Crypto wrap: Euphoria around Bitcoin ETFs continues to help market rally

The price of Bitcoin has been going up as the date of next of halving, April 19, approaches

Most tokens in the cryptocurrency market gained in the last one week. Bitcoin, the largest such token, gained over 8.5 per cent during the period and was trading at $46,604 on Friday. Ethereum was up 7 per cent and was trading at $2,468.3, according to data from CoinMarketCap. Several other tokens, like Solana and BNB, were up around 5 per cent.

According to Parth Chaturvedi, investments lead at CoinSwitch Ventures, institutional inflow and interest around Bitcoin continue to strengthen.

"Crypto markets are witnessing daily net inflow on a consistent basis and exceptionally high volumes even after weeks of the initial launch [of ETF] euphoria. Blackrock and Fidelity are leaders in the race, with Bitcoin holdings now touching $3.5 billion and $3 billion, respectively," he said.

Moreover, the price of Bitcoin has been going up as the date of the next halving, April 19, approaches.

Edul Patel, chief executive officer at Mudrex, said, "Glassnode's findings highlight a 3.6 per cent increase in Bitcoin wallets holding more than 1,000 Bitcoin from January 19 to February 6. The resurgence in whale engagement and network activity indicates heightened optimism regarding Bitcoin's price, particularly as Bitcoin's halving approaches.

According to Rajagopal Menon, vice president at WazirX, Bitcoin's stability is rooted in its historical significance, market dominance, and high liquidity, influencing the wider crypto market.

What next for Bitcoin?

Due to upcoming halving and optimism around ETFs, Bitcoin's resistance is currently positioned at $46,500, while support is at $44,800. According to Patel, "A successful breach above the support level could initiate an upward trend."