Bitcoin price recently exceeded $49,000, marking a new high for 2024 at $49,140. After a drop to $38,555 following sales that started on January 11 at $48,969, the price has once again turned upwards. The positive outlook in spot Bitcoin ETFs is a fundamental reason for this rise.
Why Is Bitcoin Rising?
Spot Bitcoin ETF issuers, excluding GBTC, have reserves surpassing $10 billion. Net inflows are over $2 billion, and GBTC sales have fallen from $600 million to $52 million. These factors have laid the foundation for the spot Bitcoin ETF-supported increase. We have often discussed how ETF approvals would support a long-term rise for BTC.
Moreover, experts had stated that even in the short term, significant losses would not be triggered. Although a $5 billion spot sale could have sparked a sell-off on false news, the ETF approval did not resemble other deals, partnerships, or announcements, so the sales did not last long.
Now, it is expected that the Bitcoin price will continue its rise to $52,000 and, with sustained closes above that level, aim for $60,000. Although there hasn’t been a significant increase in altcoins, it is likely that they will also start to rise when BTC begins to consolidate at higher levels.
