Just look at that chart. They are going to all-time highs. What a surprise for those who have been critical of the digital asset sector. The sector has begun the year with the wind in its sails, with better performance across the industry and a regulatory breakthrough in the US.
Spot bitcoin exchange-traded funds were approved in the US earlier this year. Their launch opened the way for new large investors and has re-ignited enthusiasm and momentum reminiscent of the run up to record levels in 2021. Net flows into the 10 largest US spot bitcoin funds reached USD2.17 billion in the week to March 1, with more than half of that going into BlackRock’s iShares Bitcoin Trust according to LSEG data.

For about a few weeks it appeared as though the debut of Bitcoin ETFs was a sell the news event. Then, something else happened. In early February, the new rally started and the party hasn’t really abated since.

If you are one of my long-term investors, you are no doubt familiar with my thoughts about cryptocurrencies or digital assets from the investment perspective. I know there are some smart people who still think this sector is nothing more than a bunch of worthless “cryptocurrencies” and that the upside relies purely on the greater fool theory. It is completely fine if you are not familiar with what I’m talking about.
I approach any asset with an open mind. Changing one’s mindset, even in light of evolving facts, is a capability not everyone possesses. For the bulls, the setup appears almost perfect for this bull run to continue. Historically, the Bitcoin price has surged both into and after the Halving. The Halving is a known, preprogrammed event where the issuance of new Bitcoin will be cut in half every 4 years.
In the short term, sentiment will dominate everything especially for a revolutionary asset class. If you are a leveraged trader thinking that you can cope with anything, be careful out there due to extremely high volatility in the current environment.