Technology

Key Reasons Why BTC Soars Past $50K – Crypto News

Published

1 year ago

February 13, 2024

Dripp

The crypto market enthusiasts rejoice as the Bitcoin price surges past the $50,000 mark for the first time since December 2021, marking a significant milestone in its journey. Meanwhile, the rally comes amid a flurry of positive developments in the crypto space, signaling renewed investor interest and optimism.

So, let’s delve into the key factors driving this surge and what it means for the future of digital assets.

Why Is Bitcoin Price Rising?

Bitcoin’s meteoric rise to $50,000 today can be largely attributed to the recent approval of Spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC), marking a pivotal moment for the cryptocurrency market. Analysts believe that the influx of investments into these ETFs has bolstered Bitcoin’s price, with the market witnessing a surge in bullish sentiment.

In addition, the anticipation surrounding the approval of ETFs tied to the spot price of Ether adds to the optimistic outlook, further fueling investor interest. For context, the U.S. SEC is expected to give its final decision on Ethereum ETF in May.

Simultaneously, Investors are eagerly eyeing the upcoming Bitcoin Halving expected in April, a process designed to reduce the rate of Bitcoin’s supply. Historical data indicates that previous halvings have triggered significant Bitcoin price rallies, adding to the current bullish sentiment.

On the other hand, anticipation over potential rate cuts this year has also bolstered market sentiment. Meanwhile, investors will keep a close watch on the U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data, which are scheduled to be released today.

Bitcoin Price Chart

Also Read: Wall Street Estimates for US CPI and Core CPI, Bitcoin (BTC) Price To $45K or $55K?

Other Factors Explaining The Recent Surge

A recent report from CoinShares highlights a substantial inflow of investments into digital asset products, with Bitcoin dominating the inflows. Notably, the surge was also attributed to the Spot Bitcoin ETF influx.

Meanwhile, this surge in investors’ confidence, coupled with positive technical indicators such as increased Bitcoin Futures Open Interest and a rising Coinbase Premium Gap, underscores the strong momentum propelling Bitcoin’s price surge.

As of writing, the Bitcoin Futures Open Interest (OI) witnessed a remarkable surge over the past 24 hours, signaling heightened market activity. CoinGlass data reveals a 7.32% increase to $23.31 billion or 465.69K BTC. Notably, the CME Exchange saw a 7.39% rise to $6.31 billion or 126.20K BTC, while Binance experienced a significant uptick to 118.19K BTC or $5.92 billion.

Meanwhile, the Coinbase Premium Gap surged to 24.54, indicating increasing market enthusiasm, despite the Bitcoin Fear and Greed Index surpassing 70, indicating extreme greed. However, with the Bitcoin relative strength index (RSI) at 78, caution is advised for investors navigating the volatile crypto landscape.

Meanwhile, as of writing, the Bitcoin price was up 4.43% to $50,036.94, with its trading volume skyrocketing 104.09% to $38.90 billion. Over the last 30 days, the flagship crypto has added more than 16% at its current price.

Also Read: Shytoshi Kusama Unveils Shiboshi Debut, What’s Next?