Bitcoin News

Bitcoin surpasses the milestone of $50k benchmark

The last time Bitcoin danced around $50,000 was in December 2021. After 2 years, Bitcoin has regained that position, fueled by the approval of 11 Spot Bitcoin ETF applications by the US SEC (Securities and Exchange Commission). The achievement of the milestone dates to February 12, 2024, when reports claimed a trading value of $50,188.

Most of the rise to that value is credited to two factors: Spot Bitcoin ETF and anticipation of Bitcoin Halving.

Spot Bitcoin ETF has marked a pivotal moment for the crypto market, bringing a significant transition to a new investment segment. Most crypto ETF applications are expected to go on the floor, with Ether ETF being the most anticipated. There is also a surge in investor’s interest following the implementation of the Bitcoin product.

Analysts estimate that the inflow and the growth are not slowing down for the next 18 months. It is based on the fact that AUM has touched $59 billion in total and Asset Under Management continues to bag massive inflows. Recent weeks brought a total of $1.1 billion in inflows to the market.

Investors are also turning their attention to the Spot Bitcoin ETF since it allows them to obtain exposure to the cryptocurrency without owning or storing any value in it. That is, they can negotiate the difficulties of holding cryptocurrency while still earning good gains despite widespread volatility.

Bitcoin Halving is scheduled to happen in April of this year, which is 2024. It will cut down on the mining reward and have an impact on the dynamics of supply and demand. The fundamental principle states that supply will be limited to push demand to the top edge. It has the historical context of igniting a bull run for Bitcoin.

Grayscale Bitcoin Trust continues to experience outflows, except it has slowed down. The initial selling pressure was immense, to the extent that the token went as low as $40,000. It did cause panic among holders who were dubious about waiting for the sentiments to change their forms. Most of them did, and the results are pretty tangible.

BTC is currently rallying at $49,866.75. Its value has plummeted by 4.16% in the last 24 hours and by 16.55% in the last 7 days. The token has traded at $50,100 for a few moments, and it could go back to that safety level.

Following that, it is purely a game of sustaining the milestone to set the stage at $65,000 and then for $100k. Predicted estimates draw a bullish picture, expecting BTC to surpass its ATH by the end of 2024.

BlackRock and Fidelity continue holding their grounds in second and third positions, respectively, in terms of holdings. Bitwise Asset Management is optimistic that its 0.20% fee will yield fruitful results in the newly launched competitive segment.

Erica Lee

Erica is a finance professional who has over a decade of experience in the finance sector as a management consultant. After years of reporting on forex, stock markets, and finance, she now contributes her strong financial skills with the CoinNewsSpan team. Since 2014, she has been deeply involved in the blockchain and cryptocurrency space. She believes that blockchain technology has tremendous potential to make our lives better.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button