Bitcoin hits a one-month high above $46,000, supported by signs of steady inflows into a series of US Bitcoin funds and increased attention to the so-called halving scheduled for April. reached.
As of 11:06 a.m. Friday in Singapore, the largest digital asset was up about 2% to $46,166, taking its 2024 gain to about 9%. Smaller tokens such as Ether, Solana, and Cardano also rose.
Nine U.S. spot Bitcoin exchange-traded funds debuted on January 11, with the more than 10-year-old Grayscale Bitcoin Trust converting to an ETF on the same day. Ease of access to ETFs is expected to widen the token investor base. The new fund has raised a net $8 billion so far, but the $6 billion in outflows since its conversion from the Grayscale fund are now losing momentum.
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“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. He said the “halving story” is gaining momentum and could push Bitcoin above $50,000 in the coming weeks.
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.
Previous halving events have been “preceded by strong bull markets,” the team, which includes DBS Bank chief economist Taimur Baig, wrote in a note. “There is a simple economic reason for prices to rise. As mining rewards decrease, the price of mining output (i.e. Bitcoin) will increase to compensate and to avoid causing a withdrawal of computational resources by miners. We need to rise,” the team said.
Bitcoin remains about $23,000 below the all-time high the token hit in 2021 during the pandemic-era easy money bull market.
© 2024 Bloomberg
