Early on Monday, February 12, Bitcoin reached its highest price since December 2021, surpassing $50,000 for the first time in over two years. This caused a surge in the value of other cryptocurrencies and related stocks. Coinbase’s stock, as well as bitcoin ETFs, experienced significant gains, while Marathon Digital, a bitcoin miner, also saw a sharp increase.
Specifically, during early trading on Monday, Bitcoin hovered around $49,900, briefly peaking at $50,314 in the morning. Previously, Bitcoin had surged to $49,000 on January 11th, coinciding with the launch of an ETF.
However, it then dropped back to its December 2023 level following an announcement by the SEC. Moreover, Bitcoin has seen an increase of more than 17 percent since the beginning of this year, as reported by Investor’s Business Daily.
On Monday morning, the cryptocurrency exchange Coinbase (COIN) saw a jump of 4.6 percent, pushing its value above its fifty-day moving average. Similarly, Marathon Digital stock surged nearly 13 percent, reaching levels close to its late December highs.
Spot Bitcoin ETFs jumped more than 5 percent
During morning trading, spot bitcoin ETFs experienced a surge of more than 5 percent, following a 4 percent increase on Friday.
The data from BitMEX Research shows that BlackRock’s iShares Bitcoin Trust (IBIT) has been leading in fund inflows since the launch of spot bitcoin ETFs on January 11th, accumulating approximately $3.75 billion in inflows by the end of February 9th. Following closely behind is the Fidelity Wise Origin Bitcoin Fund (FBTC), which has gathered $3 billion in inflows.
On Friday, the ARK 21Shares Bitcoin ETF (ARKB) surpassed the Bitwise Bitcoin ETF (BITB) in terms of inflows. As of February 9th, ARKB has attracted a total of $918.5 million in inflows, while BITB recorded $785.8 million.
Bitcoin price makes a new 2024 high above $50,000, a level not seen in over two years. It touched the $50k level around 1:19 AM GMT +8.
Follow for more updates.#GMMGNews #Bitcoin pic.twitter.com/RkS0SGi7O6
— Global Miranda Miner Group (@gmmg_official) February 12, 2024
As of February 9th, the Grayscale Bitcoin Trust (GBTC) noted approximately $6.38 billion in outflows, although the pace of these outflows has been gradually decreasing.
However, Grayscale maintains its position as the leader in terms of assets, managing $22.12 billion, followed by iShares Bitcoin Trust with $4.18 billion.
Despite the outflows from GBTC, the newly introduced ETFs have seen significant inflows totaling $2.65 billion since their launch, as reported by BitMEX research.
Multiple factors may influence Bitcoin in 2024
In 2024, several trends are poised to influence Bitcoin, such as the forthcoming halving event scheduled for April and the anticipated increase in institutional involvement following the ETF launch.
However, according to Joel Kruger, a market strategist at LMAX Group, the most crucial factor will be mainstream adoption.
“Now that the bitcoin spot ETFs have been approved, more of an effort will be made from traditional institutions to promote bitcoin’s value proposition,” Kruger told Investor’s Business Daily.