Bitcoin Surges to One-Month Highs
Bitcoin Rises Ahead of Halving Event
Bitcoin has surged 5% to reach one-month highs, driven by a surge in buying activity before April’s halving event and a slowdown in outflows from exchange-traded funds, according to analysts.
Bitcoin Hits $47,705
The cryptocurrency soared to a session peak of $47,705, the highest level since January, following regulatory approval for the first U.S.-listed spot bitcoin exchange-traded products. Ether also saw a 2.5% increase to $2,486.
Bitcoin Gains 10% in a Week
The world’s largest cryptocurrency is currently up by 3.5% at $46,946, on track for a 10% weekly increase, the highest since October. This surge comes after a drop in bitcoin prices following the approval of ETFs by the Securities and Exchange Commission.
Bitcoin Resumes Upward Trajectory
Despite pressure from profit-taking after the SEC’s approval of ETFs, bitcoin has resumed its upward trajectory, diverging from the trend in other financial markets. Stocks, bonds, and gold have rallied in recent weeks, but bitcoin has seen a resurgence.
Bitcoin Rallies Ahead of Halving
Analysts attribute the recent price surge to a slowdown in ETF outflows and increased buying activity in anticipation of April’s halving event. The next halving is expected to take place in April, designed to slow the release of bitcoin by halving the reward for producing tokens.
Historical Trends and Halving Cycles
Bitcoin prices have typically rallied following halvings, with significant price jumps in the months that follow. Additionally, bitcoin tends to perform well during U.S. election years, coinciding with halving cycles in 2012, 2016, and 2020.
ETF Outflows Ease
QCP Capital noted that ETF outflows have eased, particularly from the Grayscale Bitcoin ETF, which supports spot crypto prices. This comes after significant outflows in the weeks following the approval of ETFs by the SEC.
Rise in the Dollar
Despite the recent rise in the dollar affecting crypto prices, analysts believe the impact is likely to diminish in the near future.