Bitcoin has once again captured the attention of investors and enthusiasts as its price surged past $60,000 for the first time since 2021. This milestone comes after a period of volatility and uncertainty in the cryptocurrency market, with Bitcoin experiencing significant ups and downs in recent months.
The rapid rise in Bitcoin's price has been driven by a combination of factors, including increased institutional adoption, growing interest from retail investors, and macroeconomic trends such as inflation fears and currency devaluation. However, this surge also raises concerns about the sustainability of Bitcoin's rally and the potential for a market correction.
This week's giant rally has coincided with huge inflows into U.S.-traded spot ETFs, with the new funds adding more than another 12,000 bitcoin on Tuesday after adding about 10,000 on Monday. And it comes ahead of the so-called bitcoin halving in April, an event that takes place every four years and usually accompanies strong gains as the issuance of new bitcoin slows.
Bitcoin has been on a ferocious rally for months, but that has picked up this week. Just a few days ago, its price was below $51,000. It crossed $60,000 just a few hours before exceeding $63,000.
The largest cryptocurrency is now up almost 20% over the last seven days, according to CoinGecko, bringing its market cap to $1.2 trillion. It was most recently trading at $61,121.
Spot bitcoin ETFs, which were finally approved by the SEC in January, have received huge inflows over the last few days, topping $500 million in each of the last two days. As a group, the ETFs have received $6.7 billion in inflows since Jan. 11, according to BitMEX.
Bitcoin’s big surge initially gave a lift to bitcoin-related equities, which gave back some gains after the cryptocurrency pulled back. Bitcoin proxy Microstrategy jumped 10.5% and the miner Marathon Digital rose 2.4%. Block, which operates a bitcoin trading service and holds the cryptocurrency on its balance sheet, gained nearly 1%.
Crypto exchange Coinbase gave back some of its earlier gains after its users reported zero balance errors in their accounts and issues buying and selling. It closed higher by 0.8%
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