Bitcoin continued its upward trajectory for the second consecutive day, edging closer to its all-time high, fueled by mounting anticipation of robust demand for exchange-traded funds (ETFs) at the beginning of the week. The most widely traded cryptocurrency surged to as high as $64,279, marking its first breach of the $64,000 level since November 2021, before retracting to $63,622 as of 9:20 a.m. Singapore time.
Driving this surge is the seemingly unquenchable demand for Bitcoin, particularly from US-listed Bitcoin ETFs that commenced trading on January 11. Over the past 12 months, Bitcoin has skyrocketed by approximately 186%, capturing the attention of traders and investors alike.
Hayden Hughes, co-founder of the social-trading platform Alpha Impact, remarked, “Given the low liquidity over the weekend, markets are moving north in anticipation that tonight’s ETF inflows will continue and prices will continue to rally.”
Since the launch of US Bitcoin ETFs, including offerings from BlackRock Inc. and Fidelity Investments, net inflows totaling $7.35 billion have been recorded, reflecting significant investor interest in gaining exposure to Bitcoin through traditional financial instruments.
Traders are optimistic about Bitcoin’s price surpassing its previous record of nearly $69,000, achieved during the Covid pandemic. The strong demand for ETFs and the fear of missing out ahead of Bitcoin halving, anticipated later this year, are driving speculative bets on further price appreciation. Bitcoin halving, which involves cutting the mining reward in half, is expected to reduce the coin’s supply growth, intensifying demand pressures.
Hughes noted, “Crossing the psychological threshold of Bitcoin’s previous all-time high may take time, but it should only be considered a matter of time until we cross that level given the halving and positive sentiment.”
In addition to Bitcoin’s rally, other relatively smaller tokens, such as Ether and Solana, also experienced gains on Monday, with Ether rising by 0.15% and Solana by 1.82%. These movements underscore the broader bullish sentiment prevailing in the cryptocurrency market.
