On video: Power plant restarted to mine Bitcoin/Angular
Bitcoin surges to $48,600 in the early morning hours (Sun) and approaches a two-year high.
Shortly after the launch of Bitcoin ETFs, which allow investing in the currency without actually buying it but through the easy purchase of an ETF, a sharp price drop of several days began, during which the digital currency plunged from a price of $49,000 to less than $40,000 within a few days .
But the week begins with these declines behind us, after Bitcoin managed to recover and soar to an almost two-year high.
As of writing these words, Bitcoin is trading at price levels of about 48 thousand dollars.
In the first days after the launch of the basket funds, significant sales of Bitcoin coins began, mainly coming from the largest holder - Grayscale (GBTC).
The significant sales in those days, created great pressure and caused the price of Bitcoin to fall.
In the last week or two, there has been a relaxation in the amount of coins sold from the GBTC fund, and thus the balance between the funds becomes positive, meaning that those who buy, buy more than the amount sold by GBTC, and this is one of the reasons for the recent price increase.
Bitcoin.
Ethereum also jumped by about 10% in the last week/ShutterStock
Last Thursday, Bitcoin ETFs enjoyed capital inflows of over $400 million, their best day since Jan. 17, which amounted to the purchase of 9,260 bitcoins, according to BitMex Research.
The two leading funds of Blackrock and Fidelity contributed to the demand in the most significant way, and today they hold over 150 thousand Bitcoin coins, worth over 7 billion dollars.
We can only wait and see if the flow of capital into hedge funds will continue, and how this will affect the price of Bitcoin.
It must be remembered that the supply of Bitcoin coins is limited, and in about two months, the renewable supply will be reduced by half, in the famous event that occurs every 4 years, called Halving.
And from this, it can be concluded that if the demand for the leading currency continues, it is not impossible that there will be further price increases.
In addition, the dominance of Bitcoin, which measures the percentage occupied by the leading currency of the entire crypto market, has also increased, meaning that its share of the entire market has become larger, at the expense of other alternative currencies.
While Bitcoin has risen by almost 13% in a week, many analysts estimate that there is still room for further price increases.
Other leading coins have also risen by significant percentages in the past week, Ethereum (ETH), BNB and Cardano (ADA) have risen 9.8 %, 7.8% and 10% respectively.
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Bitcoin
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