The price of the digital currency Bitcoin witnessed a significant decline at the end of the American session, as it is now trading at $95,944.8, down by -1.45% in the past 24 hours. The market capitalization of Bitcoin also recorded $1.89 trillion, according to Investing data. Despite this decline, Bitcoin remains the most dominant in the market, with a market share of 60.2%. As for Ethereum, it comes in second place with a market share of 10.1%.
According to the data, it may be noted that based on today’s closing price, Bitcoin has fallen by -2.64% in the past seven days. While the most popular alternative currency, Ethereum, recorded a decline of -4.3% in the same period
Prices of the six popular digital currencies
The prices of other digital currencies vary at this time:
- Solana: The price is now $198.385, down -1.47%.
- Binance Coin: The price is now $637.59, up 4.17%.
- Ripple: The price is now $2.4414, up 0.59%.
- Dogecoin: The price is now $0.254631, down -0.38%.
- Shiba Inu: The price is now $0.00001573, down -0.28%.
- Cardano: The price is now $0.7894, up 11.88%.
The effects of Bitcoin and digital currency movements on stock markets
The effects of digital currency movements are not limited to prices only, but may also include stock markets. The prices of Bitcoin mining companies and stocks related to digital currencies have been directly affected. Here are some stock prices:
- Coinbase Global Inc (COIN): The closing price is $266.90, down -4.8%.
- MicroStrategy (MSTR): Close $327.56, down -4.5%.
- Marathon Digital Holdings (MARA): Close $16.02, down -4.4%.
- PayPal (PYPL): Close $76.21, down -2.6%.
- Block (SQ): Close $82.59, down -2.7%.
Bitcoin ETF Outflows
Bitcoin ETFs have continued to see outflows over the past few days, as the price of Bitcoin briefly dipped below $95,000.
According to the data, the 12 Bitcoin ETFs recorded net outflows of $56.76 million on Tuesday, extending the streak of negative inflows to two consecutive days. The previous day, Bitcoin funds recorded outflows of $186.28 million.
Fidelity’s FBTC fund led the outflows, with $43.63 million exiting. Franklin Templeton’s EZBC, Invesco Galaxy’s BTCO, Bitwise’s BITB, and WisdomTree’s BTCW also contributed to the negative momentum, with outflows of $11.03 million, $9.51 million, $9.32 million, and $7.06 million, respectively.
However, BlackRock’s IBIT fund was able to partially compensate, attracting $23.8 million from investors. According to the data, the Bitcoin ETF has recorded net inflows of over $40 billion since its launch..
Ethereum funds see net inflows
Despite the decline in demand for Bitcoin funds, Ethereum ETFs saw net inflows on February 11, attracting $12.58 million from investors.
These inflows were entirely from BlackRock’s ETHA fund, which saw $12.58 million enter the fund. In contrast, other Ethereum ETFs saw no inflows on the same day.
The daily trading volume of these funds reached $267.66 million on Tuesday, up from $210.99 million recorded the previous day. This increased demand for Ethereum funds reflects the continued expansion of these products by investment managers.
Cryptocurrency Custody Giant
BitGo was founded in 2013 and has over 1,500 institutional clients in over 50 countries. Aside from its custody services, the platform allows clients to trade, borrow, and lend digital assets. Its website also highlights that it processes around 8% of all global Bitcoin transactions.
Goldman Sachs Increases Bitcoin Investments
Goldman Sachs’ move to increase its investments in Bitcoin ETFs is one of the most notable developments in this context. According to the company’s latest 13F filing with the US Securities and Exchange Commission (SEC), Goldman Sachs has increased its holdings in cryptocurrency ETFs to $2.05 billion.
Its holdings in Bitcoin ETFs have increased by 121.1%, now holding $1.57 billion in various Bitcoin funds. This indicates growing institutional demand for Bitcoin, especially in light of volatile economic conditions.
Other aspects of price action
For cryptocurrency investors, recent events reveal significant shifts in the market. Bitcoin has seen a dramatic rise in the last quarter, reaching a price of $109,000, supported by significant institutional interest, especially in light of favorable regulatory conditions following the election of US President Donald Trump.
On the other hand, despite this significant dominance of BTC, Ethereum is still struggling to attract similar institutional interest. Last month, Ethereum’s value fell by 13.8% compared to Bitcoin, sending its value to a four-year low. This decline was driven by technical issues faced by the network and increased institutional demand for Bitcoin.
Overall, cryptocurrencies, especially Bitcoin, have seen significant changes in recent times. The cryptocurrency market continues to be affected by many economic factors, including institutional investor sentiment. It also shows that there are shifts in investment patterns, with BTC becoming more focused while Ethereum is becoming less focused, reflecting the competitive landscape among cryptocurrencies.
In addition, traditional markets are significantly affected by the volatility of cryptocurrencies, making it necessary to closely monitor the market for upcoming trends.
