As regional banks falter, Bitcoin BTC/USD capitalized on bullish momentum and surged past $45,000, up 3.7% on the day.
Bitcoin’s Soaring Triumph: Bitcoin prices crossed the $45,000 mark for the first time since the approval of the spot exchange-traded funds (ETFs) on Jan. 10. Open interest increased by 11.5% in the past 24 hours, reaching $20.2 billion, according to CoinGlass data.
Several factors contributed to the surge:
- The swelling number of Bitcoin wallets holding over 1,000
Bitcoin reaching a level not seen in over 14 months. - A significant influx of funds into spot ETFs: total inflows as of Feb. 8 total $8.05 billion, with $1.83 billion in net inflows excluding GBTC GBTC outflows.
Significance of the Surge: The ascent of Bitcoin’s price defies the trading loss of over 10% in New York Community Bancorp, signifying a potential preference for Bitcoin as a hedge against uncertainty.
Following the ETF approvals, Bitcoin continues to permeate mainstream culture, evidenced by digital billboards in Times Square flashing crypto-related ads.
Crypto pundits remain bullish on Bitcoin’s prospects. One trader views the $45,000 level as a pivotal point for “an explosive move” to $50,000. Investor Fred Krueger notes on X that Bitcoin could reach an all-time high before the end of March, emphasizing that ETFs are on the verge of surpassing MicroStrategy MSTR in Bitcoin holdings, less than 30 days after their inception. He whimsically states that ETFs are “having Bitcoin for dessert” after gobbling up every other asset class globally.
What Lies Ahead: Bloomberg Senior ETF analyst Eric Balchunas suggests that the next wave of ETF Bulls includes investors from Canada, Europe, and China.
James Van Straten, lead analyst at Crypto Slate, emphasizes that any Bitcoin downturn will be short-lived, foreseeing a resumption of its upward trajectory. Additionally, Ethereum is also trading 1.6% higher, propelled by bullish market sentiment and rumors surrounding the potential decision on a spot Ether ETF in May.
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