Bitcoin Price: On Friday, the price of Bitcoin (BTC) surpassed $46,000, reaching its highest point in a month.
The expectation surrounding April’s halving event and consistent inflows into different spot-based US funds are what have fuelled the cryptocurrency’s recent surge. It has increased by 7.3% over the past week and was last traded at $46,246.
fresh location With ten days in a row of net inflows for Bitcoin ETFs, which as of this week had reached $8b, the market is clearly very interested in these products.
Two major funds’ noteworthy performance serves as more evidence of this trend. ETFs from Fidelity and BlackRock ranked in the top 10 with the largest inflows in January.
With roughly $2.6 billion in net flows, BlackRock’s iShares Bitcoin Trust (IBIT) came in eighth place, according to a recent Morningstar report. With $2.2 billion in net flows, the Fidelity Wise Origin Bitcoin ETF (FBTC) came in at number ten.
The Performance of Bitcoin During Chinese New Year
The biggest cryptocurrency usually sees an 11% rally around Chinese New Year, beginning on February 10, so the next few days are statistically significant, according to Markus Thielen, head of research at 10X Research.
“In the past nine years, Bitcoin has increased each time traders have purchased it three days prior to the start of the Chinese New Year and sold it ten days later,” the man stated. “This represents a 100% hit ratio.”
“There is no doubt that the ETF flows have had an effect, and the US continues to hold the largest capital pools, and we are seeing inflows from US institutions,” he continued.
Since March 2022, Bitcoin has not had a weekly close above $44,000, according to Rachel Lin, CEO and co-founder of Singapore-based derivatives exchange SynFutures.
Despite multiple occasions in the last two months when Bitcoin crossed that threshold, it was unable to close above it. Thus, by the end of the week, any close above 44,000 can be interpreted as positive, according to Lin.
From a technical and price-action perspective, the majority of the week was relatively uneventful; however, in the past few days, there has been more exciting price action, the speaker continued. It would be intriguing to observe how Bitcoin responds to the resistance area between 46,700 and 46,800. Even on the longer-term chart, a break above that would be very encouraging.
Forecasts for a Record-breaking High After Halving
The increasing interest in Bitcoin from large investors, or “whales,” who are actively accumulating Bitcoin, is fueling the cryptocurrency’s upward trend. Significant transactions are depicted in data from the on-chain analytics platform LookOnChain, including withdrawals from Binance totaling 2,741 BTC, or roughly $118 million, prior to the price spike.
The impending April halving event is another factor driving Bitcoin’s rise. The reward that miners receive for preserving the blockchain’s security is halved during this every four-year event.
Personal finance website Bitcoin is expected to peak at $88,000 in 2024, according to Finder. Within six months of the asset’s halving event, half of Finder’s experts predict it will reach a new record high.
The Bitcoin halving serves as a guide for those in the industry, according to Pav Hundal, lead market analyst at Swyftx. We are aware that Bitcoin will become more rare, even though we are unsure of the geopolitical and economic landscape in 2024.
Senior market analyst at FxPro Alex Kuptsikevich stated that the fact that Bitcoin has risen above its 50-day moving average indicates a bullish trend, which should allay concerns about a significant correction.
Weekly closing levels for Bitcoin have surpassed those from December to January, he said, despite brief price spikes earlier in the year brought on by intra-week volatility. Weekly closes, however, are regarded by market analysts as the more important benchmark.
