Cryptocurrency Updates: Bitcoin on a Roll, Altcoins Gaining Momentum
Quick Peek:
- Bitcoin continues to rise, reaching towards $95,500 as institutional investments pour in.
- BlackRock's IBIT ETF records $1 billion inflow, bolstering Bitcoin's growth.
- U.S. JOLTS data suggests potential Fed rate cuts, benefitting Bitcoin and other risk assets.
- Fidelity Digital Assets regards Bitcoin as undervalued, despite its recent surge.
- Major altcoins like Ethereum and Cardano surpass Bitcoin with 2% gains, signaling increased investor risk appetite.
Digging Deeper:
Bitcoin's exchange supply plummets to a 7-year minimal, coinciding with escalating demand for ETFs (exchange-traded funds)
Bitcoin's journey to new heights shows no signs of slowing, as the flagship cryptocurrency steadfastly clings to the $95,000 mark. Institutional investors continue to drive the market with an unwavering appetite for Bitcoin, despite the cryptocurrency touching resistance near $95,500. The total market capitalization remains around $3.1 trillion, a testament to Bitcoin's enduring strength.
On Monday, BlackRock's Bitcoin ETF, IBIT, attracted an impressive $1 billion inflow, marking the second-largest daily inflow since its launch in January 2024. This surge in institutional interest partially offset redemptions from Fidelity and Ark Invest ETFs, resulting in combined deposits of $591 million.
With IBIT holding 51% of the US spot Bitcoin ETF market and managing over $54 billion in assets under management, other market participants may follow suit, fueling further growth in the days to come.
Dropping exchange supplies further bolster the bullish sentiment. Data from CryptoQuant reveals that Bitcoin's supply on centralized exchanges has fallen to a 7-year low of approximately 2.492 million BTC, resulting in a reduced selling pressure.
The percentage of Bitcoin's supply in profit surpassed 85%, though analysts warn that exceeding 90% could signify "historic euphoria" and potential corrective action.
Economic Data Stokes Hopes for Bitcoin
US JOLTS data revealed a significant drop in job openings to 7.19 million in March 2025, falling beneath the forecast of 7.48 million. This cooling labor market data has fueled anticipation for Federal Reserve interest rate cuts, which usually advantage risk-on assets like Bitcoin.
Economic analyst Alex Kruger considers Bitcoin a "risk/gold hybrid" that stands to flourish from potential tariff de-escalation. However, he flags possible market volatility in Q3 owing to economic slowdown concerns.
Altcoins Shine Bright
While Bitcoin's price movement has moderated, altcoins have picked up the pace, outperforming Bitcoin with 2% gains. This shift in investor preference implies heightened risk appetite within the cryptocurrency market.
Ethereum and Cardano led the charge with 2% increases, outperforming Bitcoin's modest 0.6% rise. Bitcoin Cash (BCH) recorded a 6% rally, leaning on the renewed interest in privacy coins, particularly amid ongoing Monero (XMR) controversies.
Decentralized exchange aggregator 1inch launched its Fusion protocol on Solana, enabling MEV-protected token swaps for over one million Solana-based assets. This move demonstrates 1inch's ambition to develop cross-chain swap functionality involving Solana and ten other networks.
Circle, the company behind the USDC stablecoin, secured regulatory approval from Abu Dhabi's Financial Services Regulatory Authority to expand its operations across the Middle East and Africa. This clearance furthers Circle's goal of promoting stablecoin adoption in emerging markets.
Moving Forward:
As Bitcoin lingers near the $95,500 level, analysts remain optimistic, anticipating an eventual breach of the $100,000 psychological barrier. Matrixport and Willy Woo believe that Bitcoin's upward momentum is strenghtening and approaching the $106,000 resistance level.
A recent Coinness report indicates that 45.4% of South Korean investors expect Bitcoin to outperform gold in the coming six months. Meanwhile, ARK Invest maintains its long-term projection that Bitcoin's price could reach $2.4 million by 2030, driven by ETF growth and increasing institutional adoption.
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- Institutional interest in Bitcoin continues to fuel its growth, with BlackRock's IBIT ETF attracting a significant $1 billion inflow.
- In the midst of Bitcoin's ascent towards $95,500, altcoins like Ethereum, Cardano, and Bitcoin Cash have registered increased investor interest, outperforming Bitcoin with 2% gains.
- Recent economic data suggests potential Federal Reserve interest rate cuts, which could ultimately benefit Bitcoin and other risk-on assets, as they usually do.
- Despite fervent institutional investments, analysts caution that a surge over 85% in the percentage of Bitcoin's supply in profit may signal "historic euphoria" and potential corrective action.
- The total market capitalization of cryptocurrencies hovers around $3.1 trillion, underscoring Bitcoin's enduring strength in the financial and technological landscape.
