Bitcoin hit $50,000 after for the first time in two years – a remarkable comeback from the crypto scandals and wipeouts that had created major doubt in the industry.
Bitcoin has rocketed past the $50k barrier on February 12, 2024, reaching heights not seen since 2021.
Coinbase data shows that the largest digital asset by market cap hit $50,000 at 11 a.m. Eastern time on Monday.
After the launch of spot Bitcoin ETFs earlier in January, BTC looked like it was having a slow year.
The product got the green light from the Securities and Exchange Commission after a decade of denials, but the price of Bitcoin dipped, contrary to market expectations.
So is BTC’s rise linked to BTC ETFs, or has more to do with the scheduled halving in April?
According to analysts, BTC’s surging is down to big investors holding onto cryptocurrency and Wall Street showing renewed interest in the tech sector.
The tech-heavy Nasdaq was up 0.34%.
Why does this matter? Bitcoin was previously heavily correlated to stocks.
Did you know? Bitcoin touched its all-time high of $69,044 in November 2021, during the last bull run.
Moreover, the BTC halving due in April is also weighing heavy on the crypto industry.
Since last week, analysts have been saying that data from Bitcoin transactions suggests the digital currency is likely to make a significant jump.
This anticipation coincides with the upcoming halving event, which will see rewards paid out to Bitcoin miners from 6.25 BTC to 3.125 BTC.
Aside from ETF inflows, sentiment toward Bitcoin is “typically positive” during the Lunar New Year holidays that are currently underway in Asia.
Crypto stocks also enjoyed a boost on Monday:
The price of ether, the second-largest cryptocurrency, was up 4.12% at $2,607.57.
At time of writing, Bitcoin is trading at $50,011.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
The Crypto Fear and Greed Index, a tracking tool for market sentiment in crypto, has surged as high as 79 out of 100, hitting a level not seen since Bitcoin peaked at $69,000 in November 2021.
6 days ago, Feb 14, 2024