- Wednesday, October 16, 2024
Bitcoin and other cryptocurrencies saw a significant increase in value on Monday, contributing to the ongoing crypto rally. The surge in digital assets comes as inflows into recently approved spot Bitcoin exchange-traded funds continue to impact the market.
Bitcoin Surges Above $65,500
The price of Bitcoin experienced a surge of more than 5% in the past 24 hours, surpassing $65,500. This positive momentum has brought the largest cryptocurrency closer to its all-time high above $69,000, which was achieved in November 2021. While Bitcoin has been on a steady climb since last summer, recent weeks have seen accelerated growth fueled by optimistic market sentiment and the introduction of spot Bitcoin ETFs.
Analyst Predictions
According to Aditya Das, an analyst at blockchain research group Brave New Coin, Bitcoin is poised to challenge its record highs above $69,000 in the near future. Das highlighted that the cryptocurrency has experienced sudden jumps in price by multiple percentage points within minutes, creating excitement within the crypto trading community.
Bitcoin ETFs Surge in Popularity
Bitcoin has surged more than 50% since the beginning of the year, following the anticipation and approval of the first U.S. spot Bitcoin ETFs in mid-January. These ETFs, managed by mainstream financial firms like BlackRock, have sparked a fresh wave of interest among investors. The ease of purchasing these funds and their direct holding of the token itself have driven prices upwards.
Record Inflows for Bitcoin ETFs
Between February 26 and February 28, Bitcoin ETFs saw a net inflow of $1.77 billion, signaling explosive market moves according to research from Galaxy, a crypto financial services firm. February 28 set a new record for the largest single-day Bitcoin ETF inflows, indicating a growing appetite for the digital asset.
Growing Confidence and Adoption
Galaxy analyst Gabe Parker emphasized that Bitcoin's approach to record highs reflects increasing confidence among U.S. investors, RIA platforms, and institutions. He noted that the expanded access to spot BTC ETFs for wealth managers and financial advisors in the U.S. will further drive the acceleration of net inflows into the cryptocurrency.
Exciting Times in the Crypto Market
Beyond Bitcoin, Ether —the second-largest crypto—rose 3% to above $3,500. Smaller tokens or altcoins also were higher, with Cardano climbing 7% and Polygon popping 3%.
Memecoins Making Waves
Memecoins were flying, with Dogecoin up 17% and Shiba Inu jumping 21%—signs that bullish sentiment was reaching fever pitch as traders piled into tokens based initially on internet jokes.
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