Bitcoin surpasses $60,000 for 1st time in two years. Why is it rising? - Hindustan Times
close_game
close_game

Bitcoin surpasses $60,000 for 1st time in two years. Why is it rising?

Feb 29, 2024 11:48 PM IST

Bitcoin rose as much as 5.12% to $63,649 by 9:30 am (local time) in New York.

Cryptocurrency Bitcoin on Thursday surpassed $60,000 for the first time in more than two years.

A bitcoin is seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, June 23, 2017.(Reuters)
A bitcoin is seen in an illustration picture taken at La Maison du Bitcoin in Paris, France, June 23, 2017.(Reuters)

The jump comes amid surging optimism that demand for the token is widening beyond committed digital-asset enthusiasts, according to Bloomberg.

HT launches Crick-it, a one stop destination to catch Cricket, anytime, anywhere. Explore now!

On Thursday, the token rose as much as 5.12% to $63,649 by 9:30 am (local time) in New York. Earlier, Bitcoin spiked to $63,968 on Wednesday but soon lost the gains to end at below $59,000.

Bitcoin had last traded at the $60,000 mark in November 2021, after reaching an all-time high of almost $69,000 earlier that same month.

Also Read | Bitcoin's relentless march sets it up for biggest monthly gain since December 2020

According to Bloomberg, Bitcoin has jumped over 40% already this year atop the successful debut of the US ETFs (Exchange-Traded Fund), which directly hold the token.

Why Bitcoin prices are rising?


According to Chris Newhouse, a DeFi analyst at Cumberland Labs, Bitcoin is approaching new yearly highs off the back of increased spot demand and momentum traders taking positions after a week of consolidation.

Besides this, a projected reduction in Bitcoin’s supply growth is also adding to the upbeat sentiment in the cryptocurrency market.

“Optimism around Bitcoin is being driven by a few factors working together: the spot BTC ETF inflows in the US, the upcoming reduction of new Bitcoin issuance known as the halving, and overall renewed optimism around the crypto asset class as a whole,” Jonathon Miller, managing director of the Kraken Australia digital-asset exchange, told Bloomberg.

Also Read | Why small investors are returning to cryptocurrency? The devil is in the details

Zaheer Ebtikar, founder of crypto fund Split Capital, told the media outlet that more and more people are just convinced to buy. “We are starting to see a pretty clear FOMO kind of rally,” he said.

However, some experts have also warned of a sharp correction in the rally.

“This move has been very sharp, leverage is very high at the moment, as implied by derivatives basis and funding rates, so I would not be surprised by a sharp correction” of 20% or more, said Jaime Baeza, founder at crypto hedge fund AnB Investments. “Nonetheless, I would not be shorting into this rally while it continues to move at this pace.”

(Inputs from Bloomberg)

Discover the complete story of India's general elections on our exclusive Elections Product! Access all the content absolutely free on the HT App. Download now!
Stay informed on Business News, TCS Q4 Results Live along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Follow the latest breaking news and developments from India and around the world with Hindustan Times' newsdesk. From politics and policies to the economy and the environment, from local issues to national events and global affairs, we've got you covered.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, April 18, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On