NFT Market Foresees Surge Post BTC Halving as Bitcoin ETFs Hit $10B Record
Summary:
After the Bitcoin halving event, the nonfungible token (NFT) market expects a price surge. Meanwhile, spot Bitcoin exchange-traded funds (ETFs) achieved a $10 billion trading volume record, coinciding with Bitcoin's new all-time high above $69,000. Following this peak, Bitcoin values saw a considerable drop. Experts suggest large sellers taking advantage of high liquidity moments attribute to such market trends.
The nonfungible token (NFT) market expects a surge in prices following the Bitcoin (BTC) halving event. Spot Bitcoin exchange-traded funds (ETFs) marked a record-breaking day with a $10 billion turnover. Simultaneously, Bitcoin surpassed $69,000, marking its highest peak since 2021.
Professionals within the NFT field predict the upcoming BTC halving will influence not only cryptocurrencies but also bring a positive effect on the NFT landscape. Oscar Franklin Tan, the CFO of Atlas Development and key contributor to the Enjin NFT platform, expressed his confidence in the potential NFT price increase post-Bitcoin halving, suggesting Bitcoin interest could also bolster the NFT market.
On March 5, US spot Bitcoin ETFs witnessed a historic trading volume of $10 billion coinciding with Bitcoin's new record high, outdoing the previous record set on February 28 by $2.3 billion. Eric Balchunas, Bloomberg ETF analyst, termed these figures as "remarkable" considering the ETFs' relatively recent introduction.
Out of all, BlackRock’s ETF registered the highest volume at $3.7 billion, followed closely by Grayscale and Fidelity, which posted figures of $2.8 billion and $2 billion respectively. As Bitcoin reached over $69,200 and subsequently dropped by over 14% to $60,000 within five hours, these ETFs too experienced comparable price dips.
Bitcoin made a brief appearance above its record high of $69,200 on March 5, marking an impressive two-month growth following the approval of spot exchange-traded funds. However, shortly after reaching this milestone, Bitcoin's value took a downturn, dropping to the sub-$64,000 level.
Crypto author and educator Vijay Boyapati noted the role of "large sellers" in this pattern: they seize the high liquidity moment to offload their holdings, leading to eventual price discovery. The reader is reminded that investment and trading decisions involve risk and should be based on careful research. This report also incorporates contributions from Geraint Price, Sam Bourgi, and Felix Ng.
Published At
3/6/2024 4:06:16 PM
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