Bitcoin value nears record highs, boosted by US ETFs and investor interest
9:44 AM EST, February 13, 2024
At the start of February 2024, the Bitcoin exchange rate increased considerably. Over the previous 12 months, the Bitcoin exchange rate has risen by over 120 percent. In the low of November 2022, cryptocurrency values dropped below 16,000 dollars. Since that time, the price of BTC has tripled.
Bitcoin exchange rate: ETFs fuel cryptocurrency valuation
Exchange Traded Funds (ETFs) on Bitcoin, particularly spot typed, are credited with causing the surge in Bitcoin's value. More than a month after their initiation, they continue to affect cryptocurrency prices. "According to Bloomberg Intelligence data, two leading Bitcoin ETFs from Black Rock and Fidelity emerged as the most popular exchange funds in the United States in the past month. Since their inception, they've garnered over 7.5 billion dollars in total"- as per the reports by Bankier.
Rise in Bitcoin: Are ETFs in the United States supporting the currency?
Reported by industry service Bitcoin Treasuries, Bitcoin ETFs' popularity in the USA contributed to the notable increase in Bitcoin's exchange rate, which momentarily exceeded 50,000 dollars on February 13, 2024. To date, five key BTC funds have amassed 195,000 Bitcoins. It's believed that the surge in demand can be attributed to spot-type ETFs on BTC are backed with cryptocurrency in trust accounts.
The rise in the Bitcoin exchange rate also affects US stock performance. As reported by Bankier, "the S&P 500 index surpassed the historic high of 5000 points last week". This correlation was evident in previous years when investors were prone to taking riskier investment actions. According to CoinDesk experts, a platform dedicated to digital currencies, a reduction in risk-related premium is observable in the stock market - as stocks become more expensive, bonds become cheaper.
Many cryptocurrency investors see the rise in the Bitcoin exchange rate as an extended trend rather than a fleeting event. In a survey involving 10,000 Bitget exchange customers, a significant 84 percent of participants anticipate the Bitcoin exchange rate to surge above 69 thousand dollars.
