Bitcoin experiences sharp rebound due to decrease in ETF outflows.
Bitcoin prices are up more than 60% since the beginning of 2024,
attributed to the approval of a physical Bitcoin ETF earlier this year and the halving of mining rewards occurring every four years. Nvidia's net purchase settlement amount totaled $380 million from January 1st to the 21st,
with buy settlements at $1.846 billion and sell settlements at $1.466 billion. It seems likely that this company will directly purchase Bitcoin to manage ETFs,
indicating an aggressive stance on profit management. The recent selection of physical Bitcoin ETFs has sparked discussions on comparing fees,
futures, and spot differences. Retail investors in the Western stock market,
known as 'Seohakgaemi,' seem to have joined the Bitcoin craze alongside AI semiconductor investments.
While buying interest in Tesla, which was once considered a top pick,
has cooled down, attention has shifted towards investments in companies centered around AI and semiconductors like Nvidia, as well as recent surges in Bitcoin. Bitcoin hit an all-time high of $73,800 on the 13th but has since traced
a downward curve over the past week, threatening the $60,000 mark at one point. MicroStrategy, a US software company known to hold the most Bitcoin globally ($170 million),
and the '2X Bitcoin Strategy ETF' ($170 million) secured the third and fourth positions. While they ranked first in net purchases in January ($327 million)
and second in February ($338 million),
adverse events have led to a decrease in net purchases this month to $93 million,
even considering there are six trading days left in the month. Tesla's stock price dropped by 14.4% from $201.88 at the end of last month to $172.82 on the 21st,
marking a decline of over 30% from the end of last year ($248.48). On the 20th, the Federal Reserve maintained its outlook of cutting interest rates three times by the end of the year despite inflation,
leading to a sharp rebound to the $68,000 range, but it couldn't sustain further gains. Last week, despite lackluster inflows into spot Bitcoin ETFs,
outflows continued from Grayscale's Bitcoin Fund (GBTC) converted into ETFs, totaling $900 million. Nathaniel Cohen, co-founder of the digital asset hedge fund Indigo Fund,
stated, "While inflows into ETFs are slowing down,
buy orders are coming in around $60,000, indicating a strong willingness in the market to buy into the downturn."