Bitcoin

Read

Grayscale Bitcoin Trust

On Monday, flagship digital asset Bitcoin price broke above the iconic $50,000 mark, for the first time in over two years. Recall that Bitcoin has had a decent start to the year influenced by the January 11 <a href="https://time.com/6554290/bitcoin-etf-sec/" target="_blank" rel="noopener">approved</a> Bitcoin spot exchange-traded fund (ETF). However, the momentum slowed down towards the end of January. 
But now, Bitcoin price has topped $50,000 for the first time in more than 24 months, its highest price since December 2021. This rally was supported by last week’s strong ETF inflows and signs of institutional accumulation.&nbsp; 
At press time, BTC was changing hands at $50,200 000, up nearly 5% over the past 24 hours. Ether, the second largest crypto, is trading at $2,679, enjoying 8% gains in the last one day. Other major cryptocurrencies enjoying the market rally include solana, Avax, Matic and others, per coinmarketcap <a href="https://coinmarketcap.com/" target="_blank" rel="noopener">data</a>. 
<figure class="wp-block-image size-full">
 <img loading="lazy" decoding="async" width="1000" height="667" src="https://technext24.com/wp-content/uploads/2022/12/bitcoin-price-rises.jpeg" alt="Bitcoin price crosses $50,000 for the first time in over 2 years, here is what to expect next" class="wp-image-173446">
 <figcaption class="wp-element-caption">
 Bitcoin.
 </figcaption>
</figure> 
<h4 id="what-is-behind-this-bitcoin-price-pump" class="wp-block-heading">What is behind this Bitcoin price pump?</h4> 
Like mentioned earlier, Bitcoin’s price action was supported by last week’s strong inflows into spot Bitcoin ETFs. According to a <a href="https://blog.coinshares.com/volume-169-digital-asset-fund-flows-weekly-report-d8911da6dbe0" target="_blank" rel="noopener">report</a> by asset management firm CoinShares on Monday, spot Bitcoin ETF attracted over $1.1 billion net fresh funds amid slowing outflows from incumbent funds such as Grayscale Bitcoin Trust (GBTC) and ProShares’ futures-based ETF (BITO). 
Read also: 
<a href="https://technext24.com/2024/02/01/crypto-hack-global-crypto-community-210/">Global crypto community lost at least $210 million to hacks in January 2024</a> 
The CoinShares report revealed that spot Bitcoin ETFs had attracted a total of $1.1 billion worth of inflows in the past week, the biggest seven-day period of inflows since the ETFs first went live on Jan. 11. The report, however, added that potential selling pressure from Genesis, a crypto lender under bankruptcy protection, liquidating its $1.6 billion worth of GBTC holdings could weigh on ETF net inflows and prices in the next months. 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full">
 <img loading="lazy" decoding="async" width="900" height="520" src="https://technext24.com/wp-content/uploads/2020/08/Bitcoin-Cash.jpg" alt="Bitcoin price" class="wp-image-88936" srcset="https://technext24.com/wp-content/uploads/2020/08/Bitcoin-Cash.jpg 900w, https://technext24.com/wp-content/uploads/2020/08/Bitcoin-Cash-300x173.jpg 300w, https://technext24.com/wp-content/uploads/2020/08/Bitcoin-Cash-768x444.jpg 768w, https://technext24.com/wp-content/uploads/2020/08/Bitcoin-Cash-640x370.jpg 640w, https://technext24.com/wp-content/uploads/2020/08/Bitcoin-Cash-380x220.jpg 380w, https://technext24.com/wp-content/uploads/2020/08/Bitcoin-Cash-550x318.jpg 550w, https://technext24.com/wp-content/uploads/2020/08/Bitcoin-Cash-800x462.jpg 800w, https://technext24.com/wp-content/uploads/2020/08/Bitcoin-Cash-760x439.jpg 760w, https://technext24.com/wp-content/uploads/2020/08/Bitcoin-Cash-600x347.jpg 600w" sizes="(max-width: 900px) 100vw, 900px">
 </figure>
</div> 
Noelle Acheson, a macro analyst, told CoinTelegraph that Bitcoin price is currently benefiting from increased accumulation mainly driven by expectations of capital injection in China to stem its stock market rout and “inevitable” currency depreciation even in developed countries in the future. 
<blockquote class="wp-block-quote"> 
 “Given the lack of any clear catalyst to explain the BTC move over the past few days, what we are probably seeing is a pick-up in accumulation for the aforementioned reasons as well as the continued spread of Bitcoin awareness as the ETF marketing machines do their thing.” <cite>Noelle Acheson</cite>
</blockquote> 
<h4 id="what-is-expected-next" class="wp-block-heading">What is expected next?</h4> 
Bitcoin’s surge beyond $50,000 comes at a time of heightened institutional demand, a possible pivot in interest rates and incoming scarcity from the <a href="https://www.investopedia.com/bitcoin-halving-4843769" target="_blank" rel="noopener">Bitcoin Halving</a>, which is different from what was at play two years ago.&nbsp; 
Read here: 
<a href="https://technext24.com/2020/05/12/bitcoin-halving-whats-it-about-and-how-does-it-affect-the-cryptocurrency/">Bitcoin Halving: What’s it About and How Does it Affect the Cryptocurrency?</a> 
The last time Bitcoin hit the $50,000 mark in December 2021, what followed was an enduring bear market in which there were interest rate hikes in the US, collapse of a handful of top crypto companies and a shortage of retail investors. All those factors led to the crash of Bitcoin to around $15,000. 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full">
 <img loading="lazy" decoding="async" width="800" height="480" src="https://technext24.com/wp-content/uploads/2020/05/bitcoin-halving-2.jpg" alt="Crypto market cap declines by 4% just 24hrs of news of Ukraine invasion" class="wp-image-76853" srcset="https://technext24.com/wp-content/uploads/2020/05/bitcoin-halving-2.jpg 800w, https://technext24.com/wp-content/uploads/2020/05/bitcoin-halving-2-300x180.jpg 300w, https://technext24.com/wp-content/uploads/2020/05/bitcoin-halving-2-768x461.jpg 768w, https://technext24.com/wp-content/uploads/2020/05/bitcoin-halving-2-640x384.jpg 640w, https://technext24.com/wp-content/uploads/2020/05/bitcoin-halving-2-380x228.jpg 380w, https://technext24.com/wp-content/uploads/2020/05/bitcoin-halving-2-550x330.jpg 550w, https://technext24.com/wp-content/uploads/2020/05/bitcoin-halving-2-760x456.jpg 760w, https://technext24.com/wp-content/uploads/2020/05/bitcoin-halving-2-600x360.jpg 600w" sizes="(max-width: 800px) 100vw, 800px">
 <figcaption class="wp-element-caption">
 Bitcoin halving
 </figcaption>
 </figure>
</div> 
However, macro conditions are increasingly favorable for risk assets like Bitcoin this time. Apart from further inflows into Bitcoin ETFs, the fourth Bitcoin Halving, which will enhance its scarcity will be coming up in April. 
Also, there is&nbsp; positive sentiment brewing over the performance of Bitcoin ETFs, providing the market with added confidence that institutions are buying Bitcoin at a growing rate. There is high probability that Bitcoin will go in one big rally to $52,000 target subsequently as momentum continues to build upon the bullish side.

Bitcoin price crosses $50,000 for the first time in over 2 years, here is what to expect next

Technext.ng

Other articles published on Feb 13, 2024

Why Bitcoin’s current trajectory is a worrying sign for bears

Why Your Favorite DeFi Platform Could Be Compromised

Kraken Mulls Crypto ETF Custody Amid Spot Ethereum ETF Anticipation

Bitcoin Grapples with Inflation and Interest Rate Speculations as Prices Fluctuate

Analisis Bitcoin ETF, Cardano (ADA) dan BlockDAG

ChatGPT’s Top Picks: 10 Affordable Altcoins Under $0.10 to Gift This Valentine’s

Join our free newsletter for daily crypto updates!