Bitcoin price surged beyond $59,000 in the early hours of Wednesday morning, while Ethereum hit the milestone of $3,300, reflecting a surge in positive sentiment among cryptocurrency traders.
Bitcoin has leaped past the $59,000 mark in the midst of an exciting surge across the broader cryptocurrency market.
As of now, BTC is trading at $59,322, showing a rise of over 5% in the past day. Over the course of the last week, this top cryptocurrency has soared by more than 15%, and it’s seen a whopping 41% increase over the past month.
What’s really catching attention is how Bitcoin is now only 14% away from its all-time high of $68,789, set back in November 2021.
Why the BTC price is UP?
The price surge is fueled by the growing interest of institutional investors in spot Bitcoin ETFs.
According to data from Farside, investments in spot Bitcoin ETFs have soared to an impressive $6.7 billion since the SEC gave the green light to these products on January 10. On average, these ETFs are attracting daily inflows of $210 million.
In the past week alone, Bitcoin ETFs experienced an unprecedented $2.4 billion in weekly inflows. Leading the pack are BlackRock’s IBIT and Fidelity’s FBTC, which attracted $1.6 billion and $648 million, respectively.
BlackRock’s iShares Bitcoin Trust (IBIT) has particularly captured attention by outperforming nine other Bitcoin ETFs and ETFs across various asset classes, amassing $1.673 billion in net inflows throughout the week.
Meanwhile, the surge in Bitcoin’s price coincides with a broader rally in the crypto market. Ethereum, the second-largest cryptocurrency by market cap, has climbed around 3% in the past day, reaching $3,335. It has seen an impressive 45% increase over the past month.
How high can the Bitcoin price go?
In a recent analysis, Matrixport made a bullish prediction, suggesting that Bitcoin could hit $63,000 by March 2024.
The report highlighted four key factors likely to drive Bitcoin’s ascent to new highs. These include the recent approval of spot Bitcoin ETFs, the anticipated halving event in 2024, and potential interest rate cuts.
The Bitcoin Halving event, slated for 2024, is expected to reduce supply, which historically has led to significant price increases. This event cuts the reward for mining new blocks by half, slowing down the creation of new bitcoins.
Additionally, the report pointed out that expectations of interest rate cuts, especially following Federal Reserve meetings, could boost interest in riskier assets like Bitcoin. Lower interest rates typically diminish the appeal of investments that generate yield, making assets focused on growth more attractive.
Moreover, the upcoming US presidential elections and associated policy uncertainties could impact Bitcoin’s price trajectory.
Bitwise Chief Investment Officer Matt Hougan shared optimism, projecting Bitcoin’s potential to surpass $80,000 this year, buoyed by the success of spot ETFs.
Similarly, analysts at investment firm Bernstein foresee Bitcoin surpassing its previous peak of $69,000 and potentially reaching $70,000 this year. They express confidence in Bitcoin’s risk-reward profile, foreseeing no significant obstacles hindering its upward momentum.
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