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Bitcoin dominance sparks the start of the bull run

Daily Bitcoin ETF Trading Volume Surges to $2 Billion, Highest Since Day One

Bitcoin exchange-traded funds (ETFs) in the U.S. have experienced a significant surge in trading volume, hitting the highest levels since their launch last month. Bloomberg Intelligence's Eric Balchunas notes that the total volume reached nearly $2 billion, marking the peak since the initial trading day on January 11. VanEck's HODL ETF led the way with just under $400 million in trading volume, witnessing a 14-fold increase in daily volume, driven by 32,000 individual trades—60 times higher than its average.

This spike in trading activity can be attributed, in part, to the closure of U.S. markets on Presidents' Day, leading to the settlement of weekend trades on the first workday. Meanwhile, Bitcoin's price is hovering around $52,200 as the U.S. trading day concludes.

Bitcoin ETFs' growing momentum is evident in the substantial influx of approximately $2.3 billion last week, nearly doubling the previous week's inflow. These inflows constitute almost half of the total net inflow since the inception of Bitcoin ETFs, totaling around $5 billion.

The rising demand for Bitcoin ETFs appears to have fueled Bitcoin's recent surge, gaining around 8% and closing at approximately $52,150. Simultaneously, Gold ETFs are experiencing a net outflow of $2.4 billion in 2024, possibly reflecting global investors' shift towards U.S. equity.

Looking ahead, Galaxy Asset Management's Steve Kurz anticipates increased involvement from top wirehouses in spot Bitcoin ETFs within the next year. He suggests institutional FOMO may drive this trend. Currently, various online platforms like Fidelity, Robinhood, Charles Schwab, and eToro facilitate spot Bitcoin ETF trading, reflecting a broader shift in the investment landscape. Galaxy Asset Management itself manages the sixth-largest fund of its kind, the Invesco Galaxy Bitcoin ETF (BTCO), with assets totaling $314 million.

Ethereum Hits $3K for First Time in Nearly 2 Years Amid Rising ETH ETF Excitement

Ether (ETH), the native token of the Ethereum network, recently surpassed $3,000 for the first time since April 2022, marking a continued upward trend. The past 24 hours saw a 1.6% increase in ETH's price, contributing to a remarkable 12% surge over the last week, outperforming other cryptocurrencies, according to CoinGecko data.

Simultaneously, Bitcoin's price displayed movement, rising over 2% within the past 24 hours and approaching $53,000. The broader CoinDesk 20 Index (CD20) demonstrated a 0.65% increase over the same timeframe.

The cryptocurrency market has seen a positive start to 2024, with major tokens exceeding their 2023 prices. ETH has particularly stood out, experiencing a nearly 30% surge since the beginning of the year, surpassing Bitcoin's 22% advance.

Market analysts anticipate the continuation of ETH's rally, with a focus on reaching the $3,500 resistance level. Traders foresee potential approval for spot-based ETH exchange-traded funds (ETFs) by U.S. regulators, further enhancing ETH's appeal to conservative institutional investors. Kenny Hearn, Chief Investment Officer at SwissOne Capital, suggests that ETH's next levels to watch are around $3,150-$3,300, with $3,600 easily attainable in the next month as altcoins catch up.

The prospect of an approved ETH ETF is viewed as a significant development, akin to the success of recently debuted Bitcoin ETFs that attracted substantial allocations. Bernstein, a broker, suggests a 50% chance of a spot ETH ETF approval by May and near-certain approval within the next 12 months, indicating a potentially transformative impact on ETH's market dynamics.

Data points to approaching altcoin season even as Bitcoin dominance holds

On February 18, independent analyst Stockmoney Lizards shared on the X social media platform his belief that numerous #Altcoins are poised for a surge in the upcoming #Altseason. Supporting his claim, the analyst presented a chart indicating that the altcoin market cap had surpassed a crucial support level, entering a bullish phase reminiscent of the 10x returns witnessed in 2021. Despite these indicators, it might still be premature to confirm the onset of the altcoin season.

Glassnode's altseason indicator, showing positive momentum since October and turning positive on February 4, signals the market's shift to a risk-on mode, reflecting investor confidence in altcoins. However, data from Blockchain Center reveals that only 59% of the top 50 altcoins outperformed BTC in the last 90 days, a figure yet to surpass the 75% threshold for declaring an altcoin season.

While signs of an emerging altcoin season are apparent, Glassnode notes that the trend is concentrated in higher market cap assets, suggesting a more mature and potentially sustained uptick in altcoin markets. The conclusion is that the indicators point towards an altcoin season, but it might be too early to definitively make that call.

The Securities and Exchange Commission (SEC) is currently engaged in legal proceedings against Richard Heart. Notably, the SEC has deferred the court date for the second time, signaling a delay in the legal process.

Due to a scheduling conflict affecting the lead counsel for the Securities and Exchange Commission (SEC), the originally scheduled court date on February 23 will not proceed as planned. In response, legal representatives for both parties have collaboratively proposed alternative dates of March 25, 26, or 27, contingent upon the court's availability.

While the stated reason is a scheduling conflict, there may be speculation that this adjustment is a strategic move by the SEC's legal team to secure additional time for the acquisition of further evidence.

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