Bitcoin Nears $65K, GBTC Sees $63M Inflow in Crypto Surge

Key Takeaway

• Bitcoin nears $65,000, marking a nearly 15% increase from last week's lows, signaling strong market rebound.
• Grayscale Bitcoin Trust (GBTC) sees first inflow of $63 million in months amidst broader crypto market gains.
• Bitfinex CTO dismisses security breach claims as "fake," attributing leaked data to past unrelated incidents.

Bitcoin's Bullish Rebound

Bitcoin has made a significant recovery, trading around $64,000 early Monday, and even hitting a high of $65,400 during Asia trading hours. This marks its highest price in nearly two weeks, showcasing a nearly 15% increase from the previous week's corrective bottom. Joel Kruger, a market strategist at LMAX Group, highlighted this swift recovery as a bullish sign, suggesting that "the next higher low is already in place ahead of the next major upside extension to a fresh record high." This sentiment is echoed across the crypto market, with altcoins like SOL, AVAX, and NEAR also posting gains of 4%-5% over the past 24 hours. The CoinDesk 20 Index (CD20) reflects this positive momentum, indicating a 3.2% increase across the broader crypto market.

Grayscale ETF Sees Inflows

In a notable shift in investor sentiment, the Grayscale Bitcoin Trust (GBTC), the largest bitcoin ETF by assets, recorded its first daily inflow in almost four months, attracting $63 million from investors. This marks a significant turnaround from its previous streak of daily outflows since its conversion to a spot ETF structure in January. Additionally, U.S.-listed spot ETFs collectively attracted $368 million of inflows, further underscoring the renewed positive sentiment towards bitcoin and the crypto market at large.

Bitfinex Security Concerns Dismissed

Over the weekend, controversy emerged regarding a potential security breach at Bitfinex, with a hacker group leaking a database of alleged usernames and passwords of over 22,000 users. Paolo Ardoino, Bitfinex's CTO, quickly dismissed these claims as "fake," noting discrepancies in the leaked information and emphasizing that the company does not store 2-factor authentication data as clear texts. Ardoino suggested that the information was likely recycled from previous data thefts, unrelated to Bitfinex, alleviating concerns about the platform's security.

Crypto Stocks Rally Amid Market Swings

The resurgence in Bitcoin's price has had a ripple effect on cryptocurrency-linked companies, with stocks such as Marathon Digital (MARA US) and Riot Platforms (RIOT US) experiencing gains of 5.6% and 4.1%, respectively. This rally is part of a broader trend observed in the U.S. stock market, with significant movements in both the tech and entertainment sectors. Notably, Apple (AAPL US) saw a 1.2% drop amid news of Berkshire Hathaway reducing its stake, while Paramount (PARA US) gained 4.5% on acquisition news. The market also reacted positively to EQT's acquisition of technology consulting firm Perficient (PRFT US) for about $3 billion, including debt, highlighting the ongoing interest and investment in tech and crypto-related ventures.

Street Views

• Joel Kruger, LMAX Group (Bullish on Bitcoin):

  "Bitcoin's swift recovery to a bullish weekly close sets up the possibility the next higher low is already in place ahead of the next major upside extension to a fresh record high."

Management Quotes

• Paolo Ardoino, CTO of Bitfinex:

  "Fake."