The price of Bitcoin has risen to around $49,000 for first time since the launch of the cryptocurrency’s exchange-traded funds (ETF).
Coin Desk reports the cryptocurrency topped $49,000 on Monday after strong spot Bitcoin ETF inflows late last week.
Last month, the flagship cryptocurrency’s price touched $49,058.48 after spot Bitcoin ETFs were approved.
Before the introduction of these funds, Bitcoin’s value had not crossed the $48,000 threshold since March 2022.
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Bitcoin soared to new heights earlier today
An ETF is perceived as an easier way for people to invest in assets or a group of assets without having to directly buy the assets themselves.
Those wanting to trade Bitcoin would have to open an account with a crypto trading platform or adopt a digital wallet.
However, thanks to ETFs, Bitcoin is considered a more readily accessible cryptocurrency to the general public and can be traded on the stock exchange.
In the past two weeks, Bitcoin trading volume and sentiment has been suppressed due to investor concerns about large outflows from the Grayscale Bitcoin ETF.
Furthermore, there has been anxiety among investors about a deeper price pullback ahead of an expected rip later in 2024.
Despite this, the cryptocurrency finished the week up 10.76 per cent for its best week since December 8.
On top of this, Ether finished higher by 8.46 per cent over the period, making it the cryptocurrency’s best week since January 12, 2024.
Sylvia Jablonski, the CEO and chief investment officer at Defiance ETFs, outlined there is renewed “optimism” when it comes to Bitcoin.
The cryptocurrency saw a surge following last month’s ETF approval by the US financial services regulator
She explained: “The recent price appreciation of Bitcoin could be attributed to recent inflows into the spot ETFs, the prospect of the halving around the corner, which tends to generate optimism from investors as prices often shoot up after, and general market momentum.”
Ms Jablonski suggested recent improvements in the US economy have also contributed to Bitcoin crossing $48,000.
The investment expert added: “In the past, there have been parallels between bitcoin and tech stocks.
“Lower rates, falling inflation, earnings growth and indices like the S&P 500 hitting ground-breaking levels certainly improve risk sentiment for the asset class.”