growing interest and investment in cryptocurrencies like Bitcoin and Ethereum.
