Cryptocurrency market calms as halving approaches: anticipation mounts

On the last day of the work week crypto market saw cryptocurrencies mostly trading in a narrow range with Bitcoin (BTC) remaining above the US$70,000 level and the major alts trading mixed. The aftermath of the lull is attributed to traders who are still calculating the CPI that was hotter than expected and how the factors influence the interest rates and risk assets in the future.

Shares climbed back from their declines on Wednesday fueled by higher tech, which pushed Nasdaq up into positive territory. A little cooler-than-expected reading on producer prices was, indeed, a factor behind a market's reassuring posture and calmed the investors down, leading to better indices overall.

The last ringing of the bell, the S&P and Nasdaq comprised as of + 0.74%, + 0.08%, and + 1.68%, and the Dow closed flat on the day.

The information from TradingView shows that Bitcoin's price oscillated between US$69,560 and US$71,310 yesterday, with neither bulls nor bears presently having the upper hand.

ETF flows stabilize

There have been sideways price moves in Bitcoin for the past few weeks, concurrent with the normalization of investments into spot-based BTC exchange-traded funds (ETFs) after their launch which saw massive inflows and high trading volumes.

Nine has documented several days with net outgoings presently, however, the overall assets under management keep growing. What Dune Analytics data show is that since the ETFs have been launched there has been a total US$12.5 billion net inflow to them and as of now they hold 839k Bitcoins estimated to be worth US$58.9 billion.

It can be noted that investors are cementing their positions, as would have happened when various stock markets were rising at their peak; and being endorsed by some experts, going up could probably continue owing to several crucial factors.

That is why the expected release of several spots BTC ETFs in Hong Kong is in the pipeline, with certain investment firms from there as a matter of fact. Morgan Stanley and UBS just happen to be the bank's associates who are believed to come with the products before the closing of April.

While US Spot Bitcoin ETFs have primarily been driven by retail investments, TradFi players meanwhile are strategizing on future developments, that is, the institutionalization of these ETFs.

He was found surprised, to say the least, but doesn't think. Investors here I believe are still retail. "Certain Bitcoin 'whales' as well as other type of institutions already held assets before the investment, so the assets movement here is a repeat action, not new ones."