Digital Assets

Hubbis Partners with Independent Reserve to Bring You Weekly Crypto News and Market Trends - Bitcoin's Surge to Record Highs Amid ETF Shifts and Inflation Insights

Bitcoin is hitting record highs, but it's not yet at its inflation-adjusted peak, projected around US$80k. ETF inflows are surpassing miner issuance.

Mainstream access to BTC has increased post-US spot ETF approval, leading to significant product switching. This includes liquidations from Grayscale Bitcoin Trust (GBTC) to newer ETFs due to lower fees. There has also been notable switching between BTC miners and ETFs as investors seek exposure to the underlying asset. Despite BTC reaching new highs, bitcoin miners are trading at a discount to their float price, which is unexpected given their leverage. The market's uncertainty about the future of Bitcoin miners post-halving adds to the complexity of their relationship with BTC.

US CPI data will be released this week, a significant event in the economic calendar. Despite record highs in US equities and 10-year bond yields above 4%, the focus remains on inflation, with limited impact on cryptocurrencies. Forecasts suggest core inflation YoY (Feb) may slightly decline from 3.9% to 3.8%, while headline inflation YoY (Feb) is expected to rise from 3.1% to 3.2%. This data will provide insights into the ongoing economic landscape.

On the OTC desk, USDT buyers persist across various price levels. Traders who are quick to react in the market have been more willing to sell off their holdings of both Bitcoin (BTC) and Ethereum (ETH) when prices are near their all-time highs. Interest remains in mid- to low-market cap altcoins, with some inquiry into meme tokens, although trades are modest compared to market movements. The focus remains on monitoring ETF inflows relative to BTC mining supply as a key market indicator.

Read this week's full market update here.