Bitcoin’s dominance in the cryptocurrency sector has surged to a three-year high, capturing nearly 55% of the $2.4 trillion market for virtual currencies, according to CoinMarketCap data.
The success of the newly introduced U.S. spot exchange-traded funds (ETFs), including offerings from BlackRock Inc. and Fidelity Investments, has been remarkable, amassing approximately $56 billion in assets to date.
Nine spot Bitcoin ETFs collectively attracted over $2 billion in assets in just three days after launch earlier in January. These ETF inflows have played a pivotal role in propelling Bitcoin to mid-March highs, reaching a record of $73,835.57.
As geopolitical tensions persist and investors seek alternative investment avenues, the popularity of BTC — often called digital gold — as a hedge against economic uncertainties has been gaining traction.
Despite recent market volatility and short-term price corrections, many traders remain optimistic about Bitcoin’s long-term prospects, driven by growing institutional interest and geopolitical uncertainties.
“Bitcoin remains a viable doomsday asset in 2024, as its correlation to gold recently increased, and investors continue to diversify away from traditional financial assets,” said Edouard Hindi, the chief investment officer at Tyr Capital, “The ETF is currently spearheading this doomsday rally, and we should expect $120,000 to be hit in the coming months as global geopolitics continue to deteriorate and the middle classes continue to find ways to protect their wealth.”
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