Bitcoin’s market capitalization has exceeded the $1 trillion entry point for the first time since November 2021, Following a 1.4% increase that raised its value to over $51,000.
According to an analysis by CryptoQuant, the recent increase in Bitcoin’s price is attributed to the demand generated by the approval of spot Bitcoin exchange-traded funds (ETFs) in the U.S.
An estimated 75% of new Bitcoin investments now originate from these ETFs. Excluding Grayscale’s Bitcoin Trust ETF, the 10 spot Bitcoin ETFs have accumulated over 4,100 Bitcoin worth about $215 million. The BlackRock iShares Bitcoin Trust ETF saw the largest inflows at 4,843 Bitcoin, around $253 million.
CryptoQuant head of research believes Bitcoin could next target $56,000 based on its network valuation. Its research report states valuation indicators show little risk of a major price correction. James Wo, CEO of crypto investment firm DFG, agreed that ETF inflows explain Bitcoin hitting $52,000.
However, on-chain analyst Cole Garner identified resistance around $52,300 due to sell orders on Bitfinex.
Also Read: Warren Honors Satoshi Nakamoto on Bitcoin’s 15th Anniversary
