Bitcoin has been on an impressive roll recently. On Monday, the price jumped from $84,000 to nearly $90,000, and as of now, it’s sitting at $91,328, up 2.85% in just 24 hours.
Eric Balchunas, a senior ETF analyst at Bloomberg, says Bitcoin is starting to show itself as something more than just a regular cryptocurrency.
“Obv a ridic small time frame but gotta get get these small wins if it ever wants to be considered a true alternative IMO,” he said in a tweet. What he means is that Bitcoin needs to keep going up and making smaller wins before it can be seen as a real alternative to other traditional assets, like stocks or gold.
In comparison, Bitcoin has done better than some of the traditional investments, like US treasuries, which have been unreliable lately. Balchunas pointed out that while gold recently hit a high of $3,500 per ounce, Bitcoin’s recent rise has been pretty impressive, too.
But he still believes it’s too early to tell if this growth will last. If Bitcoin can keep this up, it might eventually be seen in the same light as gold.
Along with Bitcoin’s price hike, Bitcoin ETFs (exchange-traded funds) have also been gaining popularity. The inflows into Bitcoin ETFs have surged and reached the highest level since January 30.
Matthew Sigel, head of research at VanEck, explained that Bitcoin is now moving away from being tied to US tech stocks. This means Bitcoin isn’t following the same path as the tech market anymore, which could be a good sign for its future.
Bitcoin’s price is also moving in a different direction compared to the NASDAQ. The NASDAQ has been struggling, while Bitcoin continues to rise. This is something that hasn’t happened too often in the past.
Ecoinometrics, a company that tracks macroeconomic data, mentioned that Bitcoin’s rally could depend on continuous investments, like the Bitcoin ETFs. Without these investments, Bitcoin could lose its momentum.
Meanhwhile, recent data from CoinShares showed that while there’s growing interest in Bitcoin, there were still $146 million in outflows at one point last week. This shows that people are still cautious, even though they’re more interested in digital assets now.
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