Bitcoin's Skyward Climb: Delving Into The Reasons For Crossing $50,000
During this surge, Ether, the second-largest token, was trading at approximately $2,774.
Bitcoin has seen an impressive nearly 24% gain year-to-date, surpassing a market capitalisation of over $1 trillion.
This achievement is notable as it is the first time since December 2021 when market capitalisation crossed $1 trillion mark, according to Bloomberg data. It was trading around $52,000 following a widespread rally in the cryptocurrency market.
During this surge, Ether, the second-largest token, was trading at approximately $2,774.
According to analyst the Bitcoin has a a possibility of testing $100,000
The Bitcoin prices have surged due to the approval from SEC to launch Bitcoin ETF which has now given a formal status to the token as an investment avenue and has put a pause to speculation that Bitcoin will be discontinued by central banks, said Ritesh Bhansali FX Expert at Mecklai Financial Services.
The launch of Bitcoin ETF will bring in sizeable investments in the crytocurrency and hedge fund managers may also start inventing in it to diversify their investments, he said.
"The recent news of halving of mining fees to generate fresh Bitcoins has also resulted in the rise of Bitcoin prices as it reduces the incentive to mint fresh Bitcoins," Bhansali said.
Bhansali noted that as an asset class this is new concept which is evolving, but this is different assets class from equity.
"Investors today can already buy and sell or otherwise gain exposure to Bitcoin at a number of brokerage houses, through mutual funds, on national securities exchanges, through peer-to peer payment apps, on non-compliant crypto trading platforms, and, of course, through the Grayscale Bitcoin Trust," Chair Gary Gensler Chairperson, U.S. Securities and Exchange Commission said in an release on Jan.10
Bitcoin shrugged the U.S. data than expected inflation data and rose to a new recent high due to consistent inflows in spot market and because of the upcoming supply halving event, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors.
Also Grayscale Bitcoin selling has reduced. On Feb 14 there was a net inflow of $:631.3 million in Bitcoin ETFs suggesting rising institutional interest in the product.
"The expectation is a target of $1,00,000 in a year as U.S. interest rates start falling," he said.