Bitcoin drives new records as it briefly tops $72.000 price

The crypto market keeps growing as the Bitcoin (BTC) price has been able to sustain a rally over the $70.000 price range. On monday the biggest cryptocurrency briefly surpassed the $72.000 price range showing great strength and continuing its rally of the past months. What is driving the bitcoin price movement and is a further continuation of the bull rally to be expected? 

Once BTC runs it is hard to stop. The current bull cycle does not seem any different as the bitcoin price has been rallying almost non stop since October of last year. Since then the price has increased from around $27.000 to a current value of over $71.700, an increase of over 160%. 

What is driving the BTC price? 

The main reason for the strong price performance is the success of the Bitcoin Spot Exchange Traded Funds (ETFs) on the American markets. The relative new funds, which came available to the market on January 10, have seen a record amount of inflows. The most popular BTC Spot ETF of BlackRock, which trades under the ticker symbol IBIT, has already amassed over $10 billion in funds. All funds combined (excluding Grayscale) have managed to collect over $20 billion in capital. 

The rapid inflow of institutional capital results in large amounts of BTC purchases of the funds. BlackRock’s fund now owns over 140.000 BTC. As a result, prices of the popular cryptocurrency rise considerably. As long as the inflow of capital remains it is expected that the BTC price will keep increasing in the near future. 

Companies adding Bitcoin to balance sheet

On top of the success of the BTC Spot ETFs companies are also adding bitcoin to their balance sheet. Mainly MicroStrategy has continuously been buying more BTC. In its recent purchase on monday the software company has added another 12.000 coins to its balance sheet, resulting in a total amount of 205.000 BTC. The company now owns almost $14,7 billion of the popular cryptocurrency. The large inflow of capital from MicroStrategy clearly has an effect on the bitcoin price as less and less coins are available for buyers. 

Tesla potentially buying BTC

In addition, the tech company Tesla is rumoured to have been buying BTC as well. According to a blockchain wallet tracker that has supposedly been tracking Tesla’s address, suggests the company has been buying bitcoins. According to the data a total of almost 1.790 BTC tokens have been bought. 


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