In recent cryptocurrency market movements, Bitcoin‘s value has dipped to $69,000, causing a cascading effect on altcoins. Despite a lack of fresh highs beyond $73,777 as March draws to a close, a sudden drop in Bitcoin’s price marked a notable event. Important developments in the day’s crypto landscape have emerged alongside the decline.
Daily Crypto Developments and Market Sentiments
Today, the release of core personal consumption expenditures data in the United States showed reassuring results. Despite this, BlackRock and Fidelity exchange-traded funds (ETFs) recorded only minor daily net inflows, indicating a waning risk appetite among investors. Nevertheless, the anticipation for the forthcoming Bitcoin halving in April is generating significant interest.
Exchange Reserves Hit a Low; Halving Fuels Hope
Data from Glassnode revealed a substantial outflow of 136,000 Bitcoins from cryptocurrency exchanges since mid-January, taking exchange reserves to their lowest since 2018. This shrinkage aligns with a growing sentiment of supply scarcity, heightened by optimistic projections for 2024 and 2025. The upcoming Bitcoin block reward halving, expected on April 20 based on current mining power, is bolstering investor confidence, with many drawing parallels to historical trends that indicate significant market impacts.
ETF Influence and Reserves Accumulation
Despite subdued net inflows, ETF demand has remained resilient. New spot Bitcoin ETFs have amassed over 500,000 BTC since January, an impressive accumulation representing 2.54% of Bitcoin’s total supply. The expansion of ETF reserves, which includes holdings by all ETFs such as GBTC amounting to 835,000 BTC or 4% of the total supply, suggests a positive long-term influence on Bitcoin’s valuation.
Additional Noteworthy News Highlights
Significant side stories include Microsoft and OpenAI’s collaboration on a $100 billion AI supercomputer called Stargate; Grayscale’s launch of a proof-of-stake fund for affluent investors; in-line data for the US Core Personal Consumption Expenditures Price Index; Yolo Investments’ $8 million injection into Toncoin; and Binance’s 50th Launchpool project, Ethena (ENA), which experienced a hack leading to a $290,000 loss. Furthermore, cryptocurrency exchange KuCoin has halted its licensing application process in Hong Kong amidst an investigation by the US Department of Justice.