Bitcoin (BTC) has experienced a surge, surpassing the $60,000 mark and approaching its all-time high. The world’s largest cryptocurrency has gained nearly 19% this week and 43% year-to-date, largely driven by the excitement surrounding the introduction of spot bitcoin exchange-traded funds in January.
At present, Bitcoin is trading over 6% above $60,500, reaching its highest level since November 2021. This rally is testing whether the price can move closer to its previous peak of $68,789, which occurred six months before a significant crash in 2022.
Ryan Rasmussen, a senior crypto research analyst for Bitwise Asset Management, stated that the current resurgence of crypto indicates a recovery from the 2022 market downturn. Mark Palmer from Benchmark added that they anticipate Bitcoin’s price to reach $125,000 by the end of 2025.
Investors are also showing increased interest in other cryptocurrencies and related stocks. Ether (ETH), the second-largest cryptocurrency, has outperformed Bitcoin by more than 4% year-to-date. The total market value of all crypto assets has risen approximately 36% to $2.24 trillion, according to Coinmarketcap.
The launch of Bitcoin exchange-traded funds in January has contributed to the growing enthusiasm for the digital asset. These funds have attracted over $6.7 billion in net flows as of Wednesday, according to data from Farside Investors.
Bitcoin trading volume this quarter has surpassed previous levels seen in each quarter of 2023. This heightened activity has benefited major crypto trading platforms such as Coinbase Global and Robinhood, with their stocks rising 27% and 31% respectively since the beginning of January.
Bitcoin miner Marathon Digital and Bitcoin holder Microstrategy have also experienced significant gains, rising 32% and 27% respectively. Microstrategy recently announced the acquisition of an additional 3,000 BTC, bringing their total investment to 193,000 BTC, valued at approximately $11 billion.
Derivatives traders are joining the Bitcoin rally, with open contracts in the bitcoin futures market reaching approximately $25 billion, a new record high. This surpasses the previous mark set in April 2021. Analyst Christopher Newhouse from Cumberland Labs noted a bullish sentiment in the options market.
In summary, Bitcoin has surged above $60,000, nearing its all-time high, driven by the introduction of bitcoin exchange-traded funds and growing investor interest in cryptocurrencies.
