Bitcoin (BTC) surged above $46,000 on Friday, marking its highest level in a month. The recent uptrend in the cryptocurrency’s price is attributed to steady inflows into various spot-based US funds and anticipation surrounding the upcoming halving event in April. BTC last traded around $46,246, registering a 7.3% increase over the past week.
New spot Bitcoin ETFs have garnered significant interest, witnessing 10 consecutive days of net inflows, totaling $8 billion as of this week, indicating robust investor demand.
This trend is further highlighted by the strong performance of two major funds. In January, BlackRock and Fidelity’s ETFs were among the top 10 with the highest inflows.
According to a recent Morningstar report, BlackRock’s iShares Bitcoin Trust (IBIT) ranked eighth with approximately $2.6 billion in net flows, while Fidelity Wise Origin Bitcoin ETF (FBTC) secured the 10th spot with $2.2 billion in net flows.
Ahead of the Chinese New Year on Feb. 10, Bitcoin historically experiences an 11% rally, noted Markus Thielen, head of research at 10X Research. Thielen mentioned that Bitcoin has shown a 100% success rate in rallying during this period over the past nine years.
Rachel Lin, CEO and co-founder of Singapore-based derivatives DEX SynFutures, highlighted the significance of Bitcoin closing above $44,000 for the week, considering it as a bullish sign. Lin also emphasized the importance of Bitcoin breaking above the resistance zone of $46,700 – $46,800 for sustained positive momentum.
Alex Kuptsikevich, a senior market analyst at FxPro, identified Bitcoin’s rise above its 50-day moving average as a bullish signal, alleviating concerns about a major correction. He noted that Bitcoin has exceeded its December-January closing levels on a weekly basis, indicating a strengthening bullish trend.
Another factor contributing to Bitcoin’s upward trajectory is the growing accumulation by major investors, or “whales,” as evidenced by significant transactions observed on the blockchain. Additionally, the upcoming halving event in April, which reduces the reward for miners, is also driving positive sentiment in the market.
Personal finance site Finder predicts that Bitcoin could reach a peak of $88,000 in 2024, with half of its experts anticipating a new all-time high six months following the halving event. Pav Hundal, lead market analyst at Swyftx, emphasized the increasing scarcity of Bitcoin due to the halving, which could drive its price higher in the future.