Bitcoin made a big comeback today, hitting $55,000 for the first time since late 2021. The difference today is that we have several nations worldwide with failing currencies, and the people there are adopting Bitcoin as a new world currency standard they trust even more than the US dollar. Another difference is that Wall Street now sells Bitcoin to 401K investors for retirement benefits. And big banks want in now too.
Now, with Spot ETF, people are excited to buy through exchange-traded funds and further purchases by MicroStrategy Inc., making things bullish for Bitcoin. Its price shot up to $56,000, the highest in over two years. This shows that Bitcoin is still popular and strong, even though some thought its price might drop.
Top Reasons Behind BTC Price Surge
Bitcoin’s surge above $55,000, reaching a new yearly high of $56,000 as per market data, has been driven by several factors contributing to its bullish momentum.
Firstly, investor demand through exchange-traded funds (ETFs) has provided strong support, with 11 Spot Bitcoin ETF approvals by the US Securities and Exchange Commission (SEC) fueling optimism since the beginning of the year. This heightened interest has led to significant activity in US-based spot bitcoin ETFs, including record-high trading volumes.
Bitcoin climbed higher even though $157 million in short positions was being liquidated in the past day, says CoinGlass.
Second not to forget, former President Donald Trump’s positive remarks about Bitcoin have also contributed to positive sentiment, signaling a potential shift in political attitudes toward digital assets. Moreover, Michael Saylor’s MicroStrategy Inc. continued its BTC buying spree, purchasing an additional 3,000 BTC, further bolstering confidence in Bitcoin’s long-term potential.
Additionally, inflows into crypto investment products, particularly Bitcoin-related products, have surged, surpassing $600 million last week alone. CoinShare’s head of Research, James Butterfill, noted that year-to-date inflows have exceeded $5.7 billion, indicating significant investor interest in Bitcoin and other digital assets.
Also Read: MicroStrategy Boosts Bitcoin Holdings with Additional 3,000 BTC Purchase, Totaling 193,000 BTC
On the other hand, Bitcoin’s upward movement on Monday led to significant activity in US-based spot bitcoin ETFs, excluding Grayscale’s GBTC, which recorded a remarkable trading volume of $2.4 billion, as reported by Bloomberg. Conversely, GBTC experienced its lowest one-day outflow of bitcoin since the launch of spot ETFs on January 11, with just 921 tokens being shed.
These developments, coupled with ongoing positive sentiment and bullish market conditions, have propelled Bitcoin’s price above $55,000 and fueled its continued upward trajectory.
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