Bitcoin (BTC) ended the week at roughly $52,150, displaying a notable 7.9% improve from the earlier week’s closing worth of round $48,300. The week started with strong worth development, with BTC reaching its peak buying and selling worth of round $52,800 on Thursday, earlier than stabilizing over the weekend inside the $51,000 to $52,000 vary and finally closing barely above $52,000.
Final week marked Bitcoin’s return to buying and selling above $50,000 for the primary time in over two years, signaling robust momentum following the approval of BTC ETFs Spot. The final time BTC traded above $50,000 was again in December 2021, instantly following its all-time excessive of $69,000 in November of the identical yr. This era was retrospectively acknowledged because the onset of a major downtrend that endured all through 2022, resulting in a worth decline to roughly $16,000 by the tip of that yr.
Market momentum continued to be fueled by the excessive demand for BTC ETFs Spot. All through final week, the cumulative web influx into BTC ETFs totaled about $2.3 billion, practically doubling the $1.2 billion recorded within the earlier week, and accounting for nearly half of the entire web influx since inception, which at present stands at roughly $5 billion.
Internet inflows have remained persistently constructive for 16 consecutive buying and selling days since January twenty sixth. Nonetheless, outflows from the Grayscale Bitcoin ETF (GBTC) noticed a slight improve final week, reaching roughly $625 million, marking a 50% rise in comparison with the cumulative outflow of $415 million recorded within the previous week. This means an uptick in profit-taking by buyers following the latest surge in BTC worth.
Among the many 9 ETFs launched on January eleventh, Blackrock Bitcoin ETF (IBIT) maintains its lead with over $5 billion in belongings beneath administration (AUM), at present totaling round $6.2 billion. Constancy BTC ETF (FBTC) follows in second place with roughly $4.5 billion AUM, whereas 21Shares & ARK Bitcoin ETF (ARKB) secures the third place with roughly $1.5 billion AUM. Final week, a fourth ETF crossed the $1 billion AUM milestone, with Bitwise Bitcoin ETF (BITB) reaching roughly $1.2 billion AUM.
Buying and selling quantity remained strong, with the cumulative buying and selling quantity of BTC ETFs reaching about $9.6 billion final week, boasting a day by day common quantity of over $1.9 billion. Since January eleventh, the cumulative buying and selling quantity has totaled $45.3 billion, with a mean day by day quantity of roughly $1.7 billion. These figures point out above-average buying and selling quantity for the week, underlining robust purchase strain and exercise surrounding these ETFs.
Analysing the macroeconomic panorama, the upcoming Federal Open Market Committee (FOMC) assembly is now 30 days away. Market expectations recommend a 90% chance of no change in charges, with the primary 25bps lower nonetheless anticipated for a while between the tip of Q2 and the start of Q3 this yr. This expectation fuels the anticipation for a much less restrictive financial coverage from the FED, growing danger publicity that market members are prepared to undertake. This contributes to the strong momentum of danger belongings reminiscent of BTC, cryptocurrencies, and shares, with the S&P 500 not too long ago attaining a brand new all-time excessive.
