Bitcoin breaks through the $50k barrier – What next for BTC?

• The rally adopted sharp bounce in stablecoin market caps in latest weeks.
• Sturdy inflows into the U.S. spot Bitcoin ETFs additionally helped market sentiment.

Bitcoin [BTC] smashed above the all-important $50,000 mark for the primary time in additional than two years, spurring a wave of bullish optimism within the digital asset market.

The king coin touched $50,000 at about 5:20 pm UTC on the twelfth of February and retained the extent till profit-taking by diamond palms pulled it to $49, 932 as of this writing, AMBCrypto observed utilizing CoinMarketCap.

Stablecoins provide surges

In keeping with on-chain analytics agency Santiment, the rally adopted sharp bounce in stablecoin market caps in latest weeks, almost 5% because the begin of the 12 months.

Such hikes in stablecoin market caps have been alerts of accelerating capital inflows into the market. It’s because most merchants from conventional markets would use stablecoins to enter and exit trades on crypto exchanges.

Moreover, whale wallets with greater than $5 million in holdings added 2.32% of the whole stablecoin provide within the final 4 weeks, taking the general share of the stablecoin market to 51.49% at press time. This prompt that whales have been on an accumulation spree.

Supply: Santiment

Inflows to identify ETFs rise considerably

The rally comes amidst sturdy inflows into the U.S. spot Bitcoin ETFs. In keeping with AMBCrypto’s evaluation of SoSo Worth knowledge, internet inflows have steadily risen previously two weeks, reversing the tide of outflows from the Grayscale Bitcoin Belief (GBTC).

At press time, $32.42 billion price of Bitcoins have been held up within the spot ETF market, constituting 3.48% of Bitcoin’s whole market cap.

Supply: SoSo Worth

If that lifted your temper, then maintain! There’s extra to come back.

“$69,000 will not be too far”

Standard on-chain analytics agency CryptoQuant predicted a “long-term upward-trending” momentum for Bitcoin, stretching via 2024 and 2025.

The conclusions have been primarily based on the dual impact of provide scarcity (as a result of upcoming halving), and a pointy enhance in demand (as seen by bounce in energetic wallets), which makes Bitcoin a really perfect retailer of wealth.

Learn BTC’s Value Prediction 2024-25

The bullish predictions have been coming from totally different corners. In a press release shared with AMBCrypto, Shivam Thakral, CEO of Indian crtptocurrency alternate BuyUcoin mentioned,

“The macro components such because the anticipated charge lower by the US Fed and the rising recognition of Bitcoin ETFs will drive the market within the mid to long run. We are able to anticipate Bitcoin to retest its all-time excessive of $69,000 post-halving.”