The Bitcoin market continues to show signs of strength, with its price currently above $48,000. Over the past weekend, it experienced a remarkable upward momentum, with a more than 2% increase in its price, says Antonio Ernesto Di Giacomo - Market Analyst Latam at xs.com.
On Saturday, the price hit a low of around $46,900, before recovering to the $48,600 area. This movement in the price of BTC could be influenced by the following information.
Bitcoin exchange-traded funds (ETFs) have emerged as a prominent force in the financial market, with remarkable success in their first 20 trading sessions. During this period, they have reached an impressive milestone of $10bn in assets under management (AUM), according to data provided by BitMEX Research.
Specifically, net flows for the nine ETFs soared to $2.7bn on 9 Jan, with prominent names such as BlackRock's iShares Bitcoin Trust, valued at $4bn, and Fidelity's Wise Origin Bitcoin Fund, with more than $3.4bn in BTC under management, standing out.
However, while some Bitcoin ETFs celebrate significant achievements, others face challenges. The ARK 21Shares Bitcoin ETF ARK 21Shares Bitcoin has crossed the $1bn milestone in portfolio value, demonstrating its appeal among investors.
On the other hand, outflows from Grayscale Bitcoin Trust (GBTC) have been notable over the past 30 days, amounting to $6.3bn. On 9 Feb, outflows reached $51.8m, marking its lowest daily volume of withdrawals since the conversion.
Despite the positive developments in the cryptocurrency market, investors are keeping an eye on important metrics such as the Fear and Greed Index, designed to counter impulsive emotional reactions.
As of 11 February 11, 2024, this index registers a value of 71, indicating an inclination toward extreme greed, with 100 being the level that marks this condition. This situation could hint at the possibility of future sell-offs in the market for these digital currencies.
By Antonio Ernesto Di Giacomo - Market Analyst Latam at xs.com
