29 Nov, 2024

BTC Price Hits $95K Amid Rising Institutional Interest and ETF Inflows

Bitcoin’s price has increased recently, rebounding from the local low of $90,742 on November 26 to reclaim the $95,000 mark. This recovery is part of a broader trend that has seen the entire cryptocurrency market rise with the total market capitalization increasing by 7.3% between November 26 and 28 to $3.32 trillion. Market participants are now closely watching for signs that Bitcoin has found support at $90,000 before continuing its march toward the $100,000 target.Bitcoin Price Rebounds to $95,000Bitcoin’s most recent drop from a new all-time high of $99,655 on November 22 to a weekly low of $90,742 on November 26 may have been attributed to a decrease in demand from the United States. This shift was clearly reflected in the sharp drop in the Coinbase Premium Index, which measures the price difference between Bitcoin’s trading value on major U.S. exchange Coinbase and the BTC/USDT pair on Binance. However, the index has since rebounded, signaling renewed demand from retail investors in the U.S.Coinbase Premium IndexThe Coinbase Premium Index has bounced back significantly, rising from -0.0387 on June 26 to its current value of 0.091. This upward movement suggests an increase in demand for Bitcoin from U.S. retail investors. According to Julio Moreno, head of research at the on-chain analytics platform CryptoQuant, “Bitcoin demand growth is accelerating again after the recent price correction.” A chart shared by Moreno on November 27 shows that Bitcoin’s demand is continuing to rise, suggesting the market is in an expansionary phase and attracting new investors.Spot Bitcoin ETFs Show Positive Inflows, Indicating Institutional InterestBitcoin’s ongoing recovery is also being supported by renewed inflows to U.S.-based spot Bitcoin exchange-traded funds (ETFs), which flipped positive on November 26. On that day, U.S. spot Bitcoin ETFs recorded a daily net inflow of $103 million, reversing a two-day streak of net outflows totaling $558 million. Notably, the Bitwise Bitcoin ETF saw the largest inflow of $48 million, while BlackRock’s IBIT recorded no flows for the first time since November 15. This influx of institutional capital further strengthens the outlook for Bitcoin’s price as institutions demonstrate increased interest.Decreasing Bitcoin Exchange BalancesDespite Bitcoin’s price rising toward $100,000, the Bitcoin balance on exchanges has continued to fall, dropping below 2.4 million BTC in November the lowest level since November 2018. This reduction in available supply on exchanges suggests that fewer investors are selling their holdings, with many choosing to store their Bitcoin in self-custody wallets instead. Decreasing balances on exchanges are often viewed as a bullish indicator, signaling reduced selling pressure and greater confidence in the long-term value of Bitcoin.

25 Nov, 2024

Hong Kong’s ZA Bank Lets Users Trade Crypto Against Fiat Currencies on Its Banking App

Quick Take① Hong Kong-based ZA Bank announced today that its users can now directly trade crypto on its banking app.② ZA partnered with HashKey exchange to launch the trading service.③ The bank claims it is the first bank in Asia to offer retail crypto trading services.Hong Kong’s ZA Bank Lets Users Trade Crypto Against Fiat Currencies on Its Banking AppHong Kong’s ZA Bank now offers direct cryptocurrency trading services to its retail users, the digital bank announced today. ZA said in the press release that it is the first bank in Asia to offer retail crypto trading. "Through the ZA Bank app, users can now seamlessly trade top cryptocurrencies in HKD and USD — all within a single platform, with no need to switch between apps or platforms," the bank wrote in the press release. ZA Bank teamed up with Hong Kong-based crypto exchange HashKey to launch the retail crypto trading service, utilizing HashKey Pro — the institutional-grade service to help financial entities integrate crypto trading functionalities. HashKey Pro offers API trading, block trade services, and enterprise-level account structure and permission management, HashKey exchange said in its press release."Looking ahead, HashKey Exchange will continue to work closely with ZA Bank to drive the development of the Web3 ecosystem, while delivering more diversified financial services to our users," HashKey CEO Livio Weng said.HashKey is currently one of three licensed cryptocurrency exchanges in Hong Kong, along with OSL and HKVAX.The launch comes amidst the extended crypto market rally, ignited by crypto proponent Donald Trump’s re-election as U.S. president. In the past few weeks, bitcoin rewrote its all-time high record multiple times, recently nearing the $100,000 mark before moving back down to currently trade at around $98,000.