Bitcoin tops $50,000 for the first time in 2 years as ETF demand grows and investors anticipate rate cuts

Bitcoin tops $50,000 for the first time in 2 years as ETF demand grows and investors anticipate rate cuts
Representation of Bitcoin is seen with binary code displayed on a laptop screen
Representation of Bitcoin is seen with binary code displayed on a laptop screenNurPhoto/Getty Images
  • 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.

Read the original article on Business Insider

Jerry David is a seasoned Senior Reporter specializing in consumer tech for BritishMags. He keeps a keen eye on the latest developments in the gadget arena, with a focus on major players like Apple, Samsung, Google, Amazon, and Sony, among others. Jerry David is often found testing and playing with the newest tech innovations. His portfolio includes informative how-to guides, product comparisons, and top picks. Before joining BritishMags, Jerry David served as the Senior Editor for Technology and E-Commerce at The Arena Group. He also held the role of Tech and Electronics Editor at CNN Underscored, where he launched the Gadgets vertical. Jerry David tech journey began as an Associate Tech Writer at Mashable, and he later founded NJTechReviews in 2010. A proud native of New Jersey, Jerry David earned his Bachelor of Arts in Media & Communication with honors, minoring in Innovation and Entrepreneurship from Muhlenberg College. Outside of work, he enjoys listening to Bruce Springsteen, indulging in Marvel and Star Wars content, and spending time with his family dogs, Georgia and Charlie.