Bitcoin bulls charge towards $50K amidst ETF surge

This week in the crypto market, there are significant developments revolving around Bitcoin’s price trajectory and the impact of BTC-Spot ETF flows.  Bitcoin is eyeing a significant milestone as it aims to surpass the $50,000 mark. This surge comes amidst increased institutional interest and positive sentiment in the market.

Bitcoin hits new highs

At the time of this writing, the value of Bitcoin (BTC) stands at $48,153.12. This represents a 1.8% increase since yesterday and a decrease of 0.3% from an hour ago. The current value of Bitcoin is 12.0% greater than it was seven days ago. The aggregate traded volume of Bitcoin over the preceding twenty-four hours was $20,273,385,785.

The current valuation of cryptocurrencies on a global scale is $1.9 trillion, representing a change of 1.91% over the past twenty-four hours and 77.99% over the past year. At present, BTC holds a market cap of $948 billion, signifying a dominance of 49.89%. Stablecoins, meanwhile, have a market capitalization of $138 billion, or 7.28%, of the total crypto market capitalization.

The current Fear and Greed index for BTC is 71.

On Thursday, BTC-spot ETF market net inflows increased from $146.1 million (February 7) to $405.0 million (February 8). The nine BTC-spot ETFs certified by the SEC in January 2024 are led by iShares Bitcoin Trust (IBIT). IBIT received net inflows of $204.1 million, bringing the total net inflows to $3,499.7 million.

Fidelity Wise Origin Bitcoin Fund surpassed the $3 billion hurdle, with net inflows of $128.3 million, bringing the total net inflows to $2,934.2 million. The FOMO problem spread beyond BTC, with the overall crypto market cap jumping by 9.46% ($150 billion) to $1,739 billion between Monday and Saturday.

Events that brought the market here

On Tuesday, February 10, US Treasury Secretary Janet Yellen testified at a House Financial Services Committee hearing. Secretary Yellen mentioned the US crypto sector, stating that a regulatory framework for the industry is not a new idea on Capitol Hill. The call for legislation comes as markets await a decision on Coinbase’s (COIN) Motion to Dismiss (MTD). She stated:

The council is focused on digital assets and related risks, such as from runs on crypto asset platforms and stablecoins. Potential vulnerabilities from crypto asset price volatility, and the proliferation of platforms acting outside of or out of compliance with applicable laws and regulations.

Applicable rules and regulations should be enforced, and Congress should pass legislation to provide for the regulation of stablecoins and of the spot market for crypto assets that are not securities. We look forward to continuing to engage with Congress on this. Janet Yellen

Coinbase filed the Motion to Dismiss, claiming that the SEC lacks statutory jurisdiction to oversee US crypto exchanges. Yellen’s advocacy for a regulatory framework may unwittingly support the motion to dismiss.

Ripple Chief Legal Officer Stuart Alderoty and Coinbase Chief Legal Officer Paul Grewal responded to Yellen’s remarks. Paul Grewal concurred with Stuart Alderoty, adding,

Exactly right. The Secretary, like the two House committees, Cynthia M Lummis, and others has put the lie to the fallacy that crypto regulation isn’t a Major Question reserved to the Congress. There couldn’t be a more contemporaneous, more bipartisan record. Stuart Alderoty

In other Bitcoin news, the Craig Wright trial began on Monday. The Crypto Open Patent Alliance (COPA) claims that Craig Wright is not Satoshi Nakamoto. Despite openly claiming to be Satoshi since 2016, no one has stepped forward to refute his claims.

However, Dr. Craig Wright has been unable to deliver the private keys that allow access to over 1 million BTC currencies mined by Satoshi. Craig Wright could provide additional testimony on Monday, February 12.

The SEC under fire

On February 7, US Senators JD Vance, Thom Tillis, Bill Hagerty, and Cynthia Lummis co-signed a letter to SEC Chairman Gary Gensler. Senators from the United States expressed concerns about the SEC’s unethical behavior in the SEC against Debt Box case.

In January 2024, the SEC filed a Motion to Dismiss the Debt Box Charges. The unexpected submission followed a December court decision that asked the SEC to: “Show cause why it should not be sanctioned for making false and misleading representations to the court.”