Bitcoin’s surge to $50K highlights shortage from halving supply and influx of spot ETF

Bitcoin’s price surged to a new high of $50,000 on February 12, marking the first time it had reached that level since December 2021. The increase was fueled by a series of positive inflows into exchange-traded funds (ETFs) the previous week. BTC experienced a rapid rally of 3.25% from a low of $47,745 on February 12, reaching its highest point in two years. This rally followed a 16% gain over the past seven days.


The surge in Bitcoin’s price was accompanied by an increase in inflows into spot Bitcoin ETFs. Last week, these ETFs attracted over $1.1 billion in inflows, while outflows from the Grayscale Bitcoin Trust slowed down. A report from CoinShares on February 12 revealed that the newly issued spot-based Bitcoin ETFs in the US had seen a total of $1.1 billion in inflows since their launch on January 11, bringing the total inflows to $2.8 billion.
As a result of the recent inflows and the rising price of Bitcoin, the total assets under management now amount to $59 billion, the highest it has been since early 2022. The last time Bitcoin traded above $49,000 was over two years ago, on December 28, 2021, when it reached a high of $50,720. However, it later dropped to a low of $15,522 on November 9, 2022, following the FTX debacle.
Independent trader and analyst Rekt Capital expressed no surprise at Bitcoin’s rise above $49,000, stating that the signs were there. The sudden increase in Bitcoin’s price was accompanied by a spike in crypto market liquidations, with over $152 million in liquidations reported at the time of publication, according to data from Coinglass. Bitcoin short position liquidations accounted for more than $45.56 million.


It’s important to note that this article does not provide investment advice or recommendations. Investing and trading always carry risks, and readers should conduct their own research before making any decisions.