The digital asset market is on a path towards resurgence right now with bitcoin getting close to its previous All-Time High (ATH) of $69k earlier today. The move was expected by some analysts as the monthly bitcoin inflow of funds reached a massive $48.5 billion in February.
This is the highest amount of money to be redirected to the digital asset market since October 2021. Back then, a new ATH of $69k was witnessed the very next month and its close to it again after last month’s massive figures.
Bitcoin Inflows: $48.5 Poured into Bitcoin
This discovery was made by an analyst on X (formerly Twitter) named Ali. He used a chart from the digital asset analytics platform Glassnode, named “aggregate market realized value net change”.
Ali is a known bitcoin proponent and has over 49,000 followers on X. His specialty is on-chain analytics. He often uses interesting conclusions from on-chain data to support his claims. Just yesterday he reported the liquidation of $110 million in shorts as BTC went above the $63.4k figure.
Bitcoin Continues to Go Bullish
Bitcoin posted a new 27-month high of $67.5k earlier in the day to boost hopes of a new ATH in the near future. More than 97% of bitcoin wallets are reportedly in profit at the moment which comes to around 50.62 million.
The sudden surge in the price of the premier digital asset has resulted in the early onset of the 2024-2025 bull market. The highly anticipated Bitcoin boom has been in the making for the last couple of years and it seems like it is finally here.
Are Bitcoin ETFs the Reason Behind this Monthly Surge?
Bitcoin ETFs were launched in January and since then, they have accumulated more than 300,000 BTC ($20 billion) in less than 2 months. BlackRock’s iShares ETF itself has landed more than $10 billion worth of BTC during this time.
So, on paper, it appears that the spot ETF market is stimulating the influx of money into the bitcoin market considerably. However, it is not attracting the majority of the funds. There is still a long way to go before these exchange instruments can dominate the $1.31 trillion market capitalization.
All in all, 9 such ETFs were launched simultaneously and they are now trading in the top American exchange platforms like Nasdaq. The top performers in this economy are iShares and Fidelity.
Together, they have a massive 79% of the entire inflows so far in the ETF market. The share of the other 7 ETFs has been shrinking over time but they are still witnessing hundreds of millions of dollars on a weekly basis.
Will Bitcoin Post Record Influx Before Halving?
Bitcoin is heading towards a block reward halving in the next 41 days or so. The important event is set to take place on April 15 and the entire community is expected to follow it closely. This is the day when bitcoin’s block reward will be reduced from 6.25 BTC to 3.125 BTC.
It remains to be seen whether bitcoin will post a new monthly record dollar influx in the buildup to the halving itself.
