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Category: Forex News, News

BTC Spot ETFs vs. MicroStrategy

BTC-Spot ETF Market Activity Sends BTC to $44,000

On Wednesday, BTC gained 2.91%. Following a 0.91% rise on Tuesday, BTC ended the Wednesday session at ,318. Significantly, BTC held onto the ,000 handle. Bitcoin last held onto the ,000 handle on the day the SEC approved the first batch of BTC-spot ETF.

Net inflows declined from $68.1 million to $33.70 million on February 6. Investors responded to the latest numbers. BTC fell to an early session low of $42,763 before making a move.

iShares Bitcoin Trust (IBIT) continued to top the table for net inflows. However, net inflows of just $45.2 million were the lowest since launch.

Despite the downward trend in net inflows, more BTC-spot ETFs registered net inflows on Tuesday compared to three on Monday.

BTC-Spot ETF Volumes and Flows 060224

While the net inflow numbers for February 6 were disappointing, BTC-spot ETF trading volumes for February 7 were impressive.

Bloomberg Intelligence ETF Analyst James Seyffart shared trading volumes for February 7, saying,

“Big volume day for IBIT. Total volume over $1 billion for the group.”

IBIT saw volumes surge from $181.0 million on Tuesday to $341.2 million on Wednesday. Volumes may not be indicative of net inflows. Nonetheless, the sizeable increase could suggest a marked rise in net inflows. Volumes were also higher for Fidelity Wise Origin Bitcoin Fund (FBTC). Notably, trading volumes for the BTC-spot ETF market broke through the $1 billion threshold for the first time since January.

BTC-Spot ETF Volumes 070224

However, Grayscale Bitcoin Trust (GBTC) outflows for February 7 also needed consideration. According to BitMEX Research, GBTC registered $81 million in outflows, up from $72.7 million on February 6.

On Thursday morning, Seyffart shared a BTC-spot ETF-related data post from a BTC-spot ETF enthusiast, who shared a chart showing the entities with the largest BTC holdings.

According to the chart, the BTC-spot ETF market will overtake MicroStrategy (MSTR) in bitcoin holdings within 30 days of trading.

BTC Holdings 080224

The association with MicroStrategy is significant. On December 27, MicroStrategy purchased 14,620 BTC for approximately $615.7 million, taking the total BTC tally to 189,150. BTC gained 2.11% on December 27 in response to the news.

In January, MicroStrategy acquired a further 850 BTC, taking total BTC holdings to 190,000. MicroStrategy CEO Michael Saylor announced the purchase on February 7, contributing to the session gains of 2.91%.

Technical Analysis

Bitcoin Analysis

BTC sat above the 50-day and 200-day EMAs, affirming bullish price signals.

A BTC return to the $45,000 handle would support a move to the $46,020 resistance level.

On Thursday, BTC-spot ETF market volumes and flows warrant investor attention.

However, a fall through the $44,690 support level would bring the $42,968 support level and the 50-day EMA into play.

The 14-Daily RSI reading, 62.58, suggests a BTC move to the $46,020 resistance level before entering overbought territory.

BTCUSD 080224 Daily Chart

Ethereum Analysis

ETH sat above the 50-day and 200-day EMAs, sending bullish price signals.

An ETH break above the $2,457 resistance level would support a move toward the $2,650 resistance level.

ETH-spot ETF-related news needs consideration.

However, an ETH drop below the $2,400 handle would bring the 50-day EMA and the $2,300 support level into play.

The 14-period Daily RSI at 59.07 suggests an ETH move to the $2,650 resistance level before entering overbought territory.

ETHUSD 080224 Daily Chart


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