Crypto Daily | Bitcoin Drops Below $86K; GameStop Sinks on Plan to Borrow $1.3B to Buy Bitcoin

Tiger Newspress
28 Mar

Crypto Daily is our column tracking crypto market trends, offering timely insights and valuable updates to keep you informed.

Crypto News

Bitcoin Exchange Supply Sinks to 7.53%, BTC Falls Below $86K

A recent analysis by Santiment revealed a significant shift in Bitcoin’s exchange supply, which has reached a mere 7.53%. This figure, reminiscent of levels seen in February 2018, underscores a growing inclination among investors to “hodl” Bitcoin holdings for extended periods.

In addition, it is estimated that 2-3% of the global population now holds Bitcoin, with approximately 172,705 Bitcoins being purchased. Experts attribute this increased adoption to the launch of Bitcoin spot ETFs, which have facilitated easier access to the cryptocurrency for traditional investors. However, the Bitcoin spot ETF category has also experienced significant outflows, partially offsetting the gains realized after Bitcoin’s recent historic high of $109,000.

However, Bitcoin continues to be subject to short-term price fluctuations. Friday saw Bitcoin’s price experiencing a downturn, falling below $86,000, which marked a decline of 1.45%.

Spot Bitcoin ETFs Report 10th Straight Day of Net Inflows

Spot bitcoin exchange-traded funds in the U.S. extended their positive flow streak to 10 days on Thursday, marking the longest inflow run since December last year.

On Thursday, the bitcoin ETFs had a total daily net inflow of $89 million, according to SoSoValue data. Fidelity's FBTC drove inflows with $97.14 million joining the fund, while BlackRock's IBIT also saw close to $4 million in inflows.

On the other hand, Invesco's BTCO saw nearly $7 million leave the fund, along with outflows of $5 million from WisdomTree's BTCW. 

However, the amount of inflows in the past 10 trading days remain "relatively modest," Jung of Presto said.

US Senate Confirms Paul Atkins to Lead Pro-Crypto SEC Under Trump

Paul Atkins, former SEC commissioner and now ex-CEO of Patomak Global Partners, has officially been confirmed by the U.S. Senate to take over as chair of the Securities and Exchange Commission (SEC) under President Donald Trump, following a heated confirmation hearing held Thursday before the Senate Committee on Banking, Housing and Urban Affairs.

Trump nominated Atkins back in December, replacing former chairman Gary Gensler, whose crackdown-heavy term left a trail of lawsuits and regulatory hostility toward crypto firms. Until now, Mark Uyeda had been serving as acting chair.

GameStop Shares Tumble as Investors Question Bitcoin Pivot

Shares of GameStop fell more than 22% on Thursday after the company's plan to finance its bitcoin pivot raised questions about the timing of its move and its strategy to turn around its struggling retail business.

The video game retailer's shares erased all their gains from the previous day, marking their biggest one-day drop since last June, after the company announced a $1.3 billion offering of 0% convertible bonds due 2030 to acquire cryptocurrency.

The company's announcement that it would buy bitcoin to hold as a treasury reserve asset had created a mini euphoria among retail traders, who keenly track the so-called "meme stock."

However, GameStop also announced the closing of a "significant number" of additional stores this year, signalling that its retail business continued to flounder despite attempts to turn it around.

Wyoming Governor Expects State to Issue Its Own Stablecoin by July

Wyoming plans launch its own cryptocurrency as soon as July, making it the first fiat-backed and fully-reserved stable token issued by a US entity.

“I don’t think there’s any banks that have been really eager right? To jump in,” Wyoming Governor Mark Gordon said during the DC Blockchain Summit on Wednesday. “Jamie Dimon was floating his idea a little while ago, and I remember talking to him and saying, you know, if you’re gonna do something, you should really do it in Wyoming, because we have a framework to do it.”

The proposed Wyoming stable token will be fully backed by US Treasuries, cash and repurchase agreements, and maintain a statutory requirement of no less than 102% capitalization. Wyoming plans to generate new revenue streams from what it calls the WYST token through interest income derived from the reserve assets, which the state said can be used to fund education and infrastructure.

SEC Officially Drops Cases Against Kraken, ConsenSys, Cumberland DRW, and Crypto.com

The U.S. SEC on Thursday dismissed enforcement actions against three major crypto firms, filing joint stipulations to drop the cases with prejudice, making the decisions final and not subject to refile.

Kraken, ConsenSys, and Cumberland DRW LLC all saw their respective lawsuits terminated simultaneously, marking the latest reversal in the agency's regulatory approach toward digital assets.

The regulator has also officially closed its case against the exchange Crypto.com.

Bitcoin Spot ETF Flow

The overall net oinflow of the US Bitcoin spot ETF on Thursday was $89.06 million. The total net asset value of Bitcoin spot ETFs is $98.29 billion, and the ETF net asset ratio (market value compared to total Bitcoin market value) is 5.67%.

Source: SoSoValue

The Bitcoin spot ETF with the highest net inflow on March 27 was Fidelity Wise Origin Bitcoin Fund (FBTC), with a net inflow of $97.14 million. Following that was iShares Bitcoin Trust (IBIT), with a net inflow of 3.97 million, according to SoSoValue.

Source: SoSoValue

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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