Bitcoin Soars to New 2024 High, Surpassing $52,000 amid Rising Spot BTC ETF Inflows
Summary:
Bitcoin's price surged to a new 2024 high of $52,043, a 19.4% increase over the week. The rise is attributed to continuous inflows to spot BTC ETFs and the impending supply halving event. Interestingly, Bitcoin managed to shrug off higher inflation data and concerns about potential interest rate hikes by the U.S. Federal Reserve. The rising prices have also pushed Bitcoin’s market capitalization above the $1 trillion mark, a level not witnessed since November 2021. Traders are now bracing for a crucial resistance point around $52,000, as they aim for the asset to comfortably cross the $50,000 price mark.
The price of Bitcoin (BTC) has experienced a surge, reaching a new high of $52,043 for the year 2024, marking an increase of 19.4% throughout the week. The rise is attributed to continuous inflows into spot BTC ETFs as well as the impending supply halving event.
Despite the higher-than-expected data from the U.S. Consumer Price Index (CPI), which indicated a 3.1% inflation year-on-year against the anticipated 2.9%, Bitcoin managed to shrug off the impact. The unexpected CPI report raised speculation over whether the U.S. Federal Reserve would cut interest rates in March souring the mood around risky assets, such as cryptocurrencies.
The latest rally of Bitcoin, crossing the $52,000 threshold, surged its market capitalization beyond $1 trillion, a value not witnessed since November 2021. As of the time of release, the cumulative market capitalization of crypto is inching towards the $2-trillion mark. This positive investor sentiment seems propelled by the burgeoning spot BTC ETFs inflows coupled with a decrease in selling by Grayscale’s GBTC. Bitcoin has successfully offset the losses that followed the approval of spot Bitcoin ETFs on January 10, which sparked a sell-off wave. Last week, the total daily trading volume of the newly issued spot Bitcoin ETFs mounted to $1.1 billion.
The upcoming Bitcoin halving, projected to pare down the rewards granted to miners by 50%, is anticipated to be another significant increasing factor for investment appeal in BTC. New record highs for Bitcoin have traditionally been led by halving events. Bitcoin traders are now emphasizing the next phase of the current rally.
Moreover, it's apparent that traders are resolute in maintaining the price above $50,000. As per independent analyst Cole Garner, buyers are now gearing up for a new face-off with the major resistance nestled around $52,000, aiming to exceed the all-time high of $69,000 as the price objective for BTC.
This news piece provides no investment advice or recommendations. Every investment and trade move brings with it potential risks, and readers are urged to conduct thorough research before making a decision.
Published At
2/14/2024 8:29:56 PM
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