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Analyst William Clemente has come out to highlight three reasons why he believes the Blackrock Bitcoin ETF filing has been so beneficial to the bitcoin price of late.
Analyst Points to Indicators Fueling BTC Adoption
The cryptocurrency industry is witnessing a significant development as BlackRock, the world’s largest asset manager, enters the Bitcoin market through its exchange-traded fund (ETF) filing.
According to on-chain analyst William Clemente, US investors are accumulating BTC, further fueling the momentum behind the leading cryptocurrency.
The on-chain analyst observed that the effects of the ETF filing had been seen in multiple aspects, with a major influence from entities based in the United States.
Clemente highlighted three key indications during a recent interview with BTC enthusiast Anthony Pompliano, suggesting that US institutions have been actively acquiring Bitcoin since BlackRock filed for a spot Bitcoin ETF.
Firstly, Velo’s cumulative return by session data shows that the US trading session, especially after the BlackRock filing, has displayed more active bidding on bitcoin.
This is in comparison to other trading sessions in the European Union (EU) and Asia-Pacific (APAC) regions.
Secondly, trading volume on Coinbase indicates that bitcoin has been trading slightly higher than other exchanges, further suggesting increased involvement from US-based firms.
Furthermore, Clemente discussed the rise in bitcoin futures open interest on the Chicago Mercantile Exchange (CME), a global derivatives marketplace.
The surge in open interest following the BlackRock and other ETF applications signifies an increasing exposure to BTC among US institutions.
This trend is particularly notable as the CME predominantly attracts traditional US-based firms rather than speculative crypto traders seeking leverage.
During that period, approximately one billion dollars of open interest were added, serving as additional evidence of US-based firms’ growing interest in BTC.
Bitcoin Price Sees Significant Growth
A significant point of the interview revolved around the drawdown in BTC’s price from its all-time high.
Clemente clarified that the price experienced a drawdown of up to 75% in the latter half of the previous year, but it has decreased by only 55% from its peak.
Nevertheless, BTC has had a remarkable year, with an 85% increase compared to Gold’s modest 5% rise.
It has also outperformed the NASDAQ, which has been on an impressive run this year, recording a year-to-date increase of approximately 40%.
Bitcoin’s market dominance, measured by its market capitalization within the crypto market, has surged to more than 51%.
This marked its highest level since April 2021 compared to other digital assets.
Clemente stated that this increased dominance can be attributed to two significant events. The first is the SVB banking crisis in March of this year.
The second is the filing of ETF applications by BlackRock, which subsequently led to other ETF filings.
These developments have particularly benefited BTC, resulting in a substantial influx of investments into the crypto bellwether compared to other cryptocurrencies.
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