Research Summary

The report discusses the recent surge in Bitcoin’s value, the growth of BlackRock’s IBIT fund, Tether’s USDT stablecoin surpassing a $100 billion market cap, and the UK government’s Bitcoin holdings. It also covers the Federal Reserve’s monetary policy, a US court ruling on Coinbase, and the opening of FTX’s claims window.

Key Takeaways

Bitcoin’s Historic High and Volatility

  • Bitcoin’s Peak: Bitcoin reached a historic high of $69,000 on March 5th, marking 846 days since its last peak. However, it experienced a downturn, dropping to $59,000 within 24 hours, leading to a total market liquidation of $1.183 billion.
  • Volatility Index: The Bitcoin Volatility Index (BitVol) reached 79.92 on March 4th, the highest point since mid-November 2022, indicating significant market volatility.

BlackRock’s IBIT Fund Growth

  • IBIT Surpasses Silver ETF: BlackRock’s IBIT fund’s assets under management (AUM) of $12.6 billion have surpassed the largest silver ETF SLV’s AUM of $9.626 billion, ranking third among commodity ETFs.
  • Bitcoin ETFs Market Capitalization: The total market capitalization of Bitcoin ETFs is $55.496 billion, with a total AUM of $49.321 billion.

Tether’s USDT Stablecoin Market Cap

  • USDT Surpasses $100 Billion: Tether’s stablecoin USDT briefly surpassed a market capitalization of $100 billion for the first time in its history, reflecting the broadening rebound in the crypto market.

UK Government’s Bitcoin Holdings

  • UK Government Holds Over 61,000 BTC: The UK government currently holds over 61,000 bitcoins, worth over $4 billion, which were seized from Jian Wen and Zhimin Qian in 2018.

FTX’s Claims Window

  • FTX Opens Claims Window: FTX has opened a claims window where users can log into their claims accounts to view the claimable value. The initial interim distribution is expected to be conducted by late 2024 or early 2025.

Actionable Insights

  • Monitor Bitcoin’s Volatility: Investors should keep a close eye on Bitcoin’s volatility index as it can provide insights into potential market movements and risks.
  • Assess the Growth of Crypto ETFs: The growth of BlackRock’s IBIT fund and the overall market capitalization of Bitcoin ETFs highlight the increasing institutional interest in cryptocurrencies. Investors should assess the potential implications of this trend.
  • Consider the Impact of Stablecoin Market Caps: The growth of Tether’s USDT stablecoin’s market cap could have significant implications for the broader crypto market. Investors should consider this when making investment decisions.
  • Understand the Implications of Government Bitcoin Holdings: The UK government’s significant Bitcoin holdings could have potential implications for the market, particularly if the government decides to sell these holdings.
  • Review FTX’s Claims Process: FTX users should review the claims process and consider the potential implications of the claimable values and the expected distribution timeline.

Related Research