The world’s largest cryptocurrency has leapt 22% this year to $52,005, pushing it past a market value of $1 trillion mark for the first time since its record heyday of late 2021.
Its resurgence has electrified the broader cryptocurrency market, including ether and other digital coins, which has now exceeded $2 trillion, as per data from CoinGecko.
The sector has been bolstered by the U.S. regulatory approval of several spot bitcoin exchange-traded funds (ETFs), from BlackRock and Fidelity among others, which allow access to the crypto coin vis regular stock exchanges.
The U.S. spot ETFs added 60,000 bitcoins in the first month of their launch, more than twice the miner’s production in the same period, brokerage Bernstein said.
“The amount of flows far outstrips anyone’s expectations,” said Mark Connors, head of research at Canada’s 3iQ Corp.
Crypto trading volumes are also robust.
Total spot trading volumes on centralized exchanges rose 4.4% to $1.4 trillion in January, recording the fourth consecutive monthly increase and the highest reading since June 2022, a report by London-based researcher CCData said.
The resurgence of interest helped the largest listed crypto exchange Coinbase Global (COIN.O), opens new tab post its first quarterly profit in two years last week .
“The bitcoin appreciation is contributing to better spot bitcoin ETF flows, which is in turn driving bitcoin prices higher, and pulling other tokens higher as well,” J.P.Morgan analysts said.
$150,000 BITCOIN IN 2025?
Many industry watchers say the outlook is looking bright at the moment, with investors buying bitcoin ahead of the blockchain’s “halving” – a preplanned process that reduces mining rewards in half every four years – due in April.
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Gautam Chhugani, analyst at Bernstein, expects 2024 to be a break-out year for cryptocurrencies where bitcoin hits all-time highs followed by a peak of $150,000 by mid-2025.
“This optimistic outlook is bolstered by the expectation of an upcoming halving event and the possibility of interest-rate reductions,” CCData analysts said.
While bitcoin remain 32% away from its record high of $69,000, it notched an all-time high against the Japanese yen at 7,919,000 yen last week.
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