Here is Why Bitcoin is Pumping Today

After a brief slide below $50,000, Bitcoin has risen above $52,000, buoyed by ETF inflows and increased market optimism around the halving.

Bitcoin is having a year to remember, with the cryptocurrency currently hovering around prices last seen in late 2021. In the past 24 hours, the leading crypto has also gained 4%, adding to its 16% gain in the past seven days.

Admittedly, there are, by and large, several reasons behind the Bitcoin pump today. The cryptocurrency simply appears on course with the rally period within its historic four-year cycle. However, BTC appears to be ahead of schedule, buoyed by inflows into newly launched spot Bitcoin ETFs in the United States.

In the past 24 hours, the ETFs posted a net inflow of $339.7 million. Given that the core role of such ETFs is converting new inflows to BTC to be held by the fund, the daily inflow creates buying pressure for the asset.

Since the start of the week, Bitcoin ETFs have recorded a net inflow of $1.464 billion, accounting for this week’s significant jump. Meanwhile, the upcoming Bitcoin halving event may also be another factor driving the bullish price action.

Will Bitcoin Hit a New All-Time High Before Halving?

Following Bitcoin’s historical performance, the cryptocurrency typically hits a new all-time high within 12-18 months after a “halving.” For newcomers, the halving represents a pre-programmed move to lower the supply of issued bitcoins. The upcoming halving, now estimated for 15th April 2024, will see the supply of newly issued coins cut from 6.25 BTC per block to 3.125 BTC.

Bitcoin’s price typically witnesses a pre-halving rally and appears to have followed this pattern in 2024. Nonetheless, the launch of the spot Bitcoin ETFs seems to be accelerating the rally, putting the cryptocurrency on course to hit a new all-time high before a “halving” for the first time in its history.

At the time of writing, Bitcoin is currently trading at around $52,000. This figure puts the cryptocurrency just 24% away from its previous all-time high of $68,789 recorded in November 2021 and well on course to reach the record-breaking milestone in the months ahead.