Bitcoin capitalized on bullish momentum and surged past $45,000, up 3.7% on the day as regional banks faltered.
Recent Surge: Bitcoin prices crossed the $45,000 mark for the first time since the approval of spot exchange-traded funds (ETFs) on Jan. 10. Open interest increased by 11.5% in the past 24 hours, reaching $20.2 billion, according to CoinGlass data.
Several factors contributed to the surge:
- The increase in Bitcoin wallets holding more than 1,000 Bitcoin reached the highest level in over 14 months.
- A substantial inflow of funds into spot ETFs: total inflows as of Feb.8 stand at $8.05 billion, with $1.83 in net inflows excluding GBTC outflows.
Significance: The price surge defied the New York Community Bancorp trading loss of more than 10%. Whether this is evidence that investors favor Bitcoin as a hedge against uncertainty remains to be seen.
Bitcoin continues to seep into mainstream culture following the ETF approvals, with digital billboards on the Times Square flashing crypto-related ads.
Cryptocurrency analysts and observers remain upbeat about Bitcoin’s prospects. One trader sees $45,000 as a key level to flip for “an explosive move” to $50,000.
With the upcoming Bitcoin halving in April 2024, investor Fred Krueger noted on X that Bitcoin could still hit an all-time high before the end of March. He also pointed out that ETFs are about to surpass MicroStrategy in Bitcoin holdings, less than 30 days after their inception. ETFs are “having Bitcoin for dessert” after they consume every other asset class globally, Krueger said.
What’s Next: Bloomberg Senior ETF analyst Eric Balchunas states that the next wave of ETF Bulls includes investors from Canada, Europe, and China.
Crypto Slate lead analyst James Van Straten highlights that any drop in Bitcoin will be short-lived and it will resume its upward trend.
Ethereum is also trading 1.6% higher on the heels of bullish market sentiment and rumors around the spot Ether ETF decision in May.
Read Next: Bitcoin Halving Could Make 9 Of 11 Largest Public Miners Unprofitable: Analyst
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