Bitcoin surged above $50,000 on Monday, reaching its highest value in over two years, peaking at $50,334.00, marking a significant 4% increase from $50,168.36 according to Coin Metrics.
Ether also saw notable gains, rising by almost 5.5% to $2,643.80, hitting its highest level since January 12 at $2,638.62.
Despite previous expectations, spot ETFs failed to push Bitcoin past the $50,000 milestone, causing a selloff, but positive sentiment has returned, with Bitcoin recording its most positive week since December 8, 10.76% up by Friday.
On Monday, Bitcoin surged above $50,000, hitting its highest value in over two years at one point.
(Photo : by MARVIN RECINOS/AFP via Getty Images)On Monday, Bitcoin surged above $50,000, hitting its highest value in over two years at one point. Bitcoin experienced its most positive week since December 8, recording a 10.76% increase by the end of Friday.
According to Coin Metrics, the flagship cryptocurrency's price increased by 4% to $50,168.36 last time. It had previously increased to $50,334.00, the most since December 2021. Ether increased by almost 5.5% to $2,643.80 after seeing its highest level since January 12 at $2,638.62.
Antoni Trenchev, co-founder of the crypto services firm Nexo, stated that despite the launch of spot ETFs last month, which was anticipated to push bitcoin above the significant milestone of $50,000, it not only failed to do so but also triggered a selloff and prompted reflection on the nature of these new bitcoin products.
Bitcoin experienced its most positive week since December 8, recording a 10.76% increase by the end of Friday.
Following a month of sentiment suppression caused by large withdrawals from the Grayscale Bitcoin ETF, positive sentiment has returned to the cryptocurrency space. In addition to those outflows decreasing, inflows are also rising. Furthermore, the stock market, where the S&P 500 crossed 5,000 last week, made a bid for bitcoin. The blue-chip Dow Jones Industrial Average and the broader S&P both saw gains on Monday achieved new intraday highs.
James Butterfill, head of research at the crypto-focused asset manager CoinShares, highlighted various factors influencing market dynamics, including China's shift toward a more relaxed monetary policy, resulting in increased asset purchases, particularly in bitcoin and equities.
He further noted that demand for spot-bitcoin ETFs continues to be strong, with net inflows totaling $1.1 billion over the past week and $2.8 billion since their launch. Butterfill pointed out that on Friday alone, ETFs acquired 12,000 bitcoin, significantly exceeding the daily creation rate of approximately 900 new bitcoins.
Approximately $48,600 has been the focus of investors as a crucial resistance level. Chart analysts predict that if bitcoin is able to maintain above that level, it may be able to hit new highs over $50,000 and maybe even an all-time high. On November 10, 2021, the coin reached its highest value of $68,982.20.
The increase on Monday drove up cryptocurrency stocks. MicroStrategy, a bitcoin proxied, increased 11%, while cryptocurrency exchange Coinbase gained more than 3%. Numerous mining equities had double-digit gains. Iris Energy increased by 14%, and CleanSpark increased by 16%. Sprint Digital increased by 14%.
