As Bitcoin hits the $50,000 mark, is this the start of the bull market? – Digital Transformation News
Bitcoin (BTC) hit $50,000 on February 12, 2024 marking a new high since December 2021. Experts believe that the impact of Bitcoin Spot ETFs and market’s anticipation for Bitcoin halving in May can play a role in the market surge. Industry experts stated that BTC trading volumes grew from $16 billion on January 1, 2024 to $50 billion on January 10, 2024 (Bitcoin ETF approval date), an increase of approximately 300%. However, the effects of Bitcoin halving are yet to factor in. “The fourth halving will occur in April 2024. It is expected that the price of Bitcoin will rise from the highest point in the United States (US) dollar to the US dollar (April-November 2021), and the price is expected to peak one year and five months after the halving. A similar trend has been observed with the previous three halvings with prices increasing over to hit a new BTC price ATH,” Ryan Lee, chief analyst, Bitget Research, said.
The official approval of the Bitcoin ETF by the US Securities and Exchange Commission (SEC) can be one of the factors which can be attributed to the rise in price. The official approval has allowed investors around the world to invest in Bitcoin through compliance channels.
However, there was a short-term decline after the adoption of the Bitcoin ETF due to the switching of positions by some holders of Grayscale and the selling of some equity holders.
The flows into the new ETFs will build up gradually to cross $10 billion in 2024, while Standard Chartered analysts have said the products could draw from $50 billion to $100 billion in 2024, as per insights from Bernstein Research. As per media reports, inflows could be $55 billion over five years. Furthermore, the latest bitcoin rally is expected to be driven by spot-market demand, which has driven a spike in crypto’s trading volume.
