Bitcoin-based exchange-traded funds (ETFs) had a particularly timid launch, and the expected rise in the cryptocurrency’s value did not materialize in those early moments. However, although the impact seemed to be zero in those early days, things have now changed as Bitcoin is on an uptrend not seen in more than two years.
ETFs are encouraged. Yesterday, Monday, volume of movements in ETFs and bitcoin trading It was extraordinary: The fund group broke its record with $2.4 billion in trading volume, slightly exceeding the volume at the funds’ launch on January 11, but double the volume that occurred on average after that event. This had a powerful effect.
In September 2023, one bitcoin was worth about $25,000. Today its value is more than double. Source: CoinMarketCap.
Bitcoin is almost at $57,000. The cryptocurrency, which was hovering below $52,000 last week, began to rise steadily and approached $57,000, a level that has not been reached since November 2021, once again reinforcing the cryptocurrency’s upward trend.
contagious rises. As is usually the case, the rise in Bitcoin’s value has spread to other cryptocurrencies, with a 6.41% rise in Ethereum (currently $3,250) compared to a 10.39% rise in Bitcoin over the past 24 hours, according to CoinMarketCap. It is accompanied by an increase of 9.76%. There were increases in Solana’s 4.81%, Ripple’s (XRP) and even memecoins like Dogecoin (11.46%).
But there are losers too. According to CoinDesk, those who bet that the value of Bitcoin would fall and opened short positions in this cryptocurrency are losing a lot of money: $150 million in the last few hours. Even so, there are those who hope that Bitcoin’s traditional volatility will cause this currency to drop significantly again soon. As always, it’s impossible to know.
Market sentiment is positive. Analysts such as Lolli founder Alex Adelman noted that “major price movements are driven by positive market sentiment and persistent Bitcoin ETF inflows.” He also emphasized that “this decisive rise in Bitcoin marks the actual beginning of a new bull market.”
apparent halving. There is another factor that could affect this rise: the proximity of the Bitcoin halving, which has caused significant increases in value before. Potential interest rate cuts in the US also favor cryptocurrencies like Bitcoin; risky investments offer a potentially higher reward (but also losses, of course), and everything else seems to contribute to this trend.
The European Union is completely against. Meanwhile, a recent note from the ECB showed the European Central Bank’s position. Authorities emphasize that the approval of ETFs in the US “does not change the fact that Bitcoin is not suitable as a payment method or investment.” Those responsible for the report state that since Bitcoin does not provide any cash flows or other returns, the “fair value of an asset is zero.” They talk about price manipulation and even emphasize that Bitcoin “funds evil”, but at the moment these accusations do not seem to affect interest in the cryptocurrency.
Image | traxer
in Xataka | Bitcoin’s market value exceeded $1 trillion. It is already the tenth most valuable asset in the world.
Source: Xataka
Jason Root is a blockchain enthusiast and author at Div Bracket. He provides comprehensive coverage of the latest developments in the world of blockchain, offering readers a unique perspective on the industry and its potential for revolutionizing various industries.
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