Bitcoin hit $50k for the first time in more than two years after the world’s biggest cryptocurrency was boosted by expectations of interest rate cuts later this year and last month’s regulatory approval for exchange-traded funds (ETF) in USA.
The cryptocurrency has increased in value by over 16.3% this year, and today reached its highest level since December 27, 2021.
“$50k is a significant achievement for Bitcoin after the launch of spot exchange traded funds last month not only failed to trigger a move above this key psychological level, but resulted in a sell-off,” commented Antoni Trenchev, co-founder of Nexo.
Crypto stocks also got a boost today, with Coinbase up 4.9% and Riot Platforms and Marathon Digital up 10.8% and 11.9%, respectively. Shares of software company MicroStrategy, one of the notable bitcoin buyers, rose 10.2%.
The price of Ethereum, the second-largest cryptocurrency, rose 4.12% to $2,607.57.
Stock indexes around the world also rose today as investors looked for signs of when the US Federal Reserve might start cutting interest rates. Expectations are that the potential lowering of interest rates will begin in May this year.
