Unprecedented huge inflows of money into crypto products and a slowdown in Bitcoin’s upcoming supply growth have pushed this token to continue hitting new highs.
Bitcoin gave back some of its gains on Tuesday (12) after touching a new high of nearly US$72,968 (about RM342,000). It was the third time in five days that the token touched a record high. According to data from research firm CoinShares, inflows into crypto assets reached an unprecedented US$2.7 billion (about RM12.6 billion) last week, with the bulk of it going to bitcoin. Bitcoin and ETFs tracking the 100 largest cryptocurrencies are both up about 70 percent this year.
The successful launch of a spot bitcoin ETF in the U.S. on Jan. 11 has been a key driver of the recent market. ETFs from the likes of BlackRock and Fidelity Investments have attracted net inflows of around US$9.5 billion (about RM44.5 billion) so far. The London Stock Exchange has noted that it will accept applications for the listing of exchange-traded notes (ETNs) for bitcoin and ethereum, while Thailand’s securities regulator has hinted at opening up overseas cryptocurrency ETFs to retail investors.
Some commentators see further upside for bitcoin, with IG Australia Pty’s market analyst Sachem writing in a research note that bitcoin is expected to receive strong support from buying on the downside as investors seek to push their positions up to US$80,000 (about RM374,000) in the coming months.
Fairlead Strategies technical analyst Katie Stockton also sees $80,000 within reach in the medium term.
