Bitcoin has soared above the $50,000 threshold for the first time in over two years, buoyed by optimism surrounding potential interest rate cuts later in the year and recent regulatory approvals for US exchange-traded funds (ETFs) linked to its price.
According to a report from Reuters, the world’s largest cryptocurrency has seen a remarkable 16.3 percent increase since the start of the year, reaching its highest level since December 2021.
Currently, bitcoin is trading at $49,899, marking a 4.96 percent increase for the day.
Antoni Trenchev, the co-founder of Nexo, a crypto lending platform, described the $50,000 milestone as significant for bitcoin, particularly following the introduction of spot ETFs last month, as reported by Reuters.
Trenchev emphasized the impact of ETFs on market dynamics, noting that despite initial skepticism, these products have played a role in bitcoin’s recent surge.
Additionally, stocks related to cryptocurrencies, such as Coinbase, Riot Platforms, Marathon Digital, and MicroStrategy, have also seen substantial gains in response to bitcoin’s upward trajectory.
In tandem with bitcoin’s rally, the broader cryptocurrency market has experienced positive momentum, with the price of ether, the second-largest cryptocurrency, rising by 4.12 percent to $2,607.57.
This surge in cryptocurrency prices coincides with gains in global stock indexes, as investors eagerly await signals regarding potential interest rate adjustments by the US Federal Reserve.
Market analysts anticipate the possibility of rate cuts as early as May, further fueling investor optimism.
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