Bitcoin Price at $50,000

YEREVAN ( — Bitcoin is finally at $50000 mark for the first time since December 2021. According to Ryan Lee, Chief Analyst at Bitget Research, the recent approval of the Bitcoin Spot Exchange-Traded Funds (ETFs) and the market’s anticipation of the upcoming Bitcoin Halving event are among the drivers of the BTC price surge.

As Lee points out, from the beginning of 2024 leading up to January 10—the date marking the approval of Bitcoin ETFs—the trading volumes of BTC witnessed a staggering 300% growth. Bitcoin trading volumes soared from $16 billion to $50 billion.

BTC Price has surged to the $50,000 mark ahead of the Bitcoin Halving event as the Spot ETF Mania finally sets it.
Bitcoin price comes closer to $50000. Source: CoinStats

Over the past week, BTC price has surged around 18%. Although it inched closer to the $50,000 mark, the leading crypto just fell short at $49,974.

Bitcoin ETF finally helps Bitcoin price inch closer to $50000

As Lee points out, the recent significant uptick in trading volumes is a direct consequence of the approved BTC ETF.

Considered a watershed moment in the crypto industry, the approval of the Bitcoin ETF by the US Securities and Exchange Commission (SEC) offers investors worldwide compliant investment channels into Bitcoin.

However, the initial adoption of the Bitcoin ETF did not meet expectations and failed to bring the predicted bull run. On the contrary, the markets saw a short-term decline in Bitcoin’s price. The dip was primarily due to position switching by holders of Grayscale and sales by some equity holders.

Analyst James Lavish on spot Bitcoin ETF not meeting expectations. Source: X

Yet, as the market adjusted, the Bitcoin ETF landscape began witnessing daily net inflows, signaling a sustained interest and investment in BTC.

“As the grayscale sell-off came to an end, the overall Bitcoin ETF market began to see daily net inflows in and out, and this rhythm is still maintained. BlackRock, for example, has opened its own sales network to sell Bitcoin ETFs,”

Lee argues.

Could a Bitcoin halving event mean a new ATH for Bitcoin?

As stated above, the upcoming Bitcoin halving event is largely considered bullish for BTC.

Bitcoin Halving events reduce the reward for mining new blocks by half, thereby limiting the supply of new Bitcoins. These have historically led to substantial price increases.

For instance, following the first halving in November 2012, Bitcoin’s price escalated from $13 to $1,152 within a year. Similar patterns were observed after the second and third halving, with prices reaching $17,760 and $67,549, respectively, peaking well after the halving events.

BTC Price has surged to the $50,000 mark ahead of the Bitcoin Halving event as the Spot ETF Mania finally sets it.
Adam Back’s tweet on why Bitcoin Halving event can be bullish. Source: X

As the fourth halving approaches, market participants are keenly observing potential trends, drawing from historical data that suggests a significant price increase and a new ATH could be on the horizon.

“Bitcoin’s fourth halving is coming soon, and the market is confident that the price of Bitcoin will reach a record high after this halving. At the same time, the Federal Reserve will also start an interest rate cut cycle this year, which is a good signal for risk assets and emerging markets,”

Lee emphasizes.

Moreover, the initiation of the Federal Reserve’s interest rate cut cycle presents a favorable backdrop for risk assets, potentially propelling Bitcoin to unprecedented heights.

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