Bitcoin is soaring again! The market ignores ETF fund outflows as Bitcoin surpasses $71,000 per coin

Zhitong
2024.03.25 22:16
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Bitcoin price breaks through $71,000, with an intraday increase of 7.34%. Bitcoin investors have overlooked the impact of last week's outflow of funds from Bitcoin spot ETFs. In addition, the prices of Ethereum, Solana, and Dogecoin have also risen. The recent demand for Bitcoin ETFs is the main driving force behind the rise in Bitcoin prices. However, last week's fund outflows led traders to take more hedging measures and futures market liquidation. BlackRock's entry into the asset tokenization field, as well as the Swiss National Bank lowering its benchmark interest rate and other macroeconomic indicators, also support a positive start for the cryptocurrency market

According to Zhitong Finance and Economics APP, Bitcoin investors have shrugged off the bad news of outflows from Bitcoin spot ETF funds last week, and the price of Bitcoin has once again risen above $70,000.

On Monday, most digital asset prices rose, with Bitcoin reaching $71,000 per coin, up 7.34% intraday. This is the first time in over a week that the price of Bitcoin has broken through the $70,000 mark. Ethereum rose by about 6%, while Solana and Dogecoin prices both rose by over 4%.

Last week, nearly $900 million was withdrawn from Bitcoin spot ETFs, reflecting continued outflows from the Grayscale Bitcoin Trust and a slowdown in subscriptions to products from BlackRock and Fidelity. These 10 funds experienced their worst week since their inception in January this year.

Nathanaël Cohen, co-founder of the digital asset hedge fund INDIGO Fund, said, "Despite the drag on ETF inflows, buying orders around $60,000 remain high, indicating a market eager to buy on dips." The new demand for Bitcoin ETFs is a key driver behind this year's historic rebound in Bitcoin. However, last week's large outflows triggered more hedging against price declines by traders, as well as significant liquidation of leveraged long positions in the cryptocurrency futures market.

Demand for Bitcoin ETFs has become a major driver behind this year's historic rise in Bitcoin. Strong inflows into the funds have sparked optimistic expectations for index-level growth in asset categories among a wider range of investors. However, last week's massive outflows triggered more hedging for lower prices and significant liquidation of leveraged long bets in the cryptocurrency futures market.

Taking a broader view, the positive start to the cryptocurrency market this week is partly due to BlackRock's recent foray into tokenized assets. BlackRock's tokenized asset fund, named "BUIDL," will be built on the Ethereum network. This marks BlackRock's first issuance of tokenized funds on a public blockchain.

Furthermore, the latest macroeconomic indicators continue to show bullish sentiment. The Swiss National Bank unexpectedly lowered its benchmark interest rate, signaling the start of a global monetary easing cycle. The Bank of Mexico also followed suit with a rate cut policy. Meanwhile, the Federal Reserve, the European Central Bank, and the Bank of England are also expected to take similar measures in the coming months.

Stocks of companies related to cryptocurrencies also surged. At the close of Monday, MicroStrategy (MSTR.US) rose by over 21%, while cryptocurrency exchanges Coinbase Global (COIN.US) and Riot Blockchain (RIOT.US) rose by over 9%

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