Top Line
On Monday, the world’s largest cryptocurrency breached $65,000 for the first time since 2021, bringing Bitcoin closer to its all-time high price, putting Bitcoin on top of its dramatic comeback.
Bitcoin is red-hot so far in 2024.
getty images
important facts
Bitcoin rose nearly 6% to more than $67,500 by midday, its highest level since Nov. 10, 2021.
Bitcoin is now about 2% off its record high of around $69,000 achieved during 2021’s brief spike, an attainable rally considering that the persistently volatile Bitcoin has surged more than 50% in the past month. Is.
Driving the latest rally is primarily the ongoing momentum from spot Bitcoin exchange-traded funds (ETFs) launched earlier this year – according to data from Bernstein, these ETFs now have nearly $500 million in assets under management. There are 50 billion and account for 4% of all Bitcoins.
Optimism about the upcoming “halving” event, which typically drives Bitcoin prices higher as reduced incentives for miners slows supply growth, and a broader surge in equity prices have also boosted Bitcoin.
amazing facts
According to CoinGecko, Bitcoin’s total market capitalization on Monday was $1.29 trillion, more than three times the market capitalization of $320 billion at the end of 2022 during the crypto winter.
Adverse
Bitcoin is flirting with record high valuations, but the crypto market’s total market capitalization of $2.55 trillion is well below the record high of more than $3 trillion reached at the end of 2021. This happens as Bitcoin’s crypto market share increases from less than 40% to almost. 50% over the past two years, reflecting a decline in the value of many major digital assets. FTX’s crypto token, which had a peak market cap of nearly $10 billion in 2021, is now essentially worthless following FTX’s bankruptcy. Binance’s coin is down more than 40% from its November 2021 levels as the exchange faces significant legal troubles and Dogecoin is struggling. The meme coin, propelled by the likes of Elon Musk, has declined nearly 40% from its November 2021 market capitalization of nearly $40 billion.
main background
Managed by longtime asset managers like BlackRock and crypto-first firms like Grayscale, the 11 spot Bitcoin ETFs that hit the market in January have enabled a low-fee, easy-access way for investors to put their money into Bitcoin. Last week, BlackRock’s fund became the fastest ETF in history to reach $10 billion in assets under management. Publicly traded stocks closely tied to Bitcoin have outperformed the broader market this year; Shares of crypto exchange Coinbase, leading Bitcoin miner Marathon Digital and Bitcoin investor MicroStrategy rose to multi-year highs this year.
Further reading
