Dispatch #194: The Buzzing Bitcoin

May 31•4 min read

In this patch of your weekly Dispatch:

  • ETH’s Moment of Truth 🌄
  • The Vision of a Trader 🕶️
  • Crypto’s Year-to-Date 🗓️

The Big Idea

Are We Back to Bitcoin Accumulation?

With a not-so-special 1% up over the last week, some would wonder why Bitcoin is headlining this week’s Dispatch. For one, it won our weekly X poll, towering over other huge topics. #PowerToThePeople Secondly, Bitcoin has its way of reshaping our entire concept of how we store value, so it deserves some respect. 

BTC’s weekly performance is understandable as the hype from Bitcoin ETFs cools down – it was suggested by Mike Novogratz and Nexo’s Andrey Stoychev recently. And even if their forecast remains correct, we couldn’t help but wonder – what could lead to Bitcoin breaking out of the high $60,000s? We look for the signs first:

  • Nasdaq-listed medical technology company Semler Scientific bought $40M worth of Bitcoin, making it its primary treasury reserve asset. Chairman Eric Semler highlighted Bitcoin as a reliable store of value and an inflation hedge. The company’s stock rose 37%.
  • Long-term Bitcoin holders are re-accumulating for the first time since December 2023, according to Glassnode. Despite nearing its all-time high, Bitcoin's recent price action has been more tempered.
  • Bernstein analysts predict Bitcoin and Ether ETFs will grow to a $450B market, with flows of ~$100B over the next 24 months. The broker’s BTC price forecast is inspiring too – a year-end price target of $90,000 and a cycle high of $150,000 in 2025.

Hang on there, you say – that sounds really familiar. And you’d be correct – capital flows from institutional investors appear to be the main driver in Bitcoin currently, a narrative frequently shared here. Dispatch designers say it’s all because BTC is sweet like honey. And we’re all buzzing around it.

The Latest In…

Is ETH Getting Ready?

Much like Bitcoin, Ethereum didn’t post any serious gains, but a few notable developments deliver all the signs we need:

Ethereum (ETH) spot trading volumes surged, reaching 87% of Bitcoin’s daily volume, its highest relative share ever. This came after last week’s SEC approval of spot ETH ETFs.

Ether also posted a 10-week high this Monday, which got us all thinking – is ETH in its own bull run now? Media reasoned so, with Nexo’s Kiril Nikolov laying it down for Investing.com.

Kaiko Research views spot Ethereum ETF approvals as a positive sign for Ethereum's long-term growth, easing regulatory uncertainty.

BlackRock amended its S-1 registration for a spot Ethereum ETF, marking progress toward commencing trading. Bloomberg analyst James Seyffart sees this as a crucial step and predicts potential approval in the coming weeks.

The Latest In…

For the Love of DOGE?

A trader acquired two million dogecoin (DOGE) call options with a strike price of $0.22 expiring on June 14 and aiming for profitability if DOGE rises over 31%, CoinDesk reports. ℹ️ Options grant the right to buy or sell assets at a set price before expiry; if the asset doesn't meet the strike price, the contract expires worthless. 

The move follows a bullish trend in meme coins, fueled by Gamestop's (GME) share price surge. Dogecoin's potential rise could be influenced by altcoin performance and Elon Musk's involvement. Since its low in October 2023, DOGE has surged over 195%, buoyed by the crypto industry's bullish momentum.

The Latest In…

Business Boomin’ in Crypto Circa 2024?

Continuing a trend, the third consecutive week of inflows into digital asset investment products has set a year-to-date record at $14.9B, according to CoinShares. Most of these inflows were directed towards Bitcoin exchange-traded products, with $1.01B going there last week alone. Ethereum also saw increased interest following the approval of Ether exchange-traded funds in the USA, attracting $36M in inflows. Despite Grayscale's chronic outflows subsiding to $15M for the week, total digital asset ETPs reached $98.5B, with weekly trading volumes rising by 28% to $13.6B.

The Week’s Most Interesting Data Story

The World’s Largest Bitcoin Fund Emerges

Just this week, BlackRock's iShares Bitcoin Trust became the world's largest fund for Bitcoin, holding nearly $20B since January. Last week, ETFs experienced a significant inflow of $242M/day, indicating a return to buy-side demand. This surge in inflows suggests renewed investor interest in Bitcoin, potentially signaling confidence in its long-term prospects despite recent price volatility, according to Glassnode analysts.

Hot Topics

What the Community is Discussing:

Now, what do we have here, Singapore?

How the crypto community describes ETH. 🎯

A stock bigger than an entire stock market…

What to Watch for Next Week:

  • Will 2024 be the year of regulation?

  • More on Ethereum’s ETF decision?

  • AI and crypto triumph together?

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