Bitcoin soared to its highest value since December 2021, fueled by the historic introduction of U.S.-based ETFs for the digital currency.
This leap saw the cryptocurrency climb 2.1%, reaching $49,130, beating the early year’s peak after January’s ETF approvals.
Bitcoin now aims for a seventh straight day of gains, its longest run since January 2023.
On January 11, nine spot Bitcoin funds debuted in the U.S., pulling in $9 billion from investors.
Among these, BlackRock Inc. and Fidelity Investments led with their ETFs, quickly becoming the most successful in terms of assets gathered within their first month.
Caroline Bowler, CEO of BTC Markets, highlighted on Bloomberg TV the increasing institutional investment in Bitcoin.
The same day these funds launched, the Grayscale Bitcoin Trust, a major Bitcoin portfolio, transitioned into an ETF.
This change slowed the outflows from Grayscale, with the collective ETFs amassing $2.8 billion.
The excitement around ETFs triggered a Bitcoin rally last year, momentarily pushing its price over $49,000.
After a brief $10,000 dip as profits were taken, the price is eyeing the $50,000 mark again, a pinnacle last achieved in 2021.
April’s anticipated Bitcoin “halving” also plays a role in the current optimism, cutting the miners’ Bitcoin rewards in half.
This event traditionally supports price increases. The Lunar New Year holidays add to this positive sentiment, as noted by Fundstrat Global Advisors.
However, Bitcoin’s current price is still $20,000 short of its 2021 peak, a time marked by bullish trends and easy monetary policies.