Rally Resumes! Bitcoin Is Now Above $70,000 Again!
 |
| By Marija Matic |
The cryptocurrency market rally has resumed!
Last week’s weakness was attributed to the record ETF outflows. Investor money totaling $888 million exited these funds over five days, with the largest outflow of $326 million occurring on March 19.
The outflows were partly triggered by the bankrupt lender Genesis selling off its GBTC shares, a trend that is decelerating as only $52 million exited on Friday.
It's also noteworthy that the largest ETFs have consistently attracted net inflows throughout their first 49 days of trading. This achievement, as emphasized by Eric Balchunas, is unprecedented for new ETFs.
This reversal has reignited crypto excitement, allowing cryptocurrencies to kick off this week on a strong note. Bitcoin (BTC, “A”), for example, has now surged above $70,000 for the first time in 10 days, leaving its 2021 peak price in the dust.
It is up over 7% today:
It’s a little too soon to say goodbye to downside volatility, however.
If BTC doesn’t close the day above $70,000, I wouldn't be surprised to see the price return to retest $66,000 before proceeding higher.
Still, there is additional positive news filtering through the market that could help support BTC’s price.
The London Stock Exchange, for example, announced a plan to launch a market for Bitcoin and Ethereum (ETH, “B+”) exchange-traded notes (ETNs) on May 28.
And there’s been a spike in Argentina’s Bitcoin demand as locals flee inflation.
Recently, Argentinians facing 30% inflation sought shelter in stablecoins to secure their savings. But over the past month, many have been “moving into Bitcoin,” according to Maxi Raimondi, CFO of the Argentinian crypto exchange, Lemon.
As my colleague Juan Villaverde often points out, Bitcoin has the potential to challenge gold as the top safe-haven asset. And this is another example of why.
And it’s yet another reason to believe future demand for Bitcoin will continue to grow … and send the value of the Bitcoin you have even higher.
Notable News, Notes & Xeets
- Google added Ethereum Name Service data into search results through Etherscan.
- Headlines talking about the EU ban on anonymous crypto wallets are “misleading click-baits,” according to Emanuele Francioni, founder of the privacy-oriented blockchain Dusk, making the truth seem “more controversial than it actually is.”
- Binance faced a tough day as Nigeria filed tax evasion charges against the exchange giant, while its website got blocked by Philippine's Securities and Exchange Commission.
What’s Next
Despite last week’s dip, we are observing subdued Bitcoin on-chain activity, indicating a reluctance among holders to sell BTC and a strong belief in a sustained price rally.
The significant institutional interest persists, even amid concerns about the crypto market's volatility. That is in stark contrast to the stability traditionally seen in institutional investments.
That’s good news. It means institutions are getting used to how things work in the crypto market … and they’ll be less likely to be scared off when volatility returns.
Savvy investors will follow that lead and hold onto their cryptos through the market’s wild ride.
And if you want to do more than follow the smart money, if you want to chart your own path through this bull market to big growth opportunities, I suggest you keep an eye in your inbox and check in with tomorrw's Weiss Crypto Daily.
We have an interesting strategy that could help you outperform Bitcoin, and you don't want to miss it.
Best,
Marija Matić
