The price of Bitcoin has surged to a significant price of $50,000, as ETFs recorded another massive inflow of $493.3 million on Monday, the third largest inflow to date.
The crypto asset is reported to have gained nearly a fifth of its value, with a market valuation nearing $1 trillion. The surge in its value reflects investor’s confidence in the crypto asset growth potential.
Bitcoin’s recent surge is primarily attributed to the US Securities and Exchange Commission’s decision to reverse a longstanding policy, approving several spot Bitcoin exchange-traded funds (ETFs). These ETFs have provided investors with a regulated avenue to gain exposure to Bitcoin’s price movements.
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According to data, investment in ETFs has seen a significant inflow of funds, as black rock (IBIT) recorded an inflow of $374.7 million, with a total inflow reaching over $4.126 billion. BlackRock Bitcoin ETF now has an asset holding worth $4.76 billion.
Fidelity (FBTC) and Ark 21Shares (ARKB) Bitcoin ETF inflows were $151.9 million and $40 million respectively. Bitwise (BITB), VanEck (HODL), and others also saw significant inflows.
However, Invesco Galaxy Bitcoin ETF (BTCO) witnessed another outflow of $20.8 million. Moreover, GBTC saw a $95 million outflow, an increase from Friday’s 51.8 million outflow, but it is aligned with last week’s range.
Thus, the net inflow for spot Bitcoin ETFs, excluding GBTC, was $589 million. The total inflows for BlackRock and Fidelity Wise Origin Bitcoin ETFs are $4.12 billion and $3.15 billion, respectively. The ETFs are reportedly buying 10k Bitcoin per day on top of the standard equilibrium and this is reflected in the price appreciation.
Following the initial influx of capital into newly approved Bitcoin ETFs and the subsequent outflows from Grayscale Investments’ converted product, asset managers are now focusing on Bitcoin ETFs’, as Data from CoinShares reveals that these newly approved ETFs have accumulated approximately $3 billion in net flows despite significant outflows from Grayscale’s product.
With Bitcoin price currently rallying around the $50,000 range, crypto experts and analysts predict a bull run to the upside. Antoni Trenchev, co-founder of Nexo, disclosed that the $50,000 threshold represents a crucial psychological milestone for Bitcoin, reflecting a revived market optimism and a departure from the initial skepticism surrounding the new ETF products.
The crypto market’s buoyancy has also been mirrored in the performance of crypto equities, with notable gains observed in companies like Coinbase and Microstrategy, alongside a surge in mining stocks such as CleanSpark and Marathon Digital. This collective uptrend underscores the broader market’s receptiveness to Bitcoin’s resurgence and the potential for new record highs, provided it sustains its momentum above critical resistance levels.
Over the past week alone, Bitcoin Price surged by 17%, indicating a robust bullish trend. Despite this climb, it remains about 28% below its all-time high of nearly $69,000 reached in November 2021, according to CoinMarketCap.
As Bitcoin continues its upward trajectory, analysts and experts are speculating on what lies ahead for the cryptocurrency. Several of them have set their sights on a range of $60,000 to $65,000 for Bitcoin’s next milestone.
Looking further ahead, there are predictions that Bitcoin could reach up to $160,000 by the end of 2024 and an impressive $350,000 by the second half of 2025. Also, there is anticipation of Bitcoin’s market capitalization to surpass $1 trillion this week, with the crypto’s market cap hovering around $977 billion on Monday.