Bitcoin market cap has crossed $1 trillion, after seeing a slump since 2022, on the back of strong inflows to newly set up spot Bitcoin Exchange Trading Funds.
On Thursday, bitcoin traded at $52,261, or Rs 45 lakh, on most exchanges – its highest price since October 2021, when it reached the $65,000 mark.
Ethereum and Doge, the two other major cryptocurrency, followed Bitcoin close on heels, showing a marked rise in their prices, with ETH trading at around $2,800, highest since April 2022.
According to Reuters, strong inflows to new US listed ETFs have driven some of the price action in recent weeks, and capital flows into the 11 US spot bitcoin ETFs increased to $1.64 billion in the week to Wednesday.
The top cryptocurrency has shown a steady rebound since late January and even sharper spike all of February, rising by 22 per cent since the beginning of the month.
The sharp rise has coincided with the approval of 11 spot ETFs for bitcoin in the US last month, which has allowed retail buyers to invest in the digital currency right off the exchange without having to buy actual bitcoin and worry about storage and remembering passkeys.
Analysts predict the price of bitcoin is only going to rise further with more cash inflows to these ETFs.
"Whether this pace will be sustained remains to be seen but in crypto, price often drives flow," analysts at crypto liquidity provider B2C2 told Reuters.
"One has to imagine that if there are more days like the last few, large inflows will be met by further price rises for spot (bitcoin)."
The ETF boom has brought some cheer to the years-long gloom in the cryptocurrency market, exacerbated in great part by fall of trading exchange FTX and bust of NFT cult.
Comments