Monday witnessed Bitcoin’s price ascend, counteracting last week’s downturn through robust investments into exchange-traded funds and anticipation of the forthcoming halving event. This resurgence was further bolstered by BlackRock’s entry into asset tokenization and the initiation of monetary easing by central banks globally.
Bitcoin momentarily surpassed the $67,000 threshold, later stabilizing at $66,893.7—a 2.5% increase for the day, as of 07:29 ET.
ETF Inflows and the Halving Horizon
After a retreat from its zenith, Bitcoin rebounded from lows around $60,000, fueled by strong investments into newly approved spot ETFs. Despite this, Bitcoin’s trajectory faced headwinds from continued withdrawals from the Grayscale Bitcoin Trust.
The cryptocurrency market is buzzing with anticipation for the halving event scheduled for April, which will see the reward for mining new blocks halved, potentially tightening Bitcoin’s supply. The exact timing remains uncertain, adding to the speculative atmosphere.
Dollar Dynamics and Bitcoin’s Bound
Bitcoin’s recovery was somewhat restrained by the strengthening dollar, which hit a one-month peak. The dollar’s allure was reinforced by dovish stances from global central banks, positioning it as a preferred asset amidst rate cut forecasts.
The crypto sector’s upbeat start to the week also gained momentum from BlackRock’s venture into tokenized assets on the Ethereum network, marking a significant foray into blockchain by the asset management giant.
Additionally, reduced selling pressure from the Grayscale Bitcoin Trust and the Swiss National Bank’s rate cut announcement, hinting at a global easing trend, contributed to Bitcoin’s positive outlook. Mexico’s central bank followed suit, with expectations of similar actions from the Fed and other major banks.
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