- Bitcoin rose as high as $50,334 on Monday, the first time it’s hit that level in over two years.
- Demand for bitcoin ETFs and rising anticipation for rate cuts have helped push the token’s price up.
- Standard Chartered said last week the case for bitcoin to hit $100,000 this year is intact.
Bitcoin topped $50,000 on Monday for the first time in more than two years
The token hit a record high of $50,334 early on Monday, representing a roughly 15% increase since the start of the year and marking the highest level since December 2021. The rise has been driven by bullishness among investors for bitcoin ETFs, which were first approved by the Securities and Exchange Commission last month.
After a lukewarm reception, the investment products aimed at investors who want exposure to bitcoin without going through the hassle of buying it directly, have begun to gain more traction. Pomp Investments founder Anthony Pompliano told CNBC on Monday that bitcoin ETFs sucked up 5% of the entire tradable supply of bitcoin in 30 days.
The jump in bitcoin’s price also comes amid a broader risk-on shift as investors get ready for the Federal Reserve to cut interest rates this year. The cryptocurrency has rallied alongside the stock market, with the S&P 500 closing above 5,000 for the first time ever last Friday to extend a strong rally in the first two months of 2024.
Though the Fed and Chair Jerome Powell have pushed back on markets’ rate-cut expectations, investors still cheering the prospect of easier monetary policy this year.
Last week, bitcoin hit the highest level of 2024 at $47,565, and its sudden rebound after several weeks of anemic trading following the approval of the spot ETFs puts the coin back on track to reach $100,000 by year-end, according to analysts at Standard Chartered.
With the next bitcoin halving event approaching in April, investors are eyeing the next leg higher for the world’s biggest crypto, with the prior three halvings pushing the token to new all-time highs in the following 12 months.
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