Over the weekend, Bitcoin experienced a bullish rebound, propelling its market cap to a current high of $64,100, marking an impressive 8.7% increase in just 24 hours.
This surge has led to a significant shift in trading sentiment on Binance, with traders swiftly moving from liquidated short positions to long positions following the bounce.
📈 #Bitcoin has bounced on a #bullish Friday with its market cap rising +5.4% in 24 hours. The crowd has completely #flipflopped on their #Binance trades, going from liquidated #shorts to #longs after this bounce. For the rally to continue, we don't want to see #FOMO rising too… pic.twitter.com/fY3lEX3REb
— Santiment (@santimentfeed) May 3, 2024
However, to sustain the rally, experts caution against excessive FOMO (Fear of Missing Out) that could potentially dampen market stability.
In a notable development, Bitcoin fees witnessed a substantial decrease this week, reflecting the swiftly changing market dynamics affecting the demand for Runes. Interestingly, despite this decline, weekly Bitcoin fees continue to surpass those of Ethereum, highlighting Bitcoin’s dominance in transaction activity.
Bitcoin fees decreased significantly this week, as the market situation quickly impacted the appetite for Runes.
Interestingly, the weekly fees continue to be higher than those of Ethereum! pic.twitter.com/WDCPySoCAo
— IntoTheBlock (@intotheblock) May 3, 2024
Bitcoin ETF Net Inflow Turns Positive Signaling Good Sentiment
May 3rd saw a significant net inflow of +$343 million into Bitcoin ETFs, signaling renewed investor interest in the cryptocurrency.
Among the key highlights, Grayscale Bitcoin Trust (GBTC) recorded its first single-day inflow since its inception, marking a positive turn after seven consecutive days of negative net inflows. Additionally, 8 out of 10 Bitcoin ETFs experienced inflows, with Fidelity Wise Origin Bitcoin Fund (FBTC) leading the pack with an inflow of $102.6 million.
🚨 $BTC #ETF Net Inflow May 3, 2024: +$343M!
• #Grayscale Bitcoin Trust $GBTC experienced the first single-day inflow since its inception.
• The net inflow turned positive after being negative for 7 consecutive trading days.
• 8/10 #BitcoinETFs experienced inflows, led by… pic.twitter.com/PsJUMyeHPy
— Spot On Chain (@spotonchain) May 4, 2024
However, BlackRock iShares Bitcoin Trust (IBIT) saw a relatively weak single-day inflow of $13 million.
The resurgence in Bitcoin’s market performance, coupled with the influx of institutional investment through ETFs, suggests a growing confidence in the cryptocurrency’s long-term prospects.
As Bitcoin continues to assert its position as a leading digital asset, market participants will closely monitor developments to gauge the sustainability of this upward momentum.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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