 "Bitcoin has crossed the $62,000 mark today as it continues its march towards a previous all time high of $68,991 which it hit back in November 2021. The current push to Bitcoin and other cryptocurrencies comes from the growing interest in spot ETFs and the upcoming halving event")
Bitcoin surged past the $62,000 mark, nearing its all-time high and maintaining its upward trajectory since the approval of a new investment product tied to the cryptocurrency.
At 16:45 hrs, Bitcoin was trading around $62,932, inching closer to its peak of $68,991 reached in November 2021, a level that some analysts believe could soon be surpassed. It is expected tx
Since receiving approval from US securities regulators on January 10, exchange-traded funds (ETFs) linked to Bitcoin have allowed a broader audience to invest in the cryptocurrency without directly owning it. While these funds invest in Bitcoin, they offer accessibility akin to stocks or mutual funds for everyday investors.
The anticipation surrounding the approval of these investment products has contributed to Bitcoin’s recent price surge, following a downturn in late 2022 due to the collapse of several major crypto companies.
The introduction of ETFs and exchange-traded products (ETPs) in the US has injected optimism into the market, driving trading volumes higher and shining a spotlight on crypto-related businesses, according to Mikkel Morch of ARK36.
Initially, some investors looking to recover their investments triggered a wave of withdrawals from the GBTC (Grayscale Bitcoin Trust) fund after its conversion into an ETF. However, once the selling pressure eased, flows into US Bitcoin ETFs, including those offered by asset management giant BlackRock, increased.
Since the beginning of the year, exchange-listed investment products linked to crypto assets have attracted approximately $5.7 billion, according to CoinShares.
Further bolstering Bitcoin’s rally, software company MicroStrategy announced on Monday that it had acquired an additional 3,000 bitcoins, bringing its total holdings to 193,000 bitcoins.
Impact Shorts
More ShortsBitcoin’s price is also influenced by major industry players investing in anticipation of the upcoming “halving,” where the reward for miners is halved about every four years. This event, expected in April, is likely to reduce the rate of new Bitcoin entering the market, increasing its scarcity and potentially driving up its value.
Despite its speculative nature, the growing interest in spot ETFs and the upcoming halving event are expected to sustain Bitcoin’s momentum, possibly pushing its price beyond the $69,000 mark, according to Nigel Green of deVere Group.
Additionally, Bitcoin has been supported by hopes that the US Federal Reserve will lower interest rates this year as inflation moderates.
(With inputs from agencies)