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Bitcoin has surged to an all-time high, surpassing $69,000, a level not seen since November 10, 2021.
The uptick is largely attributed to the significant influx of purchases from recently established spot bitcoin ETFs based in the United States. When these ETFs commenced operations on January 11, Bitcoin was trading at approximately $45,000, surging by over 50% since then. Despite its substantial retreat after the ATH, experts suggest that “there is no reason to fear.”
Bears Foiled as Bitcoin Defies Expectations
Bitcoin has experienced a remarkable year so far, with indications from experts suggesting that the leading crypto asset still has room to grow.
Bears in the market are reeling from a series of unexpected events, as three recent short squeezes have shattered their confidence. On February 27th, February 28th, and March 4th, their attempts to bet against Bitcoin’s price met with failure.
Recent data from CryptoQuant reveals that the premium on Coinbase, the largest US-based crypto exchange, is currently at its peak since September of the previous year. This surge in premium indicates heightened interest from institutional investors in the United States, driven by a fear of missing out (FOMO), as they rush to acquire Bitcoin.
Despite concerns about a potential bigger and more prolonged market correction, the confidence remained unshaken.
According to the on-chain intelligence platform, bearish speculators have attempted three times to bet against Bitcoin’s price, all of which have been unsuccessful, leaving them surprised and dismayed. The primary source of frustration for them stems from the strong participation of US institutional investors in the market.
Spot Bitcoin Market Frenzy
Since their introduction in mid-January, the nine newly established spot ETFs have amassed more than $7.5 billion worth of BTC inflows. This figure stands in contrast to a significant outflow from Grayscale’s GBTC fund, which recently underwent conversion.
In fact, March 5 marked the highest trading volume day for the ten ETFs, reaching approximately $10 billion. Notably, BlackRock’s IBIT fund contributed the most substantial portion, pushing its total AUM to a new record.
This article first appeared at CryptoPotato
