bitcoin, It surpassed $50,000 for the first time since late 2021. cryptocurrency It took the wind from its rallies and gained over 17% last month. A significant portion of these inflows are attributed to the recent approval of spot Bitcoin ETF offerings, sparking debate about the sustainability of Bitcoin’s current upward trajectory.
Since the U.S. Securities and Exchange Commission (SEC) gave the green light to spot BTC ETFs a month ago, the funds have received nearly $3 billion in inflows, according to data from CoinShares. The approval of these ETFs was a game changer, attracting the attention of both institutional and retail investors.
Sean Farrell, Head of Digital Asset Strategy at Fundstrat Global Advisors, highlighted the importance of bringing BlackRock into play, highlighting the demand for low-cost liquid products that track BTC. Farrell noted that the ETF approval has unleashed significant demand and supported Bitcoin’s price increase.
Dante Cook, Head of Swan Business at Swan Bitcoin, echoed Farrell’s views, saying that while ETF inflows were a major driver behind Bitcoin’s rise, other factors were also at play. Cook emphasized the historical significance of ETF launches, with products such as FBTC and iBIT achieving unprecedented success, reflecting the massive influx of institutional and individual demand.
Cook also talked about Bitcoin’s unique characteristics, likening it to a commodity with a limited supply and high beta that rallies when liquidity is injected into the market. Emphasizing the correlation between Bitcoin’s price and global M2 liquidity, Cook suggested that factors such as possible interest rate cuts by the FED could further accelerate Bitcoin’s rise.
When asked about the future course of Bitcoin price, Farrell offered a bullish outlook in the near to medium term, citing a constructive macroeconomic backdrop despite potential turmoil. He said he is confident in the continued rise, underlining Bitcoin’s resilience amid negative long-term macro variables.
However, both analysts acknowledged that Bitcoin has macroeconomic risks that could challenge its upward momentum. Cook emphasized the importance of closely monitoring global economic indicators and government policies and stated that the Bitcoin price may be affected by factors such as FED interest rate cuts and general market liquidity.
*This is not investment advice.
For exclusive news, analysis and on-chain data Telegram our group, twitter our account and YouTube Follow our channel now! Moreover Android And iOS Start live price monitoring now by downloading our applications!