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- 🥜 Bitcoin is inevitable
🥜 Bitcoin is inevitable
PLUS: ETFs going massive
Together with
GM to all 45,931 of you. Crypto Nutshell #249 feelin’ the heat.🔥 🥜
The crypto newsletter that's more heart-warming than a group of toys coming to life when humans aren't around... 🧸🎮
What we’ve cooked up for you today…
💰 Another massive day
📈 The Bitcoin IPO era
🤑 The realized cap
💰 And more…
MARKET WATCH ⚖️
Prices as at 6:05am ET
Only the top 20 coins measured by market cap feature in this section
ANOTHER MASSIVE DAY 💰
BREAKING: Bitcoin approaches $60,000 as ETFs see $2B in volume for 2nd straight day
Bitcoin just keeps pumping.
At the time of writing, Bitcoin shot up 5% reaching ~$59,500.
A price we haven’t seen since November 2021, as Bitcoin fell from its all-time high.
It also turns out that the ETFs had another HUGE day.
ETF analyst Eric Balchunas notes that there was again over $2 billion in trade volume. (excluding Grayscale outflows here)
Net inflows were also quite impressive for the ETFs.
$576.9 million came in for the day.
The largest net inflow day since 13th Feb.
No one expected the ETFs to do this.
Strap in.
The bull run is here. 🐂
TOGETHER WITH THE RUNDOWN AI 🤖
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THE BITCOIN IPO ERA 📈
We’ve just entered into a new era of price discovery for Bitcoin.
That’s the latest message out from Matt Hougan.
Matt Hougan is the Chief Investment Officer for Bitwise, the 4th largest Bitcoin ETF issuer.
Safe to say he knows what he’s talking about when it comes to the ETFs…
Every week Hougan writes a memo to institutional clients.
Here’s what he had to say in last weeks letter:
“Previously, only a fraction of the world’s investors could access bitcoin… Now, thanks to the ETFs, every investor in the world—financial advisors, family offices, institutions, endowments, and others—can access bitcoin”
Hougan uses a simple analogy to break this down:
Imagine going from 10 people bidding on a house to 100 very wealthy people bidding on a house. The price has no choice but to rise.
Just to reinforce how significant this is, Hougan explains:
“Globally, asset and wealth managers control $115 trillion of capital, according to PWC. Almost none of this money could access bitcoin in 2023. Today it can. If we see a 1% allocation to bitcoin, that’s more than $1 trillion of buying … a figure that exceeds bitcoin’s current market capitalization.”
And we believe a 1% allocation is undershooting it…
Just today, Fidelity recommended a 1-3% allocation into crypto.
Think of the ETFs as Bitcoin’s initial public offering.
Wall Street is here.
And so is true price discovery.
THE REALIZED CAP 🤑
Bitcoin’s realized cap has been on a tear this year.
Let’s break it down.
The realized cap values each coin at the price it was last moved at.
It removes lost coins as they are considered to be of low economic value. (Satoshi’s coins haven’t moved in 10+ years, when Bitcoin was less than $1)
Uptrends: coins purchased at cheaper prices are being spent for profits. Bull market signal 🐂
Downtrends: investors are realizing losses. Bear market signal 🐻
Sideways: smart money investors accumulating cheap Bitcoins, providing buy support 😑
With Bitcoin’s recent increase to over $57,000, the realized cap has risen to $467 billion.
At the time of writing, it’s only $1 billion away from crossing its all-time high of $468 billion.
It’s 100% breaking through it soon…
And just to show the difference between Market Cap and Realized Cap.
@Checkmatey posted a super interesting chart to Twitter.
Since 1-Jan-2023, Bitcoin’s market cap has increased by over $800 billion…
That almost doesn’t sound real. 😱
But at the start of 2023, Bitcoin’s market cap was only $320 billion.
Since then it’s increased to over $1.15 trillion, making it the 10th largest asset in the world.
Mind blowing numbers. 🤯
From the chart above you can see how the market cap increases WAY quicker than the realized cap.
That’s why analysts LOVE the realized cap.
It’s a powerful metric for estimating the true economic weight of Bitcoin. Focusing only on those coins that have been recently traded.
CRACKING CRYPTO 🥜
Bitwise predicts 50% odds of spot ETH ETF approval, $88k BTC by year end. Bitwise researcher Ryan Rasmussen commented on the likelihood that spot Ethereum ETFs will gain approval in the coming months on Feb. 26.
Spot Bitcoin ETFs accumulate 300K BTC as net inflow rises to $6B. BlackRock’s iShares Bitcoin Trust topped the volume charts with $1.29 billion, followed by Fidelity’s Wise Origin Bitcoin Fund in second at $576 million.
Bitcoin halvings may be bullish — but returns have shrunk every cycle. In less than eight weeks, the halving will cut new supply in half, meanwhile spot funds already gobble up coins faster than they’re mined.
WHAT WE’RE READING 📚
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CAN YOU CRACK THIS NUT? ✍️
Select your answer below and you’ll be redirected to the results page. (answer explanation can be found after “Meme Corner”)
What is Ethereum's current all-time high?(USD) |
MEME CORNER 😂
Because what would the crypto world be without its share of memes?
Trivia Answer: B) $4,721.07🥳
According to Coinbase, Ethereum’s all-time high is $4,721.07
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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.
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