The cryptocurrency market, particularly Bitcoin, has seen a recent drawdown of 10%, with spot bitcoin ETF outflows from GBTC totaling about 300 million on March 20. This volatility is in line with historical trends that occur before the BTC halving event, suggesting that more fluctuations are to be expected leading up to the event. CoinDesk 20 (CD20) is currently down 0.5%, while CoinDesk’s Digitization Index (DTZ) saw a 2.7% increase during Asia trading hours, driven by performance in digitization protocols like Ethereum Name Service (ENS).
According to Singapore-based QCP Capital, the market is currently in a consolidation phase, with both Bitcoin and Ether trading within a relatively tight range. The market may see some reprieve during the weekend following the previous weekend’s pre-FOMC volatility. Interestingly, Grayscale Bitcoin Trust (GBTC) continues to experience significant outflows, with $358.8 million leaving the fund. QCP Capital also noted that the market is starting to discount the approval of a spot ether ETF in the near future, as evidenced by the widening Grayscale ETH discount from -8% to -20% in the past two weeks.
Moreover, blockchain bettors on Polymarket are optimistic about Ether’s future performance, with expectations that it will hit its all-time high in the second quarter. However, a portion of traders are skeptical and believe that there will be no all-time highs for Ether in 2024. This sentiment reflects the ongoing uncertainty and volatility in the cryptocurrency market as investors and traders navigate various factors influencing digital asset prices.
