US bitcoin spot ETFs (Exchange-traded funds) recorded $763 million in net inflows last week helping to push prices higher. Strategy, the largest bitcoin treasury company by total holdings, also disclosed another significant purchase of 17,994 bitcoin for approximately $1.28 billion.
Looking ahead, the Federal Reserve meeting this week could be pivotal to a breakout, or indeed a correction from the $74,000 level, writes Simon Peters, cryptoasset market analyst at multi-asset investment platform eToro,. While the market had previously hoped for a dovish pivot, the sudden spike higher in oil prices due to the conflict in the Middle East may have forced the Fed to rethink their plan.
The consensus is for the Fed to hold rates on Wednesday, but if Chairman Powell signals in his press conference that the central bank is prepared to raise rates should oil prices remain elevated or keep rising, this could spark a sell-off in cryptoasset prices.
Also being released this meeting is the latest ‘dot-plot’ where we’ll see where each of the FOMC participants believes interest rates should be by the end of the year, next year and the longer term.
BIGGEST MOVERS
$TAO and $FET are up 47% each in the last week, amid a broader rotation into AI tokens after bullish artificial intelligence comments by Nvidia CEO Jensen Huang.
Building up to Nvidia’s GTC AI conference this week Huang said “AI is no longer a single breakthrough or application – it is essential infrastructure. Every company will use it. Every nation will build it.”
Huang’s remarks about AI as foundational infrastructure has put the crypto community spotlight back to on-chain, decentralised AI, pushing the respective network tokens like TAO and FET higher.
Discover more here: https://www.etoro.com/discover/markets/cryptocurrencies/market-movers
EYE-CATCHING STORIES
Mastercard launches crypto partner program
Mastercard last week introduced its Mastercard Crypto Partner Program, a new global initiative bringing together over 85 companies in the crypto space including exchanges, stablecoin issuers and blockchain development teams, creating a forum for meaningful dialogue and collaboration, as the crypto space continues to mature.
Through the program, participants will engage with Mastercard teams to merge the speed and programmability of blockchain with Mastercard’s existing 210 country merchant network.
This initiative builds on Mastercard’s existing digital asset efforts, including its Start Path blockchain track, Engage platform and Crypto Card program.
20 millionth bitcoin mined
Bitcoin reached a historic milestone last week as the 20 millionth bitcoin was mined on the network.
The milestone was reached on Tuesday, 10 March at block height 931200, when the 20 millionth bitcoin entered circulation. This means that just over 95% of the total 21 million supply has now been issued.
It has taken 17 years for 20 million bitcoin to have been mined. Due to the halving schedule, the remaining 1 million will take another 114 years to be mined, pushing the date to the year 2140.
Crossing the 20 million milestone and with the further trickling down of new supply of bitcoin, emphasis is again on the coin’s scarcity characteristics.
With demand for bitcoin outpacing the new supply issued daily by miners and secondary sellers, and many holders unwilling to sell at current prices, the market could be primed for a significant move higher in the months and years ahead.
