- Bitcoin price has broken the range, shattering the $54,000 milestone for the first time since December 2021.
- Amid Spot BTC ETF euphoria, BTC could climb 10% to $55,000.
- The bullish thesis will be invalidated if the price loses the $54,000 threshold.
Bitcoin (BTC) price neared the $55,000 milestone on Thursday, following reports that trading volumes for the recently approved spot BTC exchange-traded funds (ETFs) had reached their peak trading volumes, totaling $3.24 billion.
Also Read: Week Ahead: Bitcoin threatens a drop, altcoins in shambles
Market Mover 1: BlackRock Bitcoin ETF surpasses $1 billion
Bitcoin price approached the $55,000 threshold on Thursday, almost nicking it after three long years as the level was last tested on December 3, 2021.
The move saw almost $100 million in short positions liquidated, alongside, nearly $12 million in long positions.
BTC liquidations
It comes on the back of news that BlackRock spot Bitcoin exchange-traded fund (ETF) the IBIT, has traded well over $1 billion on Thursday, February 26.
JUST IN: BlackRock’s #Bitcoin ETF just broke $1 Billion in trading volume for the day!
@EricBalchunas pic.twitter.com/ymg0iFvgD8
— Bitcoin Archive (@BTC_Archive) February 26, 2024
ETF specialist with Bloomberg Intelligence Eric Balchunas acknowledged that the nine Bitcoin ETFs have broken all-time volume records, with $2.4 billion, just above the January 11 postings when the investment products started trading.
BlackRock’s IBIT accounts for over $1.3 billion, according to Balchunas, articulating that with this, the product has broken its record by about 30%.
It’s official..the New Nine Bitcoin ETFs have broken all time volume record today with $2.4b, just barely beating Day One but about double their recent daily average. $IBIT went wild accounting for $1.3b of it, breaking its record by about 30%. pic.twitter.com/MiCs1rzttM
— Eric Balchunas (@EricBalchunas) February 26, 2024
Grayscale is first runner’s up with $843.6 million for its GBTC, followed by Fidelity’s FBTC and Ark Invest’s ARKB in the third and fourth positions recording $587.3 million and $265.6 million respectively.
JUST IN: Total spot #Bitcoin ETF trading volume surpasses $3.24 billion today:
• BlackRock: $1,318,226,580
• Grayscale: $843,654,199
• Fidelity: $587,327,032
• Ark Invest: $265,647,305
• Bitwise: $83,248,930
• Invesco: $60,072,480
• WisdomTree: $37,426,253
• VanEck:…— Watcher.Guru (@WatcherGuru) February 26, 2024
Hashdex BTC futures ETF, the DEFI, is tailing with $217.0 million
Some attribute the surge to the fear of missing out (FOMO), instigated by recent declarations by MicroStrategy CEO Michael Saylor that the firm had increased its BTC portfolio by 3,000 tokens worth $155 million.
Market Mover 2: MicroStrategy buys 3,000 Bitcoin just 52 days before BTC halving
Fifty-two days to the halving, business intelligence firm MicroStrategy has added 3,000 BTC tokens worth $155 million to its portfolio, according to an announcement by the company’s CEO Michael Saylor on social media platform X. The average purchase price per token in the latest investment is $51,813.
On-chain tool Lookonchain has corroborated the revelation, indicating that with MicroStrategy’s BTC portfolio growing to 193,000, the portfolio is now valued at $9.9 billion, with an average purchase price of $31,544. MicroStrategy already has over $3.8 billion in unrealized profit at the current price
As of February 21, MicroStrategy boasted a stark 190,000 BTC tokens in its portfolio, which brought its market capitalization to around $12 billion. With the latest move, the firm is even closer to the S&P 500 list than it was then with Nasdaq showing a market cap of $13.4 billion as of 16:00 GMT.
Find out the threshold for listing on the S&P 500, the list of America’s largest 500 publicly traded firms, here.
Notably, the development comes hours after MicroStrategy’s X account was hacked, leading to approximately $440,000 in losses from unsuspecting users. Specifically, it happened that the bad actors posted a phishing message on the firm’s X account, touting “$MSTR tokens” up for grabs.
0xe7645b8672b28a17dd0d650a5bf89539c9aa28da
~$440K stolen from the compromise so far
— ZachXBT (@zachxbt) February 26, 2024
On-chain detective ZachXBT confirmed the attack, where users following the malicious link to claim the “$MSTR token” were instead redirected to a fake MicroStrategy website. Here, they received a prompt to link their crypto wallets and grant permissions. MicroStrategy has since taken back control of their X account and has taken down the fake message. One of the victims lost approximately $420,000 in different tokens, Etherscan data shows.
Crypto ETF FAQs
An Exchange-Traded Fund (ETF) is an investment vehicle or an index that tracks the price of an underlying asset. ETFs can not only track a single asset, but a group of assets and sectors. For example, a Bitcoin ETF tracks Bitcoin’s price. ETF is a tool used by investors to gain exposure to a certain asset.
Yes. The first Bitcoin futures ETF in the US was approved by the US Securities & Exchange Commission in October 2021. A total of seven Bitcoin futures ETFs have been approved, with more than 20 still waiting for the regulator’s permission. The SEC says that the cryptocurrency industry is new and subject to manipulation, which is why it has been delaying crypto-related futures ETFs for the last few years.
Bitcoin spot ETF has been approved outside the US, but the SEC is yet to approve one in the country. After BlackRock filed for a Bitcoin spot ETF on June 15, the interest surrounding crypto ETFs has been renewed. Grayscale – whose application for a Bitcoin spot ETF was initially rejected by the SEC – got a victory in court, forcing the US regulator to review its proposal again. The SEC’s loss in this lawsuit has fueled hopes that a Bitcoin spot ETF might be approved by the end of the year.
Bitcoin price outlook as BlackRock ETF trading volume hits $1.3 billion
After breaching the $54,000 milestone, Bitcoin price is at high risk of a correction, likely retracing to the $50,000 psychological level. However, if it records a candlestick close above this threshold, the upside potential could remain, provided BTC ETF trading volumes continue to record significant numbers for the rest of the week. This could keep investors’s profit appetite in check as they await the halving, 51 days out.
The upside potential is also strong with the Spent Output Profit Ratio (SOPR) indicating a correction may not be due just yet. This is because the SOPR remains below 1, at 0.91, as a 30-day moving average (MA).
For the layperson, this ratio suggests that BTC holders who are sitting on unrealized profits are not showing any intention to cash in on their gains so far.
Increased buying pressure could see Bitcoin price climb to $55,000. In a highly bullish case, the BTC rally extrapolates to $60,000. Such a move would constitute a 10% climb above current levels and could send BTC into the supply zone between $60,050 and $67,789.
This would give it a chance of retaking its $69,000 all-time high recorded in November 2021. The first sign would be a break and close above $64,014, the mean threshold of the range.
BTC/USDT 3-day chart
Conversely, a rejection from $55,000 instigated by profit-taking could send Bitcoin price to $55,000.
