Bitcoin’s jaw-dropping surge past $54,000 leaves investors stunned – what’s next for the world’s most valuable cryptocurrency?
Bitcoin.
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The price of bitcoin spiked above the $54,000 level on Monday after waking up from a week of tepid trading.
The flagship cryptocurrency was last up 5% at $54,460.00, according to Coin Metrics. At its session high, bitcoin hit $54,965.26 and hit its highest level since December 2021.
“Today is settlement day for bitcoin futures, which is contributing to the price jump we're seeing,” said Ryan Rasmussen, an analyst at Bitwise Asset Management. “We are approaching the window in which we normally see traders positioning before the bitcoin halving, which will occur in the second half of April. I suspect this is the day when people start taking bullish positions before the halving”.
Most of the cryptocurrency market received a boost from bitcoin. Ether It gained more than 2% to trade at $3,173.87. solarium added more than 5%, and Cardano ADA The token advanced around 4%. polygon MATIC The token is up 8%.
Cryptocurrency-related stocks rose. Coinbase and Microstrategy jumped 16%. Riot platforms and Digital Marathonthe largest bitcoin miners, soared 15% and 20%, respectively.
Bitcoin traded flat in the week leading up to Monday, when the breakout began, putting it on track for a 27% monthly gain.
“Bitcoin has been hovering around $52,000 for the past two weeks and is looking for an opportunity to break out,” said Owen Lau, an analyst at Oppenheimer, who cited positive idiosyncratic developments in cryptocurrency regulation and growing retail participation.
In a recent note, JPMorgan's Nikolaos Panigirtzoglou noted that after taking a pause in January, retail appetite for cryptocurrencies rebounded in February and has been a major driver of bullish price action. He pointed to three key catalysts that help explain the renewed retail interest: the bitcoin halving and upcoming Ethereum tech upgrade (which JPMorgan believes are already priced in) and the potential approval of spot ether ETFs.
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