Bitcoin Hits New Highs Before Pulling Back
Bitcoin reached a record high of $72,968 on Tuesday, marking its third peak in five days. However, it pulled back below $70,000 as traders took profits.
Record Inflows Boost Crypto AssetsCr
According to a report from CoinShares, $2.7 billion flowed into crypto assets last week, with the majority going to Bitcoin. This surge has contributed to Bitcoin’s 70% increase this year.
Success of US Spot Bitcoin ETFs
The launch of spot Bitcoin exchange-traded funds (ETFs) in the US on Jan. 11 has been a key driver of recent momentum. ETFs from BlackRock Inc. and Fidelity Investments have attracted a net inflow of about $10 billion.
Expansion of Crypto ETFs Globally
The London Stock Exchange’s announcement includes accepting applications for Bitcoin and Ether exchange-traded notes. Thailand’s securities regulator also signaled its openness to overseas crypto ETFs for retail buyers.
Institutional Adoption in the US
Ophelia Snyder, 21Shares’ co-founder and president, noted that institutional adoption is growing in the US. However, not all institutions have access to Bitcoin yet.
Changing Bitcoin Market Structure
As institutions enter the market, there is a greater focus on US trading hours. This change could impact Bitcoin’s market dynamics in the future.
Predictions of Further Gains
Market analysts predict that Bitcoin could push towards $80,000 in the coming months. Technical analyst Katie Stockton believes that $80,000 is within reach in the medium term.
Increasing Open Interest in Bitcoin Futures
CME Group’s Bitcoin futures market saw outstanding contracts reach a new peak, surpassing 30,000 for the first time. This indicates growing institutional demand for crypto exposure and hedging in the US.
Rise in Bitcoin Millionaire Wallets
Crypto analytics firm Kaiko Research reports that Bitcoin’s rally is creating approximately 1,500 new “millionaire wallets” daily. However, this is lower than the pace seen during the 2021 bull run.
Anticipation of Bitcoin Halving
Next month, Bitcoin will undergo a halving event, reducing the supply of new Bitcoin. Combined with ETF demand and expectations of looser monetary policy, this has contributed to a bullish sentiment in the crypto market.
