Bitcoin surged past the $50,000 mark for the first time in over two years, driven by anticipation of impending interest rate cuts and recent regulatory approval for US exchange-traded funds linked to its value. This milestone marked a 16.3% increase in the cryptocurrency’s value since the start of the year, with Monday’s peak reaching its highest point since December 27, 2021. As of 12:56 p.m. EST (1756 GMT), bitcoin was trading at $49,899, maintaining its momentum around the $50,000 threshold.
The broader cryptocurrency market also experienced gains, with crypto-related stocks such as Coinbase, Riot Platforms, Marathon Digital, and MicroStrategy seeing notable increases in their share prices. Ethereum, the second-largest cryptocurrency, saw a 4.12% rise, reaching $2,607.57.
Bitcoin’s remarkable performance reflects it’s tripling in value since the beginning of the previous year, rebounding from a significant decline in 2022, although it has yet to surpass its all-time high of nearly $69,000 recorded in November 2021. Analysts attribute this recent surge to optimism surrounding the US regulatory approval of exchange-traded funds (ETFs) directly linked to Bitcoin ownership, signaling increased mainstream acceptance of the cryptocurrency.
Furthermore, as per available reports, Bitcoin has fully recovered from the losses incurred following the collapse of stablecoin TerraUSD in May 2022, which precipitated the downfall of the FTX exchange founded by Sam Bankman-Fried in November 2022. Recent legal developments, including Bankman-Fried’s conviction for fraud and legal challenges faced by Binance co-founder Changpeng Zhao, have also diminished perceived risks within the crypto industry, fueling the upward trajectory of prices.
