“Bitcoin Surges Past $50,000 Mark, Highest Since December 2021
Bitcoin experienced a remarkable rally on Monday, reaching its highest price level in over two years as it surpassed the $50,000 milestone. This surge not only boosted the value of cryptocurrencies but also had a positive impact on related stocks. Companies like Coinbase and bitcoin ETFs witnessed significant gains, while bitcoin miner Marathon Digital (MARA) saw a substantial increase in its stock price.
During Monday afternoon trading, bitcoin traded above $50,200, briefly touching $50,314 earlier in the day—its highest level since December 2021. Notably, bitcoin had previously spiked to $49,000 on January 11, coinciding with the launch of ETFs, but later retreated to its early December 2023 levels following the SEC announcement. Nevertheless, bitcoin has seen an impressive increase of over 18% since the beginning of this year.
Meanwhile, Ethereum, another prominent cryptocurrency, hovered around $2,650, marking four-week highs and showing a 15% increase since the start of 2024. The crypto exchange Coinbase (COIN) also experienced a notable surge of 3.8% on Monday, reclaiming its position above the 50-day moving average. Similarly, Marathon Digital stock surged by 14.2%, reaching levels close to those seen in late December.
Overall, the recent surge in bitcoin’s price and the accompanying rally in related stocks indicate growing investor interest and confidence in the cryptocurrency market, setting a positive tone for the industry in 2024.”
Bitcoin ETF Performance
“Bitcoin ETFs Surge, BlackRock’s iShares Bitcoin Trust Leads in Inflows
During trading, spot bitcoin ETFs witnessed a significant jump of more than 5.5%, following a 4% increase on Friday. Among these ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) emerged as the top performer in terms of fund inflows since the launch of spot bitcoin ETFs on January 11. According to BitMEX Research data, IBIT attracted approximately $3.75 billion in inflows by the end of February 9. Following closely behind is the Fidelity Wise Origin Bitcoin Fund (FBTC) with $3 billion in inflows.
On Friday, the ARK 21Shares Bitcoin ETF (ARKB) surpassed the Bitwise Bitcoin ETF (BITB) in terms of inflows. ARKB recorded total inflows of $918.5 million as of February 9, while BITB saw inflows of $785.8 million. Despite these impressive figures, the Grayscale Bitcoin Trust (GBTC) experienced outflows amounting to approximately $6.38 billion as of February 9, although the pace of outflows has slowed down recently.
Nonetheless, Grayscale remains the leader in terms of assets under management, boasting $22.12 billion, followed by iShares Bitcoin Trust with $4.18 billion.
Despite the outflows from GBTC, the new ETFs collectively attracted $2.65 billion in inflows since their launch, as reported by BitMEX research. This influx of funds into bitcoin ETFs reflects growing investor interest and confidence in the cryptocurrency market.”
“Bitcoin’s Future in 2024: Trends and Predictions
Bitcoin is poised for significant developments in 2024, with key events like the upcoming halving event in April and the surge in institutional participation following the launch of ETFs.
According to Joel Kruger, market strategist at LMAX Group, mainstream adoption will be the most crucial factor driving Bitcoin’s trajectory. With the approval of bitcoin spot ETFs, traditional institutions are expected to actively promote bitcoin’s value proposition.
However, Kyle DaCruz, Director of Digital Assets Products at VanEck, believes that the full impact of institutional inflows is yet to be realized. VanEck’s spot bitcoin ETF, the VanEck Bitcoin Trust (HODL), has already attracted significant attention, recording over $75.5 million in inflows since its launch and managing $161.7 million in assets as of February 9, according to BitMEX.
Despite the growing interest, many financial advisors still lack access to these ETFs due to platform requirements and due diligence processes. DaCruz notes that once accessibility increases, there could be a substantial unlocking of potential investments from the multitrillion-dollar financial advisor market.
Overall, the convergence of these trends indicates a promising outlook for Bitcoin in 2024, as it continues to evolve and gain traction in mainstream financial markets.”
