Bitcoin Surges Above $61K, With XRP Leading Major Gainers

Some traders anticipate market changes closer to Friday, the day when Jerome Powell, the head of the Federal Reserve, is expected to speak at the Jackson Hole conference.

Early on 20th August 2024, Bitcoin (BTC) crossed $61,000 after U.S.-spot exchange-traded funds (ETFs) holding the cryptocurrency had their second-highest inflow activity of the month.

According to statistics from SoSoValue, net inflows into Bitcoin ETFs were over $61 million, the most since August 8th, when they received $192 million. Bitwise’s BITB had withdrawals of $25 million, while BlackRock’s IBIT led inflows at $92 million.

Major Cryptocurrencies See Significant Gains

Additionally, Japan’s Metaplanet revealed that it had successfully executed a second bitcoin acquisition for $3.4 million (500 million Japanese yen), increasing its total bitcoin holdings to 360.368 BTC.

Other notable tokens increased in lockstep as well: XRP and BNB Chain’s BNB shot up over 7%, while Solana’s SOL and Cardano’s ADA gained 4% each. Between 19 to 20 August 2024, Toncoin (TON) had a 0.8% decrease. The performance of the biggest and most liquid digital assets is gauged by the CoinDesk 20 (CD20), which is up 4.25%.

The market is offering a 66% probability that BTC will stay over $60K by the end of the week, which indicates that gamblers on Polymarket are anticipating some price stability.

Market Focus Shifts to Jackson Hole Symposium

Elon Musk, a tech entrepreneur, posted an AI-generated image on X that alluded to Dogecoin (DOGE), causing the cryptocurrency to surge 5%. Historically, DOGE has moved when Musk makes a post regarding the coin. Any price increases, though, are often transient.

As of 20 August 2024, there are still very few market triggers; however, some traders anticipate market swings closer to 23 August 2024, when Jerome Powell, the chair of the Federal Reserve, is expected to speak at the Jackson Hole conference.

“The Jackson Hole symposium, where monetary policy is to be discussed, is the cornerstone of this week’s market expectations,” Abra Prime stated via email in a market note. The story revolves around Bitcoin exchange-traded funds and how they relate to the stock market.

Abra stated, “This week before Jackson Hole, we can expect horizontal price action, with BTC ranging between $56K – $62K with most volume around $58K – $60K.”

Uncertainty Surrounds Bitcoin ETF Options

According to Bloomberg, Powell is anticipated to affirm a shift toward lower borrowing prices next month. This move has typically boosted traders’ optimism since easy access to capital encourages development in riskier industries. However, some people continue to have short-term pessimism over the choice to rescind the suggested possibilities for Bitcoin ETFs.

Augustine Fan, Head of Insights at SOFA.org, stated in a Telegram message: “Over the past 72 hours, we have seen both NYSE and NASDAQ withdraw their applications to list BTC ETF options, adding more headwinds to wider mainstream adoption, at least in the short term.” The fan continued, referencing Ether’s (ETH) poor performance in comparison to other ETFs, “TradFi continues to be cautious with ETF ETH buying on the lack of clarity over staking legalities.”