🚀 Bitcoin Bears Take a Bruising as BTC Crosses $50,000 Mark

Bitcoin skeptics suffer losses on Monday as price surpasses $50,000, maintaining strong momentum after a 13.5% increase last week.

Bitcoin price surpasses $50,000, leaving bearish investors hurt – What’s next for BTC?

Last updated: February 12, 2024 12:23 EST | 2 min read

Bitcoin (BTC) bears are in for a rough ride as the price surges above $50,000. BTC’s momentum continues after posting its strongest weekly close since December 2021. According to TradingView, Bitcoin has just traded above $50,000 for the first time in several years, causing a wave of excitement among cryptocurrency enthusiasts.

📈 Bitcoin’s Strong Momentum and Weekly Percentage Gain

BTC is currently up over 3% for the day, building on its impressive 13.5% gain from the previous week. This marks the largest weekly percentage gain for Bitcoin since October.

Bitcoin bears have been handed a serious blow over the past six months. The BTC price has risen by approximately 100% since its lows in September.

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💥 Bitcoin Bears’ Premature Celebrations

Many Bitcoin bears are now regretting their premature celebrations when Bitcoin briefly dipped below $40,000 last month. This dip was the result of a “sell-the-fact” reaction to the approval of spot Bitcoin ETFs in the US. Several bears were anticipating an even deeper pullback to the low-$30,000s.

However, these cautious investors have been proven wrong by the nearly 30% price recovery since January 23rd. Bitcoin has been fueled by new tailwinds that have shifted the market sentiment.

📈 ETF Inflows and Bitcoin’s Price

One major factor contributing to BTC’s resilience is the significant inflow of funds from spot Bitcoin ETFs. According to CoinShares, these ETFs saw $1.1 billion in net inflows last week alone. The total assets under management (AUM) held by all spot Bitcoin ETFs now exceed $10 billion. The launch of these ETFs has been widely hailed as the strongest in history.

CryptoQuant’s CEO and founder, Ki Young Ju, predicts that BTC could reach $112K this year, driven by the continued inflow of funds from ETFs. Even in a worst-case scenario, Ju believes Bitcoin could stabilize at $55K.

💼 Macro Tailwinds and Bitcoin’s Market Performance

ETF inflows are not the only tailwinds fueling Bitcoin’s upward trajectory. The cryptocurrency has also benefited from positive macro factors, such as the push to fresh record levels in US equity markets. The S&P 500 recently broke the 5,000 mark for the first time, driven by strong earnings releases and positive US economic data.

The expectation of interest rate cuts by the Federal Reserve has further boosted equity and crypto markets. The upcoming release of US CPI data is expected to add to the growing optimism surrounding rate cuts, which may positively impact Bitcoin’s performance.

Additionally, Bitcoin traders have been bidding up the price in anticipation of the issuance rate halving. Historically, halvings have been bullish for Bitcoin, as they reduce the rate at which new coins enter the market. While miners may need to sell off some BTC inventory, the overall effect of halvings has been a positive price trend.

🤔 What’s Next for the BTC Price?

Despite Bitcoin’s surge to new yearly highs, some are concerned about a potential pullback. The 14-day relative strength index (RSI) for BTC has surged into “overbought” territory, surpassing the 70 mark. This could indicate a possible correction in the market.

Furthermore, Bitcoin’s rising “supply in profit” on-chain is approaching 95%, which some analysts consider a warning sign of a market top. However, any pullbacks are likely to be aggressively bought into, thanks to the multitude of positive factors supporting Bitcoin’s price.

Bitcoin bears will continue to face challenges in the medium term. As the cryptocurrency gains mainstream acceptance and institutional support grows, the tide is turning in favor of the bulls.

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👥 Q&A: Readers Concerns Addressed

Q: What are some other factors driving Bitcoin’s price besides ETF inflows?

A: In addition to ETF inflows, Bitcoin has benefited from positive macro factors, such as the push to fresh record levels in US equity markets and the expectation of interest rate cuts by the Federal Reserve. These factors contribute to the overall market sentiment and investor confidence in Bitcoin’s future growth.

Q: Should investors be worried about a potential pullback in Bitcoin’s price?

A: While a pullback is always a possibility in volatile markets, the overall bullish trends and positive market factors suggest that any pullbacks are likely to be short-lived. Bitcoin’s strong momentum, coupled with increased institutional support and mainstream acceptance, make it an attractive long-term investment option.

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📈 Future Outlook and Investment Recommendations

Based on the current trends and market dynamics, it is expected that Bitcoin’s price will continue to rise in the foreseeable future. The ongoing inflow of funds through ETFs and positive macro factors provide a solid foundation for Bitcoin’s upward trajectory.

Investors should consider taking advantage of the current bullish momentum and consider allocating a portion of their investment portfolio to Bitcoin. However, it is important to note that investing in cryptocurrencies carries risks, and investors should conduct thorough research and seek professional advice before making any investment decisions.

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📚 Reference List:

1. Bitcoin Needs to Address Scaling as ETFs Drive Momentum
2. Bitcoin Traders Weather US CPI Miss, ETH Price Tags 20-Month High
3. Follow Us on Google News

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Now it’s your turn, dear readers! What are your thoughts on Bitcoin’s latest surge above $50,000? Are you optimistic about its future performance? Share your insights and join the conversation 🚀

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