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The price of Bitcoin has surpassed $50,000 for the first time in 26 months.
This results from the ongoing purchase trend that followed the approval of the Bitcoin exchange-traded fund (ETF).
According to the global coin market relay site CoinMarketCap, on the 13th, Bitcoin was traded at $51,176 each as of 6 a.m., recording a 4.3% increase from the previous day.
It broke through $50,000 around 2:30 a.m.
This is the first time since December 2021 that Bitcoin has broken through $50,000.
According to CNBC, in the United States, the previous high was $49,998 in December 2021.
Ethereum, the leading altcoin, also recorded its highest point since April 2022, trading at $2,654, up 6.04% from the previous day.
The primary explanation for this increase is the impact of the launch of the Bitcoin spot ETF.
Large sums of funds have been moving out of Grayscale’s Bitcoin ETF over the past month, signaling that investor enthusiasm toward Bitcoin is waning.
However, it is beginning to show signs of recovery as funds’ outflow has slowed while inflows are increasing.
The active U.S. stock market is also interpreted as positively affecting the rise in Bitcoin prices.
The halving of Bitcoin supply and the active U.S. stock market also positively affect the price rise.
The S&P 500 index’s breakthrough above the 5000 mark last week is another factor influencing the upward trend.
“$2.8 billion has flowed in since the ETF launch and $1.1 billion has flowed in over the past week,” James Butterfill, Head of Research at CoinShares, a cryptocurrency asset management company, explained. “Demand for the Bitcoin ETF remains robust.”
He further analyzed, “Various factors, including an increase in asset purchases such as Bitcoin and stocks, influence market volatility as China adopts a more relaxed monetary policy.”
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