Anjali Sharma
GG News Bureau
NEW YORK, 14th Feb. According to news media reports on Tuesday Bitcoin rose to USD 50,328 in the US and was trading at USD 49,980 as of 7:40 am Tuesday in Singapore.
Bitcoin surged USD 50,000 after briefly scaling the closely watched level for the first time in over two years. This is a remarkable comeback from the crypto scandals and wipeouts that cast doubt on the industry’s viability.
It has tripled in value since the start of last year after a 64 per cent plunge in 2022.
Bitcoin remains below the all-time high of almost USD 69,000 achieved in November 2021.
The latest rally has been driven by optimism that last month US approval of spot Bitcoin exchange-traded funds is leading to greater mainstream acceptance.
The resurgence in crypto prices comes as expectations of looser monetary policy burnish the allure of riskier assets.
Bitcoin has recovered all its losses since the May 2022 implosion of stable coin TerraUSD, which set in motion a wave of failures that helped bring down Sam Bankman-Fried’s FTX exchange in November 2022.
The shares of crypto-related companies also gained Monday with Bitcoin proxy MicroStrategy Inc. rising 11 per cent, trading platform Coinbase Global Inc. increasing 3.8 per cent and miner Marathon Digital Holdings Inc. jumping 14.2 per cent.
US spot Bitcoin exchange-traded funds debuted on January 11, more than decade-old Grayscale Bitcoin Trust converted into an exchange-traded fund the same day.
The accessibility of ETFs promises to widen the investor base for the token and the new funds have attracted USD 9 billion so far and over USD 6 billion outflow from the Grayscale fund since its conversion seems to be losing steam, news media reported.
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