Bitcoin Price Surpasses $47,000 As Spot Bitcoin ETFs Attract Inflows
As Bitcoin’s price moves up to surpass the $47,000 mark, investors are paying extra attention to the updated Consumer Price Index (CPI) figures released and the all-time high reached by the stock market’s benchmark index, the S&P 500, above 5,000. The Dow Jones Industrial Average dropped around 0.35% and the Nasdaq moved up nearly 0.9%. Stock prices have been lifted by positive quarterly earnings reports during a period lacking in significant economic news, which typically influences market movements based on its relevance to the Federal Reserve’s policy decisions.
Spot Bitcoin ETFs Attract Net $8 Billion Ahead of the Halving
Spot Bitcoin ETFs have attracted a net $8 billion after launching on January 11. These investments come roughly two months ahead of Bitcoin’s expected halving event, which will reduce the coinbase rewards miners receive. The reduction will effectively mean that the amount of new BTC entering the market will abruptly be cut in half, which could lead to price rises if demand is maintained or if it rises.
Whale Wallets Rise and Key Price Indicator Flashes a Buy Signal
Large whales are accumulating BTC at a time in which a key price indicator has started flashing a buy signal, suggesting the price of the flagship cryptocurrency could keep on rising in the near future after consolidating around the $43,000 mark as it recovers from a drop that came along with the launch of spot exchange-traded funds in the US. Bitcoin miners have notably been selling their BTC holdings, moving over 4,000 coins valued at around $173 million from their wallets to cryptocurrency exchanges in a single day, the highest figure seen since May 16, 2023. Their reserves have now dropped to the lowest level since 2021.
Conclusion
While spot Bitcoin ETFs have attracted inflows and the stock market’s benchmark index reached an all-time high, Bitcoin’s price has surged past $47,000, as large whales are accumulating BTC and a key price indicator has flashed a buy signal. This boost in Bitcoin’s price comes ahead of the coin’s expected halving event and the reduction in coinbase rewards miners receive. These factors are likely to impact the price of Bitcoin in the near future. Featured image via Unsplash.
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