Bitcoin Soars Past $71K, Fueled by ETF Inflows and Bull Run Hopes
Bitcoin (BTC) surged above $71,000 in the last 24 hours, marking a new high since May 21st. Ethereum (ETH) also rose 1%, reaching $3,800 as the broader crypto market rallies.
ETF Boost Drives Bitcoin Price
The key factor behind the surge is likely the sustained inflow of capital into spot Bitcoin exchange-traded funds (ETFs). These investment vehicles have attracted over $880 million in net capital inflows on Tuesday, marking their 17th consecutive positive day. This is the best day for inflows since March 12th and the second-best since BTC ETFs launched.
Analysts like Eric Balchunas of ETF Bloomberg point to the impressive year-to-date total of over $15 billion in BTC ETFs, rivaling established funds like SPY and VOO.
Altcoins Join the Rally
The optimism extends to altcoins, with a broad-based market upswing. Uniswap (UNI) leads the pack, fueled by a recent cryptic message from Uniswaps Labs. Binance Coin (BNB) also surged nearly 12%, nearing its all-time high and exceeding a $100 billion market cap thanks to new launches on Binance Launchpool.
Other notable gainers include toncoin (TON), shiba inu (SHIB), solana (SOL), dogecoin (DOGE), and avalanche (AVAX). XRP and Cardano (ADA) saw more moderate increases.
Analyst Optimism and Ethereum's Future
"The resilience of BTC ETFs after recent sell-offs is impressive," said Balchunas. "This surge feels like a turning point."
While inflows slowed down after the initial Bitcoin explosion in March, they have averaged $140 million daily since May 16th, according to Farside Investors.
The positive sentiment surrounding Bitcoin extends to Ethereum as well. Investors anticipate the launch of spot ETH ETFs, which could propel the leading altcoin to similar highs. A recent report by K33 Research predicts net inflows of $4 billion for ETH investment products in the second half of 2024, potentially leading to significant gains compared to Bitcoin.
Market Outlook and Potential Risks.