Amidst regional bank struggles, Bitcoin (BTC/USD) surged past $45,000, seizing upon bullish momentum to climb 3.7% in the day.
Bitcoin’s Milestone: The cryptocurrency soared over $45,000 for the first time since the spot exchange-traded funds (ETFs) gained approval on Jan. 10. CoinGlass data revealed an 11.5% surge in open interest to reach $20.2 billion in the past 24 hours.
What catalyzed the surge?
- Wallets holding over 1,000 Bitcoin hit a 14-month high.
- A substantial $8.05 billion inflow deluged spot ETFs, with net inflows excluding GBTC outflows standing at $1.83 billion.
Significance: Bitcoin’s surge defied New York Community Bancorp’s over 10% trading loss, raising questions about whether investors lean towards Bitcoin as a hedge against uncertainty.
Following ETF approvals, Bitcoin is infiltrating mainstream culture, evidenced by crypto-related ads gracing digital billboards in Times Square.
Positive Outlook:
Proponents anticipate an explosive move to $50,000 after Bitcoin flipped the crucial $45,000 level. Investor Fred Krueger forecasts an all-time high before March-end due to the upcoming Bitcoin halving in April 2024. He also noted ETFs are on the brink of surpassing MicroStrategy in Bitcoin holdings, less than 30 days after their inception, suggesting ETFs are consuming every other asset class globally, akin to “having Bitcoin for dessert.”
Strategic Perspectives: Bloomberg Senior ETF analyst Eric Balchunas posits that the next wave of ETF Bulls includes investors from Canada, Europe, and China. Crypto Slate lead analyst James Van Straten underscores any Bitcoin drop as short-lived, projecting a resumption of its upward trend.
Beyond Bitcoin: Ethereum trades 1.6% higher amidst bullish market sentiment and speculation surrounding the spot Ether ETF decision in May.
Read Next: Bitcoin Halving Could Make 9 Of 11 Largest Public Miners Unprofitable: Analyst
Image: Pixabay
