The price of Bitcoin (BTC) has risen 13.5% to $47,800 U.S. in the last seven days to register its biggest weekly gain since October 2023, according to market data.
Bitcoin is now close to retesting the $49,000 U.S. that it was at before regulators in the U.S. approved spot Bitcoin exchange-traded funds (ETFs) on Jan. 10 of this year.
The recovery comes as inflows into the U.S.-based spot Bitcoin ETFs accelerate, surpassing $3 billion U.S., and ahead of a halving event that’s to take place in April of this year.
A halving event is when the rewards miners earn for new Bitcoin is cut by 50%.
At the same time, equities around the world continue to rally with the S&P 500 index closing above the 5,000 mark on Feb. 9 for the first time, a record high.
The S&P 500 equity risk premium has now dropped to its lowest since 2003. The equity risk premium compares annual corporate earnings growth with the yield on the 10-year U.S. Treasury bond to gauge the valuation and attractiveness of stocks.
The decline in the risk premium means that stocks now look expensive while Treasury bonds appear to be cheaper.
The price of Bitcoin has risen 120% in the last 12 months. The largest cryptocurrency by market capitalization, Bitcoin’s price hit an all-time high of $68,000 U.S. in November 2021.
