Bitcoin crosses $50k as market momentum grows

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Bitcoin’s price topped $50,000 on Mon­day, a lev­el not seen since 2021. 

Bit­coin has been ral­ly­ing since last week, post­ing record highs as the bit­coin ETF out­flows slowed. 

The ETFs, which received reg­u­la­to­ry approval in the US last month, post­ed net inflows of $1.1 bil­lion last week, accord­ing to Coin­Shares. Since the funds launched, they’ve seen $2.8 bil­lion of inflows.

Last week, Fidelity’s bit­coin ETF hit $3 bil­lion in assets, a mile­stone passed by Black­Rock ear­li­er this month.

The out­flows have pri­mar­i­ly been out of Grayscale’s bit­coin ETF, which was con­vert­ed from the firm’s bit­coin trust. Last week, GBTC saw out­flows of $415 mil­lion. Out­flows touched $900 mil­lion the week prior.

Read more: A month after launch, spot bit­coin ETF week­ly net inflows hit new high

“Giv­en the lack of any clear cat­a­lyst to explain the BTC move over the past few days, what we are prob­a­bly see­ing is a pick-up in accu­mu­la­tion for the afore­men­tioned rea­sons as well as the con­tin­ued spread of Bit­coin aware­ness as the ETF mar­ket­ing machines do their thing,” Cryp­to Is Macro Now author Noelle Ache­son wrote in her newslet­ter Mon­day morning. 

Ache­son fur­ther not­ed that “signs of longer-term accu­mu­la­tion have been build­ing for some time.”

Aside from the bit­coin ETFs, the halv­ing is set to take place in April. The reward per block will go to 3.125 bit­coin, down from 6.25 bit­coin. The last halv­ing took place in 2020.

Read more: Bit­coin hits $48k, S&P 500 posts record close

Block­works pre­vi­ous­ly report­ed that bitcoin’s price has ral­lied more than it had the last two halv­ings, pro­pelled by the bit­coin ETF buzz. The 2024 halv­ing is the fourth such event to take place in bitcoin’s history.

“The con­tin­ued adop­tion of Bit­coin ETFs could sig­nif­i­cant­ly absorb sell pres­sure, poten­tial­ly reshap­ing Bitcoin’s mar­ket struc­ture by pro­vid­ing a new, steady demand source, which is pos­i­tive to price,” Grayscale’s Michael Zhao wrote in a note last week. 

“Bit­coin is not just sur­viv­ing; it’s evolv­ing,” Zhao added.

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