Bitcoin Has Hit the $50,000 Mark
Last night, Bitcoin hit the $50,000 mark for the first time since December 2021.
Bitcoin has surpassed its two-year-high, passing the $50,000 mark. The annual growth of the coin amounted to 128%. In the first months of 2024, the asset demonstrated positive dynamics, mainly due to the approval of Spot Bitcoin ETFs. However, other reasons also contributed to such a significant growth.
Grayscale's selloffs dropped significantly last week, with the ETF market seeing strong inflows. BitMEX Research reported inflows of $541 million on Friday, while outflows from Grayscale Bitcoin Trust fell to $51.8 million. Total assets in the ETFs rose to $10 billion.
Bitcoin ETF Flow - 9th Feb
— BitMEX Research (@BitMEXResearch) February 10, 2024
All data out. Strong day at $541.5m of net inflow
Invesco had an outflow, the first non-GBTC product to have an outflow day pic.twitter.com/UCFDVAaKD3
The actions of miners also played a role. They reduced their daily sales from 800 Bitcoins at the end of 2023 to 300 Bitcoins at the beginning of 2024.
The expected halving has also fueled investor interest. And after a series of scandals and bankruptcies, risk appetite has shifted back to digital assets. The market rebound also suggests that investors are increasingly confident about the Federal Reserve's policy easing.
Analysts believe that the easing of China's monetary policy has led to increased purchases of assets, particularly Bitcoin. The sudden rise in the price of Bitcoin has led to the liquidation of $152 million dollars in the market. Coinglass reports that this figure continues to rise.
At the time of writing, the asset was trading at $50,032.
Source and Copyright © TradingView
Since Bitcoin was able to reach the $50,000 mark two months before halving, investors are confident that Bitcoin could soon test the all-time-high of $69,800 seen in 2021. In the call options markets, Bitcoin purchase strikes at $65,000, $70,000 and $75,000 with April through June expiration dates have increased.
From the technical point of view, the asset has formed support at $49,750. Resistance is near the level of $50,250. The key level is $50,400, if Bitcoin overcomes it, it will open the way to further growth to the levels of $51,200, $52,000 and $53,000. In a negative scenario, the asset could fall back to $49,000 and support at $47,650.
This is not a 100 percent statement. The cryptocurrency market is volatile. Investors should stay cautious and remember the importance of DYOR.
