Source: Zhitong Finance Author: Zhao Jinbin

Driven by the approval of the US Spot Bitcoin ETF, Bitcoin is moving towards its longest rise in a year. Compiled data shows that on Monday, Bitcoin once rose about 1% to 48,436 US dollars, and is expected to rise for the seventh day. If this increase continues, it will record the longest continuous rise since January 2023.

On January 11, nine new Bitcoin spot ETFs began trading in the US and have attracted more than $9 billion in investor inflows so far. Bloomberg Intelligence analysts Eric Balchunas and James Seyffart wrote in a report that based on assets obtained one month after listing, the two ETFs invested by BlackRock and Fidelity were the most successful funds.

Caroline Bowler, CEO of cryptocurrency platform BTC Markets Pty, said there are signs that “more institutional money is flowing into this asset class.”

The Grayscale Bitcoin Trust, which has been in existence for more than a decade, is the largest dedicated investment portfolio for this token, which is converted into an ETF on the day the new fund is listed. Although there have been continuous outflows since the conversion, the outflow rate of more than $6 billion of funds from the fund has slowed down. Together, this batch of 10 ETFs attracted $2.8 billion in net investment.

Last year, speculation about ETFs boosted Bitcoin's recovery. On the day trading began, Bitcoin once topped $49,000. However, since then, investors have taken back profits one after another, and Bitcoin has been sold off for nearly 10,000 US dollars. Since then, the rebound has made people bullish to $50,000. The last time it reached this level was in 2021.

Optimism that Bitcoin will be halved once every four years (that is, the rewards for mining new blocks will be halved) in April of this year is also spreading in the cryptocurrency sector. In the half year of the first three halves, the price of Bitcoin has increased significantly.

Fundstrat Global Advisors wrote in a report that apart from ETF inflows, sentiment towards Bitcoin was “generally positive” during the Lunar New Year holiday in Asia.

However, at present, Bitcoin is still about 20,000 US dollars below the record high set in 2021. At that time, it was a bull market during the pandemic, and the market capital was very abundant.

edit/lambor