Bitcoin rises above $45,000 for the first time in almost a month, driven by US exchange-traded funds (ETFs) that hold the digital currency, on steady cash inflows from investors and rising risk appetite across financial markets did.
The largest cryptocurrency rose as much as 2.2% to $45,150 on Thursday. The last time Bitcoin traded above $45,000 was on January 12, the day after the ETF began trading. The fund was initially weighed down by outflows from the Grayscale Bitcoin Trust, but saw net inflows in nine consecutive trading sessions through Wednesday, according to data compiled by Bloomberg.
“Bitcoin looks poised to resume its rally after grayscale outflows finally subside,” said Caroline Moron, co-founder of Orbit Markets, a digital asset derivatives liquidity provider. Ta.
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“We expect the Bitcoin halving theory to gain traction in the coming weeks, and that's likely due to psychological “This will help us break through the important $50,000 level.” The transaction will be halved.
The quadrennial halving will reduce the amount of bitcoin miners receive to solve complex puzzles and operate the power-hungry computers that protect the network. The halving is key to limiting Bitcoin’s supply to 21 million tokens. In the upcoming event, the reward will decrease from 6.25 coins to 3.125 coins per block.
Digital tokens initially soared early in the year, extending a wild bull market that saw Bitcoin rise nearly 160% in 2023, outpacing gold and stocks. Much of this rise was due to expectations that the SEC would approve the launch of a spot Bitcoin ETF in the US. It implemented this on January 10th, allowing more than a dozen issuers to offer spot BTC ETFs.
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