At the start of the week, Bitcoin initiated trading at the $42,000 mark, influenced by a hawkish stance from the Federal Reserve and capital outflows from Grayscale. However, the cryptocurrency experienced an upward trend as substantial investor accumulation took place. Presently, Bitcoin is surpassing the $46,000 level. According to reports from Glassnode, there has been a 3.6% increase in Bitcoin wallets holding over 1,000 BTC from January 19th to February 6th.

The heightened activity among large investors suggests growing confidence in the value of Bitcoin, particularly as the halving event approaches. Additionally, historical trends indicate that Bitcoin often sees gains during the Chinese New Year period, coinciding with the S&P 500 reaching historic highs. Bulls in the market are now eyeing the $50,000 level as the next significant psychological resistance, fuelled by positive sentiment. On the other hand, Ethereum is also trading in line with Bitcoin, experiencing gains. Most altcoins have gained decent amounts this week.

In an intriguing development, newly launched Bitcoin Exchange-traded Funds (ETFs), excluding Grayscale’s GBTC, added nearly 5,000 tokens to their holdings on Wednesday. These ETFs now collectively own more than 192,000 BTC, surpassing the holdings of MicroStrategy (MSTR), which stood at 190,000 at the end of January. Despite being on the market for less than a month, these funds have attracted billions of dollars from investors seeking exposure to Bitcoin without the need to directly purchase and store the cryptocurrency.

The developers of Ethereum are targeting March 13th for the ‘Dencun Upgrade’ milestone on the mainnet. This upgrade aims to lower costs for layer-2 transactions and enhance data availability on the Ethereum blockchain, marking the most significant changes since April 2023.

ENS (Ethereum Name Service) and domain registrar GoDaddy are enabling the Web3 community to connect their .eth names (domains) to conventional web2 domains without any additional charges. The collaboration between GoDaddy and ENS aims to remove the obstacle of elevated gas fees that previously discouraged users from migrating domain names to ENS.Coming to the price action, among the top 100 cryptos by market cap, here are the best and worst-performing cryptos over the past week:As per prices on Friday.

Top 5 crypto gainers during the week:

1. Dymension is up by 96%

2. BitTorrent (New) is up by 31%

3. Kaspa is up by 26%

4. Flare is up by 22%

5. Beam is up by 18%

Top 5 crypto losers this week:

1. Monero is down by 26%

2. Jupiter is down by 20%

3. Ronin is down by 13%

4. Frax Share is down by 11%

5. Manta Network is down by 8%

(The author is , CEO & Co-founder of Mudrex, a Global Crypto Investment Platform)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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