In April, just before the upcoming phase program, Bitcoin surged above $62,500 on Thursday due to institutional participation and speculation accumulation. The world’s leading cryptocurrency reached its highest level in over two years on Wednesday, reversing rapidly before tumbling on Thursday morning following a report from the fourth quarter of digital Wednesday’s minor marathon. Crypto exchange Coinbase stumbled due to technical issues caused by a significant increase in traffic.
Bitcoin Reaches New Two-Year High
After climbing to a peak of $64,037 on Wednesday before settling around $62,600 on Thursday, Bitcoin’s business is on par with the highest levels seen at the end of 2021. According to CoinDesk data, the world’s largest cryptocurrency jumped by over 5% in the last 24 hours. Bitcoin’s market capitalization surpassed $1 trillion in February for the first time in over two years.
Bitcoin has seen a 49% increase so far this year, with most of the gains coming after the launch of the spot Bitcoin ETF in January. Crypto is trading nearly 10% lower from its all-time high of $68,990 in November 2021.
Ethereum also surged on Thursday morning, surpassing its April 2022 levels, trading around $3,440 after reaching a peak of $3,520. The number two crypto has seen an increase of approximately 54% in 2024.
At the start of Thursday, spot Bitcoin ETF, recently launched, saw a collective increase of over 3.5%. ETF shares on Wednesday saw a substantial increase of about 6%.
According to BitMEX Research, since the launch of spot Bitcoin ETF on January 11th until the end of February, BlackRock’s iShares Bitcoin Trust (IBIT) has remained a leader with nearly $7.15 billion in inflows. Fidelity’s Wise Origin Bitcoin Fund (FBTC) holds the second position with flows of $4.72 billion. ARK 21Shares Bitcoin ETF (ARKB) is third with $1.563 billion, followed by Bitwise Bitcoin ETF (BITB) with approximately $1.114 billion flows.
Grayscale Bitcoin Trust (GBTC) has recorded outflows of nearly $7.8 billion by February 28th, which has slowed down continuously.
A significant portion of the outflows is attributed to the remaining effects of the crypto winter in 2022. CoinDesk previously reported that FTSE had terminated its GBTC position at the end of January and sold shares worth nearly $1 billion as part of its divestment initiative. Elsewhere, a U.S. district court in New York’s southern district approved Genesis, a defunct crypto lender, to sell $1.6 billion worth of GBTC shares in an attempt to repay creditors on February 14th, according to Reuters’ report.
Jennifer Rosenthal said, “The Grayscale team expects a diverse shareholder base to benefit from GBTC and deploy investment strategies that will affect the trust’s flows, and we’re pleased to see stability in outflows, especially against forced selling due to asset divestment.” Director of Communications at Grayscale. “GBTC stands tall with its unparalleled liquidity, vibrant trading activity, and distinct history. It’s not just another tool; it’s the backbone of Bitcoin’s risk management in capital markets. As investors seek stability amidst volatility, GBTC’s proven track record positions it as the go-to choice, ensuring a secure path through the ever-evolving crypto landscape.”
Nevertheless, regarding assets under management, Grayscale remains the leading player with $26.429 billion, followed by iShares Bitcoin Trust with $9.147 billion.
According to BitMEX Research, despite the outflows from GBTC, new ETFs have recorded flows of $7.399 billion since launch.
Digital Earnings Marathon
Marathon Digital (MARA) recorded earnings of 66 cents per share in the fourth quarter, surpassing last year’s loss of $3.13 per share and outpacing FactSet estimates by 9 cents per share. Revenue surged by 452% to $156.8 million, exceeding the $153.6 million estimate. Despite new Financial Accounting Standards Board (FASB) regulations impacting crypto assets, Marathon incurred a loss of 2 cents per share in Q4, missing FactSet EPS expectations by 4 cents.
Bitcoin production in the fourth quarter increased by 172% to 4,242. Marathon noted that it sold 56% of the bitcoin produced during the quarter to cover operating expenses.
Bitcoin production for the entire year increased by 210% to 12,852 BTC, reaching 24.7 exahashes per second (EH/s) in Marathon’s hash rate, a 253% increase year-over-year. The hash rate is the necessary computational power to mine Bitcoin. Marathon Digital CEO Fred Thiel stated that the company plans to increase its hash rate to 35-37 EH/s by 2024 and improve it to 50 EH/s by the end of 2025.
The company also announced the launch of Enduro, a platform built on the Bitcoin network that allows developers and members of the crypto community to create their own applications.
In January, Marathon produced 1,084 bitcoins, 58% more year-over-year but 42% less than December, the company announced on February 5th. Monthly network rewards decreased by 14% due to a decrease in transaction fees. As of January 31st, Marathon had a total of 15,741 unrestricted bitcoins. At the end of the month, Marathon’s combined unrestricted cash and bitcoin holdings totaled $988.7 million.
MARA stock fell by almost 9% at the start of Thursday. After jumping by more than 8% in pre-market trading on Wednesday, the stock’s gains dwindled during trading, ending up 2.4%.
Marathon Digital’s stock surged by nearly 81% last month.
Coinbase Traffic Jam
Coinbase (COIN) rose by 1.5% at the start of Thursday. Following reports of technical issues due to increased traffic, the crypto exchange’s profit dwindled by over 1% on Wednesday. Before the announcement, COIN stock rose by 6.4% at the start of Wednesday.
Coinbase Support announced around 12:50 PM, “We are aware that some users may see zero balances in their Coinbase accounts and may experience errors while buying or selling.” “Our team is investigating and will provide an update soon. Your assets are safe.”
It appears that this issue primarily affects retail accounts, with various user accounts or Coinbase app-related issues being reported on social media.
CEO Brian Armstrong posted on the social media site X, formerly known as Twitter, “We are dealing with heavy traffic – apologies for any issues you encounter.” “The team is working on solutions.”
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