Bitcoin Value Steadily on the Rise: BTC ETFs, Upcoming Halving and Resilient Stock Market Drive Growth
Summary:
Bitcoin (BTC) value continues to rise, edging towards $53,000, due to consistent investments in BTC exchange-traded funds (ETFs), the imminent 'halving' event, and related data from derivatives. This surge is also reflected in results from BTC futures market, which stands close to a biennial high. The steady influx in BTC ETFs shows a pivotal moment in global markets, especially with the forthcoming halving event which previously led to new record highs for BTC. Despite unexpected rises in the inflation rate, Bitcoin and stocks have shown a resilient rise.
The value of Bitcoin (BTC) is consistently climbing, edging close to $53,000 after hitting an intra-day peak of $52,820. Over the past week, BTC's value has risen by 14.5% and impressively, 22% over the course of 2024. Several factors are driving this surge, including steady investments in BTC exchange-traded funds (ETFs), the imminent 'halving' event, and relevant derivatives data.
BTC futures market data reflects a two-year high, reaching a figure of $23.85 billion as noted by Coinglass. This figure trails closely behind the record peak of $24 billion in mid-November of 2021 - when BTC soared beyond $69,000. The open interest has seen a significant increase of 102% from mid-October till now. This hike aligns with BTC's 93% rise during the same time frame. The inrush of open interest implies a resurgence of investment interest in Bitcoin, mirroring the consistent influx of fresh capital in the BTC market, mainly due to increasing investments in fresh spot Bitcoin ETFs.
Spot Bitcoin ETFs are witnessing a continuous capital influx, having received over $3 billion in net flows, and surpassing the performance of Gold ETFs which have been around for over 20 years. Remarkably, about 50% of these investments came in the last six days, averaging around $450 million each day. Wednesday, Feb. 14, saw Grayscale’s Bitcoin ETF IBIT set a new weekly volume record with an influx of $760 million.
Information from Farside Investors shows that the nine newly established spot Bitcoin ETFs have collectively gathered 10,795 BTC, equivalent to nearly $1.09 billion. BlackRock’s IBIT is currently leading the field with around 4,843 Bitcoin, equivalent to $251 million in value.
Jonny Huxtable, CEO of LinkPool, comments that the rising general interest and influx into BTC ETFs signal a critical juncture in global markets, especially with the Bitcoin 'Halving' just 58 days away. He believes this increased interest in the 11 BTC ETFs reflects the growing focus of institutional and enterprise on blockchain technology within international financial markets.
The forthcoming Bitcoin 'halving', which is anticipated to slice the rewards miners get in half, is expected to augment the investment interest in BTC further. Historically, such halving events have often been followed by BTC reaching new peak values in the subsequent months.
A notable observation is the steady rebound of Bitcoin from a 2.8% plunge on Feb. 13 despite an unexpected surge in the CPI report, which indicated an inflation rate of 3.1%, higher than the 2.9% predicted by economists. After the US markets had time to process the surge in the CPI, Bitcoin and stocks began to ascend. BTC observed more than a 5% increase on Feb. 13, whereas the S&P 500 and Nasdaq 100 witnessed a 0.32% and 1.4% rise respectively.
Google Finance's data reveals that while Bitcoin has seen a more than 9% rise over the week, the S&P has seen only a modest 0.14% increase. Tim Shan, COO at Dexalot, expressed his satisfaction at BTC's resilience after the sell-off in January that was sparked by BTC ETF approvals. He noted that if BTC continues to outperform tech stocks this year, it would stimulate a more comprehensive interest in cryptocurrencies.
Published At
2/15/2024 10:39:09 PM
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