The enthusiasm for cash exchange-traded funds (ETFs) catapulted the asset, which rose more than 20% in the last week and equaled another important record from more than two years ago.
Cryptocurrencies rise more than 4% this Wednesday
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Bitcoin refuses to step on the brakes. The leading cryptocurrency rises strongly again this Wednesday and exceeds US$51,667, its highest level since November 2021, the month in which it reached its peak. historical maximum at US$65,000. The enthusiasm for cash exchange-traded funds (ETFs) catapulted the asset, which rose more than 20% in the last week and equaled another important record from more than two years ago.
Specifically, Bitcoin managed exceed $1 trillion in market capitalization for the first time since reaching its all-time highs in November 2021.
For its part, the rest of the cryptocurrency market operates with gains of more than 4% led by Cardano (ADA) at 4.3%, Ethereum (ETH) at 3.6% and Solana (SOL), 3.2%.
Cryptocurrencies: What do analysts expect with the price?
Some traders are targeting the $64,000 level in the coming weeks, as Demand for spot bitcoin exchange-traded funds grows. On Tuesday, BlackRock’s IBIT recorded nearly $500 million in net inflows, indicating buying demand. Furthermore, Grayscale Bitcoin Trust (GBTC) got moderate its exits and recently recorded its second best day on the market.
However, not everything is the effect of ETFs. While exchange-traded products are taking the spotlight, there are other catalysts on the horizon that experts believe will provide additional momentum for bitcoin. Among them is the possible approval of ethereum exchange-traded funds (ETH) and, above all, the ‘halving’ that will take place next April.
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Cryptocurrencies: What is halving?
Historically, Bitcoin blockchain reward halvings have coincided with bullish cycles in previous months and after its completion. A year after the first halving, bitcoin went from $12 to almost $1,000. After the second, it rebounded to $2,550. With the third, bitcoin was trading at $8,700 and reached a high of $19,700 in December 2020.
César Nuez, an analyst at Bolsamanía, pointed out that the behavior since last January 23 has been “spectacular.” “The cryptocurrency has appreciated 33% since then and, after overcoming resistance in the last two years, it seems very likely that we could end up seeing an extension of the increases to the level of $60,000. without ruling out a return to all-time highs.”he pointed out.
“Below, the first support level is in the vicinity of $46,000. We do not rule out support for these prices before continuing with its bullish climb“he concluded.
Source: Ambito
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