Bitcoin‘s value has recently soared past the $49,000 threshold, establishing a fresh peak for the year 2024 at $49,140. This surge comes after a previous decline to $38,555, which occurred after selling pressure commenced on January 11 from a high of $48,969. The resurgence in Bitcoin’s price is significantly attributed to the optimistic sentiment surrounding spot Bitcoin Exchange-Traded Funds (ETFs).
Spot Bitcoin ETF Influence Grows
The collective reserves held by spot Bitcoin ETF issuers, with the exception of GBTC, have now exceeded the substantial sum of $10 billion. Additionally, net inflows have reached beyond $2 billion. Concurrently, GBTC’s sales have seen a dramatic decrease from $600 million to $52 million. These developments have played a pivotal role in fueling the Bitcoin rally supported by the spot ETF market. The impact of ETF approvals on Bitcoin’s long-term upward trajectory has been a recurrent topic of discussion.
Market Resilience Against False News
Market pundits had previously opined that short-term market movements would not result in drastic losses. They argued that even a substantial spot sale of $5 billion wouldn’t have caused a prolonged sell-off if sparked by erroneous information. The approval of Bitcoin ETFs, distinct from typical deals, partnerships, or announcements, ensured that the selling pressure was short-lived.
With the Bitcoin price on an upward path, projections suggest a continued rise toward the $52,000 mark. Should the cryptocurrency manage to sustain closes above this level, the next target is expected to be $60,000. While altcoins have yet to join the rally, it’s anticipated that they will experience growth as Bitcoin begins to stabilize at these higher valuations.