Discover the latest news on Bitcoin as it hits US$50K for the first time since 2021. Uncover the reasons behind the surge in a language that is easy to understand. Get the scoop on what’s driving the cryptocurrency’s value to new heights.
Bitcoin BTC has reached the $50,000 level for the first time in over two years, signaling a significant milestone for the world’s largest cryptocurrency. This surge in value was driven by expectations of interest rate cuts and the recent regulatory approval for U.S. exchange-traded funds designed to track its price.
Bitcoin has already risen by 16.3% this year, hitting its highest point since December 27, 2021. The cryptocurrency was up 4.96% at $49,899 on Monday, fluctuating around the $50,000 level. Antoni Trenchev, co-founder of crypto lending platform Nexo, commented on the significance of hitting the $50,000 mark, especially after the recent launch of spot ETFs last month.
Additionally, other crypto stocks saw a boost, with crypto exchange Coinbase, crypto miners Riot Platforms and Marathon Digital, and software firm MicroStrategy all experiencing notable gains. The value of ether, the second-largest cryptocurrency, also increased by 4.12% to $2,607.57.
This surge in value was primarily attributed to increased inflow into BTC spot ETFs following the approval of the first U.S. spot bitcoin ETFs by the U.S. securities regulator. As a result, there has been a reduction in outflows from Grayscale Investment’s Grayscale Bitcoin Trust, indicating a growing interest in BTC Spot ETFs.
Analysts project that flows into the new ETFs could surpass $10 billion in 2024, while some estimates suggest that these products could attract $50 billion to $100 billion this year alone. The market is eagerly anticipating the decision on pending applications in front of the U.S. SEC for ETFs tied to the spot price of ether, with investors also looking ahead to the next bitcoin “halving” expected in April.
The surge in Bitcoin’s value and the growing interest in cryptocurrency ETFs represent significant developments in the crypto industry and have the potential to reshape the financial landscape in the years to come.
Investors and market participants are closely monitoring these developments, as they could have a lasting impact on the cryptocurrency market and pave the way for further innovations in the digital asset space.