• Bitcoin withdrawals have now surpassed deposits for the second time in six months.
• The SEC has only once rejected an ETF application from BlackRock.
• Core inflation remains high for EU, as headline sees disinflation and a surge in Bitcoin open interest signals possible increase in volatility.
Bitcoin Withdrawals Outpacing Deposits
Data from Glassnode shows that for the second time in six months, bitcoin withdrawals have surpassed deposits. This first happened during the FTX collapse, and again due to a SEC lawsuit. This indicates that more users are withdrawing their bitcoin holdings than depositing them on exchanges, which suggests increased confidence among investors in the asset’s long-term value.
SEC Rejects BlackRock ETF
The U.S Securities and Exchange Commission (SEC) has only once rejected an ETF application from BlackRock, one of the world’s largest asset management firms. Despite this rejection, BlackRock still believes that there is potential for further growth of exchange-traded funds investing in digital assets such as bitcoin and other cryptocurrencies.
Core Inflation High Across EU
Core inflation remains high across Europe, despite a recent headline reading showing disinflation within the Eurozone economy overall. This could indicate underlying economic pressure that is not yet being felt by consumers or businesses but could be seen down the line if conditions do not improve soon enough.
Open Interest Surge Signals Volatility Increase
A surge in open interest signals a possible increase in Bitcoin volatility ahead. Open interest refers to the total amount of outstanding derivative contracts held by investors – such as futures contracts – that have yet to be settled or closed out before expiration date. As this figure increases it can indicate greater investor activity and potentially larger price movements going forward.
Conclusion
The data points highlighted here suggest increasing investor confidence towards bitcoin, with withdrawals now outpacing deposits on exchanges and an increase in open interest signalling further volatility ahead. While core inflation remains high across Europe indicating underlying economic pressure, there is potential for further growth of ETFs investing in digital assets according to Blackrock – one of the world’s largest asset managers – despite its previous rejection from the SEC earlier this year