Latest news about Bitcoin and all cryptocurrencies. Your daily crypto news habit.
By Nigel Green
Bitcoin has once again captured the attention of investors as it surged above $46,000 on Friday, reaching its highest level in a month.
The cryptocurrency’s recent upward momentum is not merely a fleeting spike but appears to be rooted in several key factors that suggest a potential climb to the coveted $50,000 mark in the coming weeks.
The driving force behind Bitcoin’s recent rally can be attributed to the steady inflows into various spot-based US funds, coupled with heightened anticipation surrounding the upcoming halving event scheduled for April.
As of the latest trading data, Bitcoin is holding firm at around $46,246, reflecting a notable 7.3% increase over the past week.
One of the primary catalysts contributing to this surge is the remarkable performance of new spot Bitcoin Exchange-Traded Funds (ETFs).
These funds have experienced a staggering streak of 10 consecutive days of net inflows, amassing an impressive $8 billion as of this week.
This substantial influx of capital indicates robust investor demand for exposure to Bitcoin, and the positive momentum generated by these new ETFs is propelling the cryptocurrency to higher levels.
The significance of this trend is further highlighted by the exceptional performance of two major players in the investment arena.
In January, both BlackRock and Fidelity's ETFs secured positions among the top 10 with the highest inflows. This institutional interest not only bolsters the credibility of Bitcoin as a legitimate asset class but also signals a broader acceptance and integration of cryptocurrency into traditional investment portfolios.
Now, having broken out of a trading range that had previously constrained its movements, Bitcoin appears poised for a sustained uptrend that could see it breach the $50,000 threshold in the coming weeks.
The technical breakout from the previous range is a bullish signal that has captured the attention of traders and analysts alike, fuelling optimism about Bitcoin's short-to-medium-term prospects.
The halving event scheduled for April adds an additional layer of anticipation to Bitcoin's trajectory.
This event, which occurs approximately every four years, involves a reduction in the rate at which new Bitcoins are created, effectively decreasing the available supply. Historically, Bitcoin halving events have been associated with price surges as the reduced supply meets growing demand, creating a favourable environment for upward price movements.
The confluence of these factors paints a compelling picture for Bitcoin enthusiasts and investors. The sustained inflows into spot-based US funds, coupled with institutional interest from major players like BlackRock and Fidelity, indicate a shift in perception toward Bitcoin as a mainstream and credible investment option.
While caution is always advised in the dynamic world of cryptocurrency, the current landscape suggests that Bitcoin’s bullish momentum is grounded in strong fundamentals, paving the way for an exciting period of price discovery in the cryptocurrency market.
Author Bio
Nigel Green is deVere Group CEO and Founder
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.