Bitcoin Surges Past $48,000 Amidst Strong ETF Inflows

Bitcoin (BTC) reached new heights on Friday as its price surged past the $48,000 threshold, marking a significant milestone in its recent rally.

The cryptocurrency, widely regarded as the leading digital asset by market cap, experienced a remarkable surge, propelled by recurrent net inflows observed in U.S.-based spot bitcoin exchange-traded funds (ETFs).

At its peak, BTC soared to $48,152, representing its highest level since the inception of bitcoin ETFs. However, a rapid sell-off ensued, briefly pushing prices down to $47,933. Despite this brief dip, BTC quickly rebounded, consolidating its position slightly above the $47,000 mark.

Over 24 hours, BTC recorded an impressive 4.5% increase in value, outperforming many other major cryptocurrencies.

This surge in bitcoin’s price coincided with a notable uptick in net bitcoin holdings by spot ETFs, which added 9,260 BTC to their reserves. This influx of funds amounted to over $400 million in inflows, marking the highest figure observed since January 17.

The significance of this influx was underscored by James Seyffart, an ETF analyst at Bloomberg Intelligence, who described it as the third-largest inflow day for the group since its inception.

This is the 3rd biggest inflow day for the group since their launch. First day was +$655 mln and 1/17 was +$453. Still a big day. pic.twitter.com/peUszfnrfZ

— James Seyffart (@JSeyff) February 9, 2024

Related: Bitcoin Surges to $45,000 Amidst Anticipation of SEC’s ETF Approval

Despite bitcoin’s substantial gains over the past week, market analysts remain bullish on its prospects for further growth.

Alex Kuptsikevich, a FxPro senior market analyst, emphasized Bitcoin’s potential for continued appreciation, particularly after successfully reclaiming the key 50-day moving average. This technical indicator is often considered a crucial signal for market sentiment and trend direction.

Markus Thielen, a prominent analyst at 10X Research, echoed this optimism, projecting short-term price targets of $48,000. He attributed this anticipated surge to historically strong gains observed during the Chinese New Year festivities, a period traditionally associated with increased bitcoin adoption and investment activity.

Looking ahead to the mid-term, Thielen forecasted BTC to reach $52,000 by March, completing what he described as the fifth wave of its ongoing uptrend.

Bitcoin’s remarkable ascent continues to captivate investors and institutions alike, the cryptocurrency’s resilience and appeal as a store of value and hedge against inflation remain key drivers of its ongoing rally.

With increasing institutional adoption and mainstream recognition ahead of the Ethereum ETFs, many investors remain optimistic about Bitcoin and altcoin’s potential to sustain their upward trajectory in the bull market.

Related: Bitcoin ETFs surpass triple all 500 ETFs launched in 2023 combined