The price of Bitcoin surged on Thursday as the world’s largest cryptocurrency edged closer to its all-time high, propelled by strong momentum and recent catalysts.
Price Movement
Bitcoin was trading at $62,400, marking a nearly 6% increase over the past 24 hours. Despite a brief spike above $64,000 on Wednesday, it settled back around $60,000. Bitcoin has seen a notable 48% surge since the beginning of 2024. Ether, the second-largest cryptocurrency, also experienced a 3.8% rise to $3,460. Additionally, other coins showed gains with Cardano up 8%, Solana increasing by 15%, and Dogecoin rising by a whopping 30%.
Market Optimism
Bitcoin effortlessly surpassed the $60,000 threshold on Wednesday as optimism continued to grow following the approval of Bitcoin exchange-traded funds (ETFs) earlier in the year and the recent rally in riskier assets. Market expectations for Federal Reserve interest rate cuts in the coming months and the upcoming halving event – reducing the rate of new token issuance – are positioning Bitcoin to test its record high of approximately $69,000.
Analyst Insights
According to Markets.com analyst Neil Wilson, “Bitcoin extended its parabolic rally to break above $63,000 and is set for its best month since June 2020.” Wilson further noted, “Huge momentum here could see an attempt to break $69,000 before we see a proper consolidation.”
Investor Interest and Challenges
The increasing price and investor interest in Bitcoin posed challenges for Coinbase Global, resulting in an outage on Wednesday. CEO Brian Armstrong attributed this to a surge in traffic overwhelming the exchange’s systems, leading to issues like accounts displaying incorrect $0 balances. Despite initial difficulties, operations were restored, and activity normalized later that day.
Retail Investor Participation
Following the spike in institutional investor interest due to ETF approvals, retail investors are now showing increased enthusiasm for Bitcoin. Charles-Henry Monchau, chief investment officer at Bank Syz, stated, “Retail investors are now joining the party. They have been initially shy to follow the positive momentum but as Bitcoin keeps moving up they are starting to speculate on all-time highs being revisited soon.”
In conclusion, Bitcoin’s recent price surge and growing investor interest indicate an exciting time for cryptocurrency enthusiasts.