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Bitcoin hits $50,000 for the first time in over two years

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Bitcoin hits ,000 for the first time in over two years

Bitcoin, the biggest crypto in the world, has finally hit the 50,000-dollar mark. The crypto reached this benchmark for the first time in over two years.

In the past year, Bitcoin has achieved a whopping 129.19% surge based on CoinMarketCap data. In the past month, the crypto has surged 16.42%, and it gained 3.93% in the past 24 hours.

Antoni Trenchev, Nexo’s co-founder, stated that reaching $50k is a massive milestone for BTC. Since the launch of the Bitcoin ETF, this benchmark has established psychological support for crypto.

The entire crypto market enjoyed a boost starting this week. Coinbase gained 4.9% value on Monday, while Riot Platforms and Marathon Digital were 10.8% and 11.9% up, respectively. 

Ether, the second-biggest crypto, was also up by 4.12% on Monday, reaching $2,607. Currently, the crypto is at $2,650, with a 6.20% surge in the past 24 hours. ETH has also gained 14.69% in the past 7 days alone.

The biggest driver behind this latest BTC surge is the inflowing of funds into the BTC ETFs. Approved in January, the US Bitcoin spot ETFs have helped BTC gain massive traction among traditional investors.

GBTC (Grayscale Bitcoin Trust) noted an outflow of $415 million in the past week. On the other hand, the overall BTC spot ETFs noted a net inflow of $1.2 billion. 

The ETFs are not the only factor boosting Bitcoin, as crypto investors are also anticipating a surge after the upcoming halving. BTC is expected to reach its fourth halving in April 2024, which will reduce its supply and miner rewards.

Historically, Bitcoin has gained massive market value months after its halving. This is because halving reduces the overall supply of BTC, leading to scarcity. Seeing how the crypto is already riding the success wave of ETFs, halving can carry Bitcoin to new heights.

If the Fed interest rate is cut and the ETH spot ETF approval goes in Bitcoin’s favor, the crypto can break through its all-time high in 2024.

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