Bitcoin is back on the bull, with its value having surpassed the milestone of $70,000 for the second time in 2024. The most recent was bagged on Monday with an increase of 7.1% when the markets closed. That took BTC to $70,816. Interestingly, the dominating crypto token has sustained the high as its value dances around $70,806.91, with a jump of 5.22% in the last 24 hours.
The rise in the value of Bitcoin – BTC – is credited to two main factors. These are demand and inflows. For starters, the demand for the token has been on the rise since the approval of 11 applications for the Bitcoin ETF by the US Securities & Exchange Commission.
Many traders welcomed the move, enabling them to trade the token without gaining exposure. Second, the inflow in the ETF has been constant despite the selling pressure from Grayscale. Even though the inflow felt weak in the last 7 days, there has been little change in its growth.
Nathanaël Cohen, the Co-Founder of INDIGO Fund, addresses the situation. Nathanaël Cohen said that even though the inflows hit a drag, there are indications that traders are willing to buy the dip. This means that no matter if the inflow hits a drag, traders are looking for the chance when the token falls down so that they can have BTC in their portfolios.
Advertisement
Strong inflows in the ETF have sparked optimism among the crypto community. Many members are also speculating about the launch of other crypto ETFs. Ether ETF is currently leading the race, with the product estimated to make its way into the market by the end of 2024.
Companies that have based a portion of their activity around crypto have noted an increase in the value of their shares. MicroStrategy, a hardcore advocate of BTC, has seen a rise of 20% in its share value. Coinbase Global and Marathon Digital also jumped by 9% and 5% respectively.
Many cryptocurrencies have marked an uptick in their value. ETH is up by 5.26%, listed at $3,653.91 at the time of writing this article. SOL and DOGE are up by 3.15% and 5.05% in the same order. They are seen exchanging hands at $195.09 and $0.1815, respectively.
The rise is noteworthy, for the last week witnessed a pullout worth $900 million from ETFs. A total of 10 funds reported that to be the worst weeks of the year since they launched the product in January 2024.
Bitcoin value is expected to mark more gains in the next month when Bitcoin Halving concludes. BTC price forecast estimates that the token may end this year at $100,000. Analysts have echoed the sentiment, except they have said that BTC may mitigate uncertainties to land the milestone of $150,000, or $120,000.
Advertisement
The rise in BTC and other cryptos was imminent amid high demands and inflows. The coming days could still be volatile, and investments should only be made per one’s risk assessment.
