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- Tether’s extensive minting activity, has contributed to the recent surge in Bitcoin price moving all the way to $43,500.
- Fidelity’s spot Bitcoin ETF, FBTC, attracted $208 million in daily inflows, surpassing Grayscale Bitcoin Trust’s (GBTC) outflows for the first time since its launch.
On Monday, January 29, the Bitcoin (BTC) price witnessed a strong surge shooting all the way to $43,500. Two major factors contributed to the surge in the Bitcoin price. The first is that the extensive minting activity registered by Tether garnered strong discussion and analysis within the Bitcoin community.
The value of Bitcoin experienced a surge beyond $43,000 after Tether generated 1 billion USDT on Monday, January 29. Tether has engaged in a substantial minting spree, issuing a total of 13 billion USDT since October 20, 2023. This pattern aligns with the upward trajectory observed in the cryptocurrency market over the past few months.
In the past, substantial Tether minting activities have been associated with notable price upswings in Bitcoin. The recent surge in minting prompts inquiries about potential volatility in the upcoming period.
According to on-chain data provider Santiment, the rise in purchasing strength suggests that the ongoing mid-term bull cycle, which began approximately three months ago in October, may still have room for further growth. This is particularly noteworthy, considering there are just 79 days remaining until the anticipated Bitcoin halving, projected to take place on April 18th.
📊 As #Bitcoin's & #Ethereum's respective supplies have continued moving off exchanges after the #ETF approvals, an interesting development has been #Tether seeing nearly 4% of its available supply come back to exchanges in 5 weeks. The increase in buying power implies
(Cont) 👇 pic.twitter.com/hQrBhZchEu
— Santiment (@santimentfeed) January 30, 2024
Bitcoin ETF Inflows Surpass GBTC Outflows
Another major catalyst behind the Bitcoin price rally on Monday was that the total inflows in spot Bitcoin ETFs surpassed the outflows from the Grayscale Bitcoin Trust (GBTC), which has been the major cause of selling pressure on Bitcoin last week.
Fidelity’s spot Bitcoin exchange-traded fund (ETF), FBTC, witnessed a notable achievement on January 29, drawing in $208 million in daily inflows. This marked a significant milestone as it surpassed the outflows from Grayscale Bitcoin Trust (GBTC) for the first time since its launch.
Moreover, GBTC is also experiencing a nearly 25% drop in outflows from January 26, faced the second-lowest outflow day, reflecting a trend that analysts suggest may indicate a shift in investor sentiment. Simultaneously, new U.S. spot Bitcoin ETFs achieved substantial success, recording a combined volume of $994.1 million on January 29, nearly doubling that of GBTC, which saw $570 million in volume.
Amid these developments, BlackRock’s spot Bitcoin ETF stands out, becoming the first to surpass $2 billion in assets, holding over 52,000 BTC and highlighting the increasing demand for Bitcoin in the market.
BTC Price to Rally Post Halving
Anthony Scaramucci, the founder of SkyBridge Capital, anticipates a substantial surge in the price of Bitcoin (BTC) to $170,000 per coin following the next halving event. Scaramucci’s prediction is rooted in Bitcoin’s historical pattern of reaching new all-time highs after each halving, a cyclical occurrence that takes place approximately every four years and reduces the rate at which new BTC is mined by half. During a podcast conversation with Scott Melker, Scaramucci said:
“Go back and look at Bitcoin halving cycles. The day that Bitcoin halves, multiply it by four [and]18 months later and it’s been uncanny that that’s been the price of Bitcoin”.
