Bitcoin price makes a new 2024 high above $50,000, a level not seen in over two years.
The price of Bitcoin surged on Feb. 12, reaching its highest level since December 2021 as market participants’ excitement over spot BTC exchange-traded fund inflows and the upcoming BTC supply halving in April lifted investors’ expectations.
Since the beginning of last year, Bitcoin’s value has seen a threefold increase, rebounding from a significant 64% drop in 2022. The last instance Bitcoin reached the $50,000 milestone was in December 2021, though it still has not surpassed its peak of nearly $69,000 from November 2021.
This surge comes from a positive Bitcoin ETF market, as the new funds have attracted over $8 billion in inflows within just a month of trading. Despite Grayscale’s Bitcoin Trust experiencing large outflows throughout January, those withdrawals have stabilized, and spot Bitcoin ETFs currently hold around $2.8 billion in net assets.
Bitcoin Price metrics
With the $50,000 level achieved roughly two months before the Bitcoin halving, investors anticipate Bitcoin price to make a stab at the $69,800 all-time high, last seen on Nov. 8, 2021.
Bitcoin’s strength has improved crypto sentiment, pulling altcoins like IMX, KAS, TIA and STX higher. Risky assets have been on a roll for several days. The S&P 500 Index has notched five successive weeks of gains, and Bitcoin also rose more than 13% this week, indicating aggressive buying by the bulls.
Bitcoin’s latest price achievement has effectively erased the losses it suffered following the collapse of the TerraUSD stablecoin in May 2022. This event triggered a domino effect of failures within the crypto industry, culminating in the downfall of Sam Bankman-Fried’s FTX exchange in November 2022.
With BTC reaching $50,000 again, there is greater optimism surrounding the largest cryptocurrency, especially with the next halving set to take place in April. A recent survey by crypto exchange BItget showed that 70% of investors globally intend to increase their crypto investments in 2024, and 84% expect BTC to surpass its all-time high this year.