KEY POINTS
- Bitcoin concluded the previous week with a closing price of approximately $42,000
- The price of the king of crypto dramatically surged as Bitcoin ETFs saw a notable decrease in outflow
- At precisely 3:03 a.m. ET on Monday, Bitcoin was actively trading at a price of $43,451.93
Bitcoin (BTC) demonstrated an impressive recovery at the start of the week, surpassing the $43,000 price point. This surge indicated renewed investor optimism as newly approved spot BTC exchange-traded funds (ETFs) experienced a surge in trading activities.
Bitcoin concluded the previous week with a closing price of approximately $42,000, marking a modest 1.1% increase compared to the prior week's closing value of roughly $41,600.
The past week started on a somewhat bearish note as BTC dipped below the $40,000 threshold and reached a weekly low of approximately $38,500 last Tuesday.
However, Bitcoin demonstrated resilience by establishing stability within the $39,000 to $40,000 range and showcased its bullish strength Friday when it saw a notable surge, closing at the $42,000 mark.
Matteo Greco, Research Analyst at the publicly listed digital asset and fintech investment business Fineqia International, told the International Business Times that Bitcoin's price predominantly reflected the performance of the newly approved spot Bitcoin ETFs.
The price of the king of crypto dramatically surged as Bitcoin ETFs saw a notable decrease in outflow and continued surge in inflows.
"The primary focus continues to be on BTC Spot ETFs. Following strong initial net inflows, the newly launched ETFs started to witness the anticipated decrease in inflows, offset by continuous outflows recorded by the Grayscale Bitcoin ETF (GBTC) post its conversion from Trust to ETF. Despite approximately $405 million in outflows from BTC ETFs during the past week, the overall inflow since launch remains notably positive," the research analyst said.
"The rate of outflows from GBTC linked to the transition from Trust to ETF, allowing for share redemptions on the primary market, is anticipated to decrease as the surge in redemptions may have peaked. The declining trend in redemptions was evident towards the end of the previous week, with the outflow rate decreasing from the initial daily average of $500 million observed in the initial days of trading. On Thursday, GBTC saw an outflow of about $394 million and on Friday, the outflow hit its lowest point since launch at approximately $255 million," Greco added.
Moreover, the research analyst noted, "The recent days of outflows suggest a diminishing pace of investors withdrawing funds from GBTC, indicating a potential for a more stable flow for the Grayscale product and, by extension, for BTC Spot ETFs. Despite last week's net outflow, trading volumes remain robust, underscoring continued investor interest in these financial products. Since their launch, the cumulative volume of ETFs has nearly reached $25 billion, with a daily average trading volume of approximately $2.2 billion."
At precisely 3:03 a.m. ET on Monday, Bitcoin was actively trading at a price of $43,451.93, accompanied by a robust 24-hour trading volume amounting to $22.64 billion.
The latest price movement of this cryptocurrency reveals an impressive 3.20% surge within the day, along with a notable 9.26% increase over the course of the past seven days.
Data sourced from CoinMarketcap further underscores Bitcoin's dominance, with its current circulating supply standing at 19.61 million BTC. Additionally, it maintains its prominent position as the world's largest cryptocurrency by market capitalization, boasting an impressive market cap of $850.27 billion.
