Positive crypto news within the blockchain industry: Bitcoin recently surpassed $31,000 on the eToro platform, once again confirming its supremacy among digital currencies and its steady increase in adoption level.
Below are all the details.
Summary
New record for Bitcoin on the eToro platform
As anticipated, the price of Bitcoin reached its highest level in 12 months, slightly exceeding $31,000 on the eToro platform.Â
This is the highest value for this cryptocurrency since early May 2022, when the price was declining during a period characterized by great volatility.
We note that last week’s rally appears to have been driven by several institutional news developments, such as BlackRock‘s attempt to launch a Bitcoin-based ETF.Â
In addition, there are also underlying developments in the Bitcoin market that could provide support for positive price movements. For example, one major factor is the increasing limitation of the supply of tokens for trading.Â
In fact, according to Glassnode‘s data, the number of “wholecoiners,” or those who own at least one whole Bitcoin token, has surpassed one million.Â
This increase is not related to price movements, but rather to adoption, as a steady increase has been observed for more than a decade.
It is also interesting to note that Ether seems to be absent in Bitcoin‘s current price rally.Â
In the past, both cryptocurrencies tended to rise in a manner that correlated with the general market trend, but recently there have been significant differences in performance.
In fact, Ethereum has shown almost insignificant price variation during Bitcoin’s latest rally, hovering between $1,800 and $1,900 over the past month.Â
Bitcoin ETF deposits in the US generate great interest in the asset
Recently, the introduction of new Bitcoin ETF deposits in the United States immediately generated interest from institutional investors.
For example, the ProShares Bitcoin Strategy ETF (BITO), a Bitcoin futures fund offered in the U.S., recorded its highest weekly flow in 12 months last week.
The reason for this is because the price of Bitcoin (BTC) has surpassed $30,000, as reported on Twitter by Bloomberg senior analyst Eric Balchunas:
BITO offers investors the opportunity to gain exposure to Bitcoin-related returns through a regulated product and holds more than $1 billion in CME Bitcoin Futures, according to holdings data.
This shows a growing interest in the sector from investors seeking to access the Bitcoin market in a regulated manner. In addition, investors poured $65 million into BITO last week, the data show.
Thus, they surpassed the previous 2023 peak of just over $40 million recorded in April. However, the product did not see significant flows in May and most of June as demand for Bitcoin stabilized.
BITO closely followed Bitcoin’s spot prices, which likely contributed to its appeal among traders, as also confirmed by Eric Balchunas.
BITO’s buying pressure likely indicates institutional investors’ interest in Bitcoin exposure, closely following the Bitcoin ETF frenzy in the United States.
Does the rise in Chinese liquidity coincide with Bitcoin’s price rally? Here is some analysis
Recently, the cryptocurrency analyst known on Twitter as ‘Tedtalksmacro’ shared on social media an interesting trend in the crypto world.Â
Specifically, he noted that the increase in liquidity in China coincided with an increase in the price of Bitcoin (BTC), a theme that has been repeated throughout the year.
Indeed, the actions taken by the People’s Bank of China (PBoC) are mainly aimed at stimulating the domestic economy, but they have also had an indirect impact on the cryptocurrency market.
China’s implementation of “quantitative easing” has shown a correlation with the overall growth in cryptocurrency market capitalization since the beginning of 2023.
In addition to these positive developments, we see that Hong Kong has also published encouraging reports. Not surprisingly, the region, which is part of the People’s Republic of China, is making efforts to become a major hub for cryptocurrencies in Asia.
In June, it plans to fully legalize the buying, selling and trading of cryptocurrencies. It also aims to become an entry point for mainland Chinese institutions into the cryptocurrency sector.
