Proactive's Billy Farrington provides an update on Bitcoin's performance over the past week.
The crypto currency achieved an all-time high of $69,000 on Tuesday, matching its previous peak in November 2021. Despite a subsequent dip where the Bitcoin-USD pair fell by approximately 7%, the cryptocurrency has since shown signs of recovery, with its value nearing $67,400. Farrington attributes this week's rally partly to ETF inflows and the anticipation of lower interest rates in the US, which bolster risk assets like Bitcoin. Resistance at the $68,000 level was noted, indicating potential obstacles for further gains.
Farrington also discusses the success of Bitcoin ETFs, particularly highlighting the Blackrock iShares Bitcoin ETF, which has attracted $9.2 billion in cash inflows since its approval on January 10. This influx is partially offset by outflows from the Grayscale Bitcoin Trust, but net cash inflows remain positive, estimated around $8 to $9 billion. Regarding the possibility of Bitcoin reaching new highs, Farrington expresses optimism, considering the market's current trajectory and recent performance.
He also comments on the resurgence of meme coins, and the strong interest in 'dogwifhat' (WIF) cautioning investors about their speculative nature and the lack of inherent utility, likening the frenzy around them to potential Ponzi schemes.