Bitcoin’s price has extended its winning streak to five days on Wednesday, putting the world’s largest cryptocurrency on track for its strongest monthly performance since October 2021.
The price of Bitcoin climbed nearly 5% to $59,340 over the last 24-hour period, marking gains on all but eight trading days in February so far. This translates to a cumulative rise of 39% for the month, according to CryptoCompare data.
Analysts attribute the recent rally, as Bloomberg reported, to the launch of spot Bitcoin exchange-traded funds (ETFs) in the United States in early January. These instruments have fueled a buying frenzy, that has overshadowed concerns about the Federal Reserve potentially maintaining higher interest rates for an extended period.
As CryptoGlobe reported, these ETFs have so far seen net inflows of over $6 billion after seeing more than $520 million of net inflows over the past day, as demand for the flagship cryptocurrency seemingly keeps on growing.
Spot Bitcoin ETFs have attracted significant investment, to the point that research from senior Bloomberg analyst Eric Balchunas and associate analyst Andre Yapp suggests that these could eventually overtake gold ETFs in assets under management.
In a recently published report, the analysts point out that Bitcoin ETFs have accumulated billions worth of assets since launch despite being less than two months old. They wrote that these funds “have taken in over $8 billion more than gold peers, already have 40% as much in assets and could pass them in size in less than two years.”
The report details that in the time spot, Bitcoin ETFs have seen over $6 billion of inflows, and gold ETFs have seen around $3.6 billion. Moreover, while gold’s price has dropped by around 1.5% year-to-date, BTC is up around 30% over the same period, with the performance potentially contributing to difficulties for gold ETFs to maintain their $90 billion in assets under management.
The flagship cryptocurrency has also been seeing its price rise ahead of its upcoming halving event, which will reduce the coinbase reward miners receive per block found from 6.25 BTC to 3.125 BTC, further adding pressure to the available supply.
Featured image via Unsplash.
