“NFTs Extend Beyond Corporate Marketing Tools”
08/04/2024
U.S. Leads Global Bitcoin Holdings, Valued at $14.7 Billion
13/04/2024
Bitcoin’s value surged on Tuesday, lingering just below recent peak levels as traders eagerly anticipated more information on the impending halving event and crucial U.S. inflation statistics. The leading cryptocurrency globally experienced a 2.5% increase over the past day, reaching $71,133.3, extending the rebound observed during the weekend. However, it remained shy of its all-time high surpassing $73,000, with overall market sentiment tempered by the looming release of significant U.S. inflation figures, expected to influence interest rate projections. The consumer price index report is scheduled for release on Wednesday.
Bitcoin’s upward momentum was primarily driven by expectations surrounding the upcoming halving event, slated to occur later in April upon the generation of block number 840,000 on the Bitcoin blockchain. This event will halve the pace of new Bitcoin issuance, potentially constraining future token supply. The halving event aligns with the narrative emphasizing Bitcoin’s scarcity as a factor propelling its value, making it a closely monitored occurrence within the crypto sphere. However, it also exerts pressure on smaller Bitcoin miners by diminishing their mining rewards.
The positive performance of Bitcoin had a ripple effect on other cryptocurrencies. Ethereum, the second-largest token globally, surged by 7.6% to $3,688.20, while XRP rose by 4.3% to $0.61785. Data from CoinShares, a digital asset management firm, revealed that although investment inflows into crypto products were noted in the week ending April 8, excitement over the approval of spot Bitcoin exchange-traded products seemed to be waning. Last week, digital assets collectively attracted $646 million in inflows, predominantly directed towards Bitcoin, which has dominated the crypto narrative in recent months. However, overall capital inflows remained below the levels seen in early March, accompanied by declining trading volumes from the earlier peaks of the year.
The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) has been the primary catalyst for Bitcoin’s price surge in 2024. Nevertheless, this approval further skewed the crypto market’s focus towards Bitcoin. Ethereum experienced outflows of $22.5 million, with traders exhibiting caution towards the token amidst reports of an SEC investigation into the Ethereum Foundation. Additionally, the SEC is expected to make a decision on spot Ethereum ETFs by late May.
(Investing)
