The price of bitcoin explodes after a massive purchase of $250 million!
On February 10, 2024, a massive purchase of bitcoin worth close to $250 million by BlackRock’s iShares fund sent the price of the cryptocurrency soaring. This movement is part of a global trend of record purchases by ETFs in recent weeks, demonstrating the ravenous appetite of institutional investors for exposure to Bitcoin without directly owning it.
Record Crypto Purchase Volumes
On February 10 alone, iShares acquired nearly $250 million worth of Bitcoin, equivalent to more than 5200 BTC, for its ETF. At the same time, 8 other Bitcoin ETFs purchased an additional $300 million worth, equating to over 6400 BTC.
In February alone, over $2.7 billion has flowed into these exchange-traded funds, allowing them to rapidly accumulate large stocks of Bitcoin. This is a sign of investors’ enthusiasm for this new tool offering exposure to the cryptocurrency.
Impact on the Bitcoin Price
This massive influx of capital through ETFs has catapulted the price of bitcoin to new highs. The cryptocurrency rose from $35,000 at the start of February to over $47,000 by mid-February, returning to its highest levels. Daily trading volumes have also soared.
Some analysts compare this movement to the adoption of Bitcoin by Tesla and Square at the beginning of 2021. The enthusiasm of institutional investors could, as before, trigger a snowball effect and massive adoption of Bitcoin in the coming years.
It remains to be seen whether this rally will last or not. However, the funds’ appetite for Bitcoin ETFs seems to indicate a growing interest from the traditional financial world in cryptocurrencies.
Driven by record purchases by ETFs, the price of bitcoin is soaring at the start of 2024. Institutional investors are flocking to these new financial products to gain exposure to the star cryptocurrency. Leading to sky-high trading volumes. It remains to be seen whether this movement signifies a historic shift towards widespread Bitcoin adoption or if it is merely a speculative flash in the pan. Regardless, these recent weeks will remain etched in the tumultuous history of BTC.
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Le monde évolue et l'adaptation est la meilleure arme pour survivre dans cet univers ondoyant. Community manager crypto à la base, je m'intéresse à tout ce qui touche de près ou de loin à la blockchain et ses dérivés. Dans l'optique de partager mon expérience et de faire connaître un domaine qui me passionne, rien de mieux que de rédiger des articles informatifs et décontractés à la fois.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.