Bitcoin has reached the $50,000 mark for the first time in over two years. This surge is attributed to expectations of interest rate cuts and the recent approval of U.S. exchange-traded funds (ETFs) tracking its price.
The cryptocurrency has seen a 16.3% increase this year, hitting its highest level since December 2021. At present, it’s hovering around $50,000.
Analysts believe the recent approval of spot ETFs and the anticipation of further interest rate cuts are driving this surge.
The positive trend has also lifted crypto-related stocks, with companies like Coinbase, Riot Platforms, and Marathon Digital experiencing significant gains.
Ether, the second-largest cryptocurrency, has also seen an uptick in its price. The approval of the first U.S. spot bitcoin ETFs by regulators has been a game-changer for the cryptocurrency market.
With the slowing outflows from existing investment trusts and increasing inflows into ETFs, market analysts are optimistic about the future of these products.
There are also expectations for ETFs tied to the spot price of ether, with decisions expected by May. Additionally, investors are eyeing the upcoming bitcoin “halving” in April, which historically has led to price rallies.
Overall, these developments signal a growing maturity in the cryptocurrency market, attracting both retail and institutional investors.