Bitcoin Surges Above $46,000, Driven by ETF Inflows and Anticipation Around Halving Event

Bitcoin Reaches 1-Month High of $46,000 on Friday Due to Consistent Inflows into US Spot-Based Funds

Bitcoin’s price surges above $46,000 thanks to recent ETF investments.

Shalini Nagarajan Last updated: February 9, 2024 01:48 EST Estimated reading time: 3 min

Source: DALL·E 3

Bitcoin (BTC) has reached a one-month high, surpassing the $46,000 mark on Friday. This recent surge in the cryptocurrency’s price can be attributed to steady inflows into spot-based US funds and the anticipation surrounding the upcoming halving event in April. Currently trading around $46,246, BTC has seen a 7.3% increase in the last week. The launch of new spot Bitcoin ETFs has also generated significant investor demand, with 10 consecutive days of net inflows totaling $8 billion.

Strong Performance of BlackRock and Fidelity’s ETFs

The success of Bitcoin ETFs can be seen through the performance of major funds. In January, BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity Wise Origin Bitcoin ETF (FBTC) were among the top 10 ETFs with the highest inflows. According to a recent Morningstar report, IBIT ranked eighth with approximately $2.6 billion in net flows, while FBTC took the tenth spot with $2.2 billion in net flows.

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🤔 Q&A: What Do Readers Want to Know?

Q: How does the Chinese New Year impact Bitcoin’s performance? A: The days around Chinese New Year are significant for Bitcoin, as historical data suggests a rally of approximately 11%. Traders have observed a 100% hit ratio when buying Bitcoin three days before the start of Chinese New Year and selling it ten days after. This year, Chinese New Year begins on February 10.

Q: How are US institutions contributing to Bitcoin’s growth? A: The US remains a major influencer in the cryptocurrency market, with significant inflows from US institutions into Bitcoin. The ETF flows have had a notable impact, indicating strong investor demand.

Q: What are the key resistance levels for Bitcoin’s price? A: Rachel Lin, CEO and co-founder of Singapore-based derivatives DEX SynFutures, highlights the significance of a weekly close above $44,000. Bitcoin has repeatedly reached this level in the past two months but has failed to close above it. Lin suggests that a close above $44,000 by the end of the week would be a bullish sign. Additionally, she identifies the $46,700 to $46,800 resistance zone as crucial, and a breakthrough would be a positive indicator for Bitcoin in the long run.

📈 Analyzing Bitcoin’s Performance

Alex Kuptsikevich, a senior market analyst at FxPro, explains that Bitcoin’s rise above its 50-day moving average signifies a bullish trend. This achievement reduces concerns about a major correction and indicates positive market sentiment. Despite brief price spikes caused by intra-week volatility, Bitcoin has consistently surpassed its December-January closing levels on a weekly basis.

Predictions for Bitcoin’s Future

Bitcoin’s upward movement is gaining momentum, driven by growing attention from major investors, also known as “whales.” These investors have been actively accumulating Bitcoin, contributing to its rise. Furthermore, the upcoming halving event in April, during which the reward for miners is halved, is expected to push Bitcoin’s price even higher.

According to personal finance site Finder, Bitcoin is predicted to reach a peak of $88,000 in 2024. Half of Finder’s experts anticipate a new record high for Bitcoin in the six months following the halving event. Pav Hundal, lead market analyst at Swyftx, believes that the scarcity of Bitcoin resulting from the halving event will play a significant role in driving its value.

🗞️ Additional Sources:

1. CBOE Predicts Spot Bitcoin ETFs to Draw Investments from Pension Funds and RIA-Based Funds
2. Bitcoin’s Performance Around Chinese New Year
3. Top 10 Bitcoin ETF Inflows
4. Adding Momentum: Whales Accumulating Bitcoin
5. Bitcoin’s Future Price Predictions

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