Bitcoin breaks all-time high above $72,000
Recently, the price of Bitcoin has soared and exceeded $72,000. This comes just a week after cryptocurrency exchange-traded products (ETPs) recorded massive inflows of $2.7 billion. CoinShares analyst James Butterfill shared these numbers on March 11, citing the incredible growth in cryptocurrency investments. Cryptocurrency ETP inflows so far this year are roughly in line with 2021’s total of $10.6 billion.
Moreover, Bitcoin is leading this investment, with $2.6 billion in inflows this year alone. This represents 14% of total global cryptocurrency assets under management (AUM). Following this surge in investment, the value of Bitcoin reached an all-time high of $72,900 on March 11. Although it has adjusted slightly, it is still hovering around $72,000. This is a 6.9% increase from last week and a 29% increase from last month.
Growth led by spot Bitcoin ETFs
These inflows were largely driven by investments in spot Bitcoin ETFs in the US. These funds have traded more than $110 billion since January 11. Bloomberg ETF analyst James Seyffart pointed out that five U.S. spot Bitcoin ETFs currently boast AUM of more than $2 billion. Bitwise’s BITB fund is the latest fund to join this elite group.
There are now 5 US spots left. #Bitcoin ETFs with over $2 billion in assets $BITB join a club
Of the ~3,500 U.S. ETPs, only 445 have assets of more than $2 billion.
Going one step further, only 157 have more than $10 billion. $GBTC & $GO It’s there. $FBTC Getting closer https://t.co/Yc7N3OBquH
— James Seyff (@JSeyff) March 11, 2024
IG Markets analyst Tony Sycamore suggests that Bitcoin’s rebound could soon push the price to $80,000. He believes that even if the value of cryptocurrencies falls, cryptocurrencies will remain strong. Additionally, the London Stock Exchange’s approval of Bitcoin and Ethereum exchange-traded rights represents a significant regulatory change. The UK’s Financial Conduct Authority is showing willingness to welcome new cryptocurrency financial products. Mikkel Morch, founder of ARK36, sees this as a sign that cryptocurrencies are becoming more accepted and institutionalized.
The combined effect of regulatory acceptance, anticipation of the upcoming halving event, and continued investment in Bitcoin ETFs heralds a potential new era of growth for the cryptocurrency. This could lead to broader acceptance of digital assets and a stronger investment environment.
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