The Bitcoin (BTC) is experiencing relatively
neutral trading this week, with prices showing a slight decline of 0.6% to
$51,600 per coin. Despite this, Bitcoin recently reached a new record at
$53,079, the highest since December 3, 2021. Investors are closely monitoring
the market as BTC approaches its halving in April.
Bitcoin exchange-traded funds (ETFs) are
gaining momentum. The ProShares Bitcoin Strategy ETF (BITO) reported
significant capital inflows of $98.8 million last week, marking the largest
single-week inflow this year. Spot Bitcoin ETFs, including the Ishares Bitcoin
Trust (IBIT), also reported substantial net inflows. IBIT reported a
record-high net inflow of $1.7 billion last week.
The positive sentiment in the major
cryptocurrency market is also benefiting altcoins. Ethereum (ETH) prices
reached $3,036 on February 21, the highest level since April 26, 2022.
Investors are eyeing the $3,500 mark in anticipation of the potential approval
of a spot Ethereum ETF by the U.S. Securities and Exchange Commission (SEC).
Bets on the approval in May are currently at 50%, and investors are optimistic
about the SEC approving the ETF by the end of 2024.
In an interesting development, an investor
made a $20 million bet on the Gres.Live platform for Bitcoin to drop to $47,000
by March 29. The investor's rationale is based on the possibility of a U.S.
government shutdown if the 2024 federal budget is not approved by Congress. A
partial government shutdown is expected on March 1, and a complete shutdown
could occur from March 8. The investor believes that such a shutdown, even if
short-lived, could lead to a 30-35% decline in Bitcoin prices. Previous
government shutdowns in 2013 and 2018 resulted in significant price drops for
Bitcoin. This time, the investor anticipates prices falling to $30,000-$40,000,
with the expectation of a recovery to $47,000, aligning with historical
averages, as Bitcoin approaches its halving.