Bitcoin gains 7%, climbs back to $70,000 following decline due to US ETF

World’s largest cryptocurrency Bitcoin has surged back to $70,000 level, by rising over 7 per cent. At 7:30 am UTC, the cryptocurrency reached to $71,508 on Tuesday.

The surge in prices was propelled after Bitcoin enthusiasts seem unfazed by the recent outflows from US exchange-traded funds. Nearly $900 million was withdrawn from those ETFs last week, marking ongoing outflows from the Grayscale Bitcoin Trust alongside a slowdown in subscriptions for offerings from BlackRock Inc. and Fidelity Investment, according to a Bloomberg report.

Also read: London Stock Exchange to launch Bitcoin and Ethereum ETN market on May 28

“Even though ETF inflows have hit a drag, order books are loaded on the bid side around the 60k area, showing that the market is eager to buy the dip. You need to go get the liquidity at lower levels to then catch a bid and generate momentum to go higher,” Nathanaël Cohen, co-founder at digital-asset hedge fund INDIGO Fund, was quoted as saying by Bloomberg.

The recent surge in Bitcoin ETF demand has significantly fueled this year’s remarkable rally in the leading cryptocurrency. Robust inflows into these funds have ignited optimism for exponential expansion within the asset class, attracting a broader spectrum of investors. Nevertheless, substantial outflows observed last week have prompted traders to hedge against potential price declines, leading to notable liquidations in leveraged bullish positions within the cryptocurrency futures market.

“London Stock Exchange to make Bitcoin and Ethereum available for trading as Exchange Traded Notes (ETN). Subject to the procedure, trading would begin on May 28, 2024. This is another confidence booster for the crypto ecosystem,” said Ashish Singhal, Co-founder, of CoinSwitch.

Also read: Standard Chartered raises year-end target of Bitcoin to $1,50,000

Meanwhile, other cryptocurrencies like Ether experienced an approximately 6% increase in value, while Solana and Dogecoin surged by over 4%.

Stocks of crypto companies also saw significant increases. MicroStrategy, known as a proxy for Bitcoin, surged by 20%. Coinbase Global, a prominent crypto exchange, saw a 9% increase, while Marathon Digital, a cryptocurrency miner, experienced a 5% rise.

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Published: 26 Mar 2024, 06:39 PM IST

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