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Bitcoin soars above $63,000 as money flows in to new US investment products

PARIS, FRANCE - FEBRUARY 13: In this photo illustration, a visual representation of the digital cryptocurrency Bitcoin is displayed in front of a Bitcoin course's graph on February 13, 2024 in Paris, France. Bitcoin crosses the $50,000 mark for the first time in two years. Bitcoin is the world's largest cryptocurrency and recently received approval from the US Securities and Exchange Commission to allow bitcoin exchange-traded funds. (Photo illustration by Chesnot/Getty Images)
Bitcoin has rallied above the $63,000 mark, for the first time since November 2021. (Chesnot via Getty Images)

Bitcoin has rallied above the $63,000 (£49,745) mark, for the first time since November 2021 when the digital asset reached its all-time high of over $68,000.

In the past 24 hours, the largest digital asset by market capitalisation has increased in value by over 8% to change hands for $63,108, as of the time of writing.

Read more: Crypto live prices

The price appreciation has been driven by record inflows into multiple US-based spot bitcoin exchange-traded funds (ETFs) which were approved in January of this year.

A spot bitcoin ETF is a financial product that investors hope will pave the way for mainstream capital to flood the crypto market. Currently, the indications are favourable, with fund managers, such BlackRock (BLK) and Franklin Templeton (BEN), having allocated a record $673m into spot bitcoin ETFs on Wednesday.

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Read more: Bitcoin success with SEC fuels anticipation for ether spot ETF

The record-high allocation surpassed the first day of the launch of these funds, during which inflows totalled $655m. BlackRock's iShares Bitcoin Trust ETF (IBIT) alone attracted a record $612m yesterday.

Bitcoin price forecast

Early this week, veteran investor Peter Brandt said bitcoin could peak at $200,000 by September 2025. “With the thrust above the upper boundary of the 15-month channel, the target for the current bull market cycle scheduled to end in Aug/Sep 2025 is being raised from $120,000 to $200,000,” Brandt posted on X.

The influx of capital from the traditional finance sphere into spot bitcoin ETFs is acting as a major price catalyst for the digital asset, but it is not the only one. The consensus among analysts is that the upcoming 'bitcoin halving' could continue to drive inflows into the bitcoin market.

The bitcoin halving is an event that happens about every four years and is expect to happen again this April. The halving will reduce the bitcoin reward that miners receive for validating blocks on the blockchain from the current 6.25 BTC to 3.125 BTC. This could act as a supply crunch for the digital asset, potentially leading to a price appreciation.

Watch: Bitcoin ETFs poised for inflows from US pension plans, Standard Chartered analyst says | Future Focus

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