(Kitco News) – “Up only” continues to be the theme for the cryptocurrency market as Wednesday saw Bitcoin (BTC) record a new all-time high above $73,700 while numerous altcoins enjoyed double-digit gains as investors throw caution to the wind and FOMO into crypto. 

Stocks, on the other hand, drifted lower, as traders continued to reevaluate the prospect of interest rate cuts following a hotter-than-expected CPI reading on Tuesday that was met with a new all-time high by the S&P 500. Many are now awaiting Thursday’s wholesale inflation and retail sales data before determining their next move, which has resulted in weakness across the equity markets. 

At the closing bell, the S&P 500 and Nasdaq finished lower, down 0.19% and 0.54%, respectively, while the Dow gained 0.10%. 

Data provided by TradingView shows that Bitcoin bulls began climbing from support at $71,450 in the early hours on Wednesday and hit a fresh all-time high of $73,738 on Coinbase before midday. They spent the remainder of the trading day fending off bear attempts to push Bitcoin’s price lower, and at the time of writing, King Crypto trades at $73,410, an increase of 3.15% on the 24-hour chart.  

BTC/USD Chart by TradingView

The spot BTC ETFs continue to be the primary source of momentum for the broader crypto market as they registered a record inflow of more than $1 billion for the first time on Tuesday, according to Bloomberg Intelligence Senior ETF Analyst Eric Balchunas. 

Record inflow for Ten yest, first day over $1b net. $IBIT went crazy with $848m of it, YTD net now +$11b, assets now over $60b. $IBIT also over $15b and about to crack the Top 100 ETFs by size. If you want to view this chart made by @JSeyff on terminal use {G #BI 124590}. pic.twitter.com/ca3QJxf7AM

— Eric Balchunas (@EricBalchunas) March 13, 2024

And the flows could continue to rise for some time, Balchunas said, as more registered investment advisors begin to recommend Bitcoin exposure to their clients in the coming months. He noted that the ETFs are not currently available on any of the major brokerage platforms, which collectively manage between $7 and $10 trillion in assets, but said that will change in the months ahead. 

“It’s like putting a product on the shelf of Whole Foods or a big-box food store,” he said. “That kind of exposure and availability will definitely help.”

A second catalyst that should further propel Bitcoin’s price higher is the launch of options trading for the BTC ETFs, he said, predicting they will be available by September. 

“Those are the two big catalysts that I think still need to come,” he said. “Not to mention the halving, which could lead to a price jump. It’s a small miracle that they’ve done so well without demand, without big platforms, without options.”

Balchunas also predicted the launch of additional products structured around ETFs, including 2X spot BTC ETFs, as well as covered call strategies and products like long BTC/short gold. 

“They will try and have a few successes,” he said. “And all of these successes will feed the ecosystem.”

Bitwise CIO Matt Hougan provided additional insight into Balchunas’ prediction that further adoption by investment advisors will lead to additional demand and price gains, noting that he is on day 3 of a 20-day road trip “talking to financial advisors and family offices about Bitcoin.” 

“Some initial takeaways: First, I am no longer surprised at the size of the inflows into the Bitcoin ETFs,” Hougan said. “The demand is widespread and strong, and will persist for a while. Interest is very high among professional investors.” 

Second, “Platforms continue to work fast to complete their due diligence on the new ETFs. Most will complete the process within the next two months, if they haven’t already,” he noted. 

Third, “Some – but not all – of the classic FUD points have disappeared,” he said. “For example: People no longer ask about criminal use, Tether, FTX,  Binance, or the government banning Bitcoin; Concerns about environmental impact are fading but still exist; and Questions about how to value Bitcoin given its lack of cash flows persist.”

Fourth, Hougan noted that “One common theme in conversations (which is new compared to past trips) is a visceral concern about rising US debt levels.”

“Many advisors have clients who are worried about the US fiscal situation, and are using Bitcoin as a release valve for that concern,” he said. “I think the elections may be a catalyst to bring this concern to the forefront of people’s minds.”

Altcoin winners and losers

It was an overall positive day for the altcoin market as a majority of tokens in the top 200 recorded gains. 

Daily cryptocurrency market performance. Source: Coin360

Radix (XRD) was the top gainer with an increase of 37.6%, followed by a 37.7% gain for ssv.network (SSV), and a 34% climb for Vanar Chain (VANRY). Pixels (PIXEL) was the biggest loser with a decline of 10.3%, while Nervos Network (CKB) fell 9.5%, and Coq Inu (COQ) lost 8.7%. 

The overall cryptocurrency market cap now stands at $2.76 trillion, and Bitcoin’s dominance rate is 52.2%.