Bitcoin‘s price continues its ascent, nearing the $53,000 mark with a recent peak of $52,820. The cryptocurrency has seen a significant rise of 14.5% over the past week and 22% since the start of 2024. Experts attribute this growth to the consistent inflow of investments into BTC spot ETFs, anticipation of the upcoming Bitcoin halving event, and positive on-chain metrics.
Market Momentum Builds Up
The futures market has observed a surge in open interest, reaching $23.85 billion, which is a stone’s throw away from the all-time high of $24 billion seen in mid-November 2021. Since mid-October, open interest has soared by 102%, aligning with Bitcoin’s 93% value increase in the same timeframe. This trend mirrors Bitcoin’s previous rally, which took it from $45,000 to an all-time high of $69,000 in 2021.
The growing number of open positions signals a resurgence of investor interest in Bitcoin. This is largely propelled by an influx of capital into new spot Bitcoin ETFs, suggesting a bullish outlook for the market.
Investment Inflows into Spot Bitcoin ETFs
Investor confidence in Bitcoin is further bolstered by the steady inflow of capital into spot Bitcoin ETF funds. Over $3 billion has been invested in these funds, surpassing the initial uptake of Gold ETF funds two decades ago. These inflows are largely concentrated in recent days, with Grayscale’s Bitcoin ETF fund, IBIT, setting a new weekly record for inflows at $760 million.
New spot Bitcoin ETF funds have collectively amassed an estimated 1.09 billion dollars in Bitcoin. BlackRock’s IBIT fund is at the forefront, holding 4,843 Bitcoins, valued at 251 million dollars. Jonny Huxtable, CEO of LinkPool, notes the significance of these inflows and the broader interest in Bitcoin, especially with the halving event on the horizon.
The halving event, which will slash miner rewards by half, is also expected to heighten investor interest. Historically, Bitcoin has reached new highs in the months following such events, suggesting a potential for even greater increases in Bitcoin’s value in the near term.