Fresh Money is Flowing into the Crypto Market, Bullish Signals Are Strengthening, FOMO and YOLO Appear to Be Returning

Bitcoin is reaching the highest levels since April 4, 2022 as fresh money is flowing into the crypto market. FOMO and YOLO appear to be returning as Tether (USDT) supply hits an all-time high. BlackRock announced that it has received $100,000 seed funding for spot Bitcoin ETF. Also, Wall Street is coming to crypto. There are some really interesting things going on in the crypto market, frankly this Bitcoin rally feels a lot different.

Fresh Money is Flowing into the Crypto Market

Source

The stablecoin market is expanding for the first time in 18 months, with the total market cap of the largest stablecoins rising by almost $5 billion to $124 billion last month. According to Matrixport's report, the biggest expansion was in Tether (USDT), the largest stablecoin by market cap. The supply of USDT has increased by $7 billion since September, also rising to an all-time high market cap of $89.6 billion, indicating fresh money entering the crypto market. For more, you can check out Matrixport's report.

Source

According to a Dec. 4 report from James Butterfill, head of research at CoinShares, a total of $1.76 billion was inflow into crypto products in 10 weeks. This is the largest inflow and record since futures-based ETF launch in the US in October 2021.​​​ According to the report, Canada, Germany and the USA lead with significant inflows. While the highest inflows were into Bitcoin with 133 million dollars, Ethereum had an inflow of 31 million dollars. Additionally, digital asset investment products saw total inflows of $176 million last week. For more, you can check out the report here.

In its new application to the U.S. Securities and Exchange Commission (SEC), BlackRock (BLK) announced that it received $100,000 as "seed capital" for its proposed Bitcoin ETF.​ The filing shows that the investor agreed to purchase $100,000 worth of shares on October 27, 2023 and took delivery 4,000 shares (“seed shares”) at a price of $25.00 per share on October 27, 2023. Click to view the application.

Frankly, it is not difficult to understand how things have become so exciting in the crypto market. It's undoubtedly a big deal that Wall Street heavyweights BlackRock, Franklin Templeton and Fidelity are trying to list bitcoin ETFs in the US. In fact, ETFs are easier and probably more realistic for traditional investors and many others than creating an account on a crypto exchange or learning how a decentralized exchange or MetaMask works. Of course, this is valid for those who do not have enough knowledge about the crypto market, for those who have been in the crypto market for many years, it is safer to use a decentralized exchange or their own wallet. Additionally, approval of ETFs will allow more hot money to enter the crypto market.

Bitcoin hit the highest levels since April 4, 2022 today. Bitcoin (BTC) is currently trading at $43,750. Additionally, Bitcoin exceeded $44,000 today and reached $44,488, but has been rejected above $44,000 for now. I think it will retest above $44,000 in the following sessions, and if successful, it may move higher.​​ ​

Frankly, this Bitcoin rally feels very different and if nothing negative happens, Bitcoin may hit very crazy prices in the near future. Also, when I look at the markets, it looks like FOMO (Fear of missing out) and YOLO ("You only live one") are back. I also think that Bitcoin's rapid rises are due to institutional and wealthy investors making large purchases, because that's what happened in the past. Anything can happen in the crypto market at any time, so it is better to be cautious, but considering the latest developments, I believe that there may be bigger rallies and Bitcoin can reach incredible prices. We'll wait and see.

By the way, I think the altcoin market has not yet fully accompanied the rise of Bitcoin, so I am following altcoins closely. I'm trying my best to buy more HIVE, especially these days. Frankly, I do not buy when the price of an asset is rising, I do not sell when it is falling, that is, I sell when it is rising and buy when it is falling. That's why I like to buy cryptos like Hive that haven't rallied yet because I won't be able to buy them once they start rallying.
​
Thank you for reading
@rtonline

This is not investment advice, just my personal opinions. As with all money markets, anything can happen at any time in the crypto market, so please do your own research before investing.

Posted Using InLeo Alpha