Price of Bitcoin rises above $51,000 on Valentine’s Day
By Brylle Uytiepo • February 15, 2024
Price of Bitcoin rises above $51,000 on Valentine’s Day
On February 14, Bitcoin (BTC) fans had extra cause for celebration as the price of the cryptocurrency crushed forecasts, hitting a new yearly high of $52,040 in a single day. This extraordinary increase demonstrated Bitcoin’s tenacity and capacity to draw in institutional investors, and it was a major turning point for the cryptocurrency.
Five-Year Winning Run: Valentine’s Day Love Affair for Bitcoin
Notably, Bitcoin saw increases for the sixth year in a row on Valentine’s Day, continuing its winning run. On this romantic occasion, the cryptocurrency has shown a steady rising trend, with price increases of 1.3%, 3.03%, 1.13%, and 1.9% during the last four years, starting in 2020.
Valentine’s Day 2024 saw a spectacular 3.66% increase in the price of BTC, pushing it above $52,000. A tidy profit of $4,196 would have been made by investors who bought Bitcoin the night before Valentine’s Day and sold it at midnight, highlighting the possibility of strategic trading on this day of love.
Institutional Investors Fuel Bitcoin’s Ascent
The notable buying trend among institutional investors can be blamed for the Valentine’s Day spike in Bitcoin prices. The current spike in the price of Bitcoin, which has seen an astonishing 20% gain in just one month, has been mostly driven by institutional interest.
The flow of money into Bitcoin spot ETFs has become a key symbol of bullish momentum that goes beyond price charts. On Valentine’s Day, bitcoin spot ETFs had record-breaking net inflows of $631 million, indicating rising investor confidence.
The total Asset Under Management (AUM) of the ten recently introduced spot ETF products was $10.9 billion as of February 14. AUM has increased by an astounding 1,150% in the previous 31 days, which indicates that investor confidence is growing, especially in light of the initial uncertainty surrounding Grayscale’s billion-dollar sell-off.
ETF Growth is Driven by Institutions
BlackRock, Fidelity, ARK Invest/21Shares, Bitwise, Franklin, Invesco/Galaxy, VanEck, Valkyrie, WisdomTree, and Hashdex are the ETF companies driving this increase. These companies’ total assets under management (AUM) have increased from $851 million to $10.9 billion since the first trading day on January 11. This represents a cumulative daily growth rate of almost 9.2%, or $77 million every day.
A Straight Line to $55,000?
Given the substantial inflows of capital into Bitcoin spot ETFs and the robust buying trend exhibited by institutional investors, it appears that Bitcoin will make a push towards the $55,000 mark in the near future. There could be another exciting chapter in Bitcoin’s continuous journey, given the increasing confidence among investors and the strong Valentine’s Day performance.