Bitcoin, the world’s largest cryptocurrency, continues its bull run from last week, surging to a session peak of $65,537 early in Europe, and building on its momentum after reaching a new two-year high during Asian trading. The latest surge represents its most significant monthly rally since 2021 when Bitcoin hit a record $68,999.99 in November 2021.
As the crypto winter begins to thaw, there’s renewed optimism for Bitcoin in 2024. Many crypto investors and enthusiasts are now speculating that Bitcoin could potentially hit $100k by the year’s end. Several factors, including the upcoming halving and a scarcity in supply, are expected to drive up Bitcoin’s price. Additionally, the anticipated approval of a spot Bitcoin ETF and the emergence of innovative Bitcoin applications are likely to generate fresh demand amidst a dwindling supply.
In a whirlwind of surging momentum, the world’s largest cryptocurrency by market cap has surged an impressive 50% since the beginning of this year, with the bulk of this meteoric rise concentrated within the past few weeks. The catalyst? A notable influx of capital into U.S.-listed Bitcoin funds.
Earlier this year, the green light was given for the establishment of spot bitcoin exchange-traded funds (ETFs) in the United States. This pivotal development not only paved the way for a fresh wave of significant investors but also reignited a fervor and zeal reminiscent of the exhilarating climb to historic highs witnessed back in 2021.
Markus Thielen, the insightful head of research at crypto analytics powerhouse 10x Research based in Singapore, remarked, “The flows are not drying up as investors feel more confident the higher price appears to go.”
This crypto rally synchronizes strikingly with a period of record-breaking achievements across various stock indexes, ranging from Japan’s Nikkei to the illustrious S&P 500 and the tech-laden Nasdaq. This exuberance is further underscored by a palpable decrease in volatility measures across equities and foreign exchange, Reuters reported
“In a landscape where the Nasdaq continues to scale unprecedented peaks, the crypto arena is poised for success, with bitcoin retaining its position as a high-volatility tech proxy and a gauge of liquidity,” remarked Brent Donnelly, a seasoned trader and president at the esteemed analysis firm, Spectra Markets.
“It feels like we’re back in the exhilarating market dynamics reminiscent of 2021, where assets ascend and jubilation abounds,” he added, capturing the essence of the current zeitgeist with precision.
MicroStrategy, a crypto investor and software firm, recently disclosed its purchase of about 3,000 bitcoins for $155 million. Additionally, social media platform Reddit revealed in a regulatory filing that it has acquired small amounts of bitcoin and ether.
Bitcoin is not the only cryptocurrency experiencing a surge. Ethereum, the second-largest cryptocurrency, rose 2.2% to $3,320, hitting another two-year high. Its price surged by 47% in February, marking the largest monthly gain since July 2022.
