Bitcoin surpasses $50,000 - VnExpress Business

After more than two years, Bitcoin surpassed $50,000 for the first time thanks to a surge in funds flowing into ETFs, expectations of interest rate cuts, and the upcoming halving event.

Since the end of last year, the world's largest cryptocurrency has mostly traded below $45,000 per unit, sideways after a wave of approved ETFs in the US. Bitcoin began breaking through resistance levels last weekend.

After trading around $48,000 for the day, the cryptocurrency surged from late last night, surpassing the $50,000 mark as February 13th began. This represents a nearly 4% increase in 24 hours and over 16% since the beginning of the year, reaching its highest price since the end of 2021. The price then eased but quickly recovered, at one point reaching over $50,314 per coin.

Antoni Trenchev, co-founder of the cryptocurrency lending platform Nexo, said: "$50,000 is a significant milestone for Bitcoin after the launch of spot ETFs last month, which not only failed to generate a strong price surge but also led to a 20% sell-off."

CoinDesk suggests that this price surge is related to the Grayscale Bitcoin Trust (GBTC) – the world's largest Bitcoin exchange-traded fund. Over the past few weeks, outflows from GBTC have slowed, while significant inflows continue into new products. On February 8th, Grayscale lost only 1,850 Bitcoin, while nine other ETFs added nearly 11,000 tokens to their funds. On February 9th, Grayscale lost 2,252 coins, while the remaining nine ETFs accumulated over 13,000 units. This is a substantial amount compared to the 900 new Bitcoins mined and released into the market each day.

In total, spot Bitcoin ETFs have completed their first 20 sessions, reaching $10 billion in assets under management (AUM). Bloomberg analyst Eric Balchunas suggests that inflows into these funds will increase further in the coming months as companies complete their portfolio due diligence.

Furthermore, according to Reuters , cryptocurrencies are performing positively in line with global stock indices. Financial investors generally believe that the US Federal Reserve (Fed) may begin cutting interest rates this year. They expect May to be the starting point for a new monetary policy.

Investors are also eagerly awaiting the next Bitcoin halving, scheduled for April. This quadrennial event halves the rewards for miners. Bitcoin has risen in price during the three previous halvings, most recently in 2020.

Tieu Gu - Quynh Trang (according to CoinDesk , Reuters )

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