FOMO

Bank AI

Bitcoin

when

Billion

The ongoing growth in Bitcoin and other cryptos is supported by the invention of ETF, inflows in cryptos and ETFs, and upcoming halving.
Bitcoin broke its all-time high when it crossed the $72,000 mark on March 11. The value has more than tripled in the space of a year. Other crypto tokens, including Ethereum and Dogecoin, which are loved by Elon Musk, are also trending upward.&nbsp;
<h2 class="wp-block-heading" id="strong-increasing-popularity-of-crypto-strong">Increasing Popularity of Crypto</h2>
The market cap of the overall crypto market has reached above $2.7 Trillion for the first time in around two years.&nbsp;
The search traffic for Bitcoin and crypto has increased significantly in the last few days. However, it is still half the traffic that was achieved when Bitcoin previously marked an all-time high in November 2021.
In 2024, crypto will not be a subdued affair anymore. The reason for the increase in adoption is the factors supporting growth in the price of cryptos. The growth is still far behind the wild crazes that were experienced at the time of initial coin offerings in 2017 and for non-fungible tokens in 2021.
<h3 class="wp-block-heading" id="strong-factors-supporting-the-growth-of-bitcoin-strong">Factors Supporting the Growth of Bitcoin</h3>
Other important factors are also affecting the price of Bitcoin. These factors include supply and demand dynamics leading to the upcoming expected halving, scheduled for April. In the halving, the number of new <a href="https://www.thecoinrepublic.com/2022/04/09/rare-btc-mined-over-2-days-after-bitcoin-moved-after-12-4-years/" target="_blank" rel="noopener noreferrer nofollow">BTC mined </a>every 10 minutes will reduce to 3.125 BTC from the current capacity of 6.25 BTC.
One of the most important factors that is probably having the highest impact is the increase in inflow to the 11 BTC ETFs. As per the data released on crypto platforms, more than $50 Billion has been poured into the Bitcoin ETFs.
The most popular spot BTC ETF was launched by the prominent asset manager, BlackRock, which has become the firm’s third biggest exchange-traded product and the fastest spot BTC ETF to reach funding of $10 Billion. The buyers of these ETFs are conventional investors who have considered the ETFs as instruments for diversification.&nbsp;
It provides a decentralized, censorship-resistant form of money taken over the world of traditional finance. Morgan Stanley, Wells Fargo and Bank of America—some of the world’s biggest banks are all reportedly planning to get involved in Bitcoin.&nbsp;
The over-the-counter trading desks are experiencing a shortage of Bitcoins, which is why some of the investors are pumping BTC. Institutional investors are experiencing FOMO as Bitcoin is highly expected to reach a mark of $100,000.&nbsp;
<h3 class="wp-block-heading" id="strong-contradicting-views-of-institutional-investors-strong">Contradicting Views of Institutional Investors</h3>
The institutional investors who are currently investing in crypto do not completely believe in the idea of Bitcoin becoming the future of money. It is neither expected to revolutionize nor outpace the financial system.&nbsp;
Institutional could be buying Bitcoin looking at the price rise in the asset and see it as an investable asset but not an alternative to fiat currencies.&nbsp;
<h3 class="wp-block-heading" id="strong-comparing-crypto-with-tradfi-strong">Comparing Crypto With TradFi</h3>
Most believers in traditional finance or TradFi still believe crypto is a reckless investment, that it is a gamble. However, the crypto community is not wholly unjustified.
The development and launch of spot BTC ETFs have created a clear boundary between crypto and conventional finance.

Is BTC’s Growth Attracting Institutional Funds To Crypto

Table of Contents

Thecoinrepublic.com

Other articles published on Mar 12, 2024

Injective (INJ) Price Hits All-Time High

MicroStrategy Buys 12000 Bitcoins; Bitcoin Will Eat Gold- Saylor

Expert Analyst Sheds Light on Bitcoin’s Growth Drivers and Altcoin Market Potential

BlackRock’s IBIT leads spot Bitcoin ETFs with $14.7b in AUM

Bitcoin BTC’s Bull Market Peak Approaches: Insights from the Accelerated Crypto Cycle

AWS Introduces Game-Changing AI Tools for Developers

Join our free newsletter for daily crypto updates!