Bitcoin soared to a fresh all-time high this week, but faced a swift rejection, hinting at potential exhaustion among traders.
According to on-chain analytics provider Santiment, despite Bitcoin’s remarkable milestone, there’s a palpable sense of fatigue and diversion towards alternative coins within the trading community.
On March 8, BTC briefly surged above $70,000 on Coinbase, establishing a new peak. However, it swiftly retracted from this pinnacle for the second time in a week, settling around $68,000 shortly after.
Is Enthusiasm for Bitcoin Diminishing?
The recent surge in crypto markets has largely been driven by institutional investors, evidenced by consecutive days of high trading volumes and inflows into newly launched spot Bitcoin ETFs.
Santiment’s data also reveals that social activity, measured by the percentage of discussions focused on BTC versus other assets, stands at a healthy 27.5%. Nonetheless, it doesn’t reflect the exuberance witnessed when BTC surpassed $60,000 less than two weeks ago.
🥳 #Bitcoin has established yet another new #AllTimeHigh today, reaching a market value as high as $70,199 on #Coinbase. Despite the incredible milestone for #cryptocurrency, there is a combined sense of exhaustion and #altcoin distraction coming from the trading community right… pic.twitter.com/S4YqYkiOJ6
— Santiment (@santimentfeed) March 8, 2024
Moreover, previously inactive coins are resuming circulation at a rapid pace, a common phenomenon observed in most bull markets. Santiment suggests that until we see widespread euphoria and stagnant coin movement on the Bitcoin network, there’s potential for market capitalization to continue ascending.
Crypto investor Scott Melker remains optimistic, expressing to his substantial following on March 8 that he anticipates the onset of a significant bull run for both Bitcoin and the broader crypto market.
“I believe we’re witnessing the early stages of a major surge, where even coins lacking fundamental value may experience astronomical gains before an inevitable correction.”
As of the time of writing, the crypto market capitalization stands at $2.72 trillion, its highest level since December 2021 and just 12% below its peak.
JPMorgan’s Perspective on Bitcoin ETFs
In a related development, JPMorgan analysts have projected the potential size of the bitcoin ETF market to reach approximately $62 billion. While net inflows into spot bitcoin ETFs currently total around $9.2 billion, some capital may have been redirected from similar products like Grayscale’s GBTC, which has been experiencing daily outflows since its conversion.
According to the bank’s analysts, led by Nikolaos Panigirtzoglou, this target represents a realistic estimate for the eventual size of spot bitcoin ETFs, possibly within a timeframe of two to three years.
The new #Bitcoin ETFs purchased nearly 400,000 Bitcoin (worth ~$27 Billion!!!) in just 39 trading days 💥$GBTC converted to an ETF & experienced large redemptions👇$IBIT $FBTC $ARKB $BITB $BRRR $BTCO $HODL $EZBC pic.twitter.com/MHDXgEvzPg
— HODL15Capital 🇺🇸 (@HODL15Capital) March 8, 2024
At the time of writing Bitcoin price is $69,853 and Ethereum price is $3,951.
