Within the final 24 hours, Bitcoin soared to a 2-year peak, briefly breaking the $50,000 barrier. Though it has since pulled again from this mark, BTC’s momentum stays robust, showcasing a bullish pattern with a 3.9% enhance over the previous day.
In a current CNBC interview, Tom Lee, a key determine within the monetary analytics sector, make clear the driving forces behind BTC’s notable surge to this important excessive.
Key Issue Behind $50,000 BTC Surge
Tom Lee has recognized the launch of spot Bitcoin exchange-traded funds (ETFs) as an important driver behind this upward trajectory. Introducing these spot ETFs in the US represents a “watershed moment,” bridging the hole between conventional funding mechanisms and the digital foreign money area.
In response to Lee, “the ability to buy BTC has changed a lot.” By facilitating entry to Bitcoin by way of typical brokerage accounts, spot ETFs have “significantly” lowered the limitations to entry for buyers, enhancing BTC’s enchantment and “fostering” its integration into the mainstream monetary ecosystem.
Lee famous:
I feel it [Bitcoin spot ETF] is an excellent improvement as a result of it’s permitting individuals to essentially have publicity with out having to essentially retailer their non-public keys. And I feel it was nice to see that refined reference on the Tremendous Bowl.
For context, the “reference to the Super Bowl” Lee is referring to is when the visibility of BTC obtained a considerable enhance through the Tremendous Bowl when former CEO of Twitter (now X) Jack Dorsey was noticed sporting a “Satoshi” shirt, a nod to Bitcoin’s pseudonymous creator.
This second of recognition throughout one of the extensively considered occasions in america underscored BTC’s rising cultural and monetary significance.
“The ability to buy #Bitcoin has changed a lot… with the launch of the ETFs,” says @fundstrat’s Tom Lee on Bitcoin hitting $50K. “It makes it easier now for people who have traditional brokerage accounts to buy $BTC. I think it’s a wonderful development.” pic.twitter.com/Uy3TuyKqzd
— Final Name (@LastCallCNBC) February 13, 2024
Bitcoin Spot ETF Efficiency And Market Response
Since their inception on January eleventh, the brand new wave of spot Bitcoin ETFs has demonstrated optimistic efficiency. With heavyweights like BlackRock (IBIT) and Constancy (FBTC) on the helm, the most recent 9 spot BTC ETFs have collectively accumulated over 200,000 BTC assets under management in lower than a month.
This fast accumulation displays buyers’ confidence in BTC as a viable asset class and marks a major shift within the panorama of digital asset funding.
Their comparability with conventional safe-haven property additional underscores the “success” of these spot ETFs. BTC spot ETFs outperformed gold ETFs in inflows, signaling a possible reevaluation of Bitcoin as a digital various to gold.
Bitcoin ETF flows after first 14 buying and selling days: $1.7 billion
Gold ETF flows after first 14 buying and selling days: $1.3 billion
— Matt Hougan (@Matt_Hougan) February 1, 2024
BTC has maintained a bullish momentum amid this backdrop of burgeoning spot ETF success. Lately, the cryptocurrency skilled a notable value enhance, surpassing $50,000 for the primary time since December 2021.
Featured picture from Unsplash, Chart from TradingView
