The flurry of bitcoin purchases seems likely to persist, with ongoing flows into Spot Bitcoin ETFs expected to maintain or increase, while selling from the Grayscale Bitcoin Trust (GBTC) appears to be tapering off.
Notably, a significant sell-off occurred last Friday from the GBTC, totaling $608 million in BTC. However, this had little impact on BTC’s price, as Black Rock’s IBIT fund offset it with an inflow of $680 million.
Over the weekend, the bitcoin price remained relatively steady before breaking out of a triangle pattern on Sunday, signaling a renewed upward trend. With BTC currently trading around $65,000, there’s speculation that it could reach an all-time high by the end of the week.
Despite the substantial selling from Grayscale, which has been responsible for removing around $500 million of BTC from the market daily, this outflow was significantly reduced on Friday. However, it’s anticipated that the selling pressure from the Digital Currency Group (DCG), accounting for much of Grayscale’s outflow, will soon diminish, potentially leading to a resurgence in daily inflows.
In other news, “Mr 100,” a mysterious entity known for significant bitcoin purchases, notably paused buying activity on Friday for the first time since November 2022. Typically, Mr 100 acquires around 300 BTC daily, accumulating a substantial holding worth approximately $3 billion. Speculation abounds regarding the identity of Mr 100, with some suggesting it could be a nation-state or a large Asian exchange.
Despite institutional interest, the retail sector remains largely absent from the crypto market, potentially deterred by misinformation spread by figures like Jamie Dimon. However, it’s expected that retail investors will return to the market at its peak, allowing institutions to sell their holdings at a profit. Meanwhile, regulatory measures, such as restrictions imposed by the UK government on cryptocurrency exchanges, further complicate the landscape. It’s essential to educate oneself on bitcoin and the true nature of the monetary system while there’s still opportunity.
