Bitcoin Poised for Lengthiest Winning Streak in a Year

Bitcoin is currently inching towards a winning streak not seen in over a year, buoyed by the remarkable launch of US exchange-traded funds dedicated to the cryptocurrency.

As of 9:50 a.m. Monday in Singapore, the digital asset has surged approximately 1% to $48,436, positioning itself for a seventh consecutive daily increase. If this momentum persists, it would mark the lengthiest winning streak since January 2023.

Since their inception on January 11, nine new spot Bitcoin funds have commenced trading in the US, amassing over $9 billion in investor inflows thus far. Notably, offerings from BlackRock Inc. and Fidelity Investments stand out as the most successful ETF launches, as highlighted by Bloomberg Intelligence analysts Eric Balchunas and James Seyffart.

Caroline Bowler, CEO at crypto platform BTC Markets Pty, noted an "increasing movement of institutional money into the asset class," speaking on Bloomberg Television.

Simultaneously, the conversion of the more than decade-old Grayscale Bitcoin Trust into an ETF on the same day as the new funds' launch has garnered attention. While a significant outflow of over $6 billion from the Grayscale vehicle initially occurred, the pace has since slowed. In total, the batch of 10 ETFs has attracted a net $2.8 billion.

The anticipation surrounding the ETFs catalyzed a revival in Bitcoin last year, briefly propelling the token past $49,000 on the day of their debut. However, a subsequent multiday selloff of $10,000 ensued as investors secured profits and observed the performance of the ETFs. The subsequent rebound has brought the $50,000 mark into view, a level last witnessed in 2021.

Optimism regarding the quadrennial Bitcoin halving, scheduled for April, is also permeating the crypto sphere. This event reduces the quantity of Bitcoin that miners receive for validating transactions on the blockchain and is often viewed as a price-supportive factor based on historical patterns.

In addition to the influx of ETF investments, sentiment towards Bitcoin remains "generally positive" during the ongoing Lunar New Year holidays in Asia, as observed by Fundstrat Global Advisors.

Despite these encouraging developments, Bitcoin still resides approximately $20,000 below its record high reached in 2021 during a bull run spurred by pandemic-era monetary policies.

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