Bitcoin price shoots past $50.000 as ETF popularity persists

Bitcoin (BTC) has had an impressive week. The biggest cryptocurrency by market value has yet again experienced another green day, with a 4,2% increase. The price surge has shot the BTC value above the important psychological milestone of $50.000. As a result bitcoin is inching ever closer to its all time high of $69.000. An important contributor to the price rally is the persisting success of the new Bitcoin Spot Exchange Traded Funds (ETFs). 

Less than a month ago the BTC price retreated to around $38.000. After a big rally in anticipation of the Bitcoin Spot ETF release on January 11th, prices fell down as a  ”sell the news” scenario developed in the market. Since hitting a local bottom on 23rd of January bitcoin is on an impressive run, reaching an important milestone of $50.000, reaching price levels not seen since december 2021. In the last seven days the popular cryptocurrency has managed to increase by more than 16%. 

Bitcoin ETFs attract billions of dollars in capital

The newly launched Bitcoin ETFs play an important role in the price surge, as becomes evident from the billions of dollars that have entered the different funds. The total of 9 funds have managed to attract over $10 billion in capital in less than a month, becoming one of the most successful ETFs in the whole market. An impressive feat for the crypto industrie that often has received backlash from traditional financial institutions. 

The most popular BTC ETFs are from the most renowned and established financial institutions. Suggesting that investors prefer putting their investments in proven asset management firms. BlackRock’s iShares Bitcoin Trust (IBTC) has attracted over $4 billion in capital and as a result is the most popular Bitcoin Spot ETF on the American markets. The fund from large asset manager Fidelity also remains popular among investors with a  total of almost $3,5 billion in capital inflows. 

How far can the BTC price go?

The new Spot ETFs on the American markets have created a lot of positive momentum for the BTC price. Analysts expect this positive sentiment to continue as the BItcoin halving is coming close. The important blockchain event will occur in April, only mere months away, and will have a profound impact on the price. As miner rewards fall from 6.125 BTC per block to 3.0625 BTC, the cryptocurrency will become more scarce and miner sell pressure will fall. According to some analysts these factors set the stage for a run to potentially $100.000. 


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