Bitcoin rally has ‘room to run’ after $50K push: Strategist

Bitcoin (BTC-USD) has hit over $50,000 for the first time since late 2021, continuing the recent crypto rallies and seeing gains of over 17% in the past month. With many inflows attributed to the recent approval of spot bitcoin ETF offerings, can bitcoin maintain this run?
Fundstrat Global Advisors Head of Digital Asset Strategy Sean Farrell and Swan Bitcoin Head of Swan Business Dante Cook join Yahoo Finance to discuss bitcoin ETF inflows and give insight into bitcoin’s future.
Cook puts the rally into context:
“There are a lot of other factors outside of just the ETF inflows, although that is a massive reason why… you’re seeing a lot of this price action because these ETF launches have been historic,” Cook says, putting the rally into context. “FBTC, Fidelity’s product [and] IBIT, Blackshare’s product are number one and two the most successful ETF launches of all time. Just like the Chiefs and Patrick Mahomes won back to back championships, these last two weeks you’ve seen back-to-back historic levels of inflows in dollars moving into this asset class.”
#youtube #bitcoin #crypto
About Yahoo Finance:

Yahoo Finance provides free stock ticker data, up-to-date news, portfolio management resources, comprehensive market data, advanced tools, and more information to help you manage your financial life.

– Get the latest news and data at finance.yahoo.com

– Download the Yahoo Finance app on Apple (https://apple.co/3Rten0R) or Android (https://bit.ly/3t8UnXO)

– Follow Yahoo Finance on social:

X: http://twitter.com/YahooFinance
Instagram: https://www.instagram.com/yahoofinance/?hl=en
TikTok: https://www.tiktok.com/@yahoofinance?lang=en
Facebook: https://www.facebook.com/yahoofinance/
LinkedIn: https://www.linkedin.com/company/yahoo-finance

It’s been one month since the sec’s approval of spot Bitcoin ETFs since launching funds have pulled in nearly $3 billion do in inflows it’s coring to coin shares today Bitcoin prices briefly top $50,000 boosted in part by spot Bitcoin ETF inflows join us now for the latest pulse on all things crypto is

Dante cook Swan Bitcoin head of swan business along with Sean Ferell fundstrat Global advisor head of digital asset strategy guys welcome both of you to the program and Sean maybe I’ll start with you you know it has been Sean about a month since the SEC did approve these

New spot Bitcoin ETFs what have we what have we learned so far Sean granted early days but what have we learned so far about demand for these new products well um you know we have learned that um you know bringing black rock into the equation is significant we’ve

Learned that there is demand uh for these products um and we’ve also learned that people you know generally like lowcost uh liquid products over you know other products that might be more expensive and not uh you know track the underlying asset as effectively um Dante is this indeed the reason that we have

Seen Bitcoin rallying like it has been or are there other factors going on that people should know about well there are a lot of other factors um outside of just the ETF inflows although that is a reason why uh you’re you’re seeing a lot of this price action you know because these ETF

Launches have been historic right there’ve been over 5,000 ETFs launch over the last 30 years and fbtc Fidelity’s product ibit black shares product are number one and number two of the most successful ETF launches of all time and so you know just like the Chiefs uh and Patrick Mahomes won

Back-to-back championships I mean these last two weeks you’ve seen backtack historic levels of inflows um and dollars moving into the this asset class and when you attach that to things like the Bitcoin having where the supply of overall Bitcoin will get cut in half uh right around April I mean you’re seeing

A massive inflow of demand um institutional and Retail uh hitting a a supply shock so I think there’s a lot of different factors there and Sean I’m curious um you know Bitcoin jumping to 50,000 first time in more than two years Sean where do you think the price heads

From here at least in the kind of near to intermediate term what are the puts and takes when you to consider yeah look so we we start our you know our our analysis is based uh you know we always start with macro right and um we saw some potential

Turbulence heading into the year you know thought we were heading higher our price target for the year was 125 uh certainly not in a straight line but uh a lot of that turbulence uh in our view was going to stem from a repricing of the timing uh and frequency

Of any potential Fed rate cuts um as well as potential upward pressure on the long end of the curve due to um any potential increase coupon ISU from the treasury um and if we look at what has happened over the past several weeks uh you know from right before the ETF

Launch up through today uh you know we’ve kind of withstood a pretty uh constant barrage of negative macro variables right we’ve had a pretty uh massive rally in the dollar uh you know we’ve priced out most of the excessive rate cuts that I just mentioned that I just alluded to um and

We also had some movement upwards movement uh at the long end of the curve and so all that considered you know it’s it’s pretty it it pays a pretty constructive picture that you know having just gone through that being at 50,000 uh you know that gives me some

Confidence that this rally you know in the near term certainly has some room to run and Dante that said you know we’ve seen that happen with other risk assets too right in other words stocks have also been rallying in the in the face of some um challenges here and so I’m

Curious going forward what are the biggest risks that you see to the continued rally in Bitcoin and and crypto more broadly well I think the big risks I mean like Sean mentioned are are really macro things but when you take a step back and you look at Bitcoin in gen I

Mean it has commodity properties in that it has a finite Supply um it’s it’s not controlled by any one party uh yet it has this High beta aspect to it that it rallies when you have liquidity enter the market and so one of the things that we look at pretty closely and that

Bitcoin’s price closely tracks is global M2 liquidity like into the market and so if we have you know the FED which drone pal on 60 Minutes uh uh last Sunday mentioned that they were going to have rate Cuts this past year um and you talk about those things like Bitcoin is the

Fastest race in uh the fastest horse in that race and so if we have you know pretty quick and pretty severe you know Fed rate Cuts interest rates go lower we should expect to see bitcoin’s price go higher but I mean the backro M the macro backdrop I mean when you’re when you

Step back and you look at things you have mortgage delinquencies uh you know skyrocketing you have Auto delinquencies skyrocketing you have credit card debt reaching over a trillion you have government fiscal debt reaching over a trillion in terms of interest payments you have unemployment numbers you know

Quote unquote being strong but when you actually look at the data you have a lot of uh uh jobless claims you have a lot of part-time workers not really full-time workers and jobs and then the jobs that you do have are a lot of government workers related to snowstorms

And things like that and so when you look at the backdrop of the economy right things are not overall as strong as maybe the picture that’s being painted so Bitcoin like other assets like we’re beholding to a macro markting environment but as Bitcoin is beginning to show especially with these ETF flows

Like you’re starting to see an element where Bitcoin decouples from other risk on assets because it’s an entirely different asset class unto itself guys thanks so much appreciate your perspective on this Dante and Sean appreciate it have a great day thank you