Bitcoin (BTC) bears are taking a bruising on Monday as the price powers above $50,000, as BTC continues its momentum after posting its strongest weekly close since December 2021 on Sunday.
According to TradingView citing Bitstamp trading data, Bitcoin just traded above $50,000 for the first time since late 2021.
BTC was last trading up over 3% on the day after gaining 13.5% last week.
That was Bitcoin’s largest weekly percentage gain in last October.
Bitcoin bears have taken a beating over the past six months.
The BTC price has risen around 100% since last September’s lows in the $25,000 area.
Many a Bitcoin bear will regret celebrating too soon in wake of Bitcoin’s dip back below $40,000 last month following a “sell-the-fact” reaction to the approval of spot Bitcoin ETFs in the US.
Many Bitcoin bears were at the time betting on an even deeper pullback to the low-$30,000s.
But these Bitcoin bears have been blown out of the water by a near-30% price recovery since the 23rd of January as new BTC price tailwinds come in.
Firstly, after experiencing major GBTC-driven outflows immediately after spot Bitcoin ETF approval, BTC is now benefiting from big net inflows.
As per CoinShares, spot Bitcoin ETFs saw $1.1 billion in net inflows last week.
AUM held by the newly launched nine spot Bitcoin ETFs (excluding Grayscale’s converted GBTC) exceeded $10 billion last week.
The launch of spot Bitcoin ETFs has undoubtedly been the strongest ETF launch in history.
And ETF inflows seem likely to remain a fairly price-insensitive tailwind to Bitcoin going forward.
As per CryptoQuant’s CEO and founder Ki Young Ju, BTC “could reach $112K this year driven by ETF inflows, worst-case $55K”.
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