US Markets
Wednesday, February 28th, 2024 5:12 pm EDT
Key Points
- Bitcoin surges above $60,000, reaching its highest level since November 2021:
- Coin Metrics reports Bitcoin at $62,487.00, reflecting a 9% increase, with a peak at $62,555.00.
- Bitcoin’s price is just below its all-time high of $68,982.20, with investors eager to see this level retested.
- The cryptocurrency has surged nearly 20% in the past week alone and is up over 40% for the year 2024.
- Anticipation surrounds Bitcoin’s potential to set new records:
- Antoni Trenchev of Nexo anticipates resistance around $69,000 but suggests crossing $60,000 will stimulate interest, particularly among retail investors.
- Investor interest in crypto has rebounded, with expectations for Bitcoin to set new records following the launch of ETFs and the upcoming halving event in April.
- Bitcoin demand collides with tightening supply dynamics, driving prices higher:
- Zach Pandl of Grayscale Investments notes the influx of $195 million per day into U.S. spot Bitcoin ETFs in February.
- With issuance set to halve in April, supply/demand dynamics are expected to push prices higher.
- The move boosts bitcoin-related equities, with Coinbase shares rising over 4% and Microstrategy jumping 10%.
Bitcoin surged above $60,000 on Wednesday, marking its highest level since November 2021. Coin Metrics reported the flagship cryptocurrency at $62,487.00, reflecting a 9% increase, with a peak of $62,555.00. Despite nearing its all-time high of $68,982.20, the market remains driven to retest and potentially surpass this milestone. Bitcoin has witnessed a remarkable rally, surging nearly 20% this week alone and over 40% for the year 2024 after a brief pause in its upward trajectory earlier in the year. Antoni Trenchev, co-founder of crypto exchange Nexo, anticipates resistance around $69,000 but suggests that crossing the $60,000 mark will ignite the interest of investors who had been observing the rally from the sidelines, especially retail investors. JPMorgan notes a resurgence in retail investor interest in crypto this month following a lull in January. The launch of ETFs has made the asset class more accessible to institutional investors, further bolstering expectations for Bitcoin to set new records. Additionally, anticipation surrounds the network’s upcoming halving event in April, historically signaling a major rally in the months following. Zach Pandl, head of research at Grayscale Investments, highlights the collision of increasing Bitcoin demand with tightening supply dynamics. The new U.S. spot Bitcoin ETFs have witnessed significant inflows, averaging $195 million per day in February, while the Bitcoin network’s daily production of around 900 coins struggles to meet this demand. The impending halving in April will further reduce issuance, exacerbating the supply shortage and driving prices higher. Consequently, Bitcoin-related equities, such as crypto exchange Coinbase and Bitcoin proxy Microstrategy, experienced notable increases in share prices, reflecting the broader optimism surrounding Bitcoin’s rally and its potential to set new records in the near future.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/28/bitcoin-jumps-above-60000-for-the-first-time-since-november-2021.html
