Bitcoin Market Cap Hits $1 Trillion Amid ETF Demand, Other Cryptocurrencies Follow Suit
Summary:
On February 14, Bitcoin's market capitalization hit $1 trillion, driven by strong demand from newly launched Bitcoin spot exchange-traded funds (ETFs). ETFs saw more than $600 million in inflows on February 13 alone. Amid BTC's sharp rally, traders have been advised to watch out for potential reversals. Other cryptocurrencies such as Ether, Solana, XRP, Cardano, Avalanche, Dogecoin, Chainlink, and Polkadot also saw significant price movements.
On February 14, Bitcoin's (BTC) market capitalization hit an incredible $1 trillion, driven by robust demand from the recently introduced Bitcoin spot exchange-traded funds (ETFs). These ETFs reported inflows exceeding $600 million on February 13. Founder of Pomp Investments, Anthony Pompliano, disclosed in a CNBC interview that approximately $200 billion of Bitcoin is available for trading, as 80% of the overall supply is currently inactive.
Pompliano also mentioned that these new Bitcoin ETFs have absorbed 5% of Bitcoin’s entire available supply in just 30 days from their inception. According to Coin360, Bitcoin's sharp rise tipped the Crypto Fear and Greed Index score to 79 on February 13, reflecting “extreme greed.” As the price continues to climb, traders need to keep a close eye on Bitcoin’s momentum to anticipate a potential near-term trend reversal.
Analysis of Bitcoin price reveals a surge after surpassing the $48,970 resistance mark on February 12. However, an overbought scenario on the relative strength index (RSI) infers that the BTC/USDT pair may have risen too quickly, indicating a possible short-term correction or consolidation soon.
Ether (ETH) displayed robust buying interest upon breaking above the $2,400 resistance, while Solana (SOL) witnessed a positive sentiment post the successful retest of the breakout level of $107. The ongoing fight between bulls and bears has resulted in some uncertainty in XRP's future trajectory. In contrast, buyers pushed Cardano (ADA) above the descending channel pattern on February 12.
Despite selling pressure on Avalanche (AVAX) at $42, bullish indications suggest another rise may be imminent. Dogecoin (DOGE), Chainlink (LINK), and Polkadot (DOT) also exhibited significant price movements, reflecting an ongoing tussle between buyers and sellers.
It's worth noting that every investment and trading move is laden with risk, and readers must carry out independent research before making a final decision. This update does not offer investment guidance or endorsements.
Published At
2/14/2024 9:08:05 PM
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