Bitcoin hit the US$50 000 level for the first time in more than two years as the world’s largest cryptocurrency was buoyed by expectations of interest rate cuts later this year and last month’s regulatory nod for US exchange-traded funds designed to track its price.
The cryptocurrency has risen some 16.3% so far this year, on Monday touching its highest since 27 December 2021. At 7.31pm SAST, bitcoin was up 5.58% on the day at $50 196. In rand terms, it climbed through the R950Â 000 level, putting it just R50Â 000 shy of R1-million, which would match its all-time record high in local currency.
“Fifty thousand dollars is a significant milestone for bitcoin after the launch of spot ETFs last month not only failed to elicit a move above this key psychological level but led to a 20% selloff,” said Antoni Trenchev, co-founder of crypto lending platform Nexo.
Crypto stocks also enjoyed a boost on Monday, with crypto exchange Coinbase up 4.86% and crypto miners Riot Platforms and Marathon Digital up 11.9% and 13.7%, respectively. Shares of software firm MicroStrategy — a notable buyer of bitcoin — were up 11.7%.
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The price of ether, the second largest cryptocurrency, was up 4.08% at $2 606.60. — Hannah Lang, Alun John and Elizabeth Howcroft, (c) 2024 Reuters