Bitcoin surged above $50,000 on Monday, hitting its highest point in over two years.
The price of the primary cryptocurrency was recently up by 4% at $50,168.36, as per Coin Metrics.
Earlier, it peaked at $50,334.00, marking its highest level since December 2021. Ether also experienced an increase of more than 5.5%, reaching $2,643.80, having climbed to $2,638.62 for the first time since Jan. 12.
” $50,000 is a significant milestone for bitcoin after the launch of spot ETFs last month not only failed to elicit a move above this key psychological level but led to a selloff and some deep soul searching about these new bitcoin products,” stated Antoni Trenchev, co-founder of crypto services firm Nexo.
Bitcoin has concluded its most favorable week since Dec. 8, wrapping up with a gain of 10.76% as of Friday.
Optimism has resurged within the crypto sphere following significant outflows from the Grayscale Bitcoin ETF, which had dampened sentiment over the previous month.
Notably, these outflows have diminished while inflows are on the rise. Moreover, bitcoin received a boost last week from the stock market, particularly as the S&P 500 surpassed the 5,000 mark.
On Monday, both the broad market S&P and the blue-chip Dow Jones Industrial Average reached fresh intraday highs.
“Several factors are influencing market dynamics, including China’s adoption of a more relaxed monetary policy, which has led to increased asset purchases, notably in bitcoin and equities,” remarked James Butterfill, head of research at crypto-focused asset manager CoinShares.
“Demand for spot-bitcoin ETFs remains robust, with net inflows of $1.1 billion over the past week and $2.8 billion since their launch,” he added.
“On Friday alone, ETFs acquired 12,000 bitcoins, significantly outpacing the daily creation rate of approximately 900 new bitcoins.”
Investors have been closely monitoring around $48,600 as a crucial resistance level.
If Bitcoin manages to maintain its position above this level, it could pave the way for a potential surge toward new highs beyond $50,000, and possibly even a new all-time high, suggest chart analysts.
The cryptocurrency achieved its record peak of $68,982.20 on Nov. 10, 2021.
The ascent witnessed on Monday uplifted crypto-related equities. Crypto exchange Coinbase saw an increase of more than 3%, while bitcoin proxy MicroStrategy surged by 11%.
Several mining stocks experienced double-digit gains, with CleanSpark rising by approximately 14% and Iris Energy surging by 16%. Marathon Digital also recorded a gain of 14%.
