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Monday, April 15, 2024

Bitcoin Hits $65,000: ETF Frenzy Ignites Record Rally

In a significant market movement, Bitcoin soared past the $65,000 mark, reaching a high not seen since November 2021. 

This surge is largely fueled by the recent introduction and investor enthusiasm for the U.S.-listed Bitcoin exchange-traded funds (Bitcoin ETFs), marking a watershed moment for the cryptocurrency.

Bitcoin Rides the ETF Wave

Bitcoin
Credits: DepositPhotos

This sustained rally marks the second consecutive day Bitcoin has experienced growth, inching ever closer to its all-time high. ETFs, which started trading only on January 11 this year, have proved to be the potent force driving Bitcoin’s ascension.

“The markets are moving north in anticipation that tonight’s ETF inflows will continue and prices will continue to rally,” observed Hayden Hughes, co-founder of the social-trading platform, Alpha Impact. In total, Bitcoin has enjoyed a staggering 186% rise over the past 12 months.

Read More: Crypto Exchange Gemini Agrees to Pay $1.1 Billion in Settlement Amid Regulatory Scrutiny

ETF Investment Outweighs Grayscale Bitcoin Trust’s Drain

Investment inflows towards the cryptocurrency from these newly minted US-based ETFs have been unprecedented and insatiable. Renowned fund houses, such as BlackRock Inc. and Fidelity Investments, have pumped a combined investment of $7.35 billion into the volatile cryptocurrency market since the inception of these Bitcoin ETFs.

This surge in demand has brushed off the nearly $9 billion outflows from the Grayscale Bitcoin Trust, showcasing traders’ unwavering commitment to the cryptocurrency.

Also Read: Coinbase Denies Nigerian Ban Rumors, Confirming Uninterrupted Operations

Impending Bitcoin Halving and the ‘Altcoins’ Surge

As we navigate through the first quarter of 2022, traders are also meticulously eyeing another crucial event: the anticipated Bitcoin halving in April. 

This development, effectively slashing the reward for mining operations by half, is expected to further throttle the supply growth of Bitcoin. Consequently, the demand squeeze could amplify, sending prices skywards.

In addition, the cryptocurrency market isn’t just about Bitcoin. Amid the ongoing frenzy, other digital currencies, colloquially referred to as ‘altcoins’, are also experiencing gains. On Monday, Cardano and Solana each recorded an 8% and 1% jump, respectively.

A New Era for Cryptocurrency

Bitcoin
Credits: DepositPhotos

The recent developments signal an unquestionable fact — cryptocurrency has formulated a significant turn of the page. 

As we prepare for the expected Bitcoin halving, the ensuing demand squeeze, the steadfast demand from ETFs, and the infusion of new capital into the market, one thing is clear: the cryptocurrency market, now more than ever, demands our continued attention and analysis.

The ascent of Bitcoin is not just a testament to the resilience of the cryptocurrency but also a sign of evolving finance. The trend is set, the market has spoken — crypto is here to stay, and it’s taking the world by storm.

Read Next: Block Soars with $2.52B Q4 Bitcoin Revenue, Shares Jump 13% Post-Earnings

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