This recent surge can be attributed to familiar bullish factors that have supported the prices in previous weeks, including substantial inflows into Bitcoin ETF spot funds.
BlackRock’s iShares Bitcoin Trust (NASDAQ:IBIT) set a volume record for the third consecutive day, with shares worth around $3.3 billion changing hands in a single day.
This is over twice the previous record of $1.35 billion set on Tuesday, which itself surpassed the Monday record of $1.3 billion.
Ten BTC spot ETF funds recorded a total trading volume of $7.7 billion, surpassing the previous record of $4.7 billion set on January 11, the first day of trading.
Eric Balchunas, an ETF fund specialist at Bloomberg, described these numbers as “absurd” and labeled them “madness” in a post on X.
Source: Eric Balchunas
It appears that this success will likely grow even further as Wall Street giant Morgan Stanley also plans to add Bitcoin ETF products to its brokerage platform.
While billions of dollars have already been invested in these products, their availability through major registered investment advisor (RIA) networks and broker-dealer platforms, such as those associated with Merrill Lynch, Morgan Stanley, Wells Fargo, and others, may further amplify this success.
Bitcoin’s price rally and the success of BTC ETF funds are also linked to the anticipation of the upcoming halving in April. This event, which occurs approximately every four years and involves a 50% reduction in mining revenues, has historically had a strong impact on Bitcoin, both in anticipation and aftermath.
In addition to ETFs and halving, it’s worth noting that Bitcoin benefited from slightly lower-than-expected U.S. GDP yesterday, which revived expectations for a Federal Reserve interest rate cut. In this context, Thursday’s expected PCE price index may have an even greater impact on these expectations.
Finally, from a chart perspective, the initial crucial support for Bitcoin is the $60,000 threshold, but a correction could go much lower without questioning the bullish sentiment, given the recent surge. Therefore, any BTC declines can be considered buying opportunities, as long as the cryptocurrency does not drop below $55,000.
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This article was originally published here.
