Summary of BTC this week: Funds are extremely strong and entering a period of bull market acceleration

Market summary:

Before and after breaking through 6.9$, there were several surges and falls. On March 5, the price fell by 6.67%, with an amplitude of 14.7%. It is normal for market sentiment to fluctuate at record highs. The average profit of short-term investors fell by 37% from 40% to 40%. A small number of short-term investors cashed out and left before breaking the record.

The fundamentals are optimistic despite the fluctuation. The recent market trend has dominated the trading volume of Coinbase in the United States for two consecutive weeks. From the perspective of the overall supply and demand structure of the market, the financial performance is extremely strong. Even if there is a correction, it will immediately rebound and rush forward.

Supply and demand structure:

Net inflows into U.S. BTC spot ETFs remained strong last week. On March 5, the largest net inflow on the first day of ETF approval in January was US$966 million. On the trading day last week, the inflow was US$1.979 billion, which was basically the same as last week. In the two months since the adoption, the net inflow of U.S. Bitcoin spot ETFs has exceeded 177,900, and net buying funds have exceeded US$10 billion. Even the most optimistic institutional forecasts did not expect it.

BlackRock’s IBIT holdings of BTC are about to reach 200,000. BlackRock has attracted special attention recently. It has submitted open BTC ETF allocation exposures for two of its fixed income funds. The management scale of these two funds exceeds 50 billion US dollars. This is just the beginning of its system's open management fund allocation. ETF managers such as Fidelity and ARK will also follow this "conspiracy."

The net inflow of BTC-priced U.S. dollar stablecoins last week was approximately US$3.64 billion, a week-on-week increase of 500%. For the first time in two months, it exceeded the net inflow of ETFs, showing a strong and optimistic trend in the market. On the OTC channels of major exchanges, USDT has a premium of more than 5% against the US dollar.

The net purchasing power of major exchanges continues to grow above high levels, increasing from US$6.4 billion to US$6.7 billion last week, showing that funds in the market are also holding currency for purchase.

The exchange's BTC stock has a net outflow of approximately 40,000 BTC compared with last week, and investors continue to accumulate chips. According to EMC Labs monitoring: global institutions, organizations and governments hold a total of 2.29 million coins, an increase of approximately 36,000 coins from last week.

Fundamentals:

Observing BTC fundamental data, key indicators such as new wallet addresses, active entities, and transfer fees on the chain have all rebounded within 10%. This trend has continued for 2 weeks.

The EMC BTC Cycle indicator has shown goodbye to the one-year bull market recovery period and has officially entered the bull market acceleration period (indicator strength 0.83, full strength is 1).