Bitcoin Holds Above $50,000 Thanks to Surging Activity and Enhanced Liquidity – Updates on Blockchain, Views, Broadcasts, Employment opportunities

Bitcoin (BTC) ended the week at around $51,725, representing a decline of just 0.8% from the previous week’s closing price of around $52,150. This week has been characterized by relatively low volatility, with prices around $53,000 and $50,500, marking a range of approximately 4.7%. It hit a record high of $52,985 on Tuesday.

All eyes are on the BTC spot ETF, which continues to show solid momentum. However, after 17 consecutive days of inflows, the first net outflow was observed last Wednesday, the 21st. Nevertheless, the BTC Spot ETF recorded approximately $585 million in inflows throughout this week, indicating continued investor interest.

Total net inflows since launch for the ETF are now approximately $5.6 billion. Trading volume is still increasing, with the cumulative trading volume since its establishment exceeding $50 billion and currently reaching $51.6 billion, with an average daily trading volume of approximately $1.7 billion. Last week’s cumulative trading volume reached approximately $6.3 billion, and since there were only four trading days, the average daily trading volume was $1.6 billion.

The increased presence of institutional investors in the market following the approval of the BTC Spot ETF is evident from the average trade size of BTC on centralized exchanges. Since the launch week, the average trade size has increased significantly, with the transaction value per trade consistently exceeding $1,000. Notably, trading on Coinbase has seen a more notable increase compared to other exchanges, reflecting Coinbase’s popularity among institutional investors and its role as custodian of the recently launched BTC Spot ETF.

The introduction of ETFs also contributed to improving market liquidity. Our 2% market depth analysis, which measures the sum of bids and asks on the BTC order book within a 2% spread from price, shows a 23% increase in liquidity since November 2023 and a 30% increase year-over-year. This suggests increased market maker activity and participation and marks the first significant rise since the collapse of FTX. The FTX bankruptcy case resulted in the bankruptcy of Alameda, a leading liquidity provider in the digital asset market at the time.

The increase in liquidity and demand is further evidenced by the total supply of stablecoins. The total supply of stablecoins continued to decline for about 18 months from May 2022 to October 2023, but started to increase again from November 2023, increasing from the initial $124 billion to about $139 billion. This 12% increase in total supply indicates increased market demand and liquidity.

Overall, the market has shown strong resilience on many fronts. BTC remains above $50,000, altcoins such as ETH are doing well with prices above $3,000, and high liquidity is increasing along with demand. Additionally, as BTC halving approaches within two months of his time, the market is anticipating another significant event that could impact the market trend.