Bitcoin has demonstrated remarkable resilience compared to the broader digital assets market, maintaining a dominance metric of 55.3%, marking its highest level since April 2021. In a recent note, Matteo Greco, a research analyst at Fineqia International, highlighted that Bitcoin’s market cap dominance has reached a three-year peak, defying recent sell-offs and market fluctuations. Greco also pointed out the sustained robustness in trading volumes.

BTC Spot ETFs recorded a significant weekly trading volume of approximately $16.2 billion, with an average daily volume of around $3.2 billion. Since its inception, the cumulative trading volume stands at approximately $212 billion, with an average daily volume of roughly $3.3 billion.

Bitcoin Ends the Week in Red

Bitcoin closed the week at around $65,650, experiencing a 5.3% decline from the previous week’s closing value of around $69,350. The week was marked by notable volatility, particularly during the weekend, following a period of relative stability from Monday to Thursday. BTC experienced a downturn on Friday, falling to a low of $65,100. The negative trend persisted into Saturday, reaching a weekly low of approximately $60,650 before rebounding and concluding the week around $65,650.

The decline in prices over the weekend was attributed to geopolitical tensions in the Middle East. However, market sentiment improved following an announcement of a temporary halt in hostilities among the involved nations. Additionally, the upcoming halving, scheduled for the night between April 19th and 20th, has garnered attention. Historically, previous halving events have been followed by 9-12 months of upward trends, albeit triggering short-term “sell the news” reactions before and after the event.

The short-term bearish sentiment is further reflected in the net outflow of $85 million from Bitcoin Spot ETFs during the week. Investors are exercising caution and engaging in profit-taking following the strong uptrend witnessed in Q4 2023 and Q1 2024.

US Inflation Data Surpasses Expectations

On the macroeconomic front, recent US inflation data exceeded expectations, prompting a revision in market participants’ rate cut projections for 2024. At first, projections suggested a decrease of at least 75 basis points in interest rates, equating to three 25-basis-point cuts. However, the latest data has shifted projections to anticipate 25/50 basis points cuts during the year, with the first cut expected in Q3 and a potential second cut towards year-end.

Greco highlighted the potential for a prolonged period of stricter monetary policy due to persistently high inflation levels exceeding central banks’ targets. He further suggested that this scenario could exacerbate short-term difficulties for risk-on assets, prompting investors to adjust their portfolios based on revised mid-term expectations influenced by current financial indicators.

Over the past week, digital asset investment products saw a slight decrease in funds, with outflows totaling $126 million. Bitcoin saw outflows amounting to $110 million, yet it managed to maintain positive inflows of $555 million month-to-date. Short-bitcoin, which had been witnessing outflows for the past three weeks, observed minor inflows of $1.7 million, likely taking advantage of the recent price weakness.

Featured Image: Freepik

Please See Disclaimer

Despite recent sell-offs across the digital assets market, Bitcoin has displayed remarkable resilience, maintaining a dominance metric of 55.3%, its highest level since April 2021, according to a note from Matteo Greco, a research analyst at digital asset investment firm Fineqia International.

Greco highlighted that Bitcoin’s market cap dominance has reached a three-year high despite market volatility, with trading volumes remaining robust. BTC Spot ETFs recorded a weekly trading volume of approximately $16.2 billion, with an average daily volume of around $3.2 billion. Since inception, cumulative trading volume stands at approximately $212 billion, with an average daily volume of roughly $3.3 billion.

Bitcoin Sees Weekly Decline

Ending the week at around $65,650, Bitcoin experienced a 5.3% decline from the previous week’s closing value of around $69,350. The week saw significant volatility, particularly during the weekend, following a period of relative stability from Monday to Thursday.

On Friday, Bitcoin faced a downturn, dropping to a low of $65,100. The negative trend continued into Saturday, hitting a weekly low of approximately $60,650 before rebounding and concluding the week around $65,650.

Geopolitical tensions in the Middle East were cited as the cause of the weekend’s price drop. However, market sentiment improved after an announcement of a temporary halt in hostilities among the involved nations. Additionally, attention was drawn to the upcoming halving scheduled for the night between April 19th and 20th, which historically triggers short-term “sell the news” reactions.

US Inflation Data Surpasses Expectations

Recent US inflation data surpassed expectations, leading to a revision in market participants’ rate cut projections for 2024. Initial expectations included a reduction of at least 75 basis points in interest rates. However, the latest data has shifted projections to anticipate 25/50 basis points cuts during the year, with the first cut expected in Q3 and a potential second cut towards year-end.

Greco highlighted that the continued presence of inflation levels surpassing central banks’ targets might result in a prolonged period of tighter monetary policy, contributing to short-term challenges faced by risk-on assets as investors realign their portfolios.

Digital asset investment products witnessed minor outflows amounting to $126 million in the past week, with Bitcoin experiencing outflows of $110 million but maintaining positive inflows of $555 million month-to-date. Short-bitcoin, which had been witnessing outflows for the past three weeks, saw minor inflows of $1.7 million, likely capitalizing on the recent price weakness.

Featured Image: Freepik

Please See Disclaimer

As the Bitcoin network’s halving event approaches, scheduled to occur in about seven days (April 19), the accuracy of online countdowns is coming into question. Various platforms display conflicting estimates of when the halving will take place, creating confusion for those closely monitoring the event.

For example, Watcher Guru forecasts the halving in seven days, seven hours, and 20 minutes, while CoinMarketCap predicts it will happen two hours later. Similarly, the “Bitcoin Block Reward Halving Countdown” indicates it will occur in seven days and 15 hours. Despite these variations, they generally align, but discrepancies can frustrate traders looking to capitalize on the halving.

The Bitcoin halving occurs approximately every four years, triggered by reaching every 210,000 blocks, with the upcoming event slated for block height 840,000. Ideally, given Bitcoin’s 10-minute block time, determining the precise timing of the halving should be straightforward. However, practicalities complicate matters.

According to Simon Cousaert, director of data at The Block Research, the accuracy of countdowns depends on factors like the current block height and the average block time. While the target block is constant, fluctuations in the average block time due to varying miner activity make accurate predictions challenging.

Marko Tarman, lead mining manager at NiceHash, emphasizes the dynamic nature of block times, which can significantly affect predicted halving events. Shorter average block times suggest an earlier halving, while longer times delay it.

In essence, while the halving event is predetermined and highly anticipated, predicting its exact timing is more art than science due to the fluctuating nature of block times. Accuracy becomes increasingly crucial as the event approaches, highlighting the complexities involved in tracking this significant event in the Bitcoin ecosystem.

Featured Image: Freepik

 Please See Disclaimer