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Bitcoin reaches new highs with massive entry into ETFs

Bitcoin (COIN:BTCUSD) experienced a strong momentum as it surpassed $47,000, driven by one of the largest net entries into ETFs in the US since its inception. After reaching a peak of $47,699, there was a brief sell-off, but prices stabilized again above $47,200, with a 4.4% increase in 24 hours. Bitcoin spot ETFs added over 9,260 BTC, translating to over $400 million in entries, indicating strong potential for continued upward movement. The ‘Newborn Nine’, a series of recently launched Bitcoin ETFs, are redefining Bitcoin ownership by surpassing MicroStrategy (NASDAQ:MSTR) with the acquisition of 192,000 Bitcoins in just one month. This milestone positions ETFs as dominant players in the Bitcoin space, indicating a trend of migration from individual ownership to exchange-traded funds, with GBTC (AMEX:GBTC) still leading the way with 469,000 Bitcoins. In addition to massive entries into ETFs, Fernando Pereira, a market analyst, highlights a crucial phase: the “belief phase” of the market, evidenced by long-term investors’ unrealized profit. “The unrealized profit by long-term BTC investors shows that we have just entered a market belief phase. This phase precedes the bull run, the euphoria phase, where the price skyrockets. Bull runs historically occur a few months after the halving, and this time should be no different,” Pereira said.

Impact of Bitcoin options expiration

On this Friday, around 15,100 Bitcoin options contracts (COIN:BTCUSD), valued at $700 million, were set to expire, according to Deribit. With a put/call ratio of 0.82, the market showed a slight predominance of bullish positions. Although a smaller event compared to the previous week, this expiration influences market dynamics. Traders demonstrate optimism, especially with contracts at $60,000, signaling bullish expectations in the Bitcoin market.

Focus on $4,000 Ether options for June

Deribit points out a notable concentration of Ether (COIN:ETHUSD) call options at $4,000 for June, reflecting market expectations ahead of the potential approval of an Ethereum ETF. Luuk Strijers from Deribit notes increased demand for these options, suggesting traders’ speculations on future Ether price movements amid regulatory developments and cryptocurrency market events.

Duncan update promises Ethereum revolution

The Duncan update, expected in March on Ethereum, will introduce “proto-danksharding” or EIP-4844, promising to enhance Layer 2 solutions and significantly reduce transaction fees. This update will allow for the incorporation of external “data blobs,” increasing data capacity in transactions without impacting processing time. The expectation is for transaction fees on networks like zkSync to drop to less than $0.10, optimizing Ethereum network efficiency and accessibility.

COTI boosts privacy on Ethereum L2 with MPC Protocol

COTI (COIN:COTIUSD), focused on Ethereum L2 privacy, saw its token appreciate by 32% in the last 24 hours after successfully integrating the Multi-Party Computation (MPC) protocol, a crucial step for COTI V2 development. This advancement enables collaborative calculations without compromising private data, promising increased security and blockchain technology adoption. COTI records a weekly gain of 74%.

Optimism pauses ETH withdrawals for security testing

On February 15, the Optimism network, an Ethereum Layer 2 solution, will conduct a scheduled one-hour pause on Ether (COIN:ETHUSD) withdrawals to test its new incident response system, aiming to enhance security across the ecosystem. The update aims to coordinate security actions among connected chains without impacting deposits or normal transactions on the network. This test emphasizes Optimism’s commitment to security and operational stability.

Bernstein recommends Bitcoin mining stocks ahead of halving

Bernstein suggested investing in Bitcoin mining stocks, such as Riot Platforms (NASDAQ:RIOT) and CleanSpark (NASDAQ:CLSK), for indirect exposure to cryptocurrency ahead of the next BTC halving. The report highlighted the miners’ strong position in the US amid the current Bitcoin price (COIN:BTCUSD), even considering possible cost increases after the halving. The upcoming event, which will reduce block rewards, is seen as a catalyst for price increases and institutional interest. At the time of writing, CleanSpark was up 25%, reacting to quarterly results exceeding expectations. Reported earnings were $0.14 per share, surprising analysts who expected a loss of $0.26 per share, as indicated by FactSet. Revenue for the quarter reached $73.8 million, surpassing expectations of $71 million.

Kraken strengthens presence in Europe with Dutch registration

Kraken has secured registration as a Virtual Asset Service Provider (VASP) from the Dutch Central Bank, marking a significant advancement in its European expansion. This registration not only validates Kraken in the Netherlands, a country with strong cryptocurrency adoption and an innovative economy but also reinforces the growth of the crypto market in Europe. The initiative follows Kraken’s announcement of acquisition plans in the Netherlands, highlighting its commitment to the development of the European crypto sector.