On Monday, the price of the largest crypto asset by market value rose above the $50,000 mark for the first time since the end of 2021. At its peak, Bitcoin rose to $50,091 (46,501.11 euros). This is the highest level since the end of 2021, a little over two years. In a daily comparison, the price gains were around $1,900 or 3.9 percent. Other digital stocks such as Ether also rose significantly.
Bitcoin funds are bearing fruit
Bitcoin has been benefiting from increasing interest for several days now. Apparently the introduction of special Bitcoin funds is becoming increasingly noticeable. These funds were approved by the US Securities and Exchange Commission in January, but this only led to short-term price euphoria. “The launch of the ETF investment vehicles is now beginning to bear fruit,” commented crypto expert Timo Emden from Emden Research. “The capital inflow is grist for the investors’ mill.”
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The approved spot ETFs on Bitcoin are novel because they allow investors for the first time to invest in Bitcoin without having to directly purchase the digital currency itself. According to calculations by the Bloomberg news agency, the new funds received around $2.8 billion net in the last 30 days. The gross amount is significantly higher, but this also involves reallocations within the crypto industry.
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Next halving in April
Another upcoming event also makes investors look positively on Bitcoin: the next so-called “Halving” is scheduled for April. This reduces the reward that Bitcoin miners receive for verifying crypto transactions. Ultimately, the process leads to a slower growing supply of Bitcoin, which has so far mostly led to rising prices.