In the final 24 hours, Bitcoin soared to a 2-year peak, briefly breaking the $50,000 barrier. Although 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 latest CNBC interview, Tom Lee, a key determine within the monetary analytics sector, make clear the driving forces behind BTC’s notable surge to this vital excessive.
Key Factor 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 within the US represents a “watershed moment,” bridging the hole between conventional funding mechanisms and the digital forex area.
According to Lee, “the ability to buy BTC has changed a lot.” By facilitating entry to Bitcoin by standard brokerage accounts, spot ETFs have “significantly” lowered the obstacles to entry for traders, enhancing BTC’s attraction and “fostering” its integration into the mainstream monetary ecosystem.
Lee famous:
I feel it [Bitcoin spot ETF] is a superb improvement as a result of it’s permitting individuals to actually have publicity with out having to essentially retailer their personal keys. And I feel it was nice to see that delicate reference on the Super Bowl.
For context, the “reference to the Super Bowl” Lee is referring to is when the visibility of BTC obtained a considerable enhance throughout the Super 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 some of the broadly seen occasions within the United States 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
— Last Call (@LastCallCNBC) February 13, 2024
Bitcoin Spot ETF Performance And Market Response
Since their inception on January eleventh, the brand new wave of spot Bitcoin ETFs has demonstrated constructive efficiency. With heavyweights like BlackRock (IBIT) and Fidelity (FBTC) on the helm, the most recent 9 spot BTC ETFs have collectively accrued over 200,000 BTC belongings beneath administration in lower than a month.
This speedy accumulation displays traders’ confidence in BTC as a viable asset class and marks a big shift within the panorama of digital asset funding.
Their comparability with conventional safe-haven belongings additional underscores the “success” of those spot ETFs. BTC spot ETFs outperformed gold ETFs in inflows, signaling a possible reevaluation of Bitcoin as a digital different 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. Recently, the cryptocurrency skilled a notable value enhance, surpassing $50,000 for the primary time since December 2021.
Featured picture from Unsplash, Chart from TradingView