Bitcoin has surged past the significant $50,000 level to reach its highest level in over two years, according to data from Coindesk.
As at the time of writing, the world’s most dominant cryptocurrency bitcoin was trading at $50,094 a coin.
Year to date, bitcoin has appreciated 16.3% with Monday’s gain being its highest in a single day this year.
Analysts attribute the recent bullish momentum to various factors, including expectations of interest rate reductions later in the year and the recent green light from regulators for U.S. spot bitcoin ETFs.
Investors have also expressed enthusiasm over the potential impact of upcoming bitcoin halving, anticipated in April, which is designed to curtail the supply of new bitcoins.
The previous three halvings, including the most recent one in 2020, have historically led to significant rallies in Bitcoin’s price.
Furthermore, the approval of the first U.S. spot bitcoin ETFs has spurred increased investor interest and inflows into these products, with analysts forecasting substantial growth in the sector.
According to estimates by Bernstein and Standard Chartered analysts, these ETFs could attract billions of dollars in investments, indicating growing mainstream acceptance and adoption of cryptocurrencies.
As Bitcoin continues its ascent, market participants remain vigilant for further regulatory developments and macroeconomic factors that could influence its trajectory in the coming months.
