Bitcoin Seeks Fifth Consecutive Monthly Gain, Nearing Pre-Pandemic Winning Streak Before Record High
Bitcoin is poised to achieve a noteworthy milestone, with a potential fifth consecutive monthly gain. Marking its lengthiest winning streak since the pandemic-era surge fueled by abundant liquidity.
In January, amid pronounced market fluctuations triggered by the introduction of the first US spot Bitcoin exchange-traded funds (ETFs) and evolving perspectives on monetary policy, the leading digital asset saw a 2% rise.
Bitcoin Five-month winning streak
Should Bitcoin sustain this positive momentum, it would secure a five-month winning streak. The most extended stretch since the six months spanning October 2020 to March 2021, as per Bloomberg’s compiled data. Notably, Bitcoin reached an all-time high of nearly $69,000 in November 2021.
The initiation of spot Bitcoin ETFs from major issuers like BlackRock Inc. and Fidelity Investments on January 11 fueled a surge of nearly 160% in Bitcoin’s value last year. This surge was driven by the anticipation that these ETFs would attract new investors to the cryptocurrency market.
However, following the ETF launches, Bitcoin experienced a 12-day decline of around 21%, with particular attention on the performance of the $21 billion Grayscale Bitcoin Trust, which converted into an ETF format. While investors initially withdrew funds, the pace of outflows has diminished, aiding Bitcoin in recovering losses.
According to Sean Farrell, head of digital-asset strategy at Fundstrat Global Advisors LLC. The slowdown in outflows from the Grayscale fund is “a substantial positive for market sentiment,” as stated in a note on Monday.
The 10 ETFs collectively attracted a net $1 billion, showcasing their successful launch in history by both trading and flow metrics, according to Bloomberg Intelligence. As investors eagerly anticipate the Federal Reserve’s interest-rate decision this week, Bitcoin hovers around $43,340. Smaller tokens like BNB and Cardano exhibit mixed trends within relatively narrow trading ranges
Looking ahead, industry experts, including Skybridge Capital founder Anthony Scaramucci, foresee a bullish scenario for Bitcoin post the 2024 halving event. Scaramucci predicts a price surge to at least $170,000 within 18 months, drawing parallels with historical patterns where Bitcoin tends to quadruple after previous halvings.
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“This data underscores considerably stronger profitability in the mining sector compared to challenges experienced in 2022 and part of 2023.”
In approximately six months, Bitcoin undergo a “halving,” reducing the new bitcoins awarded to miners by half. Satoshi Nakamoto introduced this event in 2009 as an anti-inflationary measure. Occurring roughly every four years, the lead-up to halvings traditionally proves the most profitable time for crypto investors. “Buying bitcoin six months before a halving and selling 18 months after has historically outperformed a ‘buy and hold’ strategy,” affirms the analyst.
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