In a span of 24 hours, the collective value of the cryptocurrency market surged by 5%, reaching a staggering $2.44 trillion.
The leading cryptocurrency, renowned for its market dominance, continued its upward trajectory, breaching the $65,000 mark in early Asian trading on Monday. This surge was primarily fueled by institutional investors driving up cryptocurrency prices.
According to the CoinDesk Bitcoin Price Index (XBX), Bitcoin peaked at $65,563.25 in the early hours of Monday, marking a significant milestone.
While the current value of $65,000 falls approximately 5% below Bitcoin’s all-time high of $69,000 in dollar terms, set in November 2021, the rally remains robust. A key catalyst behind this surge is the rapid increase in investment in crypto funds following the authorization of Spot Bitcoin ETFs in the US.
Bryan Tan, Partner at international law firm Reed Smith specializing in crypto-disputes, highlighted the pivotal role played by the approval of spot Bitcoin ETFs by the Fed. He noted that unlike previous Bitcoin rallies, this surge occurs amidst a backdrop of increasing regulatory clarity in the crypto sphere.
Additionally, there is considerable demand for Bitcoin and Ethereum, the second-largest cryptocurrency globally, as investors view them as safe-haven assets amid concerns over potential issues at US regional banks. FxPro’s senior market analyst, Alex Kuptsikevich, emphasized the influence of a “Fear of Missing Out” sentiment, which has contributed to the recent surge in cryptocurrency values.
Traders are also eyeing further price increases, anticipating a Bitcoin halving event expected in April. With the mining reward halving, the supply is projected to decrease, potentially driving prices even higher.
Bitcoin breaks records across the globe
According to CoinDesk, Bitcoin (BTC) has been shattering records across various currencies. In the past week alone, BTC has surged to peak prices against major currencies like China, Japan, the UK, and India. Moreover, on Monday, it hit an all-time high in euro terms, surpassing €60,000.
In total, the cryptocurrency market capitalization experienced a remarkable 5% increase within a 24-hour period, soaring to $2.44 trillion.
Despite these impressive gains, there are hesitations regarding predicting further increases in BTC prices. Grayscale, a crypto investment management company, notes that macroeconomic factors may pose short-term obstacles to BTC growth. Alex Kuptsikevich of Grayscale mentions, “If inflation persists at high levels, the Federal Reserve might postpone a rate cut. A higher interest rate is likely to benefit the dollar but could potentially dampen Bitcoin’s performance.”
