Bitcoin (btc) The dollar surpassed $49,000 on Monday, supported by strong exchange-traded fund (ETF) inflows last week and signs of institutional accumulation.
The largest cryptocurrency was hovering around $48,000 earlier in the day before seeing a surprise spike to $49,100 at the start of the US trading session. At press time, Bitcoin was trading just above $48,900, up roughly 2% over the past 24 hours, outperforming the broad market CoinDesk 20 (CD20) secondary index, which was down 0.2%.
The price action is supported by last week's strong inflows into spot Bitcoin ETFs, attracting over $1.1 billion in net new money amid slowing outflows from existing funds such as Grayscale Bitcoin Trust (GBTC) and contract-based ETFs. Futures is affiliated with ProShares and CoinShares Asset Management. mentioned Monday.
However, potential selling pressure from Genesis, a cryptocurrency lender under bankruptcy protection, which is liquidating its $1.6 billion holdings of GBTC, could impact net ETF inflows and prices in the coming months.
Macro analyst Noel Acheson said Bitcoin is currently benefiting from increased accumulation driven mainly by expectations of capital injections in China to stem the stock market decline and inevitable currency depreciation even in developed countries in the future.
“Given the lack of any clear catalyst to explain Bitcoin's movement over the past few days, what we are likely seeing is an increase in accumulation for the reasons mentioned above as well as the continued spread of awareness of Bitcoin as ETF marketing machines do their own thing.