Latest news with #CoinMetrics
CNBC
a day ago
- Business
- CNBC
Bitcoin's trading pattern is starting to change for the better, Trivariate's Adam Parker says
Bitcoin has been relatively calm over the past month while the stock market has reclaimed record highs and recent initial public offerings have ripped higher. That could ultimately be a point in its favor. The leading cryptocurrency has not made a new record high since May 22, according to CoinMetrics data. However, Trivariate Research founder Adam Parker said in a note to clients that bitcoin is starting to behave less like a meme stock and seems to be gaining further traction with the traditional finance crowd, making it "increasingly compelling." "Bitcoin appears to be trading slightly differently now than previously, with an increasingly higher correlation to high-quality growth stocks than hyper-growth junk stocks, which it was more correlated to previously," Parker wrote. 3M mountain Bitcoin has not made a new record high since May. More proof of the growing demand for bitcoin from mainstream investors is shown by ETF flows. The iShares Bitcoin Trust (IBIT) has raked in more than $4 billion of inflows over the past month, according to FactSet, even though the coin itself has seen rangebound trading. If bitcoin continues to become enmeshed in traditional finance, then the underlying supply-demand dynamics of the digital coin should lead to further gains, Parker said. "The number of millionaires on Earth now far exceeds the number of Bitcoins, and the number of people who will become millionaires will grow faster than the number of Bitcoins can grow, creating some supply / demand imbalance. The legitimacy of Bitcoin - now held in ETFs and available for custody by financial advisors - has created a demand argument that has some investors thinking it could continue appreciating at the 60% per year rate it has for the previous 15 years," Parker wrote. Of course, the crypto world is broader than just bitcoin, and it could be that speculative trading has now shifted elsewhere. One possible candidate is Circle Internet Group , which has surged nearly 500% from its IPO price of $31 but is drawing mixed opinions from Wall Street analysts. While some see upside for the stablecoin stock, JPMorgan's Kenneth Worthington gave Circle an underweight rating. JPMorgan was one of the bookrunners for Circle's IPO. Another area of potential concern is companies that are buying bitcoin in an attempt to boost their own stock prices. Famed short-seller Jim Chanos has also been publicly critical of bitcoin treasury companies , like Michael Saylor's Strategy . — CNBC's Michael Bloom contributed reporting.
CNBC
5 days ago
- Business
- CNBC
Why bitcoin isn't rallying even with billions of dollars in ETF inflows
The stock market has made an extraordinary comeback from its lows earlier in the year despite lingering questions about the economy and rising geopolitical tensions, but bitcoin's gains have been more muted. The flagship cryptocurrency hasn't rallied in a big way since the beginning of the year. Since May 9, it's traded in a tight $10,000 range – with a brief blip above that ceiling to its all-time high of nearly $112,000, which was still just a step above its previous record. And this is despite billions of dollars in ETF inflows in that period. On Wednesday, bitcoin ETFs logged 12 consecutive sessions of inflows. The trend followed a second week in a row of inflows. Both milestones underscore the strength of institutional demand even amid market uncertainty. The funds have collectively seen about $3.5 billion in inflows this month, while the price of bitcoin itself has risen just 2%, according to Coin Metrics. One reason for that could be that despite interest in bitcoin remaining at elevated levels, early megawhales are holding on to their coins for longer, waiting to offload them in greater amounts to today's biggest bitcoin buyers, ETFs and corporate treasuries, in an "orderly" and "well managed" shift in dynamics, according to 10x Research's Markus Thielen. "There is this change of ownership happening," said Thielen, CEO of the digital assets investment research firm. "We are not seeing a lot of real demand right now because the demand has been almost perfectly offset by the selling from these larger wallets." Data from CryptoQuant shows that wallets holding between 100 and 1,000 bitcoins have been the biggest buyers this year. Julio Moreno, head of research at the firm, said bitcoin ETFs likely fall into that cohort. Meanwhile, whales (wallets holding between 1,000 and 10,000 coins) and megawhales (which CryptoQuant labels as humpbacks and whose wallets hold more than 10,000 coins) have been net sellers this year. Retail investors, wallets holding less than a bitcoin, have also been sellers. The two whale cohorts have been setting the bitcoin price for weeks. As long as buying from the 100-to-1,000-BTC holders outpaces the selling from the bigger whales, bitcoin's muted rally can continue, Thielen explained. If the opposite happens, momentum fades and the rally stalls, he said. Moreno highlighted that historically, whales have been regarded as having 1,000 to 10,000 bitcoin in a wallet. However, since the launch of bitcoin ETFs and the emergence of the bitcoin treasury companies, the number of so-called dolphins, as CryptoQuant labels the 100-1,000-BTC cohort, have grown because those institutions tend to spread their bitcoin holdings across many smaller wallets. For example, BlackRock and Strategy have about 550 and 490 unique wallet addresses, respectively, with an average of 1,290 coins per wallet for BlackRock and 927 for MicroStrategy, according to 10x Research. "In reality, these entities are in fact large holders, having purchased thousands of bitcoin," Moreno said. The biggest bitcoin holders are likely miners based in China. From 2013 to 2021, China accounted for as much as 75% of the global hashrate, or the measure of the computational power being used to secure the Bitcoin network and validate transactions. To date 19.9 million bitcoins have been mined. Chinese mining companies account for approximately 11 million to 15 million coins created in that period. They still retain control of at least 5 million coins, according to 10x Research. "In all the other previous peaks, these dormant wallets were waking up and sending bitcoin onto exchanges for liquidation," he said. "But this time, so far, it seems that these wallets are holding – holding tight and only releasing as many bitcoin as can be scooped up by ETFs and by Strategy." While Strategy, which rebranded this year from MicroStrategy, remains the biggest corporate buyer of bitcoin, its acquisition cadence has slowed from the more aggressive levels seen last year, due in part to its narrowing stock premium and increasing competition in corporate treasury adoption of bitcoin. "If megawhale selling accelerates further, a deeper correction is likely," Thielen said. "Conversely, if selling pressure eases while whale accumulation picks up, the next leg of the rally could begin." "At the moment, the imbalance creates a slight bearish bias, making a breakout unlikely without a clear shift in our tactical flow indicator. Until that signal improves, consolidation is expected to continue."
West Australian
22-05-2025
- Business
- West Australian
Bitcoin hits new record high as rally marches on
Bitcoin continued its blistering rally on Thursday, hitting a brand new record high above $111,000 ($172,304). Bitcoin hit $US111,886.41 in early trading hours in London, according to Coin Metrics, before paring some of those gains to trade at around $US111,012. Bitcoin's move has been 'driven by a mix of positive momentum, growing optimism around US crypto regulation, and continued interest from institutional buyers,' James Butterfill, head of research for crypto-focused asset manager CoinShares, told CNBC. The price rise in world's largest cryptocurrency is taking place despite a drop in US stock markets on Wednesday. Bitcoin has typically correlated with equity markets, particularly the tech-heavy Nasdaq. The diverging movements of Bitcoin and stocks could be the result of investors looking for alternative stores of value. 'The rally was also helped along by broader macro concerns, including Moody's recent downgrade of US sovereign debt, which added to the narrative of Bitcoin as a hedge against fiat instability,' Butterfill noted. Ratings agency Moody's cut the United States' sovereign credit rating last week. There have been some positive developments for the crypto space on the regulatory front in the US too. The GENIUS Act — a bill to regulate stablecoins — cleared a key procedural vote in the Senate. US President Donald Trump and his AI and crypto czar David Sacks have pushed forward a pro-crypto agenda in the US, which has helped support the market. Adding to upbeat news for crypto, JPMorgan CEO Jamie Dimon, a notable bitcoin skeptic, said that the bank will allow clients to buy the digital currency.
Express Tribune
22-05-2025
- Business
- Express Tribune
Bitcoin hits new all-time high of $111,000
Bitcoin surged to a new all-time high above $111,000 on Thursday, continuing its strong rally despite falling US stock markets. Early London trading saw the cryptocurrency peak at $111,886.41, according to Coin Metrics, before settling near $110,900. Experts attribute Bitcoin's rise to a combination of positive momentum, growing optimism over US crypto regulations, and renewed institutional interest. James Butterfill, head of research at crypto asset manager CoinShares, said the rally reflects investors seeking alternative stores of value amid macroeconomic uncertainty. The recent downgrade of the US sovereign credit rating by Moody's has further bolstered Bitcoin's appeal as a hedge against fiat currency instability. Meanwhile, the GENIUS Act, a US bill aimed at regulating stablecoins, has advanced through a key Senate procedural vote, signaling progress on the regulatory front. Support from influential figures also helped lift the market. US President Donald Trump and crypto advocate David Sacks have promoted a pro-crypto agenda, while JPMorgan CEO Jamie Dimon—long a Bitcoin skeptic—announced the bank will allow clients to purchase the digital currency. Bitcoin's divergence from the tech-heavy Nasdaq, which fell on Wednesday, suggests investors are increasingly viewing the cryptocurrency as a safe haven amid growing financial uncertainty.
CNBC
22-05-2025
- Business
- CNBC
Bitcoin hits new record high above $111,000 as rally marches on
Bitcoin continued its rally on Thursday, hitting a brand new record high above $111,000. Bitcoin hit $111,886.41 in early trading hours in London, according to Coin Metrics, before paring some of those gains to trade at around $111,012.00 at 07:03 a.m. London. Bitcoin's move has been "driven by a mix of positive momentum, growing optimism around U.S. crypto regulation, and continued interest from institutional buyers," James Butterfill, head of research for crypto-focused asset manager CoinShares, told CNBC by email. The price rise in world's largest cryptocurrency is taking place despite a drop in U.S. stock markets on Wednesday. Bitcoin has typically correlated with equity markets, particularly the tech-heavy Nasdaq. The diverging movements of bitcoin and stocks could be the result of investors looking for alternative stores of value. "The rally was also helped along by broader macro concerns, including Moody's recent downgrade of U.S. sovereign debt, which added to the narrative of Bitcoin as a hedge against fiat instability," Butterfill noted.
