Bitcoin’s recent surge past the $66,000 mark marks a significant milestone in its price recovery since the tumultuous events of late 2021 and the subsequent challenges faced in 2022. Here’s a summary of the key reasons for such price movement:
1.Bullish Momentum in 2023 (ETF Anticipation): While 2023 witnessed a major bull market period for crypto, bitcoin’s price action was relatively subdued for much of the year. However, growing confidence in the SEC’s approval of spot bitcoin ETFs in late 2023 led to a domino effect, which then took real shape in early 2024, leading to a huge price surge in the final quarter of 2023, with bitcoin closing the year above $42,000.
2.Spot ETF Launch Impact: Bitcoin initially experienced a dip below $40,000 in the days following the opening of spot ETFs. However, it has since rebounded strongly, surpassing the $66,000 threshold.
3.FOMO Stage of Bull Market: The current phase of the bitcoin bull market is characterized by Fear of Missing Out (FOMO), with investor sentiment driving the price above $66,000 for the first time in over two years.
4.Shift in Investor Focus: Despite the significant inflows into spot ETFs, attention was drawn to the outflows from the high-fee Grayscale Bitcoin Trust (GBTC). But, recently that outflow has slowed down, from GBTC, while there’s sizable inflow in new Bitcoin ETF. Both very bullish signs.
5.Crypto Winter Ends: 2022 was challenging year. During that year, Terra ecosystem imploded, on top of FTX collapse and all the scandals following it. Bitcoin closed 2022 at around $16,000, down approximately 75% from its all-time high. It was a hard year, but worst was behind by 2023, which fueled investors to get back on the market.
We can still summarize this recent price surge above $66000 with one sentence: Spot Bitcoin ETF. Prices will keep going up for now, and we can safely say that bull run is officially here.
