Bitcoin halving will spur ‘surge’ in NFT volume

Cointelegraph - The nonfungible token (NFT) ecosystem anticipates a price surge after the Bitcoin halving event. Spot Bitcoin exchange-traded funds (ETFs) have notched a record $10 billion trading volume day. Meanwhile, Bitcoin rallied past $69,000 for the first time since 2021 to hit a new all-time high.

Bitcoin halving will spur ‘surge’ in NFT volume

Professionals working in the NFT space believe that the upcoming Bitcoin halving will not only affect crypto tokens but may also positively impact the NFT ecosystem.

Cointelegraph


Oscar Franklin Tan, the chief financial officer of Atlas Development, a core contributor to the NFT platform Enjin, showed optimism about a price surge in NFTs after the Bitcoin halving. He told Cointelegraph:

“Prices and volumes should eventually surge after the halving as part of the known cycle. Because NFTs are established segments of ecosystems, interest from Bitcoin will spill over into NFTs together with altcoins.”

According to Tan, the halving will impact NFT adoption as new NFTs or marketplaces focusing on digital collectibles may emerge.

$10 billion trading volume day for spot Bitcoin ETFs

United States-base spot Bitcoin ETFs saw a record $10 billion trading volume day on March 5 amid Bitcoin setting a new all-time high, which dropped soon after.

The ETFs beat their previous $7.7 billion volume day set on Feb. 28 by $2.3 billion. Bloomberg ETF analyst Eric Balchunas, who reported the figures, wrote in a March 5 X post that “these are bananas numbers for ETFs under [two months] old.”

Cointelegraph

BlackRock’s ETF saw the most volume at $3.7 billion, while Grayscale and Fidelity’s respectively tallied $2.8 billion and $2 billion, per figures posted to X by Bitcoin analyst Alessandro Ottaviani.

Google Finance data showed BlackRock and Fidelity’s ETFs falling around 8.6% over the trading day, with other spot Bitcoin ETFs recording similar price drops as Bitcoin hit a new price high of over $69,200 before falling over 14% to below $60,000 five hours later.

Bitcoin briefly hits all-time high

Bitcoin briefly traded above $69,200 on March 5, its highest-ever price and capped off a stellar two months of gains following the approval of spot BTC ETFs in the United States.

preciselyThe largest cryptocurrency reached an all-time high exactly 846 days from its previous peak in 2021. The BTC rally also marked a 348% gain from its bottom near $15,400. It was also the first time that Bitcoin set new highs before the quadrennial halving, which has been a major historical price catalyst for the digital asset.

Despite the euphoria, Bitcoin’s price quickly reversed course on March 5, tumbling all the way down to the sub-$64,000 level.

“Large sellers use the anticipation of the moment to dump into a high liquidity moment. Importantly the psychological wall is broken and true price discovery will eventually begin,” said Vijay Boyapati, a crypto author and educator.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Additional reporting by Geraint Price, Sam Bourgi and Felix Ng.


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