Bitcoin Surpasses $49,000 Milestone Following Launch of Cryptocurrency ETF Trading
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The valuation of Bitcoin soared to nearly $49,000, marking a milestone since the creation of Bitcoin exchange-traded funds (ETFs).
Coin Desk has reported that the digital currency’s price reached $49,000 on Monday, bolstered by substantial inflows into spot Bitcoin ETFs in the preceding week.
In the previous month, Bitcoin’s price surged to $49,058.48 following the approval of spot Bitcoin ETFs.
Prior to these ETFs, Bitcoin had not breached the $48,000 mark since March 2022.
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Earlier today, Bitcoin achieved a new high
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ETFs offer a simplified method for individuals to invest in various assets or a basket of assets without having to purchase them directly.
Trading Bitcoin, for example, would typically require setting up an account on a cryptocurrency trading platform or managing a digital wallet.
Thanks to ETFs, Bitcoin has become more accessible to the wider public, with the ability to trade it like a stock on exchanges.
Trading volume and sentiment for Bitcoin has recently been subdued due to market anxiety over significant outflows from the Grayscale Bitcoin ETF.
Additionally, investor worries have heightened over a potential downturn in Bitcoin’s price ahead of an anticipated surge later in 2024.
Nonetheless, the digital currency ended the week 10.76 percent higher, experiencing its most significant weekly gain since December 8, while Ether closed the week with an 8.46 percent boost, its best since January 12, 2024.
Sylvia Jablonski, CEO and Chief Investment Officer at Defiance ETFs, highlighted a renewed “optimism” regarding Bitcoin’s prospects.
Following the recent ETF approvals by the U.S. financial regulators, the cryptocurrency experienced a surge.
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Jablonski observed: “Bitcoin’s recent price increase can be linked to the fresh capital flowing into spot ETFs, anticipation surrounding the upcoming halving event—which often leads to an optimistic market response as prices typically soar afterward—and the overall market momentum.”
She noted that recent positive trends in the U.S. economy have also played a role in Bitcoin exceeding the $48,000 mark.
The investment strategist elaborated: “Historically, there has been a correlation between Bitcoin and technology stocks. With interest rates falling, inflation declining, earnings growing, and indices like the S&P 500 reaching new levels, the appetite for risk within this asset class is likely to improve.”
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