Bitcoin‘s price fell to $50,625, and such a correction was expected. Most experts had written that this would happen soon. Those who remember the articles from Friday will be aware that we warned on COINTURK about such a move due to weakened weekend volumes and the price struggling to make new highs. So what’s happening now? Why is Bitcoin rising again?
Why Is Bitcoin Rising?
Investors have good reasons, and the data confirms this. Spot Bitcoin ETFs, which made it possible to invest in Bitcoin through the US stock markets, were a significant milestone. Many stock investors and crypto enthusiasts found the opportunity to invest in Bitcoin through ETFs. This was a big move as it eliminated asset custody risks and provided convenience to investors familiar with traditional finance.
Between February 12 and February 16, spot Bitcoin ETFs saw a net inflow of $2.2 billion, painting a better picture compared to January. According to Bloomberg analyst Eric Balchunas, the total volume was beyond that of the 3,400 ETFs in the US. We also mentioned that it had the best launch performance in its field among 5,500 ETFs.
Cryptocurrency investors fundamentally expect the strong inflows into spot Bitcoin ETFs to continue, hence the ongoing increase in BTC price demand. Profit-taking is quickly balanced, and for now, the price is avoiding much deeper lows.
What’s Next for Cryptocurrencies?
According to data from BitMEX Research, BlackRock’s IBIT fund saw a net flow of $1.6 billion in just 5 trading days recently. Among Bitcoin funds with billions of dollars in assets, Fidelity’s FBTC hosted nearly $650 million in net inflows over the last five trading days. All this suggests that the positive trend for cryptocurrencies should continue this year.
Moreover, we are seeing these figures despite a total outflow of nearly $10 billion from GBTC as of January 10. It is certain that the new ETFs have been one of the factors triggering Bitcoin’s recent price increases, and we will see them being supportive throughout the year.
Despite intermediate corrections in Bitcoin and altcoins, as long as the upward trend continues, just as we went to $15,500 during bear markets, this time we need to reach extreme highs in the opposite direction.
