The cryptocurrency landscape has undergone notable changes in recent times, with the NFT sector harboring expectations of a price surge due to Bitcoin‘s impending halving event. In a day of unprecedented activity, spot Bitcoin exchange-traded funds (ETFs) saw a historic $10 billion in trading volume. Concurrently, Bitcoin achieved a new zenith, breaking past $69,000 for the first time since the previous year, setting a record high.
Expectations Rise in NFT Sector with Bitcoin’s Halving on the Horizon
Industry insiders within the NFT domain are anticipating beneficial ripple effects from Bitcoin’s next halving event, forecasting a potential uplift in the NFT market. Oscar Franklin Tan of Atlas Development, a key figure at the NFT platform Enjin, remains optimistic about NFT price growth post-halving, citing a typical increase in prices and volumes following such events. Tan suggests this positive trend could bolster NFT adoption, prompting the launch of new collections and dedicated marketplaces.
ETFs Shatter Previous Records Amidst Bitcoin Excitement
On March 5th, U.S.-based spot Bitcoin ETFs shattered their previous trading records, with an astonishing $10 billion volume, significantly surpassing the earlier record of $7.7 billion. The substantial trade volume among the ETFs was spearheaded by leading funds, including BlackRock, Grayscale, and Fidelity, with BlackRock at the forefront with $3.7 billion in trades. Bloomberg ETF analyst Eric Balchunas highlighted the significance of these figures. Despite ETF funds experiencing an 8.6% drop during the day’s trading, Bitcoin soared to new heights, topping $69,200 before experiencing a sharp decline below the $60,000 mark.
Bitcoin’s Historic Peak and Swift Reversal
On its milestone day, Bitcoin’s value soared above $69,200, marking an 846-day gap since its last record high in 2021. This surge represented a 348% increase from its $15,400 low. This peak came notably before the much-anticipated halving event, known as a critical determinant of Bitcoin’s value. Nevertheless, the excitement was short-lived as Bitcoin’s price underwent a rapid downturn, plunging to below $64,000 later on the same day.