Bitcoin (BTC) continues its upward trajectory, soaring 9.5% in the past 24 hours to surpass the crucial $63,000 mark.
The cryptocurrency hit a high of $64,000, marking its most significant rally since November 2021 and its largest single-day gain since October 2023.
Experts attribute this surge in Bitcoin’s price to a surge in “passive demand” driven by the popularity of ETFs. Optimistic projections suggest that Bitcoin could double in value by the end of 2024.
However, Bitcoin’s volatile nature was evident when it experienced a 7% drop after reaching the $64,000 milestone on Wednesday. Presently, the cryptocurrency is trading at $62,902.12.
Bitcoin made a remarkable comeback by surpassing the $50,000 mark on February 14, 2024, and reaching $57,000 on February 27, a level not seen since November 2021. This resurgence is notable considering Bitcoin’s sharp decline to $16,000 by the end of 2022, following a series of adverse events.
Edul Patel, CEO of the Bengaluru-based crypto platform Mudrex, attributes Bitcoin’s surge to the ten-spot Bitcoin ETFs in the US, which achieved a new daily record by surpassing $7.7 billion in trading volume. BlackRock’s Bitcoin ETF alone traded $3.3 billion on Wednesday, doubling its previous volume record.
“Bitcoin Skyrockets Past $60,000! What’s Driving This Insane Surge?”
Bitcoin has surged above the $60,000 mark for the first time in over two years, marking a significant milestone for the world’s largest cryptocurrency. The rapid rise in its value has brought it close to its all-time high.
On Wednesday, Bitcoin experienced a surge of up to 12.6 percent, reaching $63,968 before retracing to around $60,000. This rally has resulted in a 42 percent increase in value during the first two months of the year.
The sudden surge in Bitcoin‘s price has evoked memories of the cryptocurrency’s bull market, which saw it reach a peak of nearly $69,000 in November 2021. Investors are increasingly joining the market, driven by the fear of missing out on potential price gains.
Timo Lehes, co-founder of blockchain company Swarm, described the situation as “insane” and anticipated a further influx of funds into Bitcoin. He noted that significant price increases tend to attract more investors due to the fear of missing out.
In January, US regulators approved the launch of spot Bitcoin exchange-traded funds (ETFs) by mainstream asset managers like BlackRock and Invesco. This move paved the way for more investors to enter the market through regulated channels. Currently, these ETFs collectively hold 303,000 bitcoins, valued at $18 billion, representing about 1.5 percent of the total Bitcoin supply.
Analysts, such as Simon Peters from trading firm eToro, believe that the introduction of Bitcoin ETFs has played a significant role in driving its price surge. The overall bullish sentiment in traditional financial markets, buoyed by positive results from companies like chipmaker Nvidia, has also contributed to the rally.
Despite the surge in Bitcoin’s price, some users experienced disruptions on crypto trading platforms like Coinbase due to increased traffic. However, Coinbase assured users that their funds were safe and that improvements were being made to address the issues.
The price of Bitcoin continues to rise despite regulatory scrutiny and skepticism from institutions like the European Central Bank, which has criticized its value proposition. Nevertheless, Bitcoin’s price surge indicates sustained interest and investment in the cryptocurrency market.
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