Bitcoin’s market position is positive as it hovers near $48,000 amid widespread expectation of potential growth to $100,000. Glassnode’s analysis labels the current Bitcoin market as ‘high risk’, highlighting the volatile nature of cryptocurrency investments.
Grayscale attributes this potential rise to Bitcoin’s unique post-halving market structure, which suggests a favorable outcome for investors.
At the same time, global regulatory efforts, exemplified by Nigeria’s move to regulate cryptocurrencies to combat financial crimes, reflect the broader adoption and scrutiny of digital currencies.
This environment fuels diverse Bitcoin price predictions, with the community oscillating between cautious optimism and strong bullish sentiment for its future valuation.
Bitcoin market flagged as ‘high risk’ by on-chain data, Glassnode reports
Glassnode’s on-chain indicators suggest Bitcoin may be entering a bull market, after crossing the “medium risk” threshold according to the long-term holder market value to realized value (MVRV) indicator.
This indicates significant profitability for long-term investors by measuring market overheating by comparing Bitcoin’s market value to its realized value, excluding short-term sentiment influences.
After the challenging recovery since the FTX crash, this indicator advanced to 2.06, entering the High Risk🧧 regime.
These levels are typically seen during the early stages of bull markets, as long-term investors return to a relatively meaningful level of profitability. pic.twitter.com/XMSjJjUc1z
— glassnode (@glassnode) February 9, 2024
Last week, Bitcoin’s price rose from $42,317 to $48,582, mainly due to reduced withdrawals from the Greyscale Bitcoin Trust and significant inflows into spot Bitcoin ETFs.
Notably, spot Bitcoin ETFs recorded an unprecedented $541 million inflow on February 9, while Grayscale’s GBTC experienced its lowest outflow at $51.8 million.
This trend indicates growing investor confidence in Bitcoin, potentially leading to further price increases as more institutional funds flow into the market.
Grayscale Insights: Bitcoin’s Market Structure Raises Price After Halving
Grayscale suggests that the introduction of Bitcoin exchange-traded funds (ETFs) could mitigate post-halving market pressure, traditionally driven by miners’ need to sell, by providing a stabilizing influence.
The halving event, which cuts miners’ earnings in half, usually results in significant selling pressure.
In this report, we provide a holistic analysis of the halving – what it is, why it matters, its historical impact, and why the $BTC landscape looks so different than even a year ago. https://t.co/L7aOULUA3W
— Grayscale (@Grysscale) February 9, 2024
However, the advent of ETFs can counteract this by promoting sustained market demand. The recent rollout of nine Bitcoin ETFs, collectively managing $10 billion in assets, exemplifies this potential.
BlackRock’s iShares Bitcoin Trust has $4 billion in Bitcoin, showing significant market confidence.
ETFs’ ability to relieve selling pressure can effectively act as a market restructuring tool, similar to an additional halving event, potentially fostering continued price growth as the market adjusts to these new dynamics introduced by ETFs.
Nigeria is implementing cryptocurrency regulations to fight financial crimes
Adedeji Owonibi, co-founder of A&D Forensics, emphasizes the critical need for regulation of cryptocurrencies in Nigeria to combat financial crimes such as money laundering.
Following the Central Bank of Nigeria’s reversal of its ban on cryptocurrency transactions, there is a concerted effort to educate compliance specialists to ensure banks can work with virtual asset service providers (VASPs) within regulatory guidelines.
Owonibi stresses the importance of compliance to deter illegal activities. With the new regulations, VASPs are allowed to open bank accounts under CBN’s regulations, but there is a call for the Nigerian Securities and Exchange Commission to review its crypto licensing rules to legitimize local exchanges.
Exciting update from Champion News on 3CS Training!
A&D Forensics has just trained a new group of cryptocurrency compliance specialists.
Read insights from our facilitators and participants here!https://t.co/pdXHIo9nm0#CryptoComplianceTraining #NigerianTrainings
— A&D Forensics (@ForensicsD) February 10, 2024
Such regulatory advances could strengthen Bitcoin’s market by improving its credibility and investor confidence.
Properly defined regulations are poised to increase Bitcoin’s value and adoption, attracting more investors and institutions to the cryptocurrency space.
Metaco’s Leadership: Ripple-Owned Crypto Custody Firm’s CEO and Product Lead Insights
Following Ripple’s acquisition of Metaco in May 2023, the company’s Chief Product Officer Peter DeMeo and CEO Adrien Treccani departed.
Ripple recognized their significant contributions to the digital custody sector, emphasizing that custody remains a cornerstone of its crypto business offerings.
Metaco, known for securing a deal with HSBC and its popularity among European banks for safekeeping of digital assets, is facing scrutiny over possible reassessments of banking partnerships after acquisition.
SCOOP: The CEO and Chief Product Officer of @metaco_sa, the cryptocurrency custody firm acquired by @Ripple last year, has left the company.@IanAllison123 reportshttps://t.co/8PkKaVsUDS
— CoinDesk (@CoinDesk) February 11, 2024
This development, which reflects broader trends in the cryptocurrency industry, may indirectly affect Bitcoin’s perception.
Ripple’s focus on custody highlights the importance of institutional adoption of digital assets, potentially affecting market sentiment.
Changes in leadership at key custodial firms like Metaco could signal shifts in institutional strategies toward cryptocurrencies, affecting the broader view of Bitcoin among traditional financial entities and investors.
Disclaimer for Uncirculars, with a Touch of Personality:
While we love diving into the exciting world of crypto here at Uncirculars, remember that this post, and all our content, is purely for your information and exploration. Think of it as your crypto compass, pointing you in the right direction to do your own research and make informed decisions.
No legal, tax, investment, or financial advice should be inferred from these pixels. We’re not fortune tellers or stockbrokers, just passionate crypto enthusiasts sharing our knowledge.
And just like that rollercoaster ride in your favorite DeFi protocol, past performance isn’t a guarantee of future thrills. The value of crypto assets can be as unpredictable as a moon landing, so buckle up and do your due diligence before taking the plunge.
Ultimately, any crypto adventure you embark on is yours alone. We’re just happy to be your crypto companion, cheering you on from the sidelines (and maybe sharing some snacks along the way). So research, explore, and remember, with a little knowledge and a lot of curiosity, you can navigate the crypto cosmos like a pro!
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