(PatriotNews.net) – Bitcoin, the digital currency that everyone’s been buzzing about, has surged past the $60,000 mark, getting closer to its record high of $68,991 in November 2021. The latest boost came after the US Securities and Exchange Commission (SEC) gave the green light to Bitcoin exchange-traded funds (ETFs) in January. These ETFs, tracking Bitcoin’s value, make it easier for institutional investors, especially older Americans, to dip their toes into the cryptocurrency market.
Since the SEC’s approval, the 11 ETFs in the market have seen a net inflow exceeding $5.2 billion, as reported by Bloomberg. Philippe Bekhazi, CEO of crypto firm XBTO, expects this continuous investment in ETFs to keep driving up Bitcoin’s value. He anticipates that the ongoing rally will persist, given the upcoming ‘halving’ in April, where the rate of Bitcoin mining and circulation will be halved, reducing its supply.
Bitcoin’s surge above $60,000 signifies a strong comeback from the crypto market’s winter. The approval of Bitcoin ETFs by the SEC in January acted as a catalyst for Bitcoin’s resurgence, drawing broader interest in the sector. The digital token has climbed over 6% in a day, putting it within striking distance of its all-time high.
The cryptocurrency market, previously in a slow recovery, gained momentum with the SEC’s approval of a spot Bitcoin ETF. This move marked a significant shift for SEC chair Gary Gensler, who had been critical of cryptocurrencies for years. Investors gained confidence from this regulatory endorsement, propelling the market forward.
According to Antonio Ernesto Di Giacomo, a market analyst, and Zach Pandl, Head of Research at Grayscale, the regulatory backing has boosted investor confidence, creating new momentum for crypto assets. The surge in interest, particularly in spot ETFs, has led to a daily influx of nearly $200 million this month, according to Grayscale data.
With Bitcoin’s current rally, hitting levels not seen since November 2021, and growing demand colliding with limited supply, the cryptocurrency market continues to captivate investors’ attention. For those keen on following the cryptocurrency market’s evolving narrative, subscribing to Axios Crypto is recommended.
Copyright 2024, PatriotNews.net
