Bitcoin Hits a 2-Year High, Approaching $50,000 Amid Surge in ETF Inflows
Summary:
On February 12, Bitcoin's price soared to its highest in two years, nearly reaching $50,000, following a surge of inflows into Bitcoin ETFs. A net inflow of $1.1 billion was observed last week, bringing the total assets under management to $59 billion. The rise in Bitcoin's price also led to a spike in market liquidations reaching over $152 million. This hike was not surprising to traders who saw this increase coming. The information provided stresses the importance of individual research as every investment carries risks.
Bitcoin's value experienced a significant boost on February 12, reaching a peak of $49,940 - an amount not seen since December 2021 - on the back of encouraging post-exchange-traded funds last week. The price of Bitcoin experienced a swift surge of 3.4% from a low point of $47,745 on the same day, approaching the $50,000 threshold, marking the highest value in two years. This rise was preceded by a notable 16% increment over the preceding seven days.
The rise in the value of this significant cryptocurrency coincides with augmented inflows into spot Bitcoin ETFs throughout the past week. Over the past week, these funds have seen an influx of over $1.1 billion, even as low outflows from the Grayscale Bitcoin Trust (GBTC) persisted. CoinShares' report dated February 12 confirmed that these recent US-based spot Bitcoin ETFs saw an impressive inflow of $1.1 billion last week.
The net increase in spot Bitcoin ETF and the appreciated price of Bitcoin resulted in the total assets under management (AuM) swelling up to a striking $59 billion, a pinnacle not witnessed since the start of 2022. Two years ago, Bitcoin was last traded over $49,000, back on December 28, 2021, peaking at $50,720. However, it saw a sudden drop to a dismal $15,522 on November 9, 2022, in the aftermath of the FTX ordeal.
Prominent trader Rekt Capital took the recent surge of Bitcoin value over $49,000 in stride, noting that the indicators pointed toward this outcome.
With Bitcoin's price climbing steeply, the result was a corresponding jump in the cryptocurrency market liquidations, with over $152 million reported so far, and the count still going up. Specifically, short position liquidations on Bitcoin exceeded the $45.56 million mark.
Note: The provided information does not consist of any investment advice or suggestions. Every investment or trading decision carries risk, and readers should engage in their own research before finalizing any decision.
Published At
2/12/2024 8:12:52 PM
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