Bitcoin hits $50,000 amid slowdown in selling of GBTC fund
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Bitcoin’s price has crossed the $50,000 mark for the first time since December 2021. This rise coincides with slowing outflows from Grayscale’s GBTC fund and increased inflows into Bitcoin ETFs, which now hold over $1 billion in assets.
Bitcoin prices have the potential to surge over the next couple of years due to increasing institutional investment through spot ETFs. CryptoQuant analysts predict Bitcoin could reach $112,000 by the end of 2024, with $55,000 being the “worst case scenario.”
As Argentina grapples with skyrocketing inflation, residents are flocking to underground “crypto caves” to exchange pesos for stablecoins pegged to the US dollar. These secret peer-to-peer markets help locals bypass strict capital controls and shelter savings from the peso’s free fall.
Today’s Newsletter
- Bitcoin rises above $50,000 amid slowdown in selling of Grayscale’s GBTC fund
- Bitcoin ETFs flows could propel BTC prices to $112K this year
- In inflation-torn Argentina, locals use ‘crypto caves’ — and avoid Bitcoin
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BITCOIN
Bitcoin rises above $50,000 amid slowdown in selling of Grayscale’s GBTC fund
After plunging below $40,000 in January, Bitcoin’s price has regained momentum. Reduced selling pressure from Grayscale coupled with strong inflows into newly launched spot Bitcoin ETFs has powered Bitcoin above $50k. Analysts say this signals we are still early in the crypto bull market, with prices expected to trend upwards through 2023.
The bullish price action signals growing confidence in crypto following the turmoil of 2022. Hitting $50k is an important milestone for BTC as it continues to recover from its 75% crash in 2022. Sustained inflows into ETFs now holding over $1 billion show renewed appetite for crypto exposure. With the upcoming Bitcoin halving and tightening supply, surpassing its 2021 peak seems achievable. [theblock]
BITCOIN
Bitcoin ETFs flows could propel BTC prices to $112K this year
The launch of US spot Bitcoin ETFs earlier this year has allowed major new institutional investment. These funds have already accumulated over 190,000 Bitcoins, and their continued growth could significantly boost Bitcoin’s price.
This bullish forecast is based on Bitcoin ETF inflows adding billions to Bitcoin’s market capitalization annually. With the next halving coming in April 2024, many analysts predict Bitcoin will hit a new all-time high before then. Some, like Blockstream CEO Adam Back, suggest six-figure Bitcoin prices are possible even prior to the halving as institutional inflows accelerate. [coindesk]
STABLECOINS
In inflation-torn Argentina, locals use ‘crypto caves’ — and avoid Bitcoin
Locals in crisis-ridden Argentina are using covert “crypto caves” to swap inflation-prone pesos for USD-tethered stablecoins, shunning volatile coins like Bitcoin. These discreet exchanges let Argentines circumvent currency restrictions and access better rates to preserve purchasing power against consumer prices now rising by over 200% a year.
Argentina has long battled economic woes from hyperinflation to currency controls. This history has driven demand for alternative stores of value like dollars and now crypto, where adoption is surging faster than anywhere else in Latin America. The election of a libertarian-minded president pledging market reforms has sparked hopes for change, but endemic challenges remain. [cointelegraph]
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