Bitcoin Rises 5% to One-Month Highs
Bitcoin experienced a 5% increase on Friday, reaching one-month highs. Analysts attribute this surge to increased buying activity ahead of April’s halving event and a slowdown in outflows from exchange-traded funds (ETFs).
Price Reaches $47,705, Highest Since January
The price of Bitcoin peaked at $47,705 during the session, the highest level since January. This increase was fueled by the approval of the first U.S. listed spot Bitcoin exchange-traded products.
Bitcoin Up 3.5% for the Week
Currently, Bitcoin is up 3.5% at $46,946 and is set for a weekly rise of 10%, which is its highest since October. Additionally, Ether has increased by 2.5% to reach $2,486.
Sell-Off Wave Affected Bitcoin’s Price
In January, Bitcoin reached a two-year high above $49,000 but faced downward pressure due to profit-taking after the approval of ETFs by the Securities and Exchange Commission. This decline goes against recent market trends where stocks, bonds, and gold have rallied.
Halving Event Expected in April
The next halving event is scheduled for April and is designed to slow down the release of new Bitcoins. Historically, Bitcoin prices have rallied following previous halvings in 2012, 2016, and 2020.
Slowing ETF Outflows Support Crypto Prices
Recent outflows from ETFs have slowed down, particularly from the Grayscale Bitcoin ETF. This has had a positive impact on spot crypto prices.
Dollar’s Rise Impacted Crypto, but Effect Likely to Fade
The recent rise in the value of the U.S. dollar has negatively affected cryptocurrencies. However, analysts believe that this effect will diminish over time.
Hot Take: Bitcoin Rises Ahead of Halving Event
Bitcoin’s recent surge in price can be attributed to a combination of factors, including buying activity ahead of the upcoming halving event and a slowdown in outflows from ETFs. Historically, Bitcoin prices have rallied following halvings, and traders are optimistic about a potential bumper year in 2024. Despite the impact of a stronger U.S. dollar, analysts believe that cryptocurrencies will continue to perform well in the long run.
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