Bitcoin dominance continues to rise: This is what top BTC analyst says about the future of the price!
3 min readBitcoin’s market dominance has continued to increase, with the BTC price recently reaching highs of up to 50,000 USD again. Despite these price increases, some skepticism remains among a group of traders, especially in social mentions. The otherwise strong reluctance of the majority of investors to use BTC is reflected in the continuously low presence of Bitcoins on the exchanges.
The ratio of Bitcoin held on trading platforms has currently fallen to its lowest level since December 2017.
Market behavior on the crypto market: Bitcoin rally continues, altcoin prices are still lagging behind
This phenomenon of very low BTC stocks on the tradable crypto exchanges could of course be due to various factors. On the one hand, the reduced BTCholdings on exchanges could potentially indicate an increase in investors with a long-term investment horizon. They will then logically secure their BTC in personal or offline wallets and initially do not want to sell their BTC due to the longer holding period. Therefore, storage on a hot wallet on the exchanges is not necessary.
As in other markets, the further development of Bitcoin depends on how both external market conditions and internal dynamics unfold in the crypto community. Accordingly, Bitcoin and the BTC price are also influenced by such developments.
📈 #Bitcoin's price dominance has continued to grow over #altcoins, as its market value surged as high as $45.5K today. Traders remain skeptical toward the asset for a 3rd straight week. This is the lowest ratio of $BTC on exchanges since December, 2017. https://t.co/XC3UK258lM pic.twitter.com/4MwvXE28RC
— Santiment (@santimentfeed) February 8, 2024
In this context, with a significant milestone in Bitcoin ETF development, a key external influencing factor has now once again come to the foreground of analysts.
The ARKB ETF issued by 21Shares US was officially allowed to exceed the threshold of 1 billion USD in BTC holdings in the past few days. This impressive number is not only a symbol of the increasing acceptance and trust in digital assets. On the other hand, it also reflects the crypto community’s commitment and passion for BTC.
#Bitcoin whales have been on a buying spree, acquiring 140,000 $BTC over the past three weeks, amounting to $6.16 billion! pic.twitter.com/ViRnYiJHmp
— Ali (@ali_charts) February 10, 2024
ARKB ETF Crosses 1 Billion USD in Bitcoin: A Milestone for Digital Assets
The fact that such a significant amount of Bitcoin is held through an ETF shows how established and recognized the crypto industry has become in the financial sector.
As the fund launcher of ARK’s Bitcoin Spot ETF fund, 21Shares US has now expressed its gratitude to the crypto community, which made this success possible. Through the ongoing support and commitment of investors, the platform has been able to open up new financial horizons and greatly advance the adoption of cryptocurrencies in general.
Significance for the crypto market: Trust in cryptocurrencies continues to rise
The ARKB ETF crossing the 1 billion USD mark could encourage more institutional and retail investors to invest in cryptocurrencies. Furthermore, it further illustrates the potential of BTC and other digital assets to potentially find a permanent place in other investors’ portfolios.
The development represents a further step towards the normalization of cryptocurrencies as an investment option and the entire idea continues to make positive progress towards adoption.
As a result, the way in which significant returns can be achieved with cryptocurrencies is often increasingly taken up in public as well as within internal discussions.
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