Key Points
- Bitcoin ETF volumes continue to rise despite recent BTC price volatility.
- Increased interest in Bitcoin NFTs has resulted in growth in overall activity on the Bitcoin network.
Bitcoin [BTC] has faced substantial volatility in recent days, leading to speculation among investors. Despite this, Exchange Traded Fund (ETF) volumes suggest growing interest in Bitcoin.
Record-Breaking ETF Volumes
ETF analyst Eric Balchunas reported that the ten Bitcoin ETFs collectively reached a record-breaking $10 billion in trading volume, surpassing the previous record set just last week. ETFs such as IBIT, FBTC, BITB, and ARKB all experienced record-breaking trading days. The short Bitcoin ETF, BITI, also outperformed its previous record by a significant margin.
Balchunas expects even more activity when 2x and -2x spot BTC ETFs are launched, anticipating a large influx of traders towards these offerings. Interestingly, even BITO and BITX broke their respective records, demonstrating the unexpected positive impact of the spot craze on futures ETFs.
Bitcoin’s Price Volatility
Despite the rising ETF volumes, the recent volatility of BTC could still negatively affect sentiment around the cryptocurrency. Over the last week, the price of BTC fluctuated from $69,000 to $61,333 before recovering. At the time of writing, BTC was trading at $67,074.51.
These large price swings could negatively affect the perception of BTC, especially among new traders. Additionally, on March 4th, liquidations totalling $249.24 million affected 90,403 traders, with BTC accounting for $75.96 million of the total liquidation amount.
The liquidations caused by these sudden price movements could dampen the bullish sentiment exhibited by traders and potentially lead to reduced liquidity in the markets.
In terms of its overall ecosystem, Bitcoin is performing relatively well. Data from Santiment showed that daily activity on the Bitcoin network has grown, largely due to the recent surge in interest in Bitcoin NFTs.
