In the meantime, the world’s flagship cryptocurrency reclaimed the $67,000 price line on Friday and then again recaptured it after a minor rebound that followed earlier today.
The leading cryptocurrency becomes now widely considered as a store of value not only by Bitcoin maximalists, like Saylor and Max Keiser, but also by multiple financial institutions. Since the start of the year, the demand for Bitcoin has staggeringly increased thanks to the SEC regulator approving spot Bitcoin exchange-traded funds (ETFs).
In the middle of January, the regulatory agency granted permission for these ETFs to start trading — 11 ETFs in total. Ten of them started an aggressive accumulation of Bitcoin since then, buying together roughly 10,000 BTC per day — that was 12x what miners could produce (900 BTC per day). As many experts pointed out, the ETFs created a demand shock. Many retail and institutional investors then followed suit and began to accumulate digital gold.
In the second half of April, the Bitcoin community witnessed the fourth halving event, which reduced the production of new BTC by half. This, as many renowned Bitcoiners pointed out, created a supply shock.
Grayscale has been seeing positive inflows for three days in a row. The largest single-day inflow on Friday was witnessed by Fidelity — that was $99.4 million in Bitcoin as this ETF outpaced BlackRock’s fund with its $38.1 million in Bitcoin coming in.
This article was originally published on U.Today
Source: Cryptocurrency - investing.com
