Bitcoin ETF Frenzy: Record $2.4 Billion Trading Turnover in a Single Day – Can it Push BTC Price to $65,000?

Data shows that Bitcoin ETFs broke their all-time high this week, with trading turnover surpassing $2.4 billion on Monday.
Blackrock’s iShares Bitcoin Trust (IBIT) accounted for around $1.3 billion, extending its market dominance.

Recent data shows that U.S.-listed spot Bitcoin ETFs have consistently traded above $2 billion. According to Eric Balchunas, a senior ETF analyst at Bloomberg Intelligence, 9 U.S.-listed spot Bitcoin ETFs recorded around $2.4 billion in trading turnover on Monday. Of this, Blackrock’s iShares Bitcoin Trust (IBIT) accounted for about $1.3 billion.

After impressing on Monday, the ETFs have continued on an upward trajectory, reaching over $2 billion but falling short of Monday’s $2.4 billion. Interestingly, Blackrock’s ETF, which reached $1.3 billion on Monday, recorded an increase, reaching $1.357. These figures are not only double the recent average but further surpass those recorded on the first day of the ETFs’ launch.

Another intense volume day for the Nine with well over $2b traded. $IBIT broke its personal record again w/ $1.3b (for context that's more than most large cap US stocks trade). I don't know if this is a new normal or some kind of short-term algo/arb-related burst a la $HODL. pic.twitter.com/KkCkdQKe9r

— Eric Balchunas (@EricBalchunas) February 27, 2024

This surge coincides with a BTC price surge, with the digital asset topping $60,000 for the first time since 2021. At the time of writing, BTC is trading at $63,290 after a 4% surge in the last 24 hours. These gains see the world’s oldest and largest cryptocurrency extend its weekly gains by more than 24%, making it by far the most profitable asset. Bitcoin has dragged with it top coins including ETH, XRP, and ADA, seeing the total market cap surpassing $2.4 trillion.

With a market dominance of 50.8%, BTC enjoys a remarkable $1.25 trillion market cap, a figure far greater than that of Meta “Facebook,” Tesla, as well as Visa and Mastercard combined.

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Bitcoin is largely regarded as digital gold, and its ETF popularity has led to predictions that Bitcoin will soon overtake gold. ETF experts have predicted that, based on the current trajectory, Bitcoin ETFs are likely to surpass gold ETFs over the next two years. As CNF recently reported, ETFs tracking the price of gold have lost $2.4 billion in outflows as the price of gold dipped.

“Bitcoin ETFs, though barely six weeks old, have taken in over $8 billion more than gold peers, already have 40% as much in assets, and could pass them in size in less than two years,” the Bloomberg analysts wrote. However, analysts warn that the increase is based on increased profit appetite, and the trend could be reversed if the market risk increases.

The renewed price surge and increased trading activity around ETFs come barely two months before the next Bitcoin halving scheduled for April. This halving will result in the BTC reward offered to miners being slashed from 6.25 BTC to 3.125 BTC. Notably, the halving has historically been one of the most bullish events, often preceded by an all-time high. The last halving took place in 2020, with the digital asset setting an all-time high of $69,000 in 2021.

With its all-time high in sight, bulls will push to retest it in the coming days while keeping their $100,000 target in view. Last year, market experts predicted that BTC would end 2024 anywhere between $100,000 and $250,000 based on institutional interest, the Bitcoin halving, and ETF popularity.

Investors must remain wary of a price reversal, with bulls getting ready to defend the $60,000 and $55,000 higher supports.

Bitcoin ETF Frenzy: Record $2.4 Billion Trading Turnover in a Single Day – Can it Push BTC Price to $65,000?

James M. Gathecha