BTC back above $45K. Bitcoin jumped today, rising 5% to around $45,000. Hovering in the mid-40s for some time now, Bitcoin has demonstrated impressive resilience amid continued bear calls. What's to credit for this recent BTC bump?
This uptick may be owed to capital coming from outside the U.S., in China, Europe, and Canada. ETF Expert Eric Balchunas noted quite the European and Canadian appetite for U.S.-focused assets, providing the market fuel that Bitcoin could potentially be piggybacking off of.
Next Wave of US ETF Bulls Coming From Abroad as Global Funds Lag - It isn't just China investors, but Europe and Canada locals are also rushing to buy US-focused ETFs as flow % way higher than aum % for most regions.. awesome note today from @psarofagis & @RebeccaSin_SK pic.twitter.com/fsP1tfGTBI
— Eric Balchunas (@EricBalchunas) February 8, 2024
Further, there has been anticipation brewing around inflow from Chinese investors via a Bitcoin Spot ETF approval in Hong Kong, where 10 funds are currently exploring launching their spot ETFs. Slated for a Q1 approval — (though some are trying to launch as early as Saturday) — these ETFs would give Chinese capital a “CCP-approved” entry into Bitcoin, in turn potentially buoying the market significantly. The Hong Kong Monetary Agency is expected to give a verdict soon.
With Bitcoin running, so too are its friends. Stacks, a Bitcoin Layer 2 solution for smart contracts and consensus beta play to BTC, has rallied roughly 15% today. And ORANJ, a DeFi suite geared to managing Bitcoin and other blockchains, has seen an even more dramatic surge since its launch two days ago, rocking ~95% over the past 24 hours to a ~300% run overall.
With Bitcoin L2s and Ordinals currently occupying quite a large amount of mindshare and expected to be a major narrative this cycle, spending some time exploring the ecosystem may be a good way to spend a few hours. Here’s a potential place to start.