Bitcoin, the biggest crypto in the world and the blueprint for all the other digital coins and tokens, remains the asset with the highest market capitalization out of the entire cryptocurrency world. The movements that take place in the Bitcoin world reverberate in the whole crypto world, so when BTC is doing well, all the other coins are doing well, and when it performs poorly, all the other coins suffer as well. Although 2024 started off very positively, price action soon decreased under the influence of several factors, and Bitcoin dealt with considerable stagnation.
Although the losses are not what they used to be, and the blockchain is much more resilient nowadays, investors are understandably upset about the way in which things evolved. However, the general market sentiment remains reasonably positive, as most of the community is convinced that things will improve and growth is right around the corner. Binance data shows that most investors are optimistic about the potential displayed by the Bitcoin price, believing it to be on the road to recovery.
$543 million
Bitcoin ETPs have recorded significant amounts in inflows, totaling $543 million. The ETPs, also known as exchange-traded products, are tools that can track financial products. They can be traded on exchanges in the same way as all other assets, meaning that shares can also be obtained, and the prices have the potential to fluctuate throughout the day. Bitcoin ETPs differ from ETFs as they hold actual coins as their underlying holdings. The largest portion of the most recent inflows came from the BlackRock iShares Bitcoin Trust. This entity seeks to reflect the general performance of BTC and amassed $318 million in inflows over the span of seven days.
At the same time, Ether-based crypto investments were stuck with negative outflows, with a total of $36 million during the same timeframe. The Ethereum outflows underperformed in spite of the new exchange-traded funds issuers that record inflows instead. However, the Grayscale Ethereum Trust counterbalanced the numbers with approximately $118 million worth of outflows. Since July 23rd, the Ethereum exchange-traded funds have amassed 3.1 billion in inflows.
8%
While other crypto coins might oscillate between good and poorer performance levels, Bitcoin appears ready to continue its growth and development path. This is no easy feat, even for the king of crypto, as fluctuations and price changes have impacted the value levels. The elevated inflows brought considerable growth to Bitcoin, as it grew by about 8% between August 18th and 24th. It secured a substantial level of $60K in the area, specifically at $64,300. Yet, it wasn’t able to hold onto its gains for very long, and by August 27th, the price was slightly below $63K.
However, the price remains considerably below the all-time high of 2021, when it reached the $69,000 area. The new all-time high Bitcoin obtained in March 2024 is even further away, and it will still be some time until the coin will have the strength to reclaim that level and consolidate it. Crypto inflows have surged for the first time past $500 million in the span of five weeks, and while that is good news for the overall performance levels, it is still a long way from the historical records. The most significant spike of the current year happened earlier, in March, when the price skyrocketed to $73,600 halfway through the month.
The main reason this happened, considering that the next halving, the event most commonly associated with price growth in the Bitcoin environment, was still more than a month away, is the introduction of exchange-traded funds. This much-anticipated holding class was already predicted to bring considerable gains to the marketplace, and it didn’t disappoint, but most investors were expecting the higher prices to last longer.
111%
There are currently exactly 85,400 Bitcoin millionaires in the world. Although the number seems insignificant, considering that data shows there are more than 560 million cryptocurrency users worldwide, the number of millionaires is now more than double compared to what it was only a year ago. In 2016, there were only 5 million crypto users in the world, so the current numbers represent a 112x increase. This shows that digital assets are steadily entering the mainstream, and people are increasingly keen on joining their ranks. The fact that the number of millionaires is on the rise as well indicates that Bitcoin remains profitable and, indeed, is becoming more beneficial for those who choose to invest in it, in spite of the setbacks and occasional losses.
The number of BTC-based millionaires climbed by 111% during the last twelve months. Research shows that it’s not just BTC that is making people wealthier, as 172,300 people around the globe currently hold over $1 million in crypto coins. This is a rise of 95% compared to the same time last year when the figure was 88,200. Those with even heftier portfolios naturally recorded a boost as well. The centi-millionaires, the people who have more than $100 million in cryptocurrencies, grew by 79%, and there are now 325 individuals and entities who belong to this group.
The billionaire cohort, the most exclusive group, welcomed six new members, with the entire group now counting twenty-eight members.
Transaction fees
Transaction fees have been a hot topic in the crypto environment during the last couple of years, as numbers tend to become more elevated, something that forces many investors to take a step back and decrease the number of their transactions, if not cease them altogether since many are unable to keep up with the costs for a long time. On August 22nd, transaction fees within the BTC environment surged by 940%, a clear indicator of the network demands and the pressure placed on users.
Since July, the fees have remained somewhat stable, under the $2 mark, which is a comfortable area for most traders. On August 18th, only a few days before the surge, costs were at an all-time low, recording $0.558. While this is good news for traders and investors, as it makes it much easier for them to transfer BTC, miner revenue tends to suffer. Starting on August 22nd, the pressure placed on investors started to mount, and many members of the community began to feel like the fees were excessive.
Bitcoin remains the most important cryptocurrency in the world, with the highest market capitalization. Investors who want to ensure that their portfolios remain solid and continue to perform well should remember that a flexible but reliable strategy is the only way forward.
