Bitcoin (BTC) ended the week at approximately $52,150, a notable 7.9% increase from the previous week’s closing price of approximately $48,300. The week began with strong price gains, with BTC reaching a peak trading price of around $52,800 on Thursday before stabilizing within a range of $51,000 to $52,000 over the weekend and ultimately closing just above $52,000.
Last week, Bitcoin returned to trading above $50,000 for the first time in two years, signaling strong momentum following the BTC ETF spot approval. The last time BTC traded above $50,000 was in December 2021, shortly after hitting an all-time high of $69,000 in November of the same year. This period was retroactively recognized as the start of a significant downward trend that would continue throughout 2022, resulting in the price falling to around $16,000 by the end of the year.
High demand for BTC ETF spot continues to strengthen market momentum. Cumulative net inflows into the BTC ETF over the past week were approximately $2.3 billion, nearly double the $1.2 billion recorded the previous week, and accounted for nearly half of total net inflows since inception, which currently stand at approximately $5 billion.
Net inflows have remained consistently positive for 16 consecutive trading days since January 26. However, the outflow of Grayscale Bitcoin ETF (GBTC) increased slightly last week, reaching approximately $625 million, a 50% increase compared to the previous week’s cumulative outflow of $415 million. This suggests that the recent surge in BTC prices has led to increased profit-taking by investors.
Of the nine ETFs launched on January 11, the Blackrock Bitcoin ETF (IBIT) currently holds the lead with over $5 billion in assets under management (AUM) for a total of $6.2 billion. Fidelity BTC ETF (FBTC) came in second with approximately $4.5 billion in AUM, while 21Shares & ARK Bitcoin ETF (ARKB) ranked third with approximately $1.5 billion in AUM. Last week, a fourth ETF surpassed $1 billion in AUM, with the Bitwise Bitcoin ETF (BITB) reaching approximately $1.2 billion in AUM.
Trading volume is still strong, with the cumulative trading volume of the BTC ETF last week reaching approximately $9.6 billion, with the average daily trading volume exceeding $1.9 billion. Since January 11, the cumulative trading volume has reached a total of $45.3 billion, and the average daily trading volume is approximately $1.7 billion. This figure represents above-average trading volume this week and highlights the strong buying pressure and activity surrounding the ETF.
Analyzing the macroeconomic situation, the upcoming Federal Open Market Committee (FOMC) meeting is now 30 days away. According to market expectations, there is a 90% chance of no change in interest rates, with the first 25 basis points cut expected sometime between the end of the second quarter and the beginning of the third quarter of this year. These expectations fuel expectations of less restrictive monetary policy from the FED, increasing the risk exposure market participants are willing to bear. This is contributing to the strong momentum in risk assets such as BTC, cryptocurrencies, and stocks, with the S&P 500 recently hitting an all-time high.