Bitcoin Surpasses $50,000 Mark as Positive Sentiment Returns to Crypto Market
Bitcoin reached a milestone on Monday, surpassing the $50,000 mark and hitting its highest level in over two years. The price of the flagship cryptocurrency was up 4% at $50,168.36, with a peak of $50,334.00, the highest since December 2021. Ether also experienced gains, rising over 5.5% to $2,643.80.
The launch of spot ETFs last month failed to push bitcoin above the $50,000 psychological level and led to a selloff. However, positive sentiment has returned to the market following a decrease in outflows from the Grayscale Bitcoin ETF and an increase in inflows. Additionally, bitcoin received support from the stock market as both the S&P 500 and Dow Jones Industrial Average reached new intraday highs.
Increase in Asset Purchases and Strong Demand for Spot-Bitcoin ETFs
Several factors are influencing market dynamics, including China’s adoption of a more relaxed monetary policy and increased asset purchases in bitcoin and equities. CoinShares’ head of research noted that spot-bitcoin ETFs have seen robust demand with net inflows of $1.1 billion in the past week and $2.8 billion since their launch.
Potential for New Highs if Bitcoin Holds Above Resistance Level
If bitcoin can maintain its position above the key resistance level of $48,600, it may have the opportunity to reach new highs beyond $50,000 and even surpass its all-time high of $68,982.20 set on November 10, 2021. The positive movement in bitcoin also had a ripple effect on other crypto equities such as Coinbase, MicroStrategy, CleanSpark, Iris Energy, and Marathon Digital.
Correction: Bitcoin broke through the $49,000 level for the first time since January 11. An earlier story misstated the record.
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