This week, Bitcoin blew past previous records by logging a staggering 926,842 transactions in a single day, the highest in its history.
Record Transactions Following Bitcoin Halving
The April 20 Bitcoin halving, a significant event for the cryptocurrency, seemed to have set the stage for this explosive transaction volume.
This innovation was central to the spike, with Runes transactions making up 68% of the day’s total, signaling a strong market reception to fresh technological enhancements within the Bitcoin ecosystem.
Despite the surge associated with Bitcoin Runes, skepticism remains about its long-term dominance on the network. Observers like Nazar Khan, CEO of TeraWulf, told Cointelegraph that while Runes underline the blockchain’s capacity, their future as a standard is uncertain.
Comments in the cryptocurrency community suggest that the buzz might cool off, similar to past trends observed in the NFT market after initial excitement dies down.
A post on April 17 by a DeFi researcher known as Ignas hinted at the same, pointing out that the initial enthusiasm might fade as the utility of Runes remains unclear, potentially relegating them to the realm of volatile assets like memecoins shortly after their launch.
ETF Trends and Market Reactions
Meanwhile, the landscape for Bitcoin exchange-traded funds (ETFs) shows signs of cooling. Recent data highlights a decline in investor interest, with significant outflows recorded across several funds. Notably, BlackRock’s IBIT and Fidelity’s FBTC experienced reductions, with FBTC marking its first net outflow of $23 million. Other funds like Grayscale’s GBTC and Valkyrie’s Bitcoin fund also saw withdrawals, with GBTC losing a hefty $139.37 million.
In contrast, Franklin Templeton’s EZBC bucked the trend by attracting $1.87 million, the only fund to report net inflows on the same day. Overall, despite these outflows, Bitcoin ETFs have amassed over $12 billion in net inflows since their inception this January, reflecting a robust initial interest.
Speculation about potential delays in Federal Reserve rate cuts has been identified as a factor contributing to the dwindling enthusiasm. James Butterfill of CoinShares pointed out earlier in the week that these market movements suggest a broader disinterest among ETF and ETP investors, necessitating a market “breather,” as noted by Bloomberg’s Eric Balchunas.
Despite the current slowdown, there remains an undercurrent of anticipation, particularly around Morgan Stanley’s plans to enable its 15,000 brokers to recommend BTC spot ETFs to their clients. Such developments could potentially reinvigorate market interest, positioning ETFs like FBTC and IBIT, which manage substantial assets worth over $27 billion, at the forefront of a possible market rebound.
Source:cryptopolitan.com
