Bitcoin price slumped a bit this weekend after last week’s explosive rise. Today, however, BTC is showing a strong recovery. The price has risen by more than 4% in the past 24 hours.
BTC rises 4% in 24 hours
Bitcoin is rising again after a brief pullback to the $60k over the weekend. At the time of writing, the price of 1 BTC token is around $62,850.
Bitcoin hit a new high of around USD 67,000 last week. This amazing performance was caused because the first Bitcoin-related exchange-traded fund (ETF) started trading on Wall Street. It is something that investors and the crypto community have eagerly anticipated for years.
ProShares’ Bitcoin Futures ETF traded for $280 million worth of shares in 20 minutes. By the end of the trading day, it had raised $1 billion. This is very close to the record for a debuting ETF.
This pushed the price of Bitcoin up after a trading craze. But after the ETF’s launch, and once traders came out of the euphoria of the climb, Bitcoin’s price fell to a low of about $60,000 on Friday.
Bitcoin as a means against inflation
Despite the brief pullback, the price is rising again today, although still 5% lower than its all-time high. Why? According to Matthew Schultz, chairman of CleanSpark, it is mainly because more and more people see cryptos as a hedge against inflation.
United States Secretary of the Treasury, Janet Yellen, said yesterday that there would be high inflation in the first half of 2022. Some investors see Bitcoin as a safe investment to buy when inflation rises, much like gold.
“With Secretary Yellen’s confirmation that inflation looks set to continue, Bitcoin appears to be picking up steam as a hedge and a safe store of value,” Schultz said.
More rise for Bitcoin
Schultz added that MasterCard’s move into the crypto world also appears to point to wider adoption as a transaction medium. He was referring here to the announcement today by the payment company that thousands of banks and merchants using the network would soon be able to integrate crypto into their systems.
By the way, Bitcoin is not the only cryptocurrency that is doing well today. The Ethereum price has risen by 4% today and the Solana price even increased by more than 12%.
For now, Bitcoin’s good performance certainly doesn’t seem to end just yet. This is as more crypto futures ETFs will start trading soon. Last week, an SEC filing revealed that VanEck’s Bitcoin Strategy ETF had been approved and the Valkyrie Bitcoin Strategy ETF will begin trading soon.
The SEC is expected to give the green light to the Invesco Bitcoin Strategy ETF, the Galaxy Bitcoin Strategy ETF and the AdvisorShares Managed Bitcoin ETF next month. A wonderful prospect for crypto investors.