Bitcoin Surges Past $56k on Sustained ETF Inflows
Bitcoin Price Surges on ETF Inflows
Bitcoin prices surged past key levels driven by sustained capital inflows into spot exchange-traded funds. This surge was fueled by signs of continued investment into ETFs launched earlier this year.
Bitcoin Hits Highest Level in Two Years
The world’s largest cryptocurrency soared 8.1% to $55,621.5, reaching its highest level in over two years. It now stands just under $14,000 away from its all-time high achieved during the 2021 bull run.
Ethereum Follows Bitcoin’s Lead
The second-largest cryptocurrency, Ethereum, also climbed 3.6% to $3,217.48, its highest level since early 2022, following Bitcoin’s upward trajectory.
Report Shows Continued Inflows into Crypto Products
A report by Coinshares revealed that crypto investment products experienced a fourth consecutive week of capital inflows. Digital asset investment products saw a weekly inflow of $598 million by February 23, with Bitcoin ETFs leading the way.
Rising Interest in Bitcoin
Short interest in Bitcoin began to build as prices surged, with the token up around 24% in 2024 after doubling in value throughout 2023. Companies like MicroStrategy Incorporated also announced significant Bitcoin purchases, further boosting the cryptocurrency’s value.
Bitcoin’s Rally Fueled by ETF Approvals
Bitcoin’s impressive rally this year was largely driven by the recent approval of ETFs directly tracking its price. While institutional capital flowed into Bitcoin, retail trading volumes remained subdued amidst industry challenges.
Impacts on Crypto Stocks
The surge in crypto prices had a ripple effect on crypto-related stocks, with companies like Coinbase Global Inc, Marathon Digital Holdings Inc, and MicroStrategy Incorporated witnessing substantial increases in their stock values.
