Bitcoin

Gold

In just over a month since their <a href="https://www.newsbtc.com/coinbase/bitcoin-etfs-boosts-coinbase-coin-shares-as-jpmorgan-upgrades-rating/" target="_blank" rel="noopener ">approval </a>by the US Securities and Exchange Commission (SEC), Bitcoin ETFs have swiftly gained traction in the market, posing a formidable challenge to the long-standing dominance of gold ETFs. 
<h2 id="bitcoin-etfs-gain-ground-on-gold-etfs">Bitcoin ETFs Gain Ground on Gold ETFs</h2> 
The rapid rise of Bitcoin ETFs has led to a convergence in asset values, with BTC ETFs closing the gap with<a href="https://www.newsbtc.com/news/bitcoin/bitcoin-etf-surges-last-4-days-inflows-outpace-initial-weeks/" target="_blank" rel="noopener "> gold ETFs</a>. Bitcoin ETFs hold approximately $37 billion in assets after only 25 trading days, while gold ETFs have accumulated $93 billion in over 20 years of trading.&nbsp; 
<img loading="lazy" decoding="async" class="size-large wp-image-575558" src="https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot_64.jpg?w=754&amp;resize=754%2C365" alt="Bitcoin ETFs" width="754" height="365" srcset="https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot_64.jpg?w=754&amp;resize=754%2C365 754w, https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot_64.jpg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/02/Screenshot_64.jpg?w=750 750w" sizes="(max-width: 754px) 100vw, 754px" data-recalc-dims="1"> 
In this regard, Bloomberg’s Senior Commodity Strategist, Mike McGlone, emphasizes the shifting landscape, stating, “Tangible Gold is Losing Luster to Intangible Bitcoin.”&nbsp; 
<a href="https://x.com/mikemcglone11/status/1758499742772834314?s=20" target="_blank" rel="noopener nofollow">According </a>to McGlone, the US stock market’s continued resilience, the US currency’s strength, and 5% interest rates have presented headwinds for gold. Moreover, as the world increasingly embraces digitalization, the emergence of Bitcoin ETFs in the United States adds further competition to the precious metal. 
McGlone further states that while the bias for gold prices remains upward, investors who solely focus on gold may risk falling behind potential paradigm-shifting <a href="https://www.newsbtc.com/bitcoin-news/bitcoin-etfs-issuers-battle-to-attract-investors-with-google-ad-campaigns/" target="_blank" rel="noopener ">digitalization </a>trends.&nbsp; 
Ultimately, McGlone suggests that investors should consider diversifying their portfolios by incorporating Bitcoin or other digital assets to stay ahead in the evolving investment landscape. 
<h2 id="bitcoin-rally-driven-by-institutional-demand">Bitcoin Rally Driven By Institutional Demand&nbsp;</h2> 
The success of Bitcoin ETFs is further demonstrated by recent data suggesting that the upward trend in Bitcoin prices is driven primarily by institutional demand. At the same time, retail participation appears to be declining. 
<a href="https://x.com/ali_charts/status/1758535502439825588?s=20" target="_blank" rel="noopener nofollow">According </a>to analyst Ali Martinez, as the price of Bitcoin continues to hover between $51,800 and $52,100, there has been a noticeable decrease in the creation of new Bitcoin addresses daily, indicating a lack of retail participation in the current bull rally and highlighting the growing influence of institutional investors in the cryptocurrency market. 
<img loading="lazy" decoding="async" class="size-large wp-image-575559" src="https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3.jpeg?w=860&amp;resize=860%2C484" alt="Bitcoin ETFs" width="860" height="484" srcset="https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3.jpeg?w=1800 1800w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3.jpeg?w=860&amp;resize=860%2C484 860w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3.jpeg?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeSGRhWEAALkM3.jpeg?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
However, market expert Crypto Con <a href="https://x.com/CryptoCon_/status/1758532561733648692?s=20" target="_blank" rel="noopener nofollow">points out</a> a significant shift in Long-Term Bitcoin holder positions, signaling a potential downside movement.&nbsp; 
As seen in the chart below shared by Crypto Con, the position change line crossed below -50.00 for the first time in over a year, a pattern that has historically occurred at critical moments in Bitcoin’s<a href="https://www.newsbtc.com/bitcoin-news/bitcoin-etfs-experience-day-12-reversal-gbtc-selling-slows-fidelity-and-blackrock-garner-400-million/" target="_blank" rel="noopener "> market cycles</a>. These moments include the cycle bottom, mid-top (which occurred only once), and the start/end of a cycle top parabola (which occurred most frequently). 
<img loading="lazy" decoding="async" class="size-large wp-image-575561" src="https://www.newsbtc.com/wp-content/uploads/2024/02/GGeP6VuXoAAl_GI.jpeg?w=860&amp;resize=860%2C484" alt="Bitcoin ETFs" width="860" height="484" srcset="https://www.newsbtc.com/wp-content/uploads/2024/02/GGeP6VuXoAAl_GI.jpeg?w=1800 1800w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeP6VuXoAAl_GI.jpeg?w=460 460w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeP6VuXoAAl_GI.jpeg?w=768 768w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeP6VuXoAAl_GI.jpeg?w=860&amp;resize=860%2C484 860w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeP6VuXoAAl_GI.jpeg?w=1536 1536w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeP6VuXoAAl_GI.jpeg?w=750 750w, https://www.newsbtc.com/wp-content/uploads/2024/02/GGeP6VuXoAAl_GI.jpeg?w=1140 1140w" sizes="(max-width: 860px) 100vw, 860px" data-recalc-dims="1"> 
According to Crypto Con, this recent shift in long-term holder positions raises two possible scenarios: a mid-top or an imminent parabolic movement. Such a movement at this stage in the cycle is considered unusual.&nbsp; 
Primarily, it indicates that long-term Bitcoin holders are exiting their positions in significant numbers, possibly anticipating a market <a href="https://www.newsbtc.com/bitcoin-news/this-banking-giant-files-for-bitcoin-etf-application-in-hong-kong/" target="_blank" rel="noopener ">correction </a>or a change in the overall trend. 
Overall, the shift in Bitcoin holder positions and the decline in retail participation present contrasting dynamics in the current market landscape. While institutional demand continues to drive the price of Bitcoin higher, long-term holders appear to be taking profit or adjusting their positions.&nbsp; 
<img loading="lazy" decoding="async" src="https://www.tradingview.com/x/ytOB555b/" alt="BTC chart" width="1815" height="858"> 
While BTC is currently trading at $51,800, it remains to be seen what the direction of the next move will be and how institutions will continue to influence the price action of the largest cryptocurrency as spot Bitcoin ETFs gain traction. 
Featured image from Shutterstock, chart from TradingView.com

Bitcoin ETFs Threaten Gold’s Dominance As Digitalization Trends Gain Momentum

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