News
Bitcoin is heading towards $70,000!
1:30 p.m. ▪ 3 min read ▪ by Luc Jose A.
Amidst a volatile crypto market, Bitcoin has shown remarkable resilience. The crypto asset’s price has recently shown impressive signs of recovery. This development coincides with a notable increase in inflows to Bitcoin spot ETFs.
An encouraging rebound in prices
Bitcoin shows a strong rebound from its support at $53,500. This recovery propelled its value by more than 24.86%. Currently, BTC is trading above $67,500, after increasing by around 0.77% in the last 24 hours. fully diluted market capitalization The price of the crypto asset has also surged to $1.29 trillion. However, the current trading volumes show an unexpected downward trend.
Clearly, the recovery in BTC price indicates growing confidence among miners and investors, despite recent challenges. Nevertheless, fluctuations in trading volumes could signal short-term uncertainties.
Bitcoin ETFs Surpass 900,000 BTC
Bitcoin’s current rally is attributed to a variety of factors, including increased inflows into spot Bitcoin ETFs. Bitcoin ETF holdings recently crossed the 900,000 BTC threshold, an increase that reflects a shift in investor preferences. Bitcoin ETF holdings are now valued at around $60 billion, according to Nate Geraci, president of The ETF Store. Since their launch in January, these funds have seen a net inflow of $17 billion.
One potential driver of this shift toward ETFs could be tax efficiency or the use of these funds as collateral for traditional financial transactions. Among the main holders of these ETFs are hedge funds that specialize in market arbitrage. These funds aim to profit from market discrepancies without directly betting on price movements. For example, they might sell bitcoin futures while buying an equivalent position in a spot ETF.
In summary, the current rise in BTC reflects investors’ renewed confidence in the potential of the crypto asset. If this trend continues, Bitcoin could soon cross the $70,000 threshold. This will mark a turning point new step in its resilience in the cryptocurrency market.
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Luc José A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I am committed to raising awareness and informing the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. Every day, I strive to provide an objective analysis of current events, decipher market trends, relay the latest technological innovations and put into perspective the economic and societal challenges of this ongoing revolution.
DISCLAIMER
The views, thoughts and opinions expressed in this article are solely those of the author and should not be considered investment advice. Do your own research before making any investment decision.