Bitcoin (BTC-USD) prices briefly jumped above $50,000 on Monday, a benchmark the cryptocurrency has not sat at since late 2021. Yahoo Finance Live is monitoring price action intraday trading of Bitcoin and comments on the enthusiasm reinjected into the crypto space since the trading of Bitcoin ETF spot offers in January.
For more expert insights and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Editor’s note: This article was written by Luke Carberry Mogan.
– Crypto today, why not start there. Because we have some headlines, Julie Hyman. Bitcoin climbs to $50,000 for the first time in over two years. We all remember, of course, 2022 and that bad fall. Lots of questions at that time, Julie, about the asset, the future of the asset. You had crypto fans on TV looking dazed and confused.
But now Bitcoin is on the move. It has tripled since the start of last year. Of course, look, it’s still well below the all-time high which was around $69,000. But coming back here, of course, partly because of something that we’ve talked about a lot, which is the approval of these new Bitcoin spot ETFs and the bet that some are making that yes, these new products, over time, will generate greater growth. widespread adoption.
JULIE HYMAN: And initially, of course, after we finally got approval and started trading for these ETFs, we saw a slight pullback in Bitcoin, which some who watch the industry closely believe would happen to sell l current event. Now, CoinDesk, the publication that tracks crypto very closely, says we’re back to the Bitcoin FOMO stage here, pointing out, as you did, that we saw that $69,000 spike, but that the lowest at the end of 2022 was 16.
So we’ve obviously fallen back a lot from that level and last year the recovery was slow, if you will. There’s an analyst that again, CoinDesk today cites Crypto Quant, that we could see Bitcoin hit $112,000 this year, and they’re specifically looking at inflows into these Bitcoin spot funds, and if that momentum continues, That’s at least the implication of this prediction.
– Yeah. And also not to get too geeky, but people are also talking about what’s called the Bitcoin halving, which we’re expecting in April, and which refers to this process of reducing the supply of new tokens. So as we get closer to this, it is expected that another catalyst, in the form of chatter, will also start talking about this.
JULIE HYMAN: RIGHT. When we look at Bitcoin spot ETFs in terms of net inflows into them, according to Bloomberg Intelligence data, we’re talking $2.8 billion. This is even with fairly large outflows of over $6 billion from the Grayscale Bitcoin Trust. That’s because, again, not to be too weird here…
– Do it. Get wobbly.
JULIE HYMAN: But basically before these were approved many people held this GBTC and then when the others were approved they moved their money because we saw the discount collapse between GBTC and the sub price. underlying of Bitcoin. So we’ve seen some funds move their money to other spot Bitcoin ETFs. All that said, again, there are still net inflows into these spot Bitcoin ETFs.
– Yeah. And it was interesting because the reports that I saw as well were that you were seeing maybe an indication that the outflows from the grayscale fund could maybe lose a little bit of steam here as well, so that made it also gone.
JULIE HYMAN: Yeah. So we’ll see what happens next. And we’ll talk a little bit more about Bitcoin, a little bit later in the show.