Daily News | Bitcoin Reached A New High of $72K, But ​​There Is An Underlying Overheating Crisis; $2.3B of ARB Will Be Unlocked; Miner Bitarm Purchased 51,908 ASIC

Crypto Daily Digest: Bitcoin has broken through $72,000, and analysts generally believe there is a potential risk of overheating; Arbitrum will unlock $2.32B acquired tokens on March 16; Mining company Bitarm purchases a large amount of ASICs

Bitcoin has broken through $72,000, reaching a new historical high and surpassing silver in market value to become the world’s eighth-largest asset.

In terms of Bitcoin ETF trading activities, according to Farside Investor data, on March 11, the Grayscale GBTC outflow was approximately $494.1 million, Bitwise Bitcoin Spot ETF (BITB) inflow was $50 million, ARK 21Shares Bitcoin Spot ETF (ARKB) inflow was $13 million yesterday, and Fidelity Bitcoin Spot ETF (FBTC) inflow was $215.5 million yesterday.

Since January 23, Bitcoin prices have been on an upward trend since the “sell news” effect of spot Bitcoin ETFs has subsided. Since their launch on January 11, these new BTC investment funds have seen a significant inflow of funds, with assets under management reaching $55.3 billion as of March 11, leading to an “overheating signal” in the Bitcoin market.

CryptoQuant analysts warn that although BTC has hit a historic high, it may soon undergo significant adjustments. On March 8, this blockchain analysis company posted a series of posts on X social network, displaying some indicators supporting “potential overheating.” Another indicator they mentioned shows that realized profits reached their highest level since December 2023, “miners’ salaries are now considered extremely high, with profitability reaching its highest level since December 2023.”

CryptoQuant also emphasized that the unrealized profit margin of traders has reached 57%, so “short-term holders have started selling at the highest profit margin since February 2021, which may indicate an increase in selling pressure.” Meanwhile, data from IntoTheBlock shows that 100% of Bitcoin holders are currently profitable, which also increases the possibility of short-term profit selling.

Presently, the severely overbought BTC RSI index also proves this point. Coin Glass pointed out that over 80% of the time, within a week is at a high RSI value.

According to data from Token Unlocks, a digital asset tracker, Layer 2 blockchain network Arbitrum will release approximately 1.1 billion locked ARB tokens worth $2.32 billion on March 16. This amount accounts for approximately 76% of the token’s circulating supply and is worth $2.32 billion at the time of writing.

Arbitrum will unlock 673.5 million tokens for its team and consultants, which is approximately $1.41 billion at current prices; Its investors issued 43,825 million tokens worth approximately $915 million. Token unlocking also emphasizes that this will be a “cliff unlocking,” and no tokens will be released initially until the unlocking date. The tokens will be released in one go on the designated issuance date.

Bitcoin miner Bitarms purchased 28,000 Bitcoin Continental T21 ASIC mining machines and 19,280 Bitcoin Continental T21 mining machines for $14 per terahash (TH) on March 11. They purchased 3,888 Bitcoin Continental S21 mining machines and 740 Bitcoin Continental S21 hydraulic mining machines for a total of 51,908 ASICs for $17.50/TH.

In response to the decrease in miner profits caused by the halving, the company has continuously expanded its business scale and has 11 operating Bitcoin mining facilities. In addition, it has also conducted development in Canada, the United States, Paraguay, and Argentina.

As of the time of publication of the article, the retail price of each BitContinent T21 ASIC mining machine is approximately $3,000, with a hash rate of 190 TH/s.

Bitarms President and CEO Geoff Morphy stated that he had acquired more mining machines “before the expected hardware price increase.” He also pointed out that ASIC is scheduled to be delivered this year and is expected to achieve a total hash rate of 21 exahashes (EH/s), about 3% of the Bitcoin network processing capacity.

Market trends: BTC is repeatedly hitting new highs but the market is relatively weak

Bitcoin (BTC) broke through $72,000 within the day, setting a new historical high. Meanwhile, there are also obvious signs of replenishment in the traditional mainstream coins, and the overall market is showing a sluggish consolidation trend. Regarding macroeconomics, the US stock market has seen mixed gains and losses, while AI leader Nvidia has experienced a reversal of trend and a decline.

Market hotspots

Traditional public blockchain coins such as CELO, AVAX, RUNE, DOT, and GLMR have significantly increased. Among them, the price of CELO exceeded $1.8, with a daily increase of over 50%. The rise of CELO is supported by various factors, including Tether‘s announcement of the launch of USDT on the Celo blockchain network and the launch of the fundraising platform Kickstarter by Celo.

The performance of the POW sector is impressive: concept tokens such as SYS, LTC, and RVN, which are proof of work, also saw a significant increase last week. Considering that there is still one month until the halving date of Bitcoin, the increasing demand for POW concept tokens in the market has led to impressive growth in these projects.

The Layer2 token saw a significant increase due to the news of the online exchange, and the Metis token also saw a significant increase. With the Cancun upgrade of Ethereum scheduled for March 13, most Layer2 tokens did not outperform Ethereum’s gains, but Metis, stimulated by exchange news, performed well.

Overall, apart from Bitcoin reaching a historic high, the crypto market has seen a significant increase in traditional public chain coins and POW concept tokens, while other sector tokens are in the adjustment stage. Meanwhile, with the upcoming Ethereum Cancun upgrade and the approaching halving date of Bitcoin, related projects may continue to receive market attention and capital inflows.

Macro: Slight global market correction; JPMorgan Chase CEO urges interest rate cuts after June; Inflation data is about to be released, gold has stagnated after reaching a high point

On March 12, Reuters reported that before the release of US inflation data on Tuesday, the global market had moderately fallen from recent highs. It is unlikely that the Asian market would fluctuate too much in either direction, but there may be fluctuations in the Indian rupee and Korean won; on the economic calendar, India’s inflation and the minutes of the South Korean central bank meeting are the top priorities.

Due to the strong rise in the Chinese stock market, the overall adjustment in Asian stock markets on Monday was much smaller, while the decline on Wall Street was moderate. Nevertheless, the NASDAQ index again became the largest decline among the three major US indices, while market darling NVIDIA fell 2% after plummeting 5.5% on Friday.

The Nikkei Index (.N225) of Japan fell 0.84%, with the Bank of Japan continuing its decline. Despite a significant drop in the stock market, the central bank did not purchase Japanese exchange-traded funds on Monday, intensifying speculation that ultra-loose monetary policy is about to shift.

Meanwhile, the February Consumer Price Index (CPI) report for the United States will be released at 12:30 Greenwich Mean Time, with an expected increase of 0.4% this month and a stable annual rate of 3.1%. Core inflation is expected to rise by 0.3%, driving the annual growth rate to the lowest level since early 2021 of 3.7%.

Jamie Dimon, CEO of JPMorgan Chase, urged the Federal Reserve to wait until after June to cut interest rates, believing that the central bank needs to enhance its credibility in fighting inflation.

The market expects an 84% likelihood of the Federal Reserve cutting interest rates in June, and has absorbed the impact of a 90 basis point rate cut this year.

“I think they must rely on data. If I were them, I would wait,” Damon said live at the Australian Financial Review Business Summit in New York. He believes the US economy has performed well and can almost be described as prosperous, but he warns the market not to accept the notion of a soft landing fully. He believes that the likelihood of recession is about 65%, but also cannot rule out the possibility of stagflation.”

On March 12, gold prices remained stable as US consumer price data may affect the trajectory of the Federal Reserve’s monetary policy. After a record increase in gold prices last week, traders did not establish new positions. As of GMT 0157, spot gold remained stable at $2182.48 per ounce after rising for nine consecutive trading days, and hit a historic high of $2194.99 on Friday. The US futures also remained unchanged at $2188.70.

Regarding commodities, US crude oil rose 0.28% to $78.15 per barrel, while Brent crude oil rose 0.33% to $82.48.