Bitcoin breaches US$64,000 briefly as ETF demand lures traders

BITCOIN rose for the second straight day and marched nearer to its all-time excessive, pushed by expectations of exchange-traded funds (ETFs) sturdy demand on the week’s begin.

The most liquid cryptocurrency rose to as a lot as US$64,279 – its first transfer above US$64,000 since November 2021 – earlier than trimming again to US$63,622 as at 9.20 am Singapore.

At the center of this frenzy lies seemingly insatiable demand for the most important crypto token from the US-listed Bitcoin ETFs, which started buying and selling on Jan 11. Bitcoin has jumped about 186 per cent within the final 12 months.

“Given the low liquidity over the weekend, markets are moving north in anticipation that tonight’s ETF inflows will continue and prices will continue to rally,” mentioned Hayden Hughes, co-founder of social-trading platform Alpha Impact.

Net inflows of US$7.35 billion have been invested for the reason that debut of the US Bitcoin ETFs, provided by a batch of funds together with BlackRock and Fidelity Investments.

Traders are betting on the worth to quickly cross the file of just about US$69,000, reached through the Covid pandemic, given the ETFs’ sturdy demand and concern of lacking out forward of Bitcoin halving, which is anticipated later this 12 months. After halving – when the reward for mining is lower in half – the availability progress of the coin might come down, including to the demand squeeze.

“Crossing the psychological threshold of Bitcoin’s previous all-time high may take time, but it should only be considered a matter of time until we cross that level given the halving and positive sentiment,” Hughes mentioned.

Other comparatively small tokens, together with Ether and Solana, additionally had been up Monday by 0.15 per cent and 1.82 per cent respectively. BLOOMBERG