With the bullish market in full swing, the Bitcoin price surged for the second consecutive day, edging closer to its all-time high amid fervent anticipation of robust demand for exchange-traded funds (ETFs) at the beginning of the trading week. As the most liquid digital asset, Bitcoin peaked at an impressive $65,617 at the time of reporting, marking its first foray into the levels seen back in November 2021.
The driving force behind this surge lies in the seemingly insatiable demand for Bitcoin, primarily fuelled by the advent of US-listed Bitcoin ETFs that commenced trading on 11 January. This influx of institutional interest has propelled Bitcoin’s price upwards by approximately 186% over the past twelve months.
Hayden Hughes, co-founder of social-trading platform Alpha Impact, observes that due to the low liquidity over the weekend, markets are trending upwards in anticipation of ongoing ETF inflows tonight, which are expected to sustain the rally in prices.
Indeed, net inflows totalling $7.35 billion have been recorded since the debut of these US Bitcoin ETFs, offered by prominent financial entities such as BlackRock Inc. and Fidelity Investments.
Traders are optimistic about Bitcoin surpassing its previous record of nearly $69,000, attained during the peak of the Covid pandemic. This optimism stems from the strong demand for ETFs and concerns about missing out on potential gains ahead of the Bitcoin halving, anticipated later this year. The halving, which involves reducing the reward for mining Bitcoin, could contribute to a supply shortage, further intensifying demand pressure.
Hughes added that crossing the psychological threshold of Bitcoin’s previous all-time high may take time, but it should only be considered a matter of time until that level is crossed, given the halving and positive sentiment.
While the Bitcoin price takes centre stage, meme coins are also making waves in the cryptocurrency sphere. Notably, Dogecoin (DOGE) has experienced a remarkable surge of over 77% this week, buoyed by a wave of positive sentiment sweeping across the market.
As reported last week in CoinPayments Media, the surge coincides with an increase in DOGE accumulation among large investors, commonly referred to as “whales.” Data revealed a rise in the number of addresses holding over 100,000 DOGE since January, indicating a trend of accumulation rather than active trading among large holders.
Similar trends are evident in other meme coins like PEPE, Shiba Inu, and Bonk, all experiencing significant gains as the Bitcoin halving approaches, hinting at a broader meme coin rally driven by expectations of increased market activity.
Amid the meme coin frenzy, PEPE emerges as a notable standout performer, boasting an impressive surge of 50.16% in the past 24 hours. This substantial price increase is accompanied by remarkable trading volume, indicating heightened investor interest and trading activity in the PEPE coin market.
PEPE, a deflationary meme coin built on the Ethereum network, pays homage to the iconic Pepe the Frog internet meme crafted by Matt Furie, which rose to fame in the early 2000s. The venture seeks to leverage the craze surrounding meme coins such as Shiba Inu and Dogecoin, aspiring to secure a prominent position among meme-based cryptocurrencies. PEPE attracts the crypto community with its transparent no-tax policy and candid acknowledgment of its lack of practical utility, embracing its identity as a pure and straightforward meme coin.
The cryptocurrency market thus remains a dynamic and volatile ecosystem, characterised by rapid fluctuations and surges. While Bitcoin continues to maintain its stability and dominance, memes coins are carving out their niche, offering alternative avenues for investment while reflecting the ongoing diversification and innovation within the digital currency realm.
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