Saturday, July 20, 2024

Title: Blackrock’s Bitcoin ETF Filing Announcement Drives BTC Growth in Q2, Study Reveals

A recent study by Coingecko sheds light on the performance of Bitcoin (BTC) and the overall cryptocurrency market during the second quarter (Q2) of 2023. The report shows that BTC’s value surged by an impressive 6.9%, reaching a fiat price of $30,481, outpacing the entire crypto market’s meager growth of 0.14%.

The primary catalyst behind BTC’s remarkable Q2 surge was identified as the announcement made by Blackrock, the giant asset management firm. On June 15, Blackrock revealed that it had filed for a spot bitcoin exchange-traded fund (ETF), which created a significant positive impact on BTC’s trajectory.

Despite BTC’s upward trend, its average daily trading volume in USD terms plummeted by 58.7% during the same period. The trading volume fell from $33.4 billion in Q1 to $13.8 billion in Q2, indicating a significant decline in trading activity despite the asset’s price gains.

In contrast to BTC and the overall market’s upward trajectory, stablecoins experienced a mixed bag of fortunes. Both USD Coin (USDC) and Binance USD (BUSD) suffered losses in market capitalization, declining by 15.9% and 45.4%, respectively. Meanwhile, USDT, the dominant stablecoin, witnessed a significant market cap increase of $3.48 billion during the same period. Other stablecoins like True USD, Gemini Dollar, Flex USD, and Paxos also saw notable gains in their respective market caps.

Within the realm of Ethereum (ETH) staking, the total staked ETH rose by 5.6 million, concluding the quarter at 23.6 million. Lido remained the dominant staking provider, with a market share of 31.9%, slightly higher than its Q1 share of 31.4%. On the other hand, Kraken’s dominance dwindled to 3.4% due to its decision to wind down its staking product in the U.S. following a settlement with the SEC. Coinbase also experienced a decline in dominance, ending Q2 with a 9.6% market share.

Regarding non-fungible token (NFT) trading volumes, the report shows that Bitcoin ordinals accounted for just over 20% of May’s volumes. However, Ethereum remained the leading platform for NFT trading throughout the month and the entire Q2 period.

This study offers valuable insights into the performance of various cryptocurrencies during Q2 of 2023, highlighting the impact of Blackrock’s Bitcoin ETF filing announcement on BTC’s remarkable growth. As the crypto market continues to evolve, it remains crucial to monitor these trends and developments closely. Share your thoughts on this story in the comments section below.

Frequently Asked Questions (FAQs) about bitcoin ETF filing

Q: What was the key factor behind BTC’s surge in Q2 of 2023?

A: The main catalyst behind BTC’s remarkable growth during Q2 was the announcement made by Blackrock, the giant asset management firm, that it had filed for a spot bitcoin exchange-traded fund (ETF). This announcement had a significant positive impact on BTC’s price trajectory.

Q: How did BTC’s value change during Q2 of 2023?

A: During Q2, BTC’s fiat price grew by 6.9%, rising from $28,517 to $30,481, outperforming the entire crypto market’s marginal growth of 0.14%.

Q: What happened to BTC’s average daily trading volume in Q2?

A: Despite BTC’s price surge, its average daily trading volume in USD terms declined substantially by 58.7%, falling from $33.4 billion in Q1 to $13.8 billion in Q2.

Q: How did stablecoins perform in Q2 of 2023?

A: Stablecoins had mixed fortunes during Q2. USD Coin (USDC) and Binance USD (BUSD) lost significant market capitalization, while USDT, the dominant stablecoin, saw a substantial increase in its market cap.

Q: How did the total staked Ethereum (ETH) change in Q2?

A: The total staked Ethereum (ETH) increased by 5.6 million, reaching 23.6 million at the end of Q2.

Q: Which staking provider remained dominant for ETH staking?

A: Lido maintained its dominance as the leading staking provider, representing 31.9% of all staked ETH during Q2, slightly up from its 31.4% market share in Q1.

Q: Why did Kraken’s dominance in ETH staking decrease?

A: Kraken’s dominance in ETH staking dropped to 3.4% due to its decision to wind down its staking product in the U.S. following a settlement with the SEC.

Q: What were the key platforms for NFT trading during Q2?

A: Ethereum was the most dominant platform for NFT trading throughout Q2, while Bitcoin ordinals accounted for just over 20% of the NFT trading volumes in May.

Q: How can these findings impact investors in the cryptocurrency market?

A: Investors should take note of Blackrock’s influence on BTC’s performance and monitor the trends in stablecoins and ETH staking providers, while recognizing Ethereum’s continued prominence in the NFT trading landscape. These insights can help inform investment decisions in the ever-evolving crypto market.

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