Bitcoin has reached a new record high on the eToro platform, exceeding $31,000. This surge in price can be attributed to institutional news developments, such as BlackRock’s attempt to launch a Bitcoin-based ETF, and the increasing limitation of token supply for trading. The number of “wholecoiners,” or those who own at least one whole Bitcoin, has now surpassed one million, indicating a steady increase in adoption over the years. Interestingly, while Bitcoin has experienced significant price gains, Ethereum has shown minimal variation during this rally.
The introduction of new Bitcoin ETF deposits in the United States has generated great interest from institutional investors. The ProShares Bitcoin Strategy ETF (BITO), a Bitcoin futures fund, saw its highest weekly flow in 12 months. This demonstrates growing interest in the regulated Bitcoin market among investors. BITO closely follows Bitcoin’s spot prices, making it appealing to traders.
There is also a correlation between the increase in liquidity in China and the rise in Bitcoin’s price. The actions taken by the People’s Bank of China to stimulate the domestic economy have indirectly impacted the cryptocurrency market. Hong Kong is also making efforts to become a major hub for cryptocurrencies in Asia by legalizing buying, selling, and trading, and attracting mainland Chinese institutions.
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