Bitcoin Surpasses $50,000 Mark Amid Strong ETF Inflows and Institutional Accumulation
Bitcoin’s price exceeded $50,000 on Monday, marking its highest level since December 2021. The surge is attributed to robust inflows into spot bitcoin ETFs and signs of institutional accumulation.
Ether Outperforms, Franklin Templeton Files for Spot Ethereum ETF
Ether (ETH), the second-largest cryptocurrency, experienced notable gains, surpassing $2,600 and rising by 5.5%. The boost in Ether’s price is linked to asset manager Franklin Templeton filing for a spot Ethereum ETF, adding to the positive market sentiment.
Institutional Rotation into ETH and Positive Impact on Layer 2 Tokens
Last week saw a trend of “heavy rotation” into ETH among market participants, anticipating a spot Ethereum ETF decision later in the year. This movement positively impacted native tokens of Ethereum layer 2 networks, including Immutable X (IMX), Optimism (OP), and liquid staking platform Lido’s token (LDO), which experienced significant gains.
Bitcoin’s Rally Fueled by ETF Inflows; Potential Selling Pressure Looms
Bitcoin’s price surge is supported by strong inflows into spot bitcoin ETFs, attracting over $1.1 billion in net fresh funds. However, potential selling pressure is mentioned, as Genesis, a crypto lender under bankruptcy protection, may liquidate its $1.6 billion worth of Grayscale Bitcoin Trust (GBTC) holdings, which could impact ETF net inflows and prices in the coming months.
Market Analysis and Speculation on Bitcoin’s Movement
Macro analyst Noelle Acheson suggests that Bitcoin is benefiting from increased accumulation, driven by expectations of capital injection in China and concerns about future currency depreciation in developed countries. The lack of clear catalysts for Bitcoin’s recent move is noted, with Acheson speculating that increased awareness and accumulation may be contributing factors.
Positive Technical Signals: Bitcoin Targets $52,000
Markus Thielen of 10x Research sees positive signals in Bitcoin’s price action, particularly a decisive breakout above $48,000. He suggests that Bitcoin could rally towards $52,000 in one go, citing historical patterns where similar setups resulted in an average BTC rally of +8% in two weeks.
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