Bitcoin Price Surges Past $59,000 Amid Bullish Run
The price of bitcoin soared past $59,000 on Wednesday, reaching levels not seen since late 2021. Bitcoin BTCUSD was last up 3.7% at $59,142, near a session high of $59,482 and approximately 14.5% below its all-time high of $68,990 from over two years ago.
Market Factors Driving Bitcoin’s Rise
Bitcoin has experienced a 40% increase in value this year, driven by inflows into bitcoin exchange-traded funds and anticipation surrounding the upcoming “halving event” scheduled for April. Historical data suggests that previous halving events have coincided with bull markets for the cryptocurrency.
Impact on Related Stocks
The positive movement in bitcoin’s price has also had a ripple effect on related stocks. Crypto exchange Coinbase Global Inc. saw a more than 6% increase in premarket trading, while MicroStrategy Inc., a prominent holder of bitcoin, surged by 8%.
Shares of crypto miners Marathon Digital Holdings Inc. and Riot Platforms Inc. were also on the rise, gaining 8% and 6% respectively in premarket trading.
Expert Insights and Market Outlook
According to James Harte of multi-asset broker Tickmill Group, key players are reinvesting in bitcoin ahead of the halving event in April, indicating potential for further price appreciation in the short term.
Harte also speculated on the post-halving rally, questioning whether it will be sustained or if it will follow a “buy the rumor, sell the news” pattern. However, the dwindling supply of bitcoin and recent ETF approvals have created a strong case for continued upward momentum. Some analysts even predict that bitcoin could reach $100,000 by the end of the year.
Greed Index and Market Sentiment
As reported by CoinDesk, the Bitcoin Fear and Greed Index has recently transitioned into extreme greed territory, highlighting the current bullish sentiment among investors.
Bitcoin’s remarkable surge to over $59,000 showcases its enduring appeal and the growing confidence in its potential for further growth in the volatile cryptocurrency market.