Crypto-related stocks and funds experienced a surge on Monday as bitcoin briefly surpassed $50,000 for the first time since December 2021.
This rally comes as demand for recently launched spot bitcoin ETFs remains robust. According to CoinDesk data, the largest cryptocurrency, BTCUSD, has risen 13% over the past seven days and has climbed 11% so far this year.
However, it is important to note that bitcoin is still down approximately 28% from its all-time high of $68,990 reached in November 2021.
Among the spot bitcoin ETFs, Grayscale Bitcoin Trust (GBTC), BlackRock’s iShares Bitcoin Trust (IBIT), Fidelity Wise Origin Bitcoin Fund (FBTC), and ARK 21Shares Bitcoin ETF (ARKB) all saw gains ranging from 5.6% to 5.7%.
Bitcoin futures ETFs, including ProShares Bitcoin Strategy ETF (BITO) and Valkyrie Bitcoin and Ether Strategy ETF (BTF), also experienced positive growth.
In addition to ETFs, the shares of crypto exchange Coinbase (COIN), MicroStrategy (MSTR), Riot Platforms (RIOT), Marathon Digital Holdings (MARA), and Ebang International Holdings (EBON) all saw increases in value.
The recent rally in bitcoin is believed to be driven by spot-market demand, which has led to a significant spike in trading volume. Outflows from Grayscale Bitcoin Trust have slowed down, while demand for other bitcoin ETFs remains strong.
Some investors are also turning to bitcoin as a potential safe haven in the face of geopolitical uncertainty.
Looking ahead, experts predict that bitcoin could reach a range of $60,000 to $65,000 as its next level.
They anticipate the crypto to reach up to $160,000 by the end of 2024 and $350,000 by the second half of 2025.
Furthermore, there are expectations that bitcoin’s market capitalization will surpass $1 trillion in the coming week.
While bitcoin’s price remains highly volatile compared to traditional store-of-value assets like gold, the continued growth and interest in the cryptocurrency indicate its potential as a valuable investment opportunity.
Article updated 2 weeks ago. Content is written and modified by multiple authors.
