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© Reuters
Investing.com erased much of its losses in Asian trading on Wednesday and remained within sight of a record high, as steady inflows into U.S. spot exchange-traded funds and expectations of a “halving event” kept buyers on edge.
The world’s largest cryptocurrency was trading 1.9% lower at $66,022.9 at 12:41 a.m. ET (05:41 GMT), after hitting a record high of $69,063 on Tuesday, according to data from Investing.com had.
The token fell almost immediately after reaching a high, sinking as low as $59,000 before paring back its losses.
Gains in Bitcoin are due to steady capital inflows into the recently approved spot ETFs in the US markets. Data released earlier this week showed that US crypto products recorded inflows for the fifth consecutive week, with Bitcoin products accounting for the lion’s share of inflows.
The spot ETF approval appeared to have attracted a flood of institutional investors into cryptocurrencies.
Bitcoin was also buoyed by expectations of a “halving event” in April, where the rate of creation of new Bitcoin will be halved, limiting the supply of new Bitcoin.
Bitcoin’s highs mark a new record since November 2021. But in the meantime, its value had fallen dramatically as the crypto industry was rocked by a series of high-profile frauds and bankruptcies.
Still, the token has risen more than fourfold since its low of around $15,000 in November 2022 following the FTX debacle. Bitcoin also rose by around 150% by 2023.
“The move has gone almost parabolic, it just can’t go on for this long and we’re starting to see signs of slight maturity in the move we’ve seen so far, but that’s not the case.” “That means that “It’s a turnaround,” said Tony Sycamore, market analyst at IG, in an interview with Ausbiz.
“If we hit the weekly candle close at the current level at this point, which is around $63,000 to $64,000, then I think that means we have now come a long way.”
Nevertheless, after the bull run, Bitcoin trading volumes remain well below the highs of 2021 and 2022. The token’s massive rise last year was also attributed to relatively low volumes.
The token is still viewed as far too volatile by a majority of investors as retail has largely turned away from Bitcoin over the past year.
However, the preliminary approval of the Bitcoin ETF this year was a positive step for the broader crypto industry, which has otherwise been struggling with a massive loss of confidence.
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