Bitcoin Surpasses $65K, Poised For Record Levels
Bitcoin surpasses $65K, witnessing a remarkable upswing on Monday, and marking its highest value in two years.
Author:Rhyley CarneyReviewer:Paula M. GrahamMar 05, 20245.6K Shares80.2K Views
The leading cryptocurrency, Bitcoin surpasses $65K, witnessing a remarkable upswing on Monday, and marking its highest value in two years. This surge comes on the heels of increased trading activity, propelling Bitcoin close to its previous record set in November 2021, just shy of $69,000.
The Bullish Momentum
In the current year, Bitcoin has demonstrated its resilience and growth, with a staggering gain of over 50%. The lion's share of this surge occurred in the past few weeks, coinciding with a surge in trading volume for U.S.-listed bitcoin funds. The approval and launch of spot bitcoin exchange-traded funds in the United States earlier this year played a pivotal role in this surge, opening avenues for a new wave of investors.
This development has reignited enthusiasm in the cryptocurrency market, reminiscent of the fervor witnessed during the run-up to the record levels in 2021. Ethereum, a key competitor to Bitcoin, has also experienced significant gains, fueled by speculation surrounding the potential introduction of exchange-traded funds.
As of the latest reports on Monday morning in Europe, Ethereum had recorded a year-to-date increase of over 50%, although it had not yet reached the two-year highs achieved just the previous week.
"In the Money" Addresses Signal Bullish Sentiment
One of the notable outcomes of Bitcoin's recent bullish momentum is the surge in addresses now considered "in the money." According to data tracked by analytics firm IntoTheBlock, more than 97% of Bitcoin addresses are currently "in the money," marking the highest proportion since November 2021.
An address is deemed "in the money" when the current market rate surpasses the address's average acquisition cost. Notably, the majority of Bitcoin holders acquired their coins at prices lower than the current market rate, providing a bullish signal for the cryptocurrency market.
IntoTheBlock emphasizes the positive implications of this trend, stating, "Given the substantial percentage of addresses in profit, the selling pressure from users attempting to break even no longer has a significant effect." This shift in dynamics is crucial as it suggests that new entrants into the market are essentially buying from existing users who are already realizing profits.
Bitcoin's Year-to-Date Performance
Bitcoin's year-to-date rise of 54% adds to the impressive 154% gain it achieved in 2022. The surge is primarily attributed to the strong inflows into U.S.-based spot exchange-traded funds approved in January. Wall Street's endorsement of these ETFs has tilted the demand-supply dynamics in favor of the bulls, creating conditions conducive to a potential rally towards a new record high.
The broader cryptocurrency market, as reflected in the CoinDesk 20 Index, has seen a substantial 37.8% increase this year, underscoring the positive overall trend in the digital asset space. As Bitcoin continues to make strides and approach record levels, market participants keenly observe the dynamics, anticipating further developments in the evolving cryptocurrency landscape.
Rhyley Carney
Author
Paula M. Graham
Reviewer
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