- Bitcoin’s price surged by 12%, reaching past $35,000.
- Rising anticipation around the US Bitcoin Exchange-Traded Funds (ETFs) with big players like BlackRock and Fidelity leading the charge.
- Speculation arises: Is the current Bitcoin surge a genuine bull rally or just a deceptive bull trap?
Bitcoin’s price leaped impressively today, rising by 12% and reaching a noteworthy peak of $35,300. As whispers of the next big bull run intensify, especially with the next halving event set for 2024, there’s an underlying question stirring among experts and enthusiasts alike. Could this significant upward trajectory merely be an enticing yet misleading bull trap?
Exchange Traded Feels: The Anticipation Grows
Fueling the enthusiasm around Bitcoin is the chatter of a potential nod for the first-ever US Bitcoin Exchange-Traded Funds (ETFs). Notably, industry heavyweights such as BlackRock Inc. and Fidelity Investments are at the forefront of this race, hoping to introduce new Bitcoin-related offerings.
A notable mention by Eric Balchunas, Bloomberg’s ETF guru, sheds light on BlackRock’s aspirations. Their Bitcoin ETF, going by the name iShares Bitcoin Trust, has carved its niche with the DTCC, or the Depository Trust and Clearing Corp, responsible for managing settlements in US markets.
A Glance at Numbers
Since the beginning of this year, Bitcoin has doubled its value, skyrocketing from a humble start at $16,000. Experts are now spotlighting Bitcoin’s ability to break past two crucial market barriers at $31,000 and $34,000.
Rekt Capital, a popular crypto analyst, believes this positive price movement could challenge the commonly referenced “Bearish Bitcoin Fractal,” a theory that suggests prices might touch unprecedented highs before taking a plunge.
Recent numbers from CoinGlass reveal telling signs of Bitcoin’s current standing. Binance witnessed a massive outflow of over $500 million in the last day. Close contenders like Cryptocom and OKX also observed substantial outflows of $49.4 million and $31 million, respectively.
These numbers, reminiscent of the panic during FTX’s unfortunate collapse in 2022, now seem to align more with an upbeat trader sentiment, a sentiment further validated by Glassnode’s data. As Bitcoin’s price soars, outflows from exchanges follow suit.
When looking into on-chain metrics, the market value to realized value (MVRV) ratio offers some perspective. Sitting at 1.47, this metric, which evaluates the current market value against its realized value, paints an intriguing picture. For context, during the last significant bull run, the MVRV was slightly higher at 1.5.