Bitcoin Rebounds Above $50,000 Following Volatility Post-Spot ETF Launch in January
After a shaky start to the year following the launch of Bitcoin Spot ETFs on January 11, 2023, BTC quickly recovered, surpassing $50,000 for the first time in over two years. This surge comes despite initial focus on outflows from the Grayscale Bitcoin Trust (GBTC) in favor of the new ETFs, which saw billions of dollars pouring in during their early weeks on the market.
Market Dynamics and Fund Movements
In recent weeks, there has been a slowdown in GBTC outflows, while investments continued pouring into the new products. Specifically, on February 8, Grayscale lost 1,850 bitcoins, while the other nine ETFs added nearly 11,000 BTC to their funds. The next day, Grayscale witnessed an outflow of 2,252 BTC, while the other ETFs recorded a net inflow of over 13,000 bitcoins.
Is the Bear Market Truly Over?
The price of Bitcoin had reached around $69,000 in November 2021, but 2022 was marked by disasters, including the implosion of the Terra ecosystem and the collapse of the FTX cryptocurrency exchange. Ending 2022 just above $16,000, experiencing a decline of approximately 75% from its all-time high, Bitcoin and other tokens suffered heavy losses.
However, the last quarter of 2023 witnessed a renewed sense of confidence, fueled by anticipations of imminent SEC approval for Spot ETFs in early 2024. This prospect propelled the price of Bitcoin to reach almost forgotten price levels, instilling confidence in investors once again…