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Highlights
- According to data released by Glassnode, investors in Bitcoin are becoming more willing to take on risk
- The appetite is also boosted by the ascending performance of Bitcoin ETFs.
- The increase in spot volumes and inflows for Bitcoin ETFs highlights the increased interest in these products
Bitcoin prices have surged past the $57K mark, showing that an ongoing bull run is keeping sentiments afloat. In the middle of the bullish sentiments, the risk appetite for Bitcoin investors has also surged as higher investments take priority. The rise in risk appetite comes at a time when traditional markets like gold and equity have struggled to keep pace.
Bitcoin Risk Appetite Surges
According to data released by Glassnode, investors in Bitcoin are becoming more willing to take on risk, as evidenced by the mounting indicators of speculation that are emerging in exchange activity, capital flows, derivatives leverage, and even institutional demand.
The appetite is also boosted by the ascending performance of Bitcoin ETFs. In pre-market hours on Tuesday, the BlackRock iShares Bitcoin ETF (IBIT) and Grayscale’s GBTC were trading at 3.73% and 3.80% higher, respectively.
The risk appetite for #Bitcoin investors is increasing, with growing signs of speculation appearing across capital flows, exchange activity, derivatives leverage, and even institutional demand.
Discover more in the latest Week On-Chain below👇https://t.co/4hL2kqpzOo pic.twitter.com/QdjnBuOtm7
— glassnode (@glassnode) February 27, 2024
Bitcoin ETF Inflows Help Bull Rally Continue
The increase in spot volumes and inflows for Bitcoin ETFs highlights the increased interest in these products and points to a significant change in investor opinion regarding the cryptocurrency industry. The two biggest cryptocurrencies, Ethereum and Bitcoin, have increased by 30–36% year-to-date (YTD).
The largest cryptocurrency in the world, BTC, made a huge breakthrough earlier today, breaking above $57,000 after a break of almost two weeks. At the time of publication, the price of BTC was up 9.62% to $56,857.79. Its market capitalization had crossed $1.1 trillion for the first time since 2021.
Also Read: With $80Mn Pre-Market Activity, Blackrock’s Bitcoin ETF surpasses $7Bn
Bitcoin’s Risk Appetite Trend Stands Contrary to Other Markets
Bitcoin’s surge and the hike in risk appetite come at a time when other traditional markets have been struggling to find directions. The S&P 500 finished Monday, February 26, 0.5% lower than it started, yet Bitcoin saw an incredible 10% rise. Equities saw a surge after Nvidia’s results, yet sentiments for the stock market have still been pressured due to a lack of clarity in the Fed’s rate cut trajectory.
When it comes to traditional assets like equities and gold, BTC has performed better this year. The price of BTC relative to the price of the precious metal has risen to its highest point in more than two years. The price of BTC has increased by 33% since the year’s beginning, maintaining a steady rising trend that has also increased interest in altcoins like Ether and BNB.
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