Bitcoin has once again surpassed $70,000, as enthusiasts seem to be unfazed by last week’s outflows from US exchange-traded funds. This marks a return to the bullish trend for the largest cryptocurrency.
According to recent data, most digital assets are seeing gains on Monday. Bitcoin has risen by 7.1% to reach $70,816, while Ether is up by 6%. Other popular cryptocurrencies such as Solana and Dogecoin have also seen a rise of over 4%.
Last week, around $900 million was withdrawn from ETFs, indicating a continued trend of outflows. This was also reflected in the moderation of subscriptions for Grayscale Bitcoin Trust and BlackRock. Fidelity Investments and other funds in the group of ten also had a slow start to the year.
Nathanaël Cohen, co-founder of digital-asset hedge fund INDIGO Fund, believes that the market is still eager to buy the dip, despite the drag in ETF inflows. He emphasizes the importance of lower levels to generate momentum for a higher rally.
ETFs have been a major driving force behind the historic rally of Bitcoin this year, as they have brought in a wider range of investors. However, the significant outflows last week led to more hedging among traders and liquidations in the leveraged bullish bets in the crypto futures market.
The growing interest in cryptocurrencies can also be seen in the rising number of companies involved. For instance, the price of Bitcoin proxy MicroStrategy has increased by 20%, while Coinbase Global and Marathon Digital have seen a rise of 9% and 5%, respectively.
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