Exchange-traded fund (ETF) holdings in Bitcoin have exceeded $70 billion, marking a significant milestone for the cryptocurrency industry. These holdings represent roughly 5% of the total Bitcoin supply.
Recent data shows that the total Assets Under Management (AUM) of different Bitcoin exchange-traded funds (ETFs) have surpassed $70 billion, indicating growing trust in Bitcoin’s long-term value proposition. Sandi Arabia is exploring a United States dollar and has extended its reach to cryptocurrencies, with Bitcoin being the most viable.
Industry analysts say this move will have immense implications for Bitcoin. Bitcoin’s resistance level as at press time has been already decided, with the closest one at 70,100, seconded by $71,100. It’s current support level stands at $66,600, $67,600, and $68,400.
Bitcoin Shows Good Omen, As Market Responds Favorably
The concentration of Bitcoin in Exchange-Traded Funds (ETFs) implies constricting the cryptocurrency’s supply. The market has responded favorably to the milestone, and many analysts see it as a sign that Bitcoin is headed higher.
Michael Saylor, CEO of MicroStrategy and well-known supporter of Bitcoin, stated, “The asset’s emergence as a store of value and a hedge against inflation is highlighted by the growing allocation of Bitcoin in ETFs.” Though the increase in ETF ownership is a sign of optimism, several analysts warn that it also brings new hazards.
The European markets are investigating Bitcoin and cryptocurrency Exchange-Traded Funds (ETFs), suggesting that digital assets are becoming a widely accepted and profitable asset class. Industry analyst and market watcher, Helen Partz, has revealed that as long as Bitcoin ETFs continue to draw inflows, their impact on the global financial scene is anticipated to increase.
United States-Saudi Arabia Arrangement Ends, Saudi Arabia Woos Digital Assets
On the other hand, the recently terminated United States-Saudi Arabia petrodollar arrangement has officially triggered an event that could alter Bitcoin’s influence in the financial sector. This recent development has halted the economic standard of both countries for over a decade and introduced a new future of global currency diversification.
Such a major shift to digital assets might lead to high inflation and decrease dependence on fiat currency, which would benefit Bitcoin. The canceled agreement has positioned the United States dollar as the primary currency for Saudi Arabia’s oil transactions existed since 1972. The official cancellation will allow Saudi Arabia to reconsider its trading options and seek alternative financing.
The likely alternatives are the Chinese RMB, Yuan, Euro, and Bitcoin (which are considered viable). The Saudi government has signed up for the Central Bank Digital Currency (CBDC), which is currently led by the Chinese government, and mBridge, an organization that brings together central banks from the United Arab Emirates (UAE), Hong Kong, China, and Thailand.
The major change in the petrol dollar agreement may force the United States to print more dollars to counterbalance the losses it has amassed from its oil trade monopoly, which may lead to inflation in the country. This new scenario is expected to lead to an increased acceptance of cryptocurrency in the United States.
Bitcoin Records Highest Cryptocurrency Inflow With A $1.97 Billion Investment
The cryptocurrency industry has experienced a consideration period amid major inflows into the spot Bitcoin ETFs. This has caused Bitcoin to experience periodic drops and trade sideways. Recent market data on Coingape mentioned a possible rebound in interest among Bitcoin investors.
This is evident considering last week’s recent $2 billion investment in digital assets alone. Bitcoin had the highest inflow, accounting for $1.97 billion in total investments. As of press time, Bitcoin trades at $69,414.92 and has recorded a 24-hour trading volume of $15.4 billion in the last 24 hours according to data from CoinMarketCap.
With a slight drop of -0.10%, Bitcoin has seen a 0.4% upward trend in the last seven days. As of press time, Bitcoin currently has a market capitalization of $1.3 trillion and has experienced major fluctuations this month triggered by major market activities.