Bitcoin briefly crosses $52,000 as it recaptures $1 trillion market cap: CNBC Crypto World

CNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what’s ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today’s show, Andy Baehr of CoinDesk Indices discusses what’s driving bitcoin’s rally to multi-year highs.

Chapters:
00:00 – CNBC Crypto World, Feb 14, 2024
0:19 – Bitcoin tests $52,000
0:51 – The headlines
3:17 – Andy Baehr of CoinDesk Indices

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Bitcoin briefly crosses $52,000 as it recaptures $1 trillion market cap: CNBC Crypto World

Today Bitcoin reaches a new infraday high briefly hitting $552,000 an Andy Bear of coindesk indices discusses whether the recent momentum for Bitcoin can hold up welcome to cnbc’s crypto world I’m TAA mckel cryptocurrencies were higher today with Bitcoin trading at about $51,500 by noon Eastern earlier in the day it briefly touched

$52,000 a level not seen since December 2021 ether also getting in on the gains and jumping to 2740 salana meanwhile climbing to $116 over on Wall Street Robin Hood got a Boost after reporting fourth quarter earnings the company raked in $43 million in crypto revenue and saw

Monthly active users grow the stock Rose more than 10% by midday okay let’s talk about the top stories grayscales head of ETFs caught up with cnbc’s Bob Pani at the exchange ETF conference to discuss the performance of the firm’s bit Bitcoin ETF so the tracking has been really

Remarkable we’ve seen uh the Bitcoin ETFs really doing a great job of holding very tight bit ass spreads tracking the funds net asset values very tightly and we’ve seen a liquidity profile that has been indicative of what we anticipated we’ve got a 10-year track record and over a million investors and you know

Over 20 billion in assets grce skill of course is the largest of the Bitcoin ETFs and has faced selling pressure in the weeks after the launch which are now diminishing oh and if you missed it yesterday Bob also caught up with Matt Hogan of bitwise and Rick Edelman of the

Digital assets Council of financial professionals you can watch that interview over at cnbc.com cryptoworld next SEC chair Gary gendler stopped by cnbc’s squawkbox this morning to discuss spot Bitcoin ETFs a month after their launch he stressed that the agency is still neutral on the investment products but did speak about

His concerns for bitcoin’s ability to be used for fraud and other illicit activity well this is a field Becky that’s been uh Rife with fraud and manipulation and look at all the bankruptcies and you’ve you’ve had on this set people talking about those various bankruptcies and it’s not just

One entity it’s entity after entity after entity and then investors are just lining up in the bankruptcy court finally a new report from the treasury Department’s Financial crimes enforcement Network says Bitcoin is increasingly involved in cases of human trafficking and child exploitation vinsen looked at a period between

January 2020 and December 2021 and found more than 2,000 cases of Bitcoin being specifically referenced in cases of human trafficking and online child sexual exploitation overall human trafficking related Bank secrecy act reports Grew From 336 in 2020 to nearly 2,000 in 2021 vinon also pointed to cesam or child sexual abuse material

Which made up most of the cases now notably this report explored data from the height of the last crypto bull cycle before the subsequent meltdown in 2022 CH analysis released a report last month that said crypto’s use in seesam activity peaked in 2021 all right turning back to markets

For our main story I caught up with Andy barar head of product at coindesk indices about bitcoin’s rise to another 2-year high and whether the momentum can continue Bitcoin is at a more than two-year high this morning again trading at nearly $52,000 also that pushed it back above

The trillion dollar market cap talk about the driving force for this movement and how much of it how much of it do you attribute to you know recent momentum in the newly trading ETFs we’re certainly excited to see Bitcoin uh scrape through $52,000 for the first time since Wow since December

2021 which in crypto years is is quite a long time ago uh to think that um only 16 17 months ago we were dealing with uh FTX kind of melting down and the market sort of in complete dis array and now we have this great environment where Bitcoin is

52,000 as you said the market capitalization of Bitcoin is over a trillion the market capitalization of the entire cryptocurrency Market is reaching about two trillion um and we have uh new ETFs which in aggregate have raised about 11 probably more than that by now billion dollars in a very short

Time and the total amount of uh money in us Bitcoin spot ETFs is almost $ 37 billion do so it’s uh it certainly feels like a really really strong day you and I both know that a lot of times we talk about the price action in Bitcoin and

The crypto markets it’s a long-term good story at least for Bitcoin and then it’s a you know a little bit Messier in the short term or at least just more volatile um do you think to to what extent do you think Bitcoin can keep up this momentum in the short term we’ve

All been watching the selling pressure from grayscale and it’s it’s ETF that was recently converted from the trust um so now that those outflows seem more out of the way what headwinds um what head what headwinds are you watching when it comes to the Bitcoin price action over

The next few weeks for sure we we want to look at Bitcoin and think about near-term medium-term and long-term um in the near term we’re looking at things like yesterday inflation print and the change in expectations that the market has for when the Fate the FED might cut

Interest rates those got pushed back from kind of the March timeline to May or even past May um but you know every time that inflation expectations rise people remember that Bitcoin is uh really expressed in dollars and as dollars get weaker Bitcoin gets stronger right so in that sense um Bitcoin kind

Of stumbled a little bit with equities and other kind of tradition assets on the at the moment that that inflation number came out but has rebounded quite strongly in the medium term we’re looking at the having which is uh an event that happens every couple of years

When the reward that Bitcoin uh Bitcoin miners receive for providing security to the network gets cut in half this is expected um the reward will go from six and a quarter Bitcoin per block to three and an eth so traditionally that’s a time when people perceive that the

Supply of Bitcoin is going to be more constrained and therefore uh with demand the same prices should go higher we don’t know if that’s going to happen this time but that’s what’s happened in the past and then when you look at longterm and you think about the properties that Bitcoin has in a

Portfolio uh both its correlation with traditional assets it’s kind of future of money and Technology idea um more and more people and now with this broader adoption through ETFs um it it looks like it’s going to be part of more and more model portfolios that advisers put together in the

Future I want to go slightly deeper on this and apologies I’m gonna have you re reiterate a couple of the things you just said but um you know we’ve seen years where Bitcoin trades like a tech stock and then we saw last year um you know that correlation with stocks start

To fall and Bitcoin start to look a little bit more like gold um and then you know after the approvals of the ETFs I’ve seen a lot of people out there say you know the macro has nothing to do with this right now which may have been

True while we were while we were seeing uh those initial flows with the newly traded funds so what um you know we know that Bitcoin can serve different purposes and be different things to different types of investors and different people uh what if you if you could give kind of an overarching view

On this how should an investor be looking at Bitcoin right now you know uh there’s two ways to look at it I think that if you really have a long-term View and uh can stick with that for a long period then um you know we don’t make particular investment advice but we hear

A lot of advice that directs that model portfolios might include anywhere from one to 5% of Bitcoin as um something which provides diversification effect uh which also kind of makes a bet on the future of money um and also kind of protects against other kind of macro

Events that could happen in the future many people can’t just sit and hold especially if they self-directed for years and years uh unfortunately I think a lot of people got swept up in what happened towards the end of 2022 and sold out of their positions and then

Missed the rally so for those people we we really recommend that they try to look at um price momentum in Bitcoin which has a very strong effect we have a signal called the Bitcoin trend indic indicator uh which has done a really good job of indicating when Bitcoin

Prices are trending higher and lower and an investment process that uses that signal to allocate will take some of the emotion out of uh tactical trading um and really help reduce the risk and let investors navigate the crypto Seasons better so the Bitcoin Trend indicator right now uh is pointing at a

Significant uptrend it has spent most of the time since mid October in that position when Bitcoin was down to 27,000 and has uh therefore caught most of that rally okay that’s all for crypto world today we’ll be back again tomorrow we’ll see you then