Bitcoin, the flagship cryptocurrency, has weathered recent market volatility with resilience, bouncing back 5% to hit the $42,000 mark on Saturday. Despite this recovery, Bitcoin remains 14% below its post-ETF approval highs.

On January 24, Bitcoin was at $39,500, down nearly 20% from around $49,000 — the three-year high it hit on January 11 in the wake of the decision by the US SEC to approve spot bitcoin ETFs.

Siddhartha Gupta, SVP – Business and Strategic Alliances, CoinDCX said, “Bitcoin’s dip below $40,000 post-ETF launch isn’t solely due to the event. A prior 15% surge in less than 20 days pushed it into overbought territory. The decline reflects profit booking by major crypto players rather than signalling long-term negativity.”

“With the imminent halving and potential ETH ETF approvals, our medium and long-term perspective for Bitcoin is bullish and we can look at newer 1-year highs in a short-term period,” Siddhartha said.

In early trade on Saturday, Bitcoin was trading over 5% higher at $42,003. Also, as per reports, over $4 billion of funds have flowed into the new spot bitcoin ETFs, particularly to products operated by BlackRock and Fidelity.Parth Chaturvedi, investments lead at CoinSwitch Ventures, highlighted the success of spot BTC ETFs, attracting a remarkable $4.8 billion in inflows within their initial days. Notably, BlackRock leads with almost $1.8 billion in Bitcoin holdings, followed closely by Fidelity with an additional $1.5 billion. Chaturvedi underscores the potential for sustained demand driven by these ETFs and anticipates upward price pressure, particularly with the upcoming Bitcoin supply halving in April.

Edul Patel, CEO of Mudrex, notes that the recent approval of Bitcoin spot ETFs has triggered a surge in the cryptocurrency landscape, with both Bitcoin and Altcoins experiencing a rally. Despite a market dip due to profit-booking and GrayScale outflows, Bitcoin has maintained its position at the $40,000 level, reflecting confidence from institutional and retail investors. Patel predicts substantial inflows of $5-7 billion in the next three months, with a broader perspective foreseeing institutional commitment and potential inflows reaching $500 billion within 2-5 years.

Avinash Shekhar, co-founder and CEO of Pi42, draws parallels with the historic ascent of the SPDR Gold Trust in 2004, signalling a growing interest and acceptance of Bitcoin within the traditional financial ecosystem. Shekhar sees BlackRock’s achievement of a $1 billion holding in just four days as indicative of a significant shift in the investment landscape.

(Subscribe to ETMarkets WhatsApp channel)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

(What’s moving Sensex and Nifty Track latest market news, stock tips and expert advice, Budget 2024 News on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price


Source link