Bitcoin surged past the $50,000 mark for the first time since 2021

Bitcoin surged above $50,000 on Tuesday, marking its highest level in over two years, as investors expressed optimism about the potential approval of broader trading in the cryptocurrency by US authorities.

The recent rally in Bitcoin has been fueled by expectations that US lawmakers might greenlight the creation of exchange-traded funds (ETFs) that would track its price, offering the public a way to invest in crypto without directly purchasing it.

Despite an initial drop in response to last month’s regulatory developments in Washington, Bitcoin has rallied approximately 25 percent since January 22, reaching as high as $50,328 according to Bloomberg data, its highest level since late 2021.

Observers are generally upbeat about Bitcoin’s prospects, citing momentum gained from several consecutive weeks of gains. Fadi Aboualfa, from Copper Technologies, noted that the enthusiasm among buyers could potentially drive prices even higher, especially if weekly movements continue to show significant gains.

As of 0330 GMT Tuesday, Bitcoin had dipped slightly to $49,950, still reflecting a strong overall performance.

While Bitcoin has yet to surpass its record value of nearly $69,000 in 2020, the recent rally signifies a recovery from a series of setbacks and controversies that have impacted the cryptocurrency industry. Last year saw major incidents such as the collapse of FTX, the second-largest crypto exchange, and legal troubles for its CEO Sam Bankman-Fried, along with regulatory issues for Binance and its former CEO Changpeng “CZ” Zhao.

Bitcoin’s upward trajectory has also been supported by expectations of potential interest rate cuts by the US Federal Reserve amid easing inflation pressures. Additionally, anticipation of a supply crunch next year, known as “halving,” where the reward for mining new Bitcoins is halved, has contributed to the asset’s value. The next “halving” event is scheduled for May.

Business News: Bitcoin surged past the $50,000 mark for the first time since 2021