Bitcoin surged to close the week, surpassing the $48,000 mark at one juncture, marking its first ascent to such heights since the inception of spot bitcoin exchange-traded funds.
As per Coin Metrics, the primary cryptocurrency recorded a 4.6% uptick, reaching $47,587.37. Meanwhile, Ether saw a 2.69% increase, reaching $2,492.97.
Previously, Bitcoin peaked at $48,207.78, marking its inaugural surge to that level since January 11, when it briefly touched $49,058.48 amidst volatile market activity following the debut of spot bitcoin ETFs.
This milestone marks the first time since March 2022 that Bitcoin has reached the $48,000 threshold.
Bitcoin trading volume and sentiment have been suppressed over the past two weeks as investors worried about big outflows from the Grayscale Bitcoin ETF and a deeper pullback in its price ahead of an expected rip higher this year.
Despite this, bitcoin finished the week up 10.76% for its best week since Dec. 8. Ether finished higher by 8.46%, making this week its best since Jan. 12.
Coin Metrics measures a week in crypto, which trades 24 hours a day, from the 4:00 p.m. ET stock market close one Friday to the next.
Positive sentiment appears to be returning now as the GBTC outflows have slowed. Additionally, momentum from the S&P 500 briefly touching 5,000 Thursday for the first time may spill over to crypto.
Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs, stated, “The recent price appreciation of bitcoin could be attributed to recent inflows into the spot ETFs, the prospect of the halving around the corner, which tends to generate optimism from investors as prices often shoot up after, and general market momentum.”
“In the past, there have been parallels between bitcoin and tech stocks,” she added. “Lower rates, falling inflation, earnings growth, and indices like the S&P 500 hitting groundbreaking levels certainly improve risk sentiment for the asset class.”
The move pulled crypto equities higher. Crypto exchange Coinbase rose 7% Friday and bitcoin proxy Microstrategy gained nearly 10%, while the biggest miners, Riot Platforms and Marathon Digital, rose 11% and 10%, respectively.
Bitcoin is nearing a key resistance level, which Fairlead Strategies earlier this week identified at $48,600. The firm said hitting that level would open the door to a new all-time high.
On Thursday, bitcoin passed $45,000 for the first time since Jan. 12, the day after U.S. bitcoin ETFs began trading. The cryptocurrency has struggled to maintain its pre-ETF highs but has avoided falling to as low as $36,000, as expected.
It has not fallen below $39,000 in the past month.
