Bitcoin (BTC) surged past the $50,000 mark on February 12, reaching its highest level since December 2021.
Bitcoin (BTC) surged past the $50,000 mark on February 12, reaching its highest level since December 2021. This rally was fueled by a combination of rising investor enthusiasm surrounding inflows from spot Bitcoin exchange-traded funds (ETFs) and the anticipated Bitcoin halving event in April.
The price leap saw Bitcoin reach a session high of $50,188, marking a remarkable 4% gain in a single day. This two-month high arrives just ahead of the halving, where the number of new BTC rewards generated every block gets cut in half, potentially impacting supply and demand dynamics.
The surge in investor optimism is further fueled by the growing popularity of spot Bitcoin ETFs. These investment vehicles offer exposure to the leading cryptocurrency without the complexities of directly holding it. Over the past week, spot Bitcoin ETFs attracted a staggering $1.1 billion in inflows, pushing their total assets under management to $59 billion.
While the Grayscale Bitcoin Trust, a traditional investment vehicle for institutional investors, continues to experience outflows, the rise of spot ETFs signifies a potential shift in investment preferences. Looking ahead, many investors anticipate further price appreciation in the lead-up to the halving event, driven by the potential for supply constraints.
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