Bitcoin ETFs Storm Wall Street, Shaking Crypto Market

Since their launch, new spot Bitcoin exchange-traded funds in the United States have increased demand for the token and brought in over $7 billion in net inflows in less than two months, causing a stir in the original cryptocurrency market.

The most noticeable shift is the over $69,000 record high reached during the pandemic, which has been eclipsed by a 45% increase in the value of the biggest digital asset this year, to around $63,000. Also adding fuel to the fire is the impending half, or decrease, in Bitcoin's supply growth.

The US is becoming more of a Bitcoin trading hub as a result of the ETFs, which are also promoting leveraged bets that drove up the price of optimistic wagers through perpetual futures to levels not seen since 2021

Following a trend witnessed in 2023, bitcoin's gain since the start of the year has outpaced equities. Traders seeking volatility are being drawn to the momentum.

The new exchange-traded funds (ETFs) aid in the discovery of Bitcoin's price by comparing their net asset value at the US closing of each weekday to specialized benchmarks. The token's trading volumes have recently spiked around that time.

As Bitcoin continued its ascent toward a new high, the total trading volume in the spot Bitcoin ETFs, which include products from industry heavyweights Fidelity Investments and BlackRock Inc., surged dramatically to about $8 billion on Wednesday.

Also, on Wednesday, the value of Bitcoin traded on major digital asset exchanges reached nearly its highest point for the year 2024.

Crypto traders love Bitcoin perpetual futures because they don't expire and the financing rate for these contracts hasn't been this high since 2021. This suggests that traders are hastily placing bets on profits and are willing to compensate short-term speculators in order to hold onto their holdings.

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