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Bitcoin rally brings crypto market close to two-trillion dollars

Published 19/02/2024, 10:04 pm
© Reuters.  Bitcoin rally brings crypto market close to two-trillion dollars
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Bitcoin (BTC) stayed comfortably above $50,000 over the weekend, despite a 2.5% dip against the US dollar on Saturday.

These losses were comfortably recovered on Sunday though, while the world’s largest cryptocurrency added a few more points this morning.

At the time of writing, the BTC/USD pair was swapping for $52,262.

Bitcoin trades might be more muted with US markets closed on Monday, though bulls are eyeing up a move above $52,500, where selling resistance is currently camped, as shown by Binance’s order book.

Bitcoin has increased its spot price by a fifth year to date, thanks in part to substantial cash inflows into the 10 spot-bitcoin exchange-traded funds approved in the US on 10 January.

Bloomberg data shows these ETFs netting $2.3 billion in cash inflows last week, led predominantly by the BlackRock (NYSE:BLK) iShares Bitcoin ETF (IBIT).

Net inflows across all ETFs since 10 January have exceeded $5 billion, according to Bloomberg’s ETF seer Eric Balchunas, a figure significantly offset by outflows from the Grayscale Bitcoin Trust (GBTC).

Investors have been quick to cash out of GBTC due to its comparatively high 1.5% management fee, though not all of these redemptions have shifted to cheaper competing bitcoin ETFs.

Ethereum (ETH) posted a bullish Sunday session, rising 3.4% against the US dollar and another percentage point this morning, bringing the ETH/USD spot price to a fresh 21-month high of $2,910.

In the wider altcoin space, Dogecoin (DOGE) picked up the pace with a 3% overnight gain, while Solana (SOL), Ripple (XRP) and Cardano (ADA) added less than one percent.

Global cryptocurrency market capitalisation currently stands at $1.98 trillion, as it nears the $2 trillion mark for the first time since April 2022.

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