Proactive's Billy Farrington discusses all the price action in Bitcoin this week, highlighting a strong recovery early in the week before plateauing as the week progressed, resulting in a 2.5% increase on the Bitcoin dollar pair.
By early afternoon on Friday, Bitcoin traded at $71,200, approaching its all-time high of $73,800 in March. Despite strong fundamentals and technical reasons that could push Bitcoin to new highs, the market remains volatile with low trading activity.
Farrington also discussed the significant impact of exchange-traded funds (ETFs) on Bitcoin's performance. Since their approval in the US in January, there have been 19 consecutive days of inflows into US-based Bitcoin ETFs, totalling $15.5 billion. Currently, 11 ETF products hold about $55 billion in Bitcoin. This trend is also seen internationally, with the UK, Australia, and Hong Kong showing support for these financial products.
Looking ahead, Farrington mentioned the potential impact of next week's US macroeconomic events, including an interest rate decision and inflation data. He speculated that a strong US dollar might present a headwind for Bitcoin, possibly leading to a decline next week.