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Bitcoin Dominates as $2B Invested in Crypto Products

The Brief

In the past week, an impressive $2 billion flowed into cryptocurrency products, with Bitcoin (BTC) claiming the lion’s share of these investments at nearly $1.97 billion. Ethereum (ETH) followed with an increase of $69 million. These figures underline Bitcoin’s dominant position in the crypto market, despite mixed signals regarding short-term price development.

Bitcoin Dominates the Market

According to a recent report by CoinShares, a leading investment firm in the digital asset sector, Bitcoin has once again demonstrated its supremacy in the crypto market. With investments amounting to about $1.97 billion in a single week, BTC stands out significantly. Ethereum, the second-largest cryptocurrency by market capitalization, also recorded gains, but lagged far behind Bitcoin with $69 million.

Causes of the Investment Flood

James Butterfill, the head of the research department at CoinShares, attributes the impressive figures to several factors. A key reason is the reaction to weaker than expected macroeconomic data from the US, which reinforced expectations of an imminent interest rate cut. These developments led to a positive sentiment among investors and pushed the total assets under management (AuM) to over $100 billion – a value not reached since March of this year.

Short-term Uncertainty

Despite the impressive influx of investments, the short-term price development of Bitcoin remains uncertain. A look at the STH-NUPL indicator (Short Term Holder-Net Unrealized Profit/Loss), which measures the sentiment of those Bitcoin holders who hold their coins for less than 155 days, shows that many short-term holders are not convinced of an immediate price increase. This could suggest that Bitcoin may continue to trade sideways in the near future.

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Neutral Market Conditions

The analysis of the Bulls and Bears indicator from IntoTheBlock, which tracks the activities of addresses that have bought or sold 1% of the trading volume in the last 24 hours, currently shows a neutral market situation for Bitcoin. This neutrality could cause BTC to be traded in a narrow range for the time being, with possible price fluctuations between $68,000 and $71,000, depending on market conditions.

Our Assessment

The recent figures from CoinShares highlight the ongoing appeal of Bitcoin as an investment target, despite uncertainties regarding short-term price development. BTC’s dominant position in the crypto market remains unchallenged, even if the short-term outlook appears mixed. For long-term investors, this could be an opportunity to consolidate their positions, while short-term traders should be cautious. As always, thorough research and a well-considered strategy are crucial for success in crypto investment.

Sources

– AMBCrypto
– CoinShares
– Glassnode
– IntoTheBlock

Casinos: 50
Profile Bitcoin
Symbol BTC
Coin type Alt Coin
Transaction Speed Slow
Pros
  • First cryptocurrency, therefore very widespread
  • Largest selection of casinos among the coins
  • Many BTC based bonus offers
Cons
  • Fairly low transaction speed
Price $62,609.00
24h % -0.36 %
7d % -1.86 %
30d % 3.52 %
60d % 7.43 %
1y % 132.57 %
Market Cap $1,236,441,205,894.00
Max. Supply 21,000,000.00
Official Links
Socials Reddit | X | Message Board
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Last update: 25. September 2024

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