Today in Markets

Here's Why Bitcoin is Surging

Looking for some rationale behind this pump? Look no further.
Jack Inabinet Jack Inabinet Feb 28, 20241 min read
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market analysis Here's Why Bitcoin is Surging

Bitcoin kissed $64k this morning before dropping 8% in 15 minutes, wicking as low as $58.7k on Binance. Volatility in crypto markets is increasing, but all-time highs are within one strong daily candle away! Here’s why BTC surged today 👇

Wall Street’s demand for BTC remains unsatiated, with BlackRock’s IBIT taking in $520M in inflows yesterday, the largest haul for any BTC ETF ever and the second most of any ETF during trading yesterday!

 While yesterday’s inflows to new spot BTC ETFs ex-BlackRock, which totaled to $182.4M, paled in comparison to those received by the leader, Bloomberg Senior ETF Analyst Eric Balchunas notes that any net inflows to new ETFs are important.

As prices continue to climb higher and many search for a reason why, the clearest answer is a simple supply and demand imbalance: BTC ETFs (and just regular spot buyers) are simply demanding more Bitcoins than miners are capable of producing (and sellers are willing to part ways with).

For those trading on leverage, this market is either a landmine or a goldmine, with heightened volatility and extremely extended funding rates presenting plenty of opportunity for profitable trades, while also sharply increasing the number of liquidations on both the long and short sides in recent days.

Source: Coinglass
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Jack Inabinet

Written by Jack Inabinet

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Jack Inabinet is a Senior Analyst with a passion for exploring the bleeding edge of crypto and finance. Prior to joining Bankless, Jack worked as an analyst at HAL Real Estate where he conducted market research and financial analysis for commercial apartment development and acquisition activities in the Seattle region. He graduated from the University of Washington’s Michael G. Foster School of Business and remains based out of the Seattle area.

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