By Anjali Kochhar
In a significant milestone, Bitcoin has surpassed the $50,000 mark for the first time in over two years, propelled by a combination of factors including expectations of imminent interest rate cuts and the recent regulatory approval for U.S. exchange-traded funds tracking its price.
Antoni Trenchev, co-founder of crypto lending platform Nexo, commented on the milestone, saying, “$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 20% sell-off.”
Crypto-related stocks also experienced a boost on Monday, with Coinbase witnessing a 4.86% surge, while crypto miners Riot Platforms and Marathon Digital rose by 11.9% and 13.7%, respectively. Software firm MicroStrategy, known for its significant bitcoin holdings, saw its shares rise by 11.7%.
Shivam Thakral, CEO of BuyUcoin, India’s second-longest-running digital asset exchange, noted the overall positive trend in the crypto market, stating, “The Total Crypto Market Capitalization has risen to $1.87T with Bitcoin crossing $50,000 for the first time in 2 years.”
Thakral pointed out that Ethereum is also striving to break the $2,700 resistance, and the market is closely watching Bitcoin’s dominance, which currently stands at 52%.
Manhar Garegrat, Country Head- India & Global Partnerships at Liminal Custody Solutions, provided insights into the broader market dynamics, emphasizing the anticipation surrounding the upcoming Bitcoin halving in April 2024. Garegrat highlighted the historical positive price action associated with Bitcoin halvings, driven by a reduction in Bitcoin supply. The recent introduction of Bitcoin spot ETFs has further intensified the demand, surpassing $50 billion in just a month since approval in mid-January 2024.
Garegrat expressed optimism about the future, stating, “If this increased demand continues, the Bitcoin halving could mark the beginning of a new bull run for digital assets, pushing Bitcoin beyond any historic all-time highs.”
Edul Patel, CEO of Mudrex, provided additional analysis, attributing Bitcoin’s surge to the robust performance of the U.S. stock market, substantial inflows into spot Bitcoin ETFs, and the anticipation of the upcoming halving event. Patel highlighted the prevailing positive investor sentiment and indicated that Bitcoin faces its next resistance at $50,250, with potential targets at $51,200.
As the crypto market continues to evolve, industry experts remain optimistic about the role of Bitcoin and other digital assets in the financial landscape, driven by regulatory developments and increasing investor interest.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
