Week 7 proved to be an outstanding week for Bitcoin enthusiasts as the cryptocurrency leaped past the $50,000 mark for the first time since Christmas 2021. As Bitcoin surged further and past the $51.000 mark, it also brought the market cap above one trillion dollars again. While many anticipated a continuation of the previous week's bullish momentum, excitement quickly ensued as the week unfolded. Continue reading to delve into the developments of week 7.
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Bitcoin commenced the week at $48,121 and experienced fluctuations throughout, reaching a high/low of $52,660/$47,882. By week's end, Bitcoin settled at $51,856, marking a notable 7.76% increase over the week. Trading volume oscillated between $12 billion and $46 billion.
While pinpointing a singular reason for Bitcoin's resurgence above $50,000 remains elusive, this year's events have overwhelmingly favoured Bitcoin and the broader cryptocurrency market and adoption. Similar to traditional markets and the pricing of assets, Bitcoin's valuation often reflects what one thinks the future will bring. A future which currently appears brighter than ever.
The approval of spot Bitcoin ETFs has opened the doors to a new set of investors - investors with substantial amounts of capital. Notably, leading asset management firms worldwide have spearheaded the launch of these Bitcoin ETFs, underscoring their significance. Insights from industry figures such as Marc Van der Chijs, renowned for his blockchain ventures, suggest that ETF providers are acquiring Bitcoin at a pace surpassing mining outputs due to heightened demand. With the impending halving of miner rewards in approximately two months, this trend is expected to exacerbate Bitcoin's scarcity further.
Hunter Horsley, CEO of Bitwise, articulated on X on February 15th how the advent of Bitcoin ETFs has democratized access to the cryptocurrency: "Much like an IPO, the Bitcoin ETFs have opened up access to Bitcoin to the vast capital markets for the first time. A new chapter of price discovery is starting - and we may discover Bitcoin has been widely undervalued. Going to be an exciting year.".
It's crucial to acknowledge that despite the availability of ETFs, many investors and managers remain cautious, awaiting comprehensive analysis of the now available ETFs. Additionally, uncertainties persist regarding the suitability of investment mandates for investing in these spot Bitcoin ETFs.
In essence, the period leading up to the Bitcoin halving looks to be very exciting, marked by anticipation and intrigue in terms of how Bitcoin will act leading up to the event itself.
This text is intended to inform and is not an investment recommendation.
Best regards,
Adam Jakobsen.
NBX.
