Apart from a few developments across the world, Bitcoin’s performance this week has set a high benchmark for the future of crypto, both for the near future and in the long run.
This week could be considered noteworthy for the crypto sector from multiple angles. Firstly, the crypto market staged a unique turnaround, preventing big-scale sell-offs. Secondly, there has been a rise in likely spot Bitcoin ETFs worldwide. It could lead to a slew of new crypto investors joining the market. Broadly, the future of crypto at this juncture looks extremely bright.
Bitcoin started the week on a firm trading level above $70,000. Mid-week, it slowed down and dipped below $69,000. Despite wary crypto investors anticipating a crash until $65,000, it did not happen. Bitcoin recovered fast and climbed back above $70,000. As a result, the range between $68,000 and $70,000 has emerged as a supportive level for BTC. Other altcoins also posted positive weekly returns.
Asset management firm VanEck had some interesting insights into this trend. Its CEO, Jan van Eck, claimed most of the crypto investors driving the inflows into the Bitcoin ETFs were retail. The revelation is positive since retail crypto investors have probably found a new way to gain exposure to Bitcoin.
The CEO said, “I was surprised, but I don’t think it’s traditional investors yet. I still think 90% of the flows are retail. You’ve had some Bitcoin whales and some other institutions move some assets in, but they were already exposed to Bitcoin.”
Further, crypto asset management firm Grayscale had more opinions to offer. Its Managing Director of research, Zach Pandl, was heavily bullish on Bitcoin. He described the current global macroeconomic climate and wasn’t very hopeful about it. Pandl said inflation and interest rates could stay high in the near future, and investors could look for more investment options.
He said Bitcoin will fill this gap. Bitcoin’s prospects are good, according to him, with its numerous use cases, high demand, and rising adoption. The Fed is unlikely to reduce interest rates soon, and inflation rose in the US in March 2024.
Meanwhile, crypto enthusiasts in Australia and Hong Kong will probably see spot Bitcoin ETFs in 2024. Regulators in these two regions have supported the ETFs, which will add to the current active US ETFs. In the Middle East, a Dubai regulator also proposed a plan to make compliance and regulation cheaper for smaller crypto firms.
This week, the following crypto tokens were the best performers:
But these crypto tokens shed the most losses:
Private corporations like Mastercard have plunged deeper into crypto this week with a new initiative. It lent its services to blockchain firms to launch a new crypto debit card.
Millionero’s blog compiles the global developments in the crypto sector into news reports and blogs!