Bitcoin (BTC) has experienced a surge in value, reaching over $53,000, a peak not seen since late 2021. The cryptocurrency achieved a high of $53,482 on Monday and sustained its position above the $53,000 milestone, trading at $53,409. This gain signifies a robust recovery from previous weeks where it had dipped below the $51,000 level.
Surging Demand for Bitcoin ETFs
The recent boost in Bitcoin’s value correlates with the introduction of spot Bitcoin ETFs in the U.S. market in January. Established financial institutions, including BlackRock and Fidelity, have embraced these ETFs, which function similarly to traditional stocks, providing clients with a new avenue to invest in Bitcoin. The swelling investor interest in Bitcoin ETFs has propelled market players to accumulate significant amounts of BTC to fulfill this growing appetite.
Bitcoin began February slightly above $42,000 and has since seen a consistent uptick in its valuation, surpassing the $50,000 mark on February 12th, marking its first return to this level since December of the previous year. This milestone heralded a continued upward trajectory for the cryptocurrency.
Bitcoin’s Price Stabilizes Above $50,000
For approximately two weeks, Bitcoin has maintained a price above $50,000, with recent fluctuations primarily between $51,000 and $52,000. The premier digital currency recorded roughly a 4% increase in a single day, contributing to a 27% rise over the past 30 days. The value has impressively climbed by 129% compared to the same period last year.
This recent surge in Bitcoin’s price comes as the crypto community anticipates the next halving event, slated for around April 20. Halvings, which programmatically occur every four years, are designed to curb inflation within the Bitcoin network by slashing the mining rewards by half, thereby limiting the rate of new BTC entering the market.