Jacob Brown
Bitcoin has soared to the $50,000 level for the first time in more than two years, driven by optimism surrounding potential interest rate reductions later in the year and recent regulatory approvals for US exchange-traded funds (ETFs) tracking its price.
Market Performance and Milestone Achieved:
The world’s largest cryptocurrency has experienced a notable 16.3% increase since the beginning of the year, reaching its peak on Monday, the highest since December 27, 2021. As of 11:31 a.m. EST (1731 GMT), bitcoin was trading at $50,196, marking a 5.58% increase.
Expert Insights and Market Response:
According to Antoni Trenchev, co-founder of crypto lending platform Nexo, the $50,000 milestone holds significant importance for Bitcoin, especially following the introduction of spot ETFs last month.
Despite previous challenges in surpassing this psychological level, recent market dynamics have propelled Bitcoin’s value, even amidst a 20% sell-off post-ETF launch.
Impact on the Crypto Market and Related Stocks:
The positive momentum extended to crypto-related stocks, with notable gains observed in companies such as Coinbase, Riot Platforms, Marathon Digital, and MicroStrategy.
Coinbase witnessed a 4.86% increase, while crypto miners Riot Platforms and Marathon Digital surged by 11.9% and 13.7%, respectively. Shares of software firm MicroStrategy, known for its significant bitcoin holdings, also rose by 11.7%.
