📊｜BTC regains six figures, analyzes the rise of Bitcoin
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📢Bitcoin spot ETF had a net inflow of US$263 million yesterday, setting a recent high, which shows that investors' interest and confidence in Bitcoin are increasing.
🔥 Below is a summary of the reasons for the recent rise in BTC:
1️⃣Institutional capital inflow:
The ETF net asset ratio reached 4.59%, showing that more and more traditional financial institutions are incorporating Bitcoin into their investment portfolios. The continued inflow of institutional funds is the main driving force behind the rise in Bitcoin prices.
2️⃣Fidelity ETF FBTC performed strongly:
Fidelity ETF FBTC had a net inflow of US$102 million yesterday, showing investors' favor for it. As an old financial giant, Fidelity's participation has important weathervane significance for the Bitcoin market, further enhancing investors' confidence.
3️⃣ Grayscale GBTC outflow slows down:
Although GBTC has a large historical net outflow, yesterday's net inflow of US$6.6639 million shows that the outflow rate is slowing down and even showing signs of reversal. This may be related to the expectation that GBTC seeks to convert to a spot ETF, which will attract more capital inflows once the conversion is successful.
4️⃣ Increased institutional interest:
The listing of cryptocurrency exchanges such as Coinbase has attracted the interest of institutional investors and driven up the price of Bitcoin.
5️⃣ Expected rate cuts by European and American central banks:
The European Central Bank (ECB) cut interest rates as expected, coupled with the latest economic data from the United States, strengthened expectations that the Federal Reserve will cut interest rates next week. These factors all provide support for the rise of BTC.
And Bitcoin has seen a significant rise throughout 2023, climbing from US$16,530 at the beginning of the year to US$42,258 at the end of the year. This upward trend in Bitcoin prices is similar to the stock market trend between November 2021 and June 2022, indicating that current market investors may view Bitcoin as a stock.
♦️Overall: The strong performance of Bitcoin spot ETFs is the main reason for the rise in Bitcoin prices. The continued inflow of institutional funds, the strong performance of Fidelity ETFs, and the recovery of Grayscale GBTC inflows all indicate that investors are confident in the long-term value of Bitcoin.
