Cryptocurrency Market Updates : On Monday, Bitcoin surged over $50,000, hitting its highest value in over two years at one point.
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.
According to Antoni Trenchev, co-founder of the cryptocurrency services company Nexo, “$50,000 is a significant milestone for bitcoin after the launch of spot ETFs last month not only failed to elicit a move above this key psychological level but also led to a selloff and some deep soul searching about these new bitcoin products.”
After having its greatest week since December 8th, Bitcoin was up 10.76% as 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. On Monday, the blue-chip S&P and the broader market
According to James Butterfill, head of research at cryptocurrency-focused asset manager CoinShares, “a number of factors are influencing market dynamics, including China’s adoption of a more relaxed monetary policy, which has led to increased asset purchases, notably in bitcoin and equities.”
“Spot-bitcoin ETF demand is still strong, as evidenced by net inflows of $2.8 billion since launch and $1.1 billion over the last week,” he continued. “ETFs bought 12,000 bitcoin on Friday alone, much exceeding the daily production rate of about 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 beyond $50,000 and possibly even an all-time high. On November 10, 2021, the coin reached its highest value of $68,982.20.