coinspress.com
12 February 2024 14:27, UTC
On Monday, Bitcoin breached the $50,000 mark and hit its highest level in over two years.
The price of the leading cryptocurrency reached $50,000 (a milestone not seen since December 2021), reflecting a 20% increase for the week.
Positive sentiment has returned to the crypto market after a period of subdued sentiment due to significant outflows from Grayscale’s Bitcoin ETF.
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However, recent data show a decrease in these outflows alongside an increase in inflows. In addition, Bitcoin received a boost from the performance of the stock market, namely the S&P 500 crossing over 5,000 points last week.
James Butterfill, head of research at CoinShares, pointed to various factors influencing market dynamics. Among them is China’s adoption of looser monetary policy, leading to increased purchases of Bitcoin and stocks.
READ MORE: Bitcoin Prediction: $BTC to Soar to $112,000, According to CryptoQuant CEO
Butterfly also highlighted strong demand for spot Bitcoin ETFs, with significant net inflows of $1.1 billion in the past week and $2.8 billion since launch. On Friday alone, ETFs acquired 12,000 $BTC, surpassing the daily creation rate of roughly 900 new coins.
At the time of writing $BTC is trading at $50,050 after а 17% weekly surge and its market cap is nearing the $1 trillion line.
Holding the price above $50,000 could pave the way for Bitcoin to surge even further and potentially reach a new all-time high above the $69,000 mark.
