(Bloomberg) Bitcoin reached a month-high, surpassing $45,000, as US exchange-traded funds (ETFs) holding the cryptocurrency experienced a consistent influx of investment, coupled with a growing risk appetite in financial markets. The cryptocurrency, which hadn't crossed the $45,000 mark since January 12, rose by up to 2.2% on Thursday. The ETFs, initially affected by outflows from the Grayscale Bitcoin Trust, have witnessed nine consecutive days of net inflows, according to Bloomberg data.
Caroline Mauron, co-founder of Orbit Markets, a digital-asset derivatives liquidity provider, commented that Bitcoin is poised for an upward trend following the decline in Grayscale outflows. Mauron anticipates a resurgence of the Bitcoin halving narrative in the coming weeks, driving a rally beyond the psychologically significant $50,000 threshold. The Bitcoin halving, scheduled for April, involves a reduction in rewards for miners, ultimately limiting the total supply of Bitcoin to 21 million tokens. This event is expected to lower rewards to 3.125 coins per block from the current 6.25 coins.
At the beginning of the year, digital tokens experienced a surge, continuing a strong bull market that saw Bitcoin's value rise by nearly 160% in 2023, outperforming gold and stocks. The rally was largely attributed to the anticipation of the US Securities and Exchange Commission (SEC) approving the launch of spot Bitcoin ETFs, which was granted on January 10, enabling multiple issuers to offer these ETFs.