Bitcoin (BTC) closed the week at around $63,100, marking a notable 22% increase from last week’s closing price of around $51,725. The week witnessed strong price action, especially in the first half, as BTC experienced significant appreciation from Monday to Wednesday, peaking at $64,000 on Wednesday. The price then stabilized in the second half of the week, closing at around $63,100. As of this writing, BTC has regained momentum and is currently trading above $65,000.
The BTC Spot ETFs continue to show strong momentum, with cumulative net inflows of approximately $1.7 billion recorded last week, bringing total net inflows since inception to approximately $7.4 billion. Leading the race is the Blackrock Bitcoin ETF (IBIT), which surpassed $10 billion in assets under management (AUM) last week, setting a record as the fastest ETF in history to reach this AUM milestone.
Trading volumes for BTC Spot ETFs saw a significant increase during the week, for a total of $22.3 billion, with an average daily trading volume of almost $4.5 billion. This marked a remarkable 265% increase over the average daily trading volume of $1.7 billion since inception. Cumulative trading volume now exceeds $73.9 billion, while daily average volume exceeds $2 billion and currently stands at $2.1 billion.
Similarly, trading volume on the centralized digital asset exchanges increased, reaching a cumulative trading volume of $73.4 billion for the week. This represents an 80% increase from the previous week’s volume of $40.7 billion and marks the highest weekly trading volume since May 2022. The data underlines the recent price increase associated with robust trading activity.
The increase in open interest, which represents the total number of outstanding derivative contracts for an asset that has not yet been settled, is observed both for BTC and for the digital asset market in general, on both centralized digital asset exchanges (e.g. Binance , Coinbase, ByBit, etc.) and traditional financial investor platforms (e.g. CME). This indicates increased activity from both indigenous and traditional financial investors in digital assets.
The strong momentum extends beyond Bitcoin to the overall market, with the total market cap for digital assets currently at $2.5 trillion, approaching an all-time high of $3 trillion. Notably, the Total3 measure, which excludes Bitcoin (BTC) and Ethereum (ETH) and represents the market capitalization of the 125 largest capitalized digital assets, rose to $660 billion, registering 19.3% growth week-on-week and reflects a growth of 31.5%. year-to-date increase. This underlines the broad impact of BTC Spot ETFs on market momentum beyond BTC’s price action.
Examining the total supply of stablecoins also provides insight into increased demand. During periods of low demand, the supply of stablecoins typically decreases as investors exchange them for fiat currencies such as USD, GBP, or EUR, reducing the total circulating supply. Conversely, the supply of stablecoins tends to expand during phases of increased liquidity injection into the market. Currently, the total supply of stablecoins is approximately $145 billion, reflecting a continued upward trend from approximately $129 billion at the end of September 2023. This confirms continued strong investor demand throughout the fourth quarter of 2023 and the first quarter of 2024 was observed.