In the last 24 hours, Bitcoin soared to a 2-year peak, briefly breaking the $50,000 barrier. Although it has since pulled back from this mark, BTC’s momentum remains strong, showcasing a bullish trend with a 3.9% increase over the past day.
In a recent CNBC interview, Tom Lee, a key figure in the financial analytics sector, shed light on the driving forces behind BTC’s notable surge to this significant high.
Key Factor Behind $50,000 BTC Surge
Tom Lee has identified the launch of spot Bitcoin exchange-traded funds (ETFs) as a crucial driver behind this upward trajectory. Introducing these spot ETFs in the US represents a “watershed moment,” bridging the gap between traditional investment mechanisms and the digital currency domain.
According to Lee, “the ability to buy BTC has changed a lot.” By facilitating access to Bitcoin through conventional brokerage accounts, spot ETFs have “significantly” lowered the barriers to entry for investors, enhancing BTC’s appeal and “fostering” its integration into the mainstream financial ecosystem.
Lee noted:
I think it [Bitcoin spot ETF] is a wonderful development because it is allowing people to really have exposure without having to necessarily store their private keys. And I think it was great to see that subtle reference at the Super Bowl.
For context, the “reference to the Super Bowl” Lee is referring to is when the visibility of BTC received a substantial boost during the Super Bowl when former CEO of Twitter (now X) Jack Dorsey was spotted wearing a “Satoshi” shirt, a nod to Bitcoin’s pseudonymous creator.
This moment of recognition during one of the most widely viewed events in the United States underscored BTC’s growing cultural and financial significance.
“The ability to buy #Bitcoin has changed a lot… with the launch of the ETFs,” says @fundstrat’s Tom Lee on Bitcoin hitting $50K. “It makes it easier now for people who have traditional brokerage accounts to buy $BTC. I think it’s a wonderful development.” pic.twitter.com/Uy3TuyKqzd
— Last Call (@LastCallCNBC) February 13, 2024
Bitcoin Spot ETF Performance And Market Response
Since their inception on January 11th, the new wave of spot Bitcoin ETFs has demonstrated positive performance. With heavyweights like BlackRock (IBIT) and Fidelity (FBTC) at the helm, the latest 9 spot BTC ETFs have collectively accumulated over 200,000 BTC assets under management in less than a month.
This rapid accumulation reflects investors’ confidence in BTC as a viable asset class and marks a significant shift in the landscape of digital asset investment.
Their comparison with traditional safe-haven assets further underscores the “success” of these spot ETFs. BTC spot ETFs outperformed gold ETFs in inflows, signaling a potential reevaluation of Bitcoin as a digital alternative to gold.
Bitcoin ETF flows after first 14 trading days: $1.7 billion
Gold ETF flows after first 14 trading days: $1.3 billion
— Matt Hougan (@Matt_Hougan) February 1, 2024
BTC has maintained a bullish momentum amid this backdrop of burgeoning spot ETF success. Recently, the cryptocurrency experienced a notable price increase, surpassing $50,000 for the first time since December 2021.
Featured image from Unsplash, Chart from TradingView
Source: https://bitcoinist.com/heres-what-drove-bitcoin-price-to-50000-expert/