Key Metrics Investors Should Watch Ahead of BZFD’s Feb 28 Update

Posted on by The INO.com Team

BuzzFeed, Inc. (BZFD) has enjoyed significant success as a digital media powerhouse, leveraging its content across various platforms, both owned and in partnership with others. However, the company's trajectory appears to have shifted, signaling a departure from its former glory.

In recent years, digital publishers have been grappling with tough industry conditions, a sluggish advertising market, dwindling social media referrals, and the looming threat of Artificial Intelligence (AI). That said, BZFD stands as a prime example, embodying the hurdles faced by digital publishers amid these challenges.

The deterioration of BZFD’s digital empire has become increasingly prominent in the public eye in recent years, marked by multiple rounds of cost-cutting measures and workforce reductions through layoffs.

Following its Initial Public Offering (IPO) in 2021, BZFD witnessed a drastic decline in its share price. Moreover, last year April, BZFD made headlines by closing its prestigious news arm, BuzzFeed News, which once boasted extensive global coverage and a large team.

On top of it, the company’s third-quarter earnings revealed a sharp 29.3% year-over-year drop in its top line and reported a loss of $13.93 million. Its advertising revenue dipped 35.3% year-over-year to $32.59 million, while its revenue from content witnessed a 31.7% year-over-year decline, reaching $26.25 million.

Additionally, the time spent by the audience engaging with BZFD’s content across its owned and operated sites decreased 19% year-over-year, totaling 92 million hours. Meanwhile, during the same quarter, its adjusted EBITDA came in at $3.07 million versus an adjusted EBITDA loss of $2.40 million in the prior-year quarter. As of September 30, 2023, BZFD’s cash and cash equivalents stood at $42.47 million.

Nevertheless, despite the dimmed third-quarter performance, Jonah Peretti, BZFD’s Founder & CEO, emphasized that the company is poised for a year-over-year improvement in adjusted EBITDA for both the fourth quarter and the entire fiscal year. Peretti further highlighted BZFD’s commitment to safeguard its liquidity position by establishing a sustainable long-term model for content creation.

BFZD recently announced the closing of its sale of Complex to NTWRK and its plans to trim its remaining workforce by 16%. This news sparked significant investor enthusiasm, with BZFD's share skyrocketing over 80% during pre-market trading last week Thursday.

BZFD completed the sale of Complex to NTWRK in a transaction valued at $108.60 million in cash. The agreement, inclusive of an extra $5.70 million designated for the utilization of BZFD's New York offices and associated severance expenses, signifies a strategic pivot for the media entity and underscores its commitment to streamlining operations and prioritizing its flagship brands, namely BuzzFeed, HuffPost, First We Feast (including Hot Ones), and Tasty.

Furthermore, the company unveiled a strategic cost-cutting initiative featuring a planned workforce reduction of 16%. This bold move is projected to deliver around $23 million in annualized compensation cost savings.

The company's restructuring details, scheduled to be shared on Wednesday, February 28, 2024, aim to trim centralized costs and drive the organization toward a leaner, more adaptable, and more profitable future. In addition, the cash proceeds generated from the sale of Complex have been designated for various financial strategies aimed at bolstering BZFD’s balance sheet and enhancing liquidity.

These strategies encompass redeeming $30.90 million of the company's convertible notes maturing in 2026, fully repaying a $35.50 million revolving credit facility, funding the forthcoming strategic restructuring, and optimizing working capital.

The company expects its revenue for the fiscal fourth quarter to be between $73 million and $78 million, while adjusted EBITDA on a continuing operations basis is projected to be between $15 million and $20 million.

Bottom Line

BZFD has navigated a tumultuous period marked by significant setbacks and strategic modifications. Once celebrated as a digital media powerhouse, the company has faced declining revenues, workforce reductions, and a substantial drop in its share price following its IPO.

However, it might be premature to adopt an entirely bearish outlook on the company’s shares. BZFD’s recent developments, including the sale of Complex and restructuring plans, are a clear signal to investors that the company can make critical adjustments and enhance its business model for the betterment of the shareholders.

Additionally, BZFD's focus on improving adjusted EBITDA and liquidity and implementing cost-cutting measures demonstrates a commitment to financial stability and future growth.

As BZFD moves forward with its restructuring plans and strategic initiatives, it aims to streamline operations, prioritize flagship brands, and bolster its financial position to adapt to evolving market dynamics and pursue long-term success. Furthermore, CEO Peretti anticipates that these changes will expedite BZFD's integration of AI to foster innovation and introduce interactive content formats.

To that end, given the company’s restructuring details set to be disclosed on February 28, it might be advantageous for investors to monitor the stock and wait for a more favorable entry point.

Buy Alert: Is Intel (INTC) Ready to Dominate the CPU Market Once Again?

Posted on by The INO.com Team

The semiconductor powerhouse Intel Corporation (INTC), which annually unveils new innovative desktop CPUs, is causing a stir with its recent announcement of the 14th-generation Raptor Lake processors. Rumors are swirling about the imminent launch of the Intel Core i9-14900KS, touted as the fastest-ever desktop processor, set to debut in March.

Now, let’s assess the prospects of Intel’s rumored Core i9-14900KS processor in the competitive CPU market and the implications of this product launch for INTC investors.

Performance

Launched in October 2023, Raptor Lake CPUs embody a hybrid architecture employing performance and efficiency cores. INTC’s rumored Core i9-14900KS CPU boasts eight high-performance Raptor Cove cores, 16 energy-efficient Gracemont cores, and a 68MB cache, enhancing computational prowess and multitasking capabilities.

The forthcoming CPU showcases a higher default TDP of 150W compared to its predecessors. Also, it achieves a maximum turbo clock of 6.2 GHz, surpassing the 19400K and 19400KF models by 200 MHz. The enhancement is expected to bode well for performance-intensive tasks and demanding applications.

Nonetheless, a significant drawback looms over this final addition to the LGA 1700 socket range of CPUs: an unprecedented power draw. Leaks suggest the chip may consume up to 400W under heavy loads, necessitating robust cooling solutions and ample power supply provisions.

Acquiring sufficient Raptor Lake Refresh processors capable of operating at exceptionally high clocks should pose minimal challenges, given INTC’s substantial production capacity. However, the potential exorbitant power draw raises concerns regarding enthusiast adoption, necessitating formidable cooling solutions to mitigate heat dissipation concerns.

That being said, the Core i9-14900KS CPU, with its advanced specifications and outstanding performance, may initially boost INTC's stock due to enhanced anticipation but could face scrutiny due to concerns regarding power draw.

Pricing

A recent leak has unveiled the anticipated price of INTC’s upcoming flagship gaming CPU, the Core i914900KS. Priced at a staggering €752 including VAT ($812.90) and €640 without ($691.83), it surpasses its predecessor, the 14900K, by €146 ($157.83). The revelation stems from a French online retailer, indicating a significant price hike.

Multiple European retailers are now listing INTC’s forthcoming Core i9 14900KS CPU. Leakers are showcasing both boxed and tray versions at €768 ($830.20) and €752 ($812.90) on the French platform PC21. While seemingly high, a $699 price tag seems feasible considering a direct USD to Euro conversion, aligning with earlier models’ pricing.

From an investor perspective, the pricing strategy could have both positive and negative implications. On the one hand, if customers are willing to pay the listed prices for the Core i914900KS processor, it could lead to increased revenue by capturing a large portion of the market demand and potentially higher stock prices.

Investors may view this as a sign of INTC’s ability to command premium pricing for its products, which could enhance shareholder value.

On the other hand, there’s a risk that the higher price could deter some consumers from purchasing this new Intel processor, mainly if competitive products offer similar specifications and performance at a lower cost. If sales fail to meet the company’s expectations or if there’s backlash from consumers over the pricing, it could negatively impact INTC’s financial performance and, consequently, its stock price.

Consumer Demand

Consumer demand for Core i9-14900KS CPU will likely remain robust, driven by limited supply expectations. Reports suggest it will be a limited edition, heightening its exclusivity and desirability among tech enthusiasts.

Despite potential bans on other INTC CPUs in Germany, the Core i9-14900KS is expected to be available globally. The imminent release of this Special Edition CPU is further supported by tests conducted on production units, indicating an impending official announcement.

The scarcity factor combined with the promising performance of the Core i9-14900KS is likely to create a strong demand among consumers, driving the company’s revenue streams and growth.

Competitive Landscape

INTC faces new challenges from emerging Asian competitors like Taiwan Semiconductor Manufacturing Co. (TSM) and Samsung Electronics Co., establishing their market position in the U.S. However, the Biden Administration’s proposed $10 billion subsidy could bolster INTC’s U.S. presence, supporting CEO Pat Gelsinger’s lobbying efforts.

Gelsinger is spearheading INTC’s push for government backing, which is crucial for its ambitious projects: a $20 billion Ohio facility, a $20 billion expansion in Arizona, and a $3.50 billion investment in New Mexico. The endeavors hinge on securing funding, which is indicative of INTC's strategic focus and future direction.

Moreover, NVIDIA Corporation (NVDA) is venturing into custom processors for cloud and AI amid a surging demand for AI chips. INTC Foundry Services could emerge as a viable alternative for custom processors, as suggested by analysts at Bank of America.

INTC aims for significant growth in its foundry business, eyeing the second-largest global position by 2030, according to Stuart Pann, the SVP and GM of Intel Foundry Services.

Bottom Line

Although not the highest-valued semiconductor company on Wall Street, INTC leads in revenue, according to Gartner Inc. (IT). While yet to be confirmed, rumors strongly suggest the impending release of a Core i9 KS special edition. The company is strategically allowing the current Core i9-14900K time to flourish, potentially enhancing the special edition’s quality.

INTC reported strong performance in the fourth quarter of fiscal 2023. It posted earnings per share of $0.63, surpassing analysts’ estimate of $0.22. Additionally, the company’s revenue totaled $15.41 billion, compared to the consensus estimate of $15.17 billion for the quarter ending in December.

However, concerns linger regarding INTC’s outlook for the ongoing quarter. The company expects a fiscal 2024 first-quarter net loss of $0.25 per share on $12.20-13.20 billion in sales.

Moreover, INTC CEO Pat Gelsinger has asserted that the core businesses, including PC and server chips, are expected to perform at the lower end of the company’s seasonal range in the current quarter. Overall sales are anticipated to decline due to weaknesses in subsidiaries and revenue decreases from other divested businesses.

On top of it, INTC has been aggressively cutting costs by implementing workforce reductions and divesting smaller business segments. In the past year, the company announced plans to spin off its programmable chip unit following the transformation of its self-driving car subsidiary, Mobileye Global Inc. (MBLY), into an independent entity in 2022.

CFO David Zinsner disclosed that the company successfully reduced costs by $3 billion last year, and it divested or sold off five different business lines. While such initiatives may enhance long-term efficiency, short-term impacts on financial performance and stock valuation are uncertain.

Institutional adjustments to INTC holdings further underscore mixed market sentiment. While some institutions are increasing their positions, others are decreasing or exiting entirely, conveying a mixed sentiment among investors and volatility ahead.

Out of 2,846 institutional holders, 1,274 increased their positions. Moreover, 406 holders initiated new positions, acquiring 32,935,008 new shares. However, 1,306 institutional holders have decreased their positions, with 104 holders ultimately selling out their positions, disposing of 17,276,625 shares.

Despite its leading revenue status and potential strategic product releases, Intel’s outlook for the first quarter of 2024 falls short of analysts' expectations. Given these factors, it could be wise to wait for a better entry point in this stock.

Decoding Pharma Stocks: Analyzing the Buy Potential of MDGL, MRK, and LLY

Posted on by The INO.com Team

Despite the pharmaceutical industry’s reputation for resilience amid economic turbulence, investments in pharmaceutical companies have dipped below historical levels over the past two years.

However, rising U.S. Food and Drug Administration (FDA) approvals, the increasing number of chronic diseases, and robust demand for the latest innovative weight-loss drugs have heightened the industry’s allure among investors. In 2023, the FDA approved almost 50% more novel drugs compared to 2022, restoring approval rates to historical levels.  

Meanwhile, approvals for innovative therapies featuring an active ingredient or molecule not previously sanctioned increased to 55 in 2023, a rise from 37 in 2022 and 51 in 2021. Analysts and investors believe these improvements could potentially trigger increased investments in firms operating in the industry.

Furthermore, the huge demand for the industry’s latest groundbreaking weight loss drug could prove to be highly profitable for the industry in the forthcoming years. Goldman Sachs analysts project that the number of U.S. adults utilizing obesity medications will reach a staggering 15 million by the year 2030.

Given such robust demand, drug-manufacturing companies are racing to enter the lucrative market of widely sought-after weight loss drugs that could accrue a value of tens of billions within a decade.

Buoyed the bright industry prospects, during the fourth quarter of 2023, family offices representing billionaire Waltons and George Soros made their mark in the biotechnology sector, enticed by the growing appeal of drug developers among affluent investors.

Soros Fund Management capitalized on this trend by acquiring a new stake worth $19.20 million in Eli Lilly and Company (LLY) and also made a significant investment of $24.50 million in Merck & Co., Inc. (MRK). Meanwhile, the Walton Investment Team secured a $8.20 million position in Madrigal Pharmaceuticals, Inc. (MDGL).

Therefore, let’s analyze why LLY, MRK, and MDGL could be potential buys.

Eli Lilly and Company (LLY)

Boasting a market cap of over $700 billion, pharma giant LLY has captured the spotlight, drawing attention from both retail and institutional investors alike. This fervor stems from the resounding success of its revolutionary weight-loss drugs, Mounjaro and Zepbound.  

Within a year of initiating treatment for obesity, 42.3% of individuals receiving tirzepatide, the key component in Mounjaro and Zepbound, experienced a weight loss of at least 15%. Responding to the high demand for these weight-loss medications, LLY launched its direct-to-consumer (DTC) platform named "LillyDirect" last month.

Through this website, individuals can directly order from the pharmaceutical company, including its weight-loss medication Zepbound, and access connections with telehealth companies for conditions like obesity.

Moreover, the company’s fourth-quarter performance revealed solid growth in both topline and bottom-line figures. Its total revenue reached $9.35 billion, reflecting a 28.1% year-over-year surge.

Notably, revenue from Mounjaro, LLY’s top-selling product, witnessed a staggering 689.9% year-over-year rise, underscoring the solid demand for the drug. Meanwhile, Zepbound, which was launched in November 2023, registered a revenue of $175.80 million.

In light of the overwhelming demand for its weight-loss pipeline, LLY's market capitalization surged, surpassing that of Tesla, Inc. (TSLA), thereby solidifying its position among the top 10 most valuable companies in the S&P 500 Index.

The stock’s relentless success has sparked speculation among analysts about the possibility of it becoming the first biopharmaceutical company to reach a market value of $1 trillion.

Such considerable advances, along with the LLY’s addition to Soro Fund’s equity portfolio, signify a robust endorsement of confidence in the company.

Merck & Co., Inc. (MRK)

With a strong market cap of over $323 billion and a roughly 24% surge in its shares over the past three months, a global healthcare company, MRK offers a diverse range of human health pharmaceutical products spanning oncology, hospital acute care, immunology, neuroscience, virology, cardiovascular, and diabetes.

In its most recent earnings, the company's top-selling cancer drug Keytruda generated a remarkable revenue of $6.61 billion, up 21% year-over-year, while its HPV vaccine Gardasil brought in an impressive $1.87 billion in revenue, reflecting a 27% year-over-year rise.

MRK’s Chairman and Chief Executive Officer, Robert M. Davis, expressed immense satisfaction with the company's performance throughout last year. He highlighted MRK's significant reach, with its medicines impacting over 500 million people. Additionally, the company invested approximately $30 billion in research and development last year to drive forward the discovery and development of impactful innovations in collaboration with others.

With oncology as its primary focus, MRK recently announced its decision to acquire Harpoon Therapeutics, Inc. for an approximate total equity value of $680 million. This strategic move is anticipated to complement MRK’s existing portfolio and drive forward innovative scientific breakthroughs to serve individuals better worldwide battling cancer.

On top of it, the company is actively exploring avenues to diversify its product portfolio and could possibly venture into the burgeoning market of weight-loss drugs.

Its experimental GLP-1 drugs, initially developed to treat non-alcoholic fatty liver disease, have shown unforeseen indications of weight loss. Alongside targeting weight loss, the pharmaceutical company is also pursuing therapies that provide benefits for diabetes and other disorders.

Soros Fund's investment in MRK could bolster the pharma company’s growth strategies and R&D initiative. The investment signals its confidence in MRK’s performance and prospects. Furthermore, MRK's exceptional track record of dividend payouts may infuse more investor confidence in its stock performance.

Madrigal Pharmaceuticals, Inc. (MDGL)

MDGL is a pre-revenue clinical-stage pharmaceutical company developing novel drugs to address major unmet needs in cardiovascular, metabolic, and liver diseases. Over the past six months, the stock has jumped over 27%.

The company’s lead compound, resmetirom, is being advanced for non-alcoholic steatohepatitis (NASH), a liver disease that commonly affects people with metabolic diseases such as obesity and diabetes, and non-alcoholic fatty liver disease (NAFLD).

 

MDGL’s positive findings from the Phase 3 MAESTRO-NASH trial last year November demonstrate the potential effectiveness of resmetirom in treating NASH with liver fibrosis, addressing a critical unmet medical need. It is also close to being commercialized. These promising results could not only validate the company's research and development efforts but also have the potential to bolster investor confidence.

MDGL’s latest quarterly report revealed losses of $98.74 million and $5.44 per share, while its research and development expenses rose 3.9% year-over-year. Nevertheless, analysts foresee the company experiencing a final loss in fiscal year 2024 before rebounding with positive profits of $57 million in fiscal year 2025.

Also, as of September 30, 2023, its cash and cash equivalents stood at $62.06 million. However, total operational costs outpaced this liquidity by reaching $263.32 million, of which a significant $201.71 million was research and development expenses.

The company's financial capabilities may hinder certain research initiatives along with corresponding clinical expenses and curtail investment in commercial readiness. This could necessitate fundraising efforts to propel R&D or even propel commercialization strategies for its pharmaceutical product lines.

So, Walton Investment's stake in MDGL serves as a strong endorsement of the pharma giant's potential and growing portfolio. This move undoubtedly bolsters the standing of MDGL’s stocks in the market.

Bottom Line

Overall, the pharmaceutical industry remains dynamic, with companies deftly maneuvering evolving market trends and seizing opportunities for growth and innovations. Thus, investors could consider keeping an eye on the shares of LLY, MRK, and MDGL for potential gains.

Occidental Petroleum (OXY): Buying for Dividends or Growth?

Posted on by The INO.com Team

Occidental Petroleum Corporation (OXY) is positioned in stark contrast to some of its rivals. Although the company operates as one of the largest oil and gas producers in the United States, it is also significantly diversified in its operational structure, providing a revenue base across market segments.

Last year, OXY generated $5.48 billion in free cash flow before working capital, and this year, the energy giant is expecting growth. That, coupled with a long history of dividend payments, compels further insight into the stock. Let’s look into it…

Diversification: Does it work for OXY?

Apart from the core consumer base in its oil and gas segment, OXY’s chemicals segment, “OxyChem,” sells basic elements, operating in stable markets with constant demand. In 2023, the company’s adjusted income from the chemical segment came in at $1.53 billion.

While this figure indicated a 39% reduction from the prior year, this exceeded company guidance and nearly matched its second-highest pre-tax income record. This is notable considering the fact that a total complex outage for maintenance was carried out at OxyChem’s Ingleside, Texas, plant in the fourth quarter.

In 2024, the company expects a midpoint income of $1.10 billion for the segment, which is close to its fourth-best year ever, despite challenging market conditions such as PVC price decline and pressure on export prices from China.

Looking beyond seasonal market pressures, the company might reap benefits from significant investment in its OxyChem Battleground facility and other plant enhancement projects, resulting in $300 million to $400 million per year potential increments to its EBITDA upon completion.

A prowess in a niche market such as chemicals could mean significant expansionary success for this energy sector powerhouse, especially since chemicals play a major role in global net-zero ambition, enjoying demand from their usage in approximately 96% of manufactured goods.

OXY is also developing multiple nascent technologies to find fuel solutions aiming toward net zero. One such development is the large-scale carbon capture, utilization and storage (CCUS), which provides a strong likelihood for near-term emission reduction, aligning with the company’s sustainability aims.

Moreover, notable strides in its Low Carbon Venture (LCV) business were reported last year. Primary among them is the acquisition of Direct Air Capture (DAC) technology innovator Carbon Engineering Ltd. for approximately $1.10 billion and the formation of a joint venture with BlackRock, Inc. (BLK) to develop STRATOS, the world’s largest DAC facility, expected to capture up to 500,000 tonnes of CO2 per year.

Besides sustainability, the company’s diversified operations should prevent OXY’s profitability from being highly subjected to oil price volatility. For instance, last year, OXY reported a total adjusted oil and gas income of $6.26 billion, down about 50% year-over-year, while the company’s worldwide sales were 1,222 thousand barrels of oil equivalent per day (MBOE/D), up 5.4% from 2022. A decline in crude prices and higher lease operating expenses caused the comparative downturn in income.

Should Income Investors Be Interested in OXY?

As a longstanding energy giant, OXY has a history of returning capital to its shareholders through dividends, starting from the 1980s. On February 8, 2024, the company’s Board of Directors declared a regular quarterly dividend of $0.22, payable to shareholders on April 15, compared to the previously declared dividend of $0.18. The annual dividend rate going forward is $0.88, yielding 1.45% at the current price level.

However, the company is not shy about slashing its dividend payouts when it faces a cash crunch. Evidently, when oil prices took a hit during the global pandemic, OXY decreased its quarterly dividend from $0.79 to $0.01 per share. Hence, over the past three years, its dividend payouts have decreased at a 4.2% CAGR.

Contrarily, last year, OXY paid $600 million of common dividends as its robust cash flow supported payouts. Additionally, the company is eyeing a massive $12 billion acquisition of CrownRock L.P., expecting to enhance its Permian portfolio by adding 170 Mboed of high-margin, lower-decline unconventional production in 2024 and increasing its free cash flow per diluted share, with a $1 billion increase in the first year.

The acquisition is anticipated to strengthen OXY’s balance sheet and free cash to support a growing dividend. On the other hand, the deal has come under the scrutiny of the Federal Trade Commission (FTC). However, OXY’s Chief Executive Vicki Hollub hopes that the acquisition will close in the second half of 2024.

Bottom Line

Occidental Petroleum is endeavoring to expand through multiple acquisitions, as well as focus on its sustainability initiatives through diversification of its operations. On the other hand, the company remains embedded in the oil and gas sector, owing the majority of its revenues to conventional energy sources. The broader oil market is prone to its ebbs and flows as geopolitical factors shape the course of the commodity market.

The Middle-Eastern conflict has raised concerns about a supply shortage despite the International Energy Agency (IEA) assessing that in the absence of actual supply losses, the oil market is well-supplied this year. IEA expects oil demand to grow by 1.2 million barrels per day (bpd) in 2024, compared to 2.3 million bpd in 2023, due to a sharp drop in gasoline usage.

On the other hand, the OPEC group shows a lot more optimism, expecting demand to rise by 2.5 million bpd this year. It might be a factor that OPEC can influence global oil supply and, by extension, oil prices.

On top of it, Warren Buffett is increasingly betting on OXY this year. Buffett’s investment firm, Berkshire Hathaway, has shown its support for the energy company since its mega-acquisition of Anadarko Petroleum in 2019. After a recent buy of 4.30 million shares, as of February 5, Berkshire owns 248.02 million shares of OXY.

According to Reuters, OXY is exploring a sale of Western Midstream Partners, which has a market value of about $20 billion. This divestment is expected to help the company reduce its debt accumulated through multiple acquisitions. This strategy might help OXY to bolster its balance sheet.

While near-term weaknesses could affect Occidental’s performance, its long-term goals remain set toward further diversification and growth through expansion of operations. In addition, the company is committed to returning value to shareholders through its growing dividend, debt reduction, and a robust capital allocation program to free up cash flow. Hence, the stock might be a portfolio addition now based on both its growth initiatives and dividend payouts.

Is the Bitcoin Bull Run Over?

Posted on by The INO.com Team

Bitcoin (BTC) prices recently surged above the $52,000 mark, pushing its market capitalization back over $1 trillion for the first time since December 2021. The rally in the prices of the flagship cryptocurrency is due to anticipation building around the impending 'Bitcoin Halving' in April this year and the sustained inflow of USD into spot Bitcoin exchange-traded funds (ETFs).

Primary Drivers Behind Bitcoin’s Price Increase

Spot bitcoin ETFs are driving BTC’s recent surge. In January 2024, the U.S. Securities and Exchange Commission (SEC) approved the listing and trading of 11 spot bitcoin exchange-traded product (ETP) shares after years of repeated rejections.

Bitcoin ETFs recorded another strong week, with net inflows exceeding $2.2 billion from February 12 to 16. As per Bloomberg analyst Eric Balchunas, the combined volume was higher than inflows received by any other among the 2,400 ETFs available in the U.S.

According to data from BitMEX Research, BlackRock’s iShares Bitcoin Trust (IBIT) received the most capital, accumulating positive flows of $1.6 billion over the last week. “$IBIT alone has taken in $5.2b YTD, which is 50% of BlackRock’s total net ETF flows, out of 417 ETFs,” stated Eric Balchunas.

Among the spot Bitcoin ETFs holding billions of dollars in assets, Fidelity Advantage Bitcoin ETF (FBTC) witnessed considerable inflows, amassing $648.5 million from February 12 to 16. The Ark 21Shares Bitcoin ETF (ARKB) gathered around $405 million in the same period, while the Bitwise Bitcoin ETP Trust (BITB) garnered $232.1 million in capital inflows.

However, outflows from the Grayscale Bitcoin Trust (GBTC) are hampering the combined performance of the other newly approved spot Bitcoin ETFs. Between February 12 and 16, the fund saw withdrawals of around $624 million. Since its conversion from an over-the-counter product to a spot ETF on January 10, Grayscale’s fund has witnessed more than $7 billion in capital outflows.

The other new ETFs are majorly driving Bitcoin’s recent price gains. The cryptocurrency is up approximately 91% in the past four months, ending on February 15.

Also, growing anticipation around a cryptic-sounding event known as “the halving,” which is to take place on April 19, 2024, is one of the primary drivers behind Bitcoin’s surge. The “halving” is a feature in Bitcoin’s protocol that automatically reduces the rate of Bitcoin production. Generally, it pushes the price of bitcoin higher.

The price rise of the world’s largest cryptocurrency was also buoyed by expectations of interest rate cuts later this year as inflation eases.

Google Trends Show a Decline in Bitcoin Interest

Recently, Bitcoin’s price jumped above the $52,000 mark; however, fascination with cryptocurrency seems to be diminishing. Google Trends data suggests a subdued level of interest, with the search term “bitcoin” scoring just 36 out of 100 in global metrics over the last 90 days.

That is a sharp contrast to the excitement seen about three years ago when Bitcoin first exceeded the $50,000 level, with Google Trends showing a score of 71 out of 100 for the search term “bitcoin” during that period.

Even with the introduction of spot bitcoin ETFs on January 11 this year, the search term “bitcoin” on Google Trends peaked at a score of 100. But since then, there has not been a significant surge in interest, with the search term “bitcoin” being steady at a score of 36 out of 100.

Despite high valuation, the declining fascination with bitcoin suggests a potential consolidation and maturation of the crypto market, where investors are more cautious in their approach or a shift in the public’s focus. While institutional investors have entered the scene, retail investors appear less engaged.

To regain the attention of the retail crowd, Bitcoin might need to surge to even greater heights.

Future Of Bitcoin Price Trajectory

The recent surge of Bitcoin to levels not witnessed in more than two years has sparked debate among analysts on the sustainability of the upward momentum. While some analysts expect this rise to be followed by a correction, others believe the bull run will continue.

According to Swissblock analysts, Bitcoin may signal a correction in the short term. Analysts wrote that the momentum of Bitcoin, which has paused at the key resistance mark of $52,000 following a recent rapid ascent of nearly 33% over the past few weeks, could indicate “a pullback” as they consider the increase potentially unsustainable.

Despite a short-term dip, Swissblock analysts added that any forthcoming pullback could be a buying opportunity if BTC holds its support near the $47,500 level. The report advises investors to consider any correction as a potential entry point for long-term positions.

Despite warnings of a potential correction, some analysts continue to be positive about Bitcoin’s future trajectory. 10x Research analysts expect a price target of $57,500 for the next surge, indicating that the uptrend in BTC could continue beyond the current resistance level.

10x Research analyst Markus Thielen has an optimistic outlook on Bitcoin, arguing that its solid liquidity and rising demand for Bitcoin futures could push its price to $57,500. He cited historical patterns before previous block reward halvings as supporting evidence for further upside potential.

In addition, institutional cryptocurrency exchange FalconX observed “extraordinary” trading volumes supporting the uptrend in early 2024, like those seen during the March 2024 regional banking crisis.

FalconX analysts also noted that historically low volumes after price increases have sometimes indicated false breakouts in crypto markets, but liquidity conditions around the January rally have generally remained strong.

Bottom Line

In January this year, the Securities and Exchange Commission finally approved 11 spot bitcoin exchange-traded funds to start listing and trading on U.S. exchanges. The growing success of U.S. spot bitcoin ETFs turned investor sentiment more optimistic, allowing Bitcoin to exceed the $52,000 level, marking the first time it has hit this price since late 2021.

Also, the value of all the bitcoin in circulation, or market cap, grew above $1 trillion after the price surge.

According to Nigel Green, Founder and CEO of deVere Group, the introduction of the spot Bitcoin ETFs provides a new avenue for institutional investors to cautiously enter the cryptocurrency market, representing a significant step toward broader adoption and acceptance.

“This approval by the financial regulator of the world’s largest economy is a landmark moment for bitcoin and the wider crypto market and boosts prices in the long-term, even if there’s a sell-off in the near-term,” said Green. “The approval of bitcoin ETFs represents a resounding institutional validation of the cryptocurrency, marking a departure from its initial reputation as a speculative and volatile asset.”

Further, Bitcoin prices are strengthened by the upcoming “halving,” the supply-restricting event written in Bitcoin’s code that occurs every four years and is set for April 2024.

The recent introduction of spot bitcoin ETFs signifies a major development in the integration of bitcoin into mainstream investment options, possibly attracting a wider array of investors beyond conventional crypto enthusiasts.

But the relatively muted response to bitcoin’s increased value, as indicated by Google Trends data, suggests that the crypto market might be transitioning into a more mature and consolidating phase, wherein investors exercise more caution and discernment.

The drastic shift in sentiment could point toward an evolving landscape for cryptocurrencies, where factors beyond price appreciation play a more substantial role in market dynamics and investor behavior.

Amid declining public interest, investors grappling with the decision to wait or sell bitcoin should consider their risk tolerance, investment horizon, and market outlook. Staying informed, implementing risk management techniques, and diversifying one’s portfolio can help navigate the dynamic cryptocurrency market.

Investors should stay abreast of cryptocurrency news, regulatory developments, and market sentiment, which can provide insights into future trends and potential catalysts for price movements. Also, it is advisable to keep an eye on institutional interest and adoption, which can help gauge the long-term potential of Bitcoin.