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Bitcoin extends gains, breaks $50,000 mark
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Bitcoin topped $50,000 on Monday, at one point reaching its highest level in more than two years.
According to Coin Metrics, the price of the flagship cryptocurrency rose 4% to $50,168.36. It had previously climbed to $50,334.00, its highest level since December 2021. Ether rose more than 5.5% to $2,643.80, after hitting $2,638.62 for the first time since January 12.
“$50,000 is a significant milestone for bitcoin after the launch of spot ETFs last month not only failed to provoke a move above this key psychological level, but led to a massive sell-off and deep introspection on these new bitcoin products,” said Antoni Trenchev, co-founder of crypto services firm Nexo.
Bitcoin is coming off its best week since December 8, ending up 10.76% on Friday.
Positive sentiment returns to cryptocurrencies after large capital outflows Grayscale Bitcoin ETF repressed sentiment over the past month. Not only are these outflows decreasing, but inflows are increasing. Additionally, bitcoin has been the subject of a bid in the stock market this past week, where the S&P 500 surpassed 5,000 last week. On Monday, the S&P and the blue-chip index Dow Jones Industrial Average reached new intraday highs.
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Bitcoin Crosses $50,000 Mark
“Several factors are influencing market dynamics, including China’s adoption of a relaxed monetary policywhich has led to increased asset buying, particularly in bitcoin and stocks,” said James Butterfill, head of research at cryptocurrency-focused asset manager CoinShares.
“Demand for spot bitcoin ETFs remains strong, with net inflows of $1.1 billion over the past week and $2.8 billion since launch,” he added. “On Friday alone, the ETFs acquired 12,000 bitcoins, far outpacing the daily creation rate of approximately 900 new bitcoins.”
Investors have been targeting a key resistance level around $48,600. If bitcoin manages to hold above this level, the door could be open for it to reach new highs beyond $50,000 and perhaps even a new all-time high, according to chart analysts. The cryptocurrency hit its all-time high of $68,982.20 on November 10, 2021.
Monday’s rally pulled crypto stocks higher. Cryptocurrency Exchange Coinbase gained more than 3% while Bitcoin proxy MicroStrategies rose 11%. Several mining stocks recorded double-digit gains. CleanSpark increased by about 14% and Iris Energy increased by 16%. Digital Marathon gained 14%.
Correction: Earlier, bitcoin broke through the $49,000 level for the first time since January 11. An earlier article misstated the record.