Bitcoin Hits $50,000, Igniting Crypto Frenzy: ETFs Lead the Charge to Mainstream Adoption
Bitcoin’s recent surge to $50,000 has ignited a wave of enthusiasm in the cryptocurrency market, reaching levels not seen since December 2021. This milestone marks a significant breakthrough for the world’s leading cryptocurrency, triggering a rally that extends beyond digital currencies to impact related stocks.
The rally saw Bitcoin briefly touching $50,314, its highest level in over two years, before settling above $50,200 on Monday afternoon. This surge follows a notable spike to $49,000 on the ETF launch day, January 11, only to retract to early December 2023 levels after the SEC announcement. Nonetheless, Bitcoin has shown resilience, boasting an impressive 18% gain since the beginning of the year.
Ethereum, another major player in the crypto space, has been holding steady near $2,650, reaching four-week highs and showcasing a 15% increase in value since the start of 2024.
Coinbase (COIN) experienced a 3.8% surge on Monday, reclaiming its position above the 50-day moving average. Meanwhile, Marathon Digital (MARA) stock jumped 14.2%, nearing late December highs.
The performance of Bitcoin ETFs has been particularly noteworthy, with spot bitcoin ETFs witnessing a more than 5.5% jump in trade, following a 4% increase on Friday.
Among the ETFs, BlackRock’s iShares Bitcoin Trust (IBIT) has emerged as a leader in fund inflows since the January 11 launch, accumulating an impressive $3.75 billion by February 9. The Fidelity Wise Origin Bitcoin Fund (FBTC) follows closely behind with $3 billion in inflows. Notably, the ARK 21Shares Bitcoin ETF (ARKB) surpassed Bitwise Bitcoin ETF (BITB) in terms of inflows, recording $918.5 million compared to BITB’s $785.8 million.
Despite Grayscale Bitcoin Trust (GBTC) experiencing outflows of about $6.38 billion by February 9, the new ETFs have attracted $2.65 billion in inflows since their launch, according to BitM
Bitcoin’s recent surge to $50,000 has ignited a wave of enthusiasm in the cryptocurrency market, reaching levels not seen since December 2021. This milestone marks a significant breakthrough for the world’s leading cryptocurrency, triggering a rally that extends beyond digital currencies to impact related stocks. The rally saw Bitcoin briefly touching $50,314, its highest level…