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Bitcoin smashes through $65,000, only 6% away from its record high

Bitcoin (BTC) surpassed the $65,000 mark

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Hello, Crypto Briefers!

The crypto markets are heating up, with Bitcoin leading the charge past $65,000 on the back of heavy institutional accumulation, inching closer by 6% to the all-time high. Major funds like BlackRock’s IBIT Bitcoin ETF have piled over $10 billion into BTC, fueling extreme greed levels not seen since the 2021 peak. However, this frenzy has some analysts warning of an imminent correction mirroring past market tops.

The retail mania is spilling over into the memecoin sector, with tokens like Dogecoin, Shiba Inu and Bonk surging on speculative leverage trading. The memecoin market cap has jumped 17% in a day, aligning with JPMorgan’s note on impulsive crypto buying by small traders driving this rally. All eyes are on whether Bitcoin can clear its $69,000 all-time high without this fever breaking the contagion for memecoins.

Amid the hype, investors are also bracing for Arbitrum’s massive $2 billion token unlock on March 16. Over 87% of the circulating ARB supply will be released to Its team, advisors, and investors, raising fears of a precipitous dump crashing the price. While some tokens pump after unlocks, Arbitrum’s event dwarfs recent unlocks and comes as Robinhood integrates the layer 2 for cheaper transactions.

Today’s Newsletter

  • Bitcoin smashes through $65,000, only 6% away from its record high
  • Memecoins ‘rallying hard’ as retail-based market participation increases: QCP Capital
  • Arbitrum to unlock over $2 billion in tokens this month

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Data powered by CoinGecko.

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BITCOIN

Bitcoin smashes through $65,000, only 6% away from its record high

Bitcoin’s monumental surge has been fueled by institutional investors piling into Bitcoin, especially through new US spot ETFs. The Bitcoin fear and greed index has skyrocketed to 83/100, indicating an extremely greedy and confident market sentiment.

However, some analysts are issuing warnings about the current market euphoria being reminiscent of previous Bitcoin peaks that preceded major sell-offs and corrections. With the alpha cryptocurrency’s notorious volatility, the positive momentum could quickly reverse if investor sentiment shifts from extreme greed to fear. As BTC sails off past this level, we’re here to see if smart money operates differently this time around compared to past retail-driven market cycles. [cryptobriefing]

MARKETS

Memecoins ‘rallying hard’ as retail-based market participation increases: QCP Capital

Memecoins like Dogecoin, Shiba Inu, Pepe, and the recently launched Dogebonk are rallying hard. Analysts from QCP Capital attribute this speculative frenzy to a spike in leveraged retail buying activity, suggesting individual traders are driving the manic price appreciation.

The FOMO is kicking in, says QCP Capital, while JPMorgan analysts are looking at a “retail impulse” into crypto which rebounded  from the previous month, noting that it has a similar trajectory to equities. JPMorgan also highlighted how retail buyers fuel the current rally, rather than driven by fundamentals or institutional investors, aligning with what QCP Capital sees. [theblock]

ECOSYSTEM

Arbitrum to unlock over $2 billion in tokens this month

Ethereum layer 2 scaling solution Arbitrum is set for a massive token unlock, though notably, the $2 billion worth of tokens will be released to the project’s investors, advisors, and team, prompting fears of instability. This unprecedented unlock is by far the largest scheduled for the month of March, dwarfing unlocks from projects like dYdX, Aptos, and Immutable.

While some crypto assets tend to rise after unlocks as investors hodl, there are fears that Arbitrum insiders could look to immediately dump their unlocked tokens, causing a plunge in ARB’s price. The situation is further complicated by the recent integration of Arbitrum by retail trading platform Robinhood to offer lower-fee transactions leveraging layer 2 technology. [cryptobriefing]

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