The most prominent cryptocurrency in the world is named as Bitcoin. It has seen a remarkable rise on Monday. Because it has broken the $50,000 mark for the first time since 2021. Moreover, this sparks fresh speculation among investors. Bitcoin reached $50,000 for the first time in over two years.
This big achievement has surprised the financial world. However, this marks a crucial moment in the journey of Bitcoin. This happened because people expect interest rates to go down later this year. Last month, U.S. authorities approved funds that track the price of Bitcoin.
So far this year, the cryptocurrency has gone up by 16.3%. On Monday, it reached its highest point since December 27, 2021. At 12:56 p.m. EST (1756 GMT), Bitcoin was up by 4.96% for the day, trading at $49,899, staying close to the $50,000 mark.
Launch of Spot ETF and Bitcoin
Co-founder of Nexo, Antoni Trenchev, explained about Bitcoin at a crypto lending platform. He said “Reaching $50,000 is a big deal for Bitcoin. Last month, spot ETFs launched. And, there was hope they would push Bitcoin above this important level. Instead, it caused a 20% drop.”
According to the data of Bloomberg. It stated that Bitcoin has rallied about 25 percent since January 22. Moreover, it initially fell in response to last month’s green light from Washington. The advance lifted it to $50,328, its highest level since late 2021.
Impact of Investors on Bitcoin Prices
Observers are hopeful. Fadi Aboualfa from Copper Technologies said. He said that, “When people who really like Bitcoin buy it. It makes more people want to buy it. Moreover, this makes the price go up.” He also mentioned, that “Bitcoin has been doing well for several weeks now. However, it might keep going up a lot when the market has big weekly gains like last week.”
By 0330 GMT Tuesday, Bitcoin had slightly dropped to $49,950. Although it’s still far from its record value of almost $69,000 in 2020. However, the recent rally signals a recovery after a series of scandals and collapses that shook the crypto industry.
Investors are waiting for the next bitcoin halving which is expected in April. This process slows down the creation of new bitcoins. However, the total supply of Bitcoin is limited to 21 million tokens. However, already there exist 19 million tokens. The most recent halving happened in 2020. And the price of Bitcoin increases after the previous three halves.
Importance of Bitcoin Halving
Ben Laidler, is a global markets strategist at eToro. He said that the fourth Bitcoin halving is very important. Additionally, the first Fed interest rate cut is significant. Potential Ethereum spot ETF approval is also important. However, it is the smallest, youngest, and most retail-dominated asset class.”
Everyone will be watching to see if Bitcoin can keep going up and stay on its current path. Bitcoin surpassing $50,000 could be a vital moment for cryptocurrencies. Moreover, it became accepted as a regular type of investment.
