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HomeCryptocurrencyBitcoin hits USD 50,000, Rallies over 220% since November 2022

Bitcoin hits USD 50,000, Rallies over 220% since November 2022

Bitcoin, the world’s largest cryptocurrency, reclaimed the spotlight on Monday by surging to a significant level of USD 50,000, a milestone not seen since 2021. Reflecting on its journey, we delve into the ups and downs that shaped Bitcoin’s trajectory.

Bitcoin’s Rollercoaster Ride

In December 2021, Bitcoin faced a significant dip, falling over 8% in a day to hit a low of USD 41,631 from the day’s high of USD 53,815. This drastic range of nearly 12,184 points set the stage for a tumultuous period.

Post this decline, Bitcoin experienced another substantial fall, around 11,600 points, breaking major, multiple-time-tested support of around USD 30,000 on May 11, 2022, within the next 159 days. The selling pressure continued, leading to a further decline of over 14,500 points, hitting a low of USD 15,480 in November of the same year.

However, Bitcoin rebounded impressively from this low point, showcasing a remarkable Bitcoin rally of around 225% within 450 days, reaching a high of USD 50,371 as of yesterday’s level.

Current Scenario and Performance Metrics

On Monday, Bitcoin opened at USD 49,312, reaching highs and lows of USD 50,331 and USD 49,757, respectively. It closed at USD 49,934, and as of now, it is trading around USD 50,095.

In terms of returns, Bitcoin has delivered around 17.5% this month and a substantial 37% return in the past three months. Despite trading at a 28% discount from its all-time high of USD 68,997 in November 2021, Bitcoin’s recent performance reflects a robust resurgence.

Reasons Behind the Leap

The recent surge in Bitcoin’s price is attributed to increased inflows into BTC spot ETFs. The U.S. Securities Regulator’s approval of the first U.S. spot Bitcoin ETFs on January 10 marked a significant milestone for the cryptocurrency and the broader crypto industry after more than a decade of efforts to bring such a product to the market.

Also Read: Bitcoin Rises in Anticipation of Bitcoin ETF

This positive movement was supported by strong inflows into spot Bitcoin ETFs last week, attracting over USD 1.1 billion in net fresh funds. Notably, slowing outflows from incumbent funds like Grayscale Bitcoin Trust (GBTC) and ProShares’ futures-based ETF (BITO) further contributed to Bitcoin’s upward momentum.

Crypto Market Rally

Bitcoin’s resurgence is not an isolated event; other crypto stocks also enjoyed a boost on Monday. Crypto exchange Coinbase surged by 4.9%, while crypto miners Riot Platforms and Marathon Digital saw increases of 10.8% and 11.9%, respectively. Shares of software firm MicroStrategy, a notable bitcoin buyer, were up 10.2%.

The second-largest cryptocurrency, Ether, also experienced positive momentum, with a 4.12% increase, reaching USD 2,607.57.

Return Comparison: Bitcoin Leading the Pack

Comparing returns across various instruments in January and February, Bitcoin emerges as the leader. It generated an impressive 17.50% in February, outperforming Dow Jones, Nifty, and Gold.

Instruments January Return % February Return % till now
Bitcoin 0.70 17.50
Dow Jones 1.70 1.22
Nifty -0.03 0.02
Gold -0.89 -1.14

 
As we witness Bitcoin’s dominance on the returns chart, it’s evident that 2024 is favouring the cryptocurrency, especially after receiving approval for the first-ever Crypto ETFs from the US market regulator. This development develops trust among investors in the cryptocurrency market, paving the way for a promising year ahead.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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