Bitcoin’s meteoric rise is showing no signs of abating as it continues its winning streak, buoyed by the historic debut of exchange-traded funds (ETFs) in the United States.
The digital asset surged approximately 1% to $48,436 as of 3:50 a.m. on Monday, signaling a seventh consecutive daily gain, the longest streak since January 2023.
This rally follows the introduction of nine new spot Bitcoin funds in the US on January 11, which have collectively attracted over $9 billion in investor inflows.
Offerings from financial giants like BlackRock Inc. and Fidelity Investments have emerged as the most successful ETFs launched in terms of assets amassed within a month.
Caroline Bowler, CEO of crypto platform BTC Markets Pty, attributed this surge to a significant influx of institutional capital into the asset class.
The market’s enthusiasm extends beyond the ETFs, with the more than decade-old Grayscale Bitcoin Trust recently transitioning into an ETF.
Although the Trust experienced a substantial outflow of over $6 billion, the tide seems to be turning as the new ETFs collectively attracted a net inflow of $2.8 billion.
The excitement surrounding the ETFs mirrors last year’s fervor when Bitcoin briefly surpassed $49,000 on the day they were introduced.
While a subsequent $10,000 selloff occurred as investors secured profits and waited for the ETFs’ performance, the subsequent rebound has rekindled optimism, with $50,000 now in sight, a level unseen since 2021.
As Bitcoin enthusiasts anticipate the upcoming quadrennial halving event in April, optimism abounds, supported by historical data suggesting that halvings often underpin price appreciation.
Moreover, sentiment toward Bitcoin remains upbeat during the Lunar New Year holidays in Asia, according to Fundstrat Global Advisors.
Despite trading below its 2021 peak, Bitcoin’s resilience amid shifting market dynamics underscores its enduring appeal to investors worldwide.
