Bitcoin crosses $50k as market momentum grows

Bitcoin topped $50k for the first time since 2021

February 12, 2024 12:24 pm

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Bitcoin’s price topped $50,000 on Monday, a level not seen since 2021.

Bitcoin has been rallying since last week, posting record highs as the bitcoin ETF outflows slowed.

The ETFs, which received regulatory approval in the US last month, posted net inflows of $1.1 billion last week, according to CoinShares. Since the funds launched, they’ve seen $2.8 billion of inflows.

Last week, Fidelity’s bitcoin ETF hit $3 billion in assets, a milestone passed by BlackRock earlier this month.

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The outflows have primarily been out of Grayscale’s bitcoin ETF, which was converted from the firm’s bitcoin trust. Last week, GBTC saw outflows of $415 million. Outflows touched $900 million the week prior.

“Given the lack of any clear catalyst to explain the BTC move over the past few days, what we are probably seeing is a pick-up in accumulation for the aforementioned reasons as well as the continued spread of Bitcoin awareness as the ETF marketing machines do their thing,” Crypto Is Macro Now author Noelle Acheson wrote in her newsletter Monday morning.

Acheson further noted that “signs of longer-term accumulation have been building for some time.”

Aside from the bitcoin ETFs, the halving is set to take place in April. The reward per block will go to 3.125 bitcoin, down from 6.25 bitcoin. The last halving took place in 2020.

Blockworks previously reported that bitcoin’s price has rallied more than it had the last two halvings, propelled by the bitcoin ETF buzz. The 2024 halving is the fourth such event to take place in bitcoin’s history.

“The continued adoption of Bitcoin ETFs could significantly absorb sell pressure, potentially reshaping Bitcoin’s market structure by providing a new, steady demand source, which is positive to price,” Grayscale’s Michael Zhao wrote in a note last week.

“Bitcoin is not just surviving; it’s evolving,” Zhao added.

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