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Bitcoin and Ethereum led cryptocurrencies in liquidations as over 54,000 traders saw leveraged positions wiped out, and the total market cap neared $2.1 trillion.

CoinGlass reported that over $145 million was liquidated from the crypto market in 24 hours across exchanges. As most traders anticipated lower prices, $91 million of these trades were registered as short positions.

However, the total cryptocurrency market cap rose 1.2% per CoinGecko and liquidated the downside bets. A $4 million Bitcoin (BTC) position in a USDT pairing made the single largest liquidation order. The trade was on Binance, cryptos biggest exchange.

Traders also lost at least $70 million combined between BTC and Ethereum (ETH) across long and short punts.

BTC and ETH, the top cryptocurrencies by market cap, have seen price uptrends in the past week. The tokens have gained 3% and 11% in the last seven days amid bullish market sentiment.

Bitcoin ETF approvals by the U.S. SEC on Jan. 10 seem to be a main driving force in Bitcoins rally as it prices in at $51,800 and holds a market cap of over $1 trillion, making BTC the 10th largest asset in the world. There is also anticipation surrounding the Bitcoin halving, which is expected in April.

Some believe the halving, which slashes new block rewards in half, and BTC acquisitions for spot Bitcoin ETFs will trigger a supply crunch while demand increases. The leading hypothesis suggests this will cause a parabolic run for cryptos largest asset.

The Bitcoin halving is set to happen in April 2024. Here's what to expect First, let's reflect on the Previous Halving: In 2020, after the last halving, the block reward dropped to 6.25 BTC Bitcoin's hash rate dropped by 30% within two weeks. Bitcoin's miner difficulty pic.twitter.com/6hIsjAVPKK

Ethereums current momentum revolves around a technological upgrade dubbed Dencun. Developers have said the modifications will introduce expanded data availability for layer-2 rollups through a blob feature. This will allow L2s to add more data to each block, thus reducing transaction costs and bolstering scalability.

Dencun is slated to ship to Ethereums mainnet around mid-March following successful testing on three testnets: Goerli, Sepolia, and Holesky.

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Bitcoin, Ethereum lead crypto in $145m liquidation day - crypto.news

Bitcoin is breaking records as investors flock into new spot Bitcoin exchange-traded funds in the US with $2.45 billion flowing into the funds last week the highest weekly total ever.

In a new report, Kaiko attributed 99% of the inflows to the US market, with the majority of flows heading into spot Bitcoin ETFs such as Wall Street giant BlackRocks iShares Bitcoin Trust.

The iShares fund is one of 10 new ETFs to hit the market since the US Securities and Exchange Commission approved them on Jan. 10. It is the most successful ETF launch of all time.

Since its launch, the iShares Bitcoin Trust has had over $6 billion in inflows, followed by Fidelity Investments Wise Origin Bitcoin Fund, at $4.3 billion.

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US platforms have dominated Bitcoin trading since late last year, consistently wielding over 50% of global market depth.

The increase in liquidity has been driven by US platforms and is likely linked to the spot ETF approvals, Kaiko wrote in its report.

US spot Bitcoin ETFs have pulled in the bulk of this years $5.2 billion in Bitcoin inflows, a number hurt by outflows from the Grayscale Bitcoin Trust, the incumbent ETF on the market.

CoinShares flows chart (Bloomberg/CoinShares)

Grayscale has seen $7 billion in outflows this year, as investors migrated to ETFs with lower fees such as the iShares Bitcoin Trust and Wise Origin.

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Grayscale outflows have slowed in recent weeks, but more trouble looms. Last week, a judge granted bankrupt crypto lender Genesiss request to offload $1.6 billion in Grayscale stock a move that banking giant JPMorgan said that will create selling pressure for Bitcoin and that could contribute to another $10 billion in outflows for Grayscale.

Still, Grayscales bleeding has been outpaced by inflows overall, indicating continued growth in the sector.

Bitcoins daily trading volume averaged more than $10 billion last week, Kaiko research shows. The firm noted that daily trading volume hasnt surpassed the 10-month high hit on January 10, the day before spot Bitcoin ETFs made their market debut in the US.

Kaiko Bitcoin flows chart (Kaiko)

The report showed that Bitcoin volumes are up and that average trade sizes are consistently above $1,000 per trade, a possible sign of institutional participation.

Tyler Pearson is a junior markets correspondent at DL News based out of Alberta, Canada. Got a hot tip? Reach out to him at ty@dlnews.com.

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Bitcoin ETFs notch best-ever week with $2.5bn haul amid signs bigger players are jumping in - DLNews

Bitcoinholdings on Coinbase crypto exchange have fallen to their lowest level in nine years as users move a significant chunk of their holdings off the exchange.

According to a report from CryptoQuant, whales moved 18,000 Bitcoin (BTC) worth nearly $1 billion off Coinbase over the weekend, with transfer values ranging from $45 million to $171 million. Coinbases public order book now holds around 394,000 BTC, which is estimated to be worth $20.5 billion.

Whales moving their BTC holdings away from centralized exchanges is considered a bullish sign as less Bitcoin is available for sale. However, users on social media are divided over the nature of the transfers. Some believe the funds are being moved to custodial wallets in anticipation of a price surge, with the upcoming Bitcoin halving, just two months away, creating a supply shock. While a few others believe that the moved funds could be used for liquidity for over-the-counter (OTC) trades.

Others suggested that the funds could be going to a different custodian and that they arent individual withdrawals, as most of whats in these exchanges doesnt belong to them anyways, so this number should be a lot lower.

With every Bitcoin halving cycle, the amount of new BTC entering the market is reduced by half, creating a supply crunch as demand grows. The next BTC halving will happen in April at a block height of 740,000. The block reward for each block mined by miners will be reduced from 6.25 BTC to 3.125 BTC. The upcoming halving also comes amid massive institutional demand, with 11 spot Bitcoin exchange-traded funds (ETFs) approved in the United States in January.

Related: Grayscales GBTC outflows reach $7B, but data shows its slowing

Currently, around 900 BTC is mined daily, while Bitcoin ETFs daily net inflows are about half a billion dollars or about 9,650 BTC despite Grayscale registering nearly $100 million in daily outflows.

Post-April halving, the daily amount of BTC produced will be reduced to about 450 BTC, with institutional demand continuing to rise. This massive supply-demand gap has historically proven bullish for the Bitcoin price, with new all-time highs coming within a year of the halving.

Bitcoin is trading at around $52,000, its highest level since December 2021, down 25% from its all-time high of around $69,000.

Magazine: Crypto is inevitable so we went all in Meet Vance Spencer, permabull

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Bitcoin holdings on Coinbase reach lowest level since 2015 as whales withdraw $1B BTC - Cointelegraph

A widely followed crypto analyst believes that Bitcoin (BTC) is topping out, but Ethereum (ETH) and other altcoins are about to take off.

Michal van de Poppe tells his 694,300 followers on the social media platform X that he is expecting decentralized finance (DeFi) protocols and decentralized physical infrastructure (DePIN) technology projects to start to outperform Bitcoin.

DePIN projects involve the use of crypto assets and blockchain technology to incentivize the building of real-world infrastructure.

Says Van de Poppe,

Strong weekly candle on ETH/BTC. It seems very likely that the rotation has started.

DeFi/DePin going to outperform significantly. Bitcoin close to peaking out. Other ecosystems starting to do well.

ETH/BTC is trading for 0.05700 BTC ($2,953) at time of writing, up more than 3% in the past 24 hours.

He predicts that Bitcoin may increase to as high as $58,000 before there is a market correction.

Bitcoin consolidating at $52,000 with the total market capitalization at $1.9 trillion. The upside looks relatively capped for Bitcoin. My overall thesis is a continuation to $54,000-$58,000 and then consolidation and broader correction.

He also thinks that Bitcoin will follow a historic price pattern and significantly exceed its current value in two years.

Its the April 2016 of Bitcoins cycle to the peak in December 2017. Its the March 2020 of Bitcoins cycle to the peak in November 2021. Bitcoin is valued at $51,000, but this will be significantly higher in two years time. Accumulate as much as possible.

Bitcoin is trading for $51,835 at time of writing, up nearly 4% in the past seven days.

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Trader Says DeFi and Another Crypto Sector Are Going To Significantly Outperform, Updates Outlook on Bitcoin - The Daily Hodl

Investors have plowed billions of dollars into spot bitcoin ETFs since they launched last month and so far, its paying off.

Altogether, the suite of new bitcoin-backed funds (not counting Grayscale Bitcoin Trust) have attracted $11.4 billion in capital inflows in the past five weeks.

Their respective issuers, a set of 10 led by BlackRock, Fidelity, Ark, 21Shares and Bitwise, have then used that cash to buy bitcoin on behalf of ETF shareholders.

They do so through crypto exchanges, mostly Coinbase and Coinbase Pro, but they also utilize prop trading firms such as the Dutch-founded Flow Traders.

BlackRocks fund, IBIT, is the furthest ahead in terms of actual dollars.

Read more: A month after launch, spot bitcoin ETF weekly net inflows hit new high

Thats mostly due to IBIT having the most assets under management (AUM) 115,991 BTC ($6.04 billion) from $5.17 billion inflows, an appreciation of more than $870 million, or 17%, at current prices.

The chart below plots the differences between net inflows and the current value of bitcoin treasuries for each spot ETF.

Shareholders in Invesco-Galaxys offering, BTCO, are however way further ahead, albeit on a smaller scale.

BTCO has attracted $241.4 million net flows and currently holds 5,970 BTC worth $311 million a difference of almost $70 million, or 29%.

Valkyrie, Fidelity and VanEck funds are also further ahead than BlackRocks, with around 20% gains.

The variations in unrealized gains across the different funds illustrate distinct buying patterns between investor groups.

Plotting BlackRock inflows against bitcoins price, for example, shows investors have kept their IBIT allocations steady over time.

This has essentially led IBIT to dollar-cost average into bitcoin at an even pace, converting to lower unrealized profits compared to Invesco-Galaxys fund BTCO.

BTCO instead saw two-thirds of its total inflows to date across just four days Jan. 16 to 19 as bitcoin floundered between $41,600 and $43,100 after dropping more than 15% in the days following the ETF debuts.

Another surge in inflows occurred two days later, when BTC traded below $40,000 for the first time in more than a month.

Read more: Another bitcoin ETF just joined the $1B assets club. Will it be the last?

Bitcoin is now up by nearly one-third from that point, pushing BTCO, and its shareholders by extension, as far into the green as practically possible.

Some of those investors appear to have taken it one step further by taking profits, making BTCO the only bitcoin ETF, apart from GBTC, to record outflows since launch.

Between Feb. 9 and 14, investors pulled more than 1,500 BTC ($78.1 million) from Invesco-Galaxys fund, equal to around 20% of its treasury at the time. The price of bitcoin rallied from under $45,500 to $50,000 across that period.

WisdomTrees BTCW slightly trails the pack, having attracted the overwhelming majority of its inflows on its first day of trade before bitcoin dipped.

As for Grayscales flagship fund, now an ETF in its own right, it has on average bled nearly 2,400 BTC ($124.9 million) per trading day this month.

All told, the bitcoin pulled from GBTC since Jan. 11 was collectively worth $6.86 billion at the time of those outflows.

That same amount of bitcoin (162,259 BTC) would now fetch $8.44 billion potential gains of 23% left on the table, had that capital not immediately re-entered the market.

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Bitcoin ETFs now $2B up on inflows to date, led by BlackRock - Blockworks