On Monday the 4th, Bitcoin’s price reached a new all-time high against the Euro.
At the time of this article’s writing, Bitcoin had surged to $66,879.10 US dollars to one Bitcoin – an impressive YTD climb from a price of $44,172 at the start of 2024.
But why the spike? Is it all just about Bitcoin ETFs?
A ‘surge of confidence’
EMARKETER senior analyst Grace Broadbent says:
With Bitcoin approaching its all-time high, thanks to excitement sparked by US-based spot Bitcoin ETFs, a surge of confidence has been injected back into the crypto space.”
Gaining momentum
Matteo Greco, research analyst at digital asset and fintech investment business Fineqia International, seems to agree.
According to Greco, trading volume surged on centralized digital assets exchanges, reaching a cumulative trading volume of $73.4 billion for last week.
That’s an 80% increase from the previous week’s volume of $40.7 billion and marks the highest weekly trading volume recorded since May 2022.
The Bitcoin ETFs’ role
And all of this is due to Bitcoin ETFs?
Greco does note that Bitcoin spot ETFs have been so successful thus far, they’ve exhibited a 265% increase from the average daily trading volume of $1.7 billion recorded since inception.
Trading volumes for BTC Spot ETFs saw a significant surge during last week, totalling $22.3 billion, with an average daily trading volume of almost $4.5 billion. The cumulative trading volume now exceeds $73.9 billion, with the daily average volume surpassing $2 billion, currently standing at $2.1 billion.”
2.1 million more crypto owners in 2024?
So much so, in fact, that EMARKETER has a bold new prediction: that the number of Cryptocurrency owners in the US will reach 26 million in 2024, and 29.7 million in 2025.
Their reason for this? That the sense of legitimacy given by Bitcoin ETFs’ consistent demand and desirability to the entire crypto space.
According to EMARKETER, this “can reinvigorate crypto ownership and payment activity. And major payment players like Visa, PayPal, and Block have all remained bullish that crypto payments will take off, putting infrastructure in place to meet crypto payments demand.”
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