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Bitcoin briefly surpassed $48,000 on Friday, marking its first time at this level since the day after spot Bitcoin ETF launches on January 11. The asset closed the day up nearly 5.0%.
Bitcoin (BTC) bulls have reasserted control over the market following a significant day of ETF inflows.
According to ETF.com, spot Bitcoin ETF inflows exceeded $405 million on Thursday, representing the third-largest single-day total to date.
Several additional factors are supporting the market, increasing the likelihood of a near-term test of the $50,000 level.
Bitcoin has historically posted strong gains around the Chinese New Year period.
Markus Thielen, founder of 10X Research and head of research at Matrixport, noted in a recent report that buying Bitcoin three days before Chinese New Year and selling ten days after would have been profitable in every instance over the past nine years.
Thielen forecasted that Bitcoin could reach $52,000 by mid-March.
Additionally, CryptoQuant highlighted earlier this week that miner sell pressure has decreased, citing on-chain data.
This new ETF demand, combined with lower miner sell pressure and strong seasonality, coincides with US equity markets reaching new record highs.
The S&P 500 index broke above 5,000 for the first time this week, gaining 1.5% during the period.
Positive sentiment in the equity market has historically spilled over into the crypto sector, driving up Bitcoin prices.
Spot Bitcoin ETF Inflows: Just the Beginning
The launch of spot Bitcoin ETFs has been a historic success.
ETFs from BlackRock and Fidelity were among the fastest in history to reach $2 billion in assets under management (AUM).
Although Grayscale’s GBTC has seen its AUM shrink by over $6 billion, it still holds more than $20 billion in AUM.
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According to Blockworks, excluding GBTC, newly launched spot Bitcoin ETFs have accumulated over $8 billion in AUM.
This achievement occurred in less than a month.
Clearly, spot Bitcoin ETFs have established a permanent presence.
They are likely to continue serving as a source of ongoing demand for BTC.
While early flows have been impressive, most institutional investors remain on the sidelines.
A Bloomberg article published earlier this week reported that $1.3 trillion asset manager LPL Financial is awaiting the completion of due diligence on the newly launched spot Bitcoin ETFs before offering them to clients.
The inflows observed so far into BTC via spot Bitcoin ETFs may represent only the tip of the iceberg.
Future Trajectory for BTC Price
The demand shock from new spot Bitcoin ETFs arrives just as the Bitcoin market prepares for a supply shock.
In April, the block reward for miners will halve, reducing monthly miner sell pressure.
This combination of dual demand and supply shocks tilts Bitcoin’s price risk firmly to the upside.
Furthermore, the Federal Reserve’s expected interest rate cuts later this year are expected to add liquidity tailwinds.
The Bitcoin price‘s next target is likely a test of the 2024 highs at $49,000.
A move above $50,000 appears highly probable in the coming weeks.
The post Bitcoin Surges Past $48,000 on Strong ETF Inflows, Seasonal Trends, and Reduced Miner Selling appeared first on Cryptonews.
