Home Money Bitcoin racing towards $60k – what’s behind the 2024 surge and could it soon hit an all-time high?

Bitcoin racing towards $60k – what’s behind the 2024 surge and could it soon hit an all-time high?

by Elijah
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The figure of $57,000 meant that trading was at its highest level since December 2021.
  • The figure meant that trade was at its highest level since December 2021.
  • Earlier this month, bitcoin was trading at over $50,000.

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The price of bitcoin jumped past $57,000 on Tuesday following a record day of trading volumes for newly launched spot exchange-traded funds.

Bitcoin is now trading at its highest price in dollar terms since November 2021 and is helping spark a rally in other major cryptocurrencies such as Ethereum, which surpassed the $3,000 mark on Tuesday, its highest price since April 2022.

It follows a record day for bitcoin spot ETF trading volumes, which were valued at $2.4 billion on Monday, with Blackrock’s iBIT leading the way with $1.3 billion, according to data from the fund manager.

The figure of $57,000 meant that trading was at its highest level since December 2021.

The figure of $57,000 meant that trading was at its highest level since December 2021.

Bitcoin Spot ETF Yesterday he accumulated around 9,000 bitcoins, which represents 10 times the new daily supply of bitcoins put into circulation.

Simon Peters, market analyst at eToro, told This is Money: ‘The driving force behind the price movement appears to be that the recently approved bitcoin spot ETFs continue to acquire bitcoins in significant quantities.

‘Since their launch, bitcoin spot ETFs have amassed holdings representing more than 3 percent of all bitcoins in existence today. This milestone highlights a growing trend of institutional investors wanting exposure to bitcoin.

“I expect this trend to continue and we may be able to see Bitcoin reach a new all-time high (with the price surpassing $69,000) in the coming weeks.”

Matthew Greco, a research analyst at Fineqia International, said: “Personally, I believed and continue to believe that it is possible to reach new highs in 2024.

‘The market trend seems decidedly bullish. Currently, Bitcoin is trading about 25 percent below its all-time high, not far from that level.

What is a Bitcoin ‘spot’ ETF?

Unlike a futures-based ETF, which tracks futures contracts, a spot bitcoin ETF is an investment vehicle that directly owns some bitcoins through which investors have exposure without having to own them.

Bitcoin holders believe the approval could lead to the market opening up to millions more investors, paving the way for billions of dollars in new investments.

The U.S. Securities and Exchange Commission had been reluctant to sanction such funds amid investor protection concerns linked to Bitcoin’s volatility and its widespread use by scammers.

But the SEC capitulated in January by giving the green light to the launch of 11 ETFs.

“Furthermore, in the first few months of 2024, we have already witnessed several traditional financial assets and indices reach new highs, indicating strong momentum for risk assets in general and making the possibility of new highs in 2024 something to consider.”

The world’s largest cryptocurrency has regained significant ground since falling to a low of $16,000 following the FTX collapse in 2022.

Bitcoin is up 32 percent since the beginning of this year, having gained 16.7 percent over a seven-day period in February.

In 2023, it languished between $20,000 and $30,000 for much of the year before reaching $43,000 in December, in anticipation of the US regulator’s approval of bitcoin spot ETFs.

It approached the $48,000 mark for the first time in a year before the decision before falling to $38,000 following the decision.

Peters added: ‘WWe also have the block reward halving coming in April of this year, which will decrease the bitcoin inflation rate from around 1.75 percent to around 0.87 percent, so where we’ve seen Approximately 1,314,000 bitcoins will enter circulation in the last four years, approximately 657,000 bitcoins will enter circulation in the next four years starting in April.

‘The halving has historically marked the start of the next bitcoin bull market and typically in the following year the price action has gone parabolic.

‘Since the last block reward halving in May 2020, the price of bitcoin has appreciated 600 percent to the current all-time high of $69,000.

“While I don’t anticipate we’ll see such a significant percentage increase this time around (as typically the percentage increase from the halving to the all-time high has decreased each cycle), it’s very possible that we could see the peak of the bull market at some point.” instead of six figures.

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