Bitcoin, the leading cryptocurrency by value, reached a two-year high, surpassing the $66,000 mark. This surge was driven by a significant influx of funds, bringing it near its all-time high.
Over the last 24 hours, data from CoinGecko reveals a significant 3.6% surge in the global cryptocurrency market capitalization, reaching around $2.54 trillion.
Bitcoin has witnessed an impressive 50% surge in value this year, with a notable portion of this growth happening in recent weeks. This uptrend aligns with increased investments in US-listed Bitcoin funds.
Since the introduction of US Bitcoin ETFs, significant net inflows totaling $7.35 billion have been injected by major players like BlackRock Inc. and Fidelity Investments.
Despite substantial outflows of nearly $9 billion from Grayscale Bitcoin Trust post ETF listings, traders remain undeterred. On Friday, there were net outflows of approximately $140 million, with GBTC witnessing around $490 million being withdrawn from the fund.
“With nine ETFs and a far greater access than any of the previous bull runs, Bitcoin is scaling heights which were previously unprecedented. The number of Bitcoin produced is 900 daily, and just last Wednesday ETFs consumed about 10000 of them, indicating a huge demand.
Thus there is better liquidity in the market. However, ever since the ETF anticipation started building, the market was confident in its ability to fuel BTC prices,” said Rajagopal Menon, VP, WazirX.
Menon further added,
“The Bitcoin halving is a month away and it will reduce the supply of new Bitcoins to 656,250. Investors are trying to make the best of the situation and the market optimism is at its peak. Once BTC crossed its all time high last week, it indicated a massive rally. However, we should be wary of sideways movements and corrections which is a normal part of the cycle.”
