The price of Bitcoin reached $48,500 on Feb 11th, marking a milestone since the start of spot bitcoin exchange-traded funds (ETFs). The recent rally is partly attributed to a significant inflow of 10,000 BTC inflow into ETFs. The inflow suggests that big investors are gaining more trust in Bitcoin as a real investment.
ETFs allow investors to invest in an asset without directly buying or holding it. Bitcoin ETFs started trading in January 2024 after getting approval from the Securities and Exchange Commission. Since then, they have attracted attention and money from individual and institutional investors.
According to Root, an analysis company, the flow of 10k BTC into ETFs impacts the Bitcoin price, as the chart shows the correlation between the inflow of Bitcoin into ETFs and the price surge of Bitcoin. The increasing BTC inflow into ETFs coincides with the rise in BTC price. The limited or decreasing supply of Bitcoin indicates high demand, likely propelling prices upward.
This bullish outlook comes while supply is tightening. The total number of Bitcoins that can ever exist is capped at 21 million. With over 19 million already available, the amount left is shrinking. This limited supply, along with rising demand, is putting pressure on the price to climb.
BTC Rally: Experts Predict New Highs
Bitcoin’s impressive performance this week comes after a period of low volatility and bearish sentiment caused by factors such as institutional outflows and a post-ETF price correction. However, some experts believe this rally isn’t over yet and Bitcoin could reach new highs soon.
Crypto Rover, a prominent crypto market analyst, believes that Bitcoin could hit its all-time high in 2024.
Sylvia Jablonski, CEO of Defiance ETFs, said the price rise is due to “recent cash flowing into the spot ETFs along with the possibility of the halving and general market energy.” The halving is when the Bitcoin mining reward is cut in half every four years, reducing the supply of new Bitcoins.
According to Tradingview, Bitcoin is currently trading at the price of $48,202, and its market cap sits at $947.02 billion. Over the past 24 hours, BTC price slightly increased by .0.90% and gained 12.50% in last last week.