News
Bitcoin Surges Above $63K as ETF Volumes Surge and Halving Nears
Key points
- For the first time since November 2021, Bitcoin is trading above $63,000.
- Trading volumes for the “new nine” spot bitcoin ETFs hit a new all-time high on Monday.
- Optimism around spot Bitcoin ETFs and the upcoming halving is driving market sentiment, according to a Grayscale report.
- Major cryptocurrency-related stocks such as MSTR, COIN, and RIOT hit yearly highs in this latest rally.
Bitcoin surged above $63,000 for the first time since November 2021 on Wednesday morning, buoyed by a surge in trading activity on spot bitcoin exchange-traded funds this week.
Another factor that has increased investor interest in the token has been the reduction in supply growth, an event known as the “halving,” scheduled for April.
The largest cryptocurrency has staged a massive comeback since trading at around $20,000 just under a year ago. Bitcoin (BTC) prices have increased by about 45% since the beginning of the year and have gone from $42,000 to over $60,000 in a matter of weeks.
Trading View
Bitcoin ETFs, Halving Optimism Drives Token Rally
This latest surge in the price of the digital asset comes as activity around spot bitcoin ETFs has reached levels not seen since these funds, which opened bitcoin to a whole new swath of retail investors,started trading in JanuaryThe nine new spot bitcoin ETFs, which exclude only the pre-existing Grayscale Bitcoin Trust (GBTC), hit a new all-time high in trading volume on Monday, according to Eric Balchunas, senior ETF analyst at Bloomberg.
Black Rock (BLACK) iShares Bitcoin Trust (IBITS) broke its own trading volume records on both Monday and Tuesday.
In addition to the obvious hype surrounding spot bitcoin ETFs, a Recent report from Grayscale Advisors LLC he aimed for the next bitcoin halving event as a key factor determining bitcoin prices. Scheduled for April, the halving will cut in half the supply of new bitcoins created per block and the rewards for bitcoin miners.
With the supply of bitcoin capped at 21 million and more than 19.6 million already in circulation, the halving will slow down supply, fueling the token’s scarcity.
The halving is also likely to impact yields. bitcoin mining stockswhich have recently posted stellar gains.
Bitcoin’s Rise Lifts All Cryptocurrencies
Bitcoin’s rally has lifted the entire cryptocurrency space. According to CoinGecko data, the market capitalization of the entire cryptocurrency market has surpassed $2 trillion for the first time since April 2022. Bitcoin accounts for nearly $1.2 trillion of that figure.
This year, the cryptocurrency market’s gains have not followed Bitcoin’s pace, although Ether (ETH) recently surpassed the $3,000 mark for the first time since April 2022.
Cryptocurrency-focused stocks, such as Coinbase (CURRENCY) and Riot Blockchain (REVOLT), have hit new yearly highs during this latest rally. In particular, software-intelligence company Microstrategy (MSTR) now holds more than $11 billion in bitcoin on its balance sheet.