Bitcoin News: Bitcoin Funds Trading at Discount Amid Negative Premiums and Reduced Demand

Recent developments in the Bitcoin fund market have raised concerns among investors, as premiums have turned negative, signaling a shift in market sentiment. Here’s a closer look at what’s happening.

Bitcoin Funds Trade at Discount as Premiums Turn Negative

Bitcoin fund market premiums have turned negative, indicating that the market price of Bitcoin funds is now trading at a discount to their net asset value (NAV). Data from CryptoQuant shows the 7-day EMA has fallen below zero, reflecting reduced demand for these products. This is supported by recent data from Farside, which revealed net outflows of $93.2 million on March 28 for spot Bitcoin ETFs, following ten consecutive days of inflows. Such outflows contribute to the negative premiums observed, suggesting bearish sentiment or a lower appetite for exposure through funds.

Bitcoin Could Threaten Dollar’s Reserve Currency Status: BlackRock’s Larry Fink

BlackRock CEO Larry Fink has expressed concerns that Bitcoin’s rise to prominence could threaten the U.S. dollar’s status as the world’s reserve currency. Fink noted that if the U.S. doesn’t get its debt under control, America risks losing that position to digital assets like Bitcoin. However, Fink is not anti-digital assets and acknowledges that decentralized finance is an extraordinary innovation that makes markets faster, cheaper, and more transparent.

Strategy Buys $2 Billion in Bitcoin

Strategy, a software firm, announced on Monday that it had acquired $1.92 billion worth of Bitcoin, making it the third consecutive week of purchasing the asset. After buying around 22,000 Bitcoin at an average price of $87,000 per coin, the firm now holds a total of 528,185 Bitcoin valued at $35.6 billion. Additionally, Strategy raised $1.2 billion through the sale of common stock and $1.85 million through the sale of perpetual preferred stock.

Why Emerging Economies Need Strategic Crypto Reserves

For emerging economies, strategic exposure to cryptocurrencies is essential for future economic resilience. These countries, which represent over 40% of the global population and approximately 25% of global GDP, remain vulnerable to external economic shocks. Traditional assets like gold and foreign exchange do not provide sufficient hedges in a rapidly changing global economy. Cryptocurrencies, such as Bitcoin (BTC), offer a potential solution for these economies to diversify their sovereign reserves and mitigate risks associated with currency fluctuations and trade disruptions.

Trump Sons Ink Deal With Hut8 to Launch Bitcoin Mining Firm

Donald Trump Jr. and Eric Trump have partnered with Bitcoin mining company Hut 8 to launch American Bitcoin, a new industrial-scale mining firm. The venture, announced on March 31, involves Hut 8 contributing the majority of its mining hardware to American Data Centers Inc., a company backed by the Trump sons. The firm was then rebranded as American Bitcoin, with Hut 8 holding an 80% ownership stake. American Bitcoin aims to become the world’s largest and most efficient Bitcoin miner, focusing exclusively on industrial-scale mining and building a strategic Bitcoin reserve.