As market dynamics whirl with the ups and downs of regional banks, the digital behemoth Bitcoin capitalized on bullish momentum and surged past $45,000, painting the trading canvas with a 3.7% price increase.
The Ride to $45,000: Bitcoin prices eclipsed the $45,000 mark following the approval of spot exchange-traded funds (ETFs) on Jan. 10. The fervor of investors led to an 11.5% surge in open interest over the past 24 hours, reaching $20.2 billion, as per findings from CoinGlass data.
Several factors fueled the surge:
- Bitcoin wallets holding more than 1,000 Bitcoin reached a pinnacle not witnessed in over 14 months.
- A noteworthy inflow of funds into spot ETFs: total inflows as of Feb. 8 amounted to $8.05 billion, with $1.83 in net inflows excluding GBTC outflows.
Why This Matters: The price surge stood strong against the backdrop of a trading loss of more than 10% for New York Community Bancorp. Whether this surge signifies investors’ preference for Bitcoin as a hedge against uncertainty is a question that looms.
Following the ETF approvals, Bitcoin is delving deeper into the mainstream culture, with digital billboards adorning Times Square with crypto-related content.
Cryptocurrency analysts and observers exude confidence about Bitcoin’s prospects. One trader envisions $45,000 as a pivotal threshold for “an explosive move” to $50,000.
Anticipation mounts for the upcoming Bitcoin halving in April 2024. Investor Fred Krueger pointed out on X that Bitcoin could scale an all-time high before the end of March. Krueger also noted that ETFs are on the cusp of surpassing MicroStrategy in Bitcoin holdings, a feat achievable in less than 30 days post their inception. ETFs are likened to “having Bitcoin for dessert” by Krueger, as they edge out every other asset class globally.
What Lies Ahead: Bloomberg Senior ETF analyst Eric Balchunas forecasts that the next wave of ETF Bulls will comprise investors from Canada, Europe, and China.
Crypto Slate lead analyst James Van Straten predicts that any decline in Bitcoin will be short-lived and it will resume its upward trajectory.
Ethereum treads 1.6% higher on the coattails of a bullish market sentiment, with rumors swirling around the potential approval of the spot Ether ETF decision in May.
Read Next: Bitcoin Halving Could Make 9 Of 11 Largest Public Miners Unprofitable: Analyst
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