Bitcoin surged above $50,000 on Tuesday for the first time in over two years, driven by investor optimism regarding US approval of expanded trading options in the cryptocurrency.
The recent bullish trend in Bitcoin reflects growing expectations that US regulators will green light the creation of exchange-traded funds (ETFs), enabling broader public investment in crypto assets.
Despite initially dipping following Washington’s approval last month, Bitcoin has rallied approximately 25% since January 22, reaching a peak of $50,328, according to Bloomberg data.
Market observers express optimism, with Fadi Aboualfa from Copper Technologies highlighting the momentum fueled by consecutive weeks of positive movements, suggesting potential further price upticks.
“Enthusiast buyers bring in more enthusiast buyers pushing prices further up,” Fadi Aboualfa, of Copper Technologies, said.
“The cryptocurrency has momentum on the back of several green weeks and has a large chance of going up further when markets see weekly movements upwards of 10 percent (as we saw last week).”
As of 0330 GMT Tuesday, Bitcoin slightly retraced to $49,950, maintaining its upward trajectory amid expectations of a supply crunch next year due to the upcoming “halving” event in April.
Bitcoin’s resurgence follows a turbulent period marked by high-profile scandals and collapses in the crypto industry, including the dramatic downfall of FTX and regulatory challenges faced by Binance.
Moreover, Bitcoin’s value is bolstered by anticipations of potential interest rate cuts by the US Federal Reserve amidst easing inflationary pressures, further supporting its upward trajectory in the cryptocurrency market.
