Bitcoin Surges Above $46,000 Driven by ETF Inflows
Bitcoin (BTC) has reached its highest level in a month, surpassing $46,000. This surge is fueled by steady inflows into US-based spot Bitcoin ETFs and anticipation surrounding the upcoming halving event in April. New spot Bitcoin ETFs have attracted significant interest, with 10 consecutive days of net inflows totaling $8 billion. BlackRock and Fidelity’s ETFs were among the top 10 funds with the highest inflows in January.
Bitcoin’s Performance Around Chinese New Year
Historically, Bitcoin experiences an 11% rally around Chinese New Year. This year, the festival starts on February 10th, and Markus Thielen from 10X Research notes that Bitcoin has been up every time traders would have bought it three days before and sold it ten days after the start of the Chinese New Year. The US still holds the largest pools of capital, and inflows from US institutions continue to impact Bitcoin’s performance.
Rise Above Moving Average Signals Bullish Trend
Bitcoin’s rise above its 50-day moving average confirms a bullish trend and reduces concerns about a major correction. Despite brief price spikes earlier this year due to intra-week volatility, Bitcoin has surpassed its December-January closing levels on a weekly basis. Weekly closes are considered a more significant benchmark by market analysts.
Predictions for New All-Time High Post-Halving
Bitcoin’s upward movement is further fueled by growing attention from major investors accumulating Bitcoin. The upcoming halving event in April, which halves miners’ rewards, is also contributing to Bitcoin’s ascent. Personal finance site Finder predicts that Bitcoin will reach a peak of $88,000 in 2024, with half of their experts expecting a new record high six months after the halving event.
“Bitcoin will become more scarce,” says Pav Hundal, lead market analyst at Swyftx.
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