Traders chase spot ETF Bitcoin briefly breaking through $64,000

Note that driven by the strong demand expectations for spot ETFs at the beginning of this week, Bitcoin has risen for the second consecutive day and is close to its all-time high. The most liquid cryptocurrency has risen to $64,279, surpassing $64,000 for the first time since November 2021, before falling back to $63,622 at 9:20 am Singapore time. The frenzy is attributed to the never-ending demand for the largest cryptocurrency, as the US-listed Bitcoin ETF, which began trading on January 11, seems to be fueling this demand. Bitcoin has risen by around 186% in the past 12 months. Hayden Hughes, co-founder of the social trading platform Alpha Impact, said: "Given the low liquidity over the weekend, the market is moving north, with ETF funds expected to continue flowing in tonight, pushing prices higher." Since the launch of Bitcoin spot ETFs by funds like BlackRock and Fidelity Investments, net inflows have reached $7.35 billion. With strong demand for ETFs and fears of missing out on opportunities before Bitcoin is expected to halve later this year, traders are betting that the price will soon surpass the record of nearly $69,000 set during the COVID-19 pandemic. After mining rewards are halved, the growth in Bitcoin's supply may decrease, exacerbating demand constraints. Hughes said: "Breaking the psychological barrier of Bitcoin's all-time high may take time, but given the halving of Bitcoin prices and positive sentiment, we should see it as a matter of time until we surpass this level." Other relatively small tokens, including Ethereum and Solana, also rose by 0.15% and 1.82% respectively on Monday.