Bitcoin on Track for Fifth Consecutive Monthly Gain
Bitcoin is set to achieve its longest winning streak since the pandemic-induced rally, as it heads towards its fifth consecutive monthly gain. This marks a significant milestone for the leading cryptocurrency, surpassing the previous record set in October 2020 to March 2021 when it reached an all-time high of nearly $69,000.
Bitcoin Surged Due to Spot ETF Optimism
The recent surge in Bitcoin’s price can be attributed to the introduction of spot Bitcoin exchange-traded funds (ETFs) by major issuers such as BlackRock and Fidelity Investments. These ETF launches were highly anticipated by investors, leading to a 160% surge in Bitcoin’s price last year. However, following the debut of these ETFs, Bitcoin experienced a temporary drop as traders closely monitored their performance.
Decrease in GBTC Outflows Boosts Market Sentiment
The decrease in outflows from the Grayscale Bitcoin Trust (GBTC) has had a positive impact on market sentiment. Investors have withdrawn fewer funds from the Grayscale fund recently, allowing Bitcoin to recover some of its losses. The success of these ETF launches can be seen in the net inflow of $1 billion into the ten ETFs collectively. This historic launch has generated significant trading activity and investor flows.
Federal Reserve Decision Could Influence Bitcoin
Investors are also keeping a close eye on this week’s Federal Reserve interest-rate decision, as any significant changes could impact Bitcoin and the broader cryptocurrency market. The sensitivity of these markets to shifts in sentiment and perceptions of liquidity makes them susceptible to changes in monetary policy.
BlackRock’s Spot Bitcoin ETF Sees Impressive Growth
The iShares Bitcoin Trust (IBIT), launched by BlackRock, has seen its market capitalization reach $2.11 billion within just two weeks of its launch on the Nasdaq. This growth is a result of Bitcoin’s recent price performance and highlights the success of BlackRock’s spot Bitcoin ETF.
Fidelity’s Bitcoin Fund Also Attracts Inflows
Fidelity’s Wise Origin Bitcoin Fund (FBTC) has attracted $1.8 billion in inflows over the past 10 days, making it another popular choice among investors.
Conclusion: Bitcoin’s Winning Streak Continues
With its fifth consecutive monthly gain on the horizon, Bitcoin continues to demonstrate its resilience and potential for long-term growth. The introduction of spot ETFs and positive market sentiment have played a significant role in driving Bitcoin’s upward trajectory. As investors await the Federal Reserve’s decision and closely monitor market developments, Bitcoin remains a key player in the evolving landscape of digital currencies.
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