Bitcoin Nears $50K as Major Firms Launch ETFs Ahead of Supply-Cutting 'Halving'
• Bitcoin price has surged to near $50,000, partially fueled by the launch of several U.S. spot bitcoin ETFs by major firms like BlackRock and Fidelity. These ETFs now hold almost 1% of bitcoin's total supply.
• BlackRock and Fidelity's bitcoin ETFs are rapidly accumulating bitcoin, holding around 80,000 and 68,000 coins respectively, as they take market share from Grayscale's Bitcoin Trust.
• Bitcoin is gearing up for its next halving in April, which will cut the supply of new bitcoin rewards by 50%. Historically, bitcoin prices tend to rise into the halving.
• This time, the halving coincides with growing institutional ETF demand, which could "reshape bitcoin's market structure by providing a new, steady demand source."
• Analysts say positive on-chain activity and market structure updates make this halving "different on a fundamental level", potentially priming bitcoin for major gains.