As of the second Sunday of 2024, the price of Bitcoin hovers around the $42,700 region, and the initial excitement for ETFs seems to have significantly diminished. The entries into spot Bitcoin ETFs were thrilling, but we have not seen the levels that everyone could say are conclusively over. Still, this week tells us important things for the rest of 2024.
Bitcoin and ETFs Latest Situation
ETF entries were at a level of $1.2 billion. As you may recall, this is much higher than the figures we mentioned in CoinShares reports. This happened in just two days and gives us significant signals about the future. The king cryptocurrency is represented on exchanges with 11 different ETFs. More importantly, massive asset managers like BlackRock and Fidelity are also on this list.
These days, while large crowds ask meaningless questions about why the billion-dollar entries did not occur in two days, we have been discussing for weeks, even months, that the real effects of these ETF entries will be understood in the medium and long term. To cope with a real shortage of supply, it is necessary to reach the targeted $50 billion this year.
On the other hand, we witnessed the price drop due to voluminous profit-taking sales as profitability on the BTC front reached 95%. Those who expected a ‘sell the news‘ event were partially right, but the massive drops to $38,000 or $35,000 did not occur as they expected. This tells us that if entries into ETFs continue to remain strong next week, a gradual rise may return.
Latest Situation with Altcoins
Among the top 100 cryptocurrencies, the altcoin with the most gain was ENS Coin, with a price of $26.6 and a 105% increase over 7 days. The price increased by double digits in the last 24 hours, and comments by Vitalik Buterin that “ENS is important and should be more widely adopted and improved” were very effective. SUI, HNT, ETC, BONK respectively gained between 51% and 38%.
Despite the recent declines, there were no altcoins within the top 100 cryptocurrencies that suffered massive losses. KLAY and AKT seemed to be exceptions, but their losses were also between 10% and 20%. Although there were not very big losses compared to the previous week, we know that the losses during the week were mostly erased. The cumulative value of cryptocurrencies is at $1.68 trillion, and BTCD has dropped below 50%, which is positive for altcoins.
