Bitcoin climbed by 6.8% to reach a peak of $67,645 during the session, following a 6% drop on Tuesday from its previous all-time high above $69,000. Currently, it is up by 5.7% at $66,896
Bitcoin surged once again on Wednesday amidst volatile trading, with ether also experiencing a nearly 10% increase as the crypto currency frenzy continued to captivate the investment community.
Bitcoin climbed by 6.8% to reach a peak of $67,645 during the session, following a 6% drop on Tuesday from its previous all-time high above $69,000. Currently, it is up by 5.7% at $66,896.
On the other hand, ether saw a significant surge of 9.8% to its highest level since January 2022. It is currently up by 8.6% at $3,827.
Bitcoin has already seen a 55% increase in value since the beginning of the year, driven by investors directing funds into U.S. spot exchange-traded crypto products and the probability of a global decline in interest rates.
Billions of dollars have flowed into exchange-traded funds (ETFs) in the last few weeks and the market is getting extra support from an outlook that includes an ethereum upgrade and bitcoin “halving,” which slows the flow of bitcoin minting, said Lennix Lai, global chief commercial officer at OKX.
The trend also suggests an elevated level of mainstream acceptance of bitcoin, perhaps more than ever before, Lai added.
The approval of 11 spot bitcoin exchange-traded funds by the U.S. Securities and Exchange Commission (SEC) in late January marked a pivotal moment for the industry, following an 18-month period of crypto winter marked by numerous high-profile corporate failures and controversies.
Even institutional investors, who were previously hesitant towards crypto due to its extreme volatility, are now starting to allocate long-term investments, potentially contributing to the sustainability of the current market rally.
The positive sentiment surrounding bitcoin has also extended to other digital assets, particularly ether, the second-largest crypto currency by market capitalization, which has surged by over 60% since the beginning of the year.