By Jack Denton
Bitcoin and other cryptocurrencies marched upward Tuesday with the largest digital asset trading at its highest level in more than two years. Cryptos continue to benefit from multiple factors driving prices higher -- and analysts say more gains could come.
The price of Bitcoin has risen 5% over the past 24 hours to $50,150, trading at the loftiest levels since December 2021 in a rally that has pushed prices more than 20% higher in two weeks. Bitcoin blew through the $49,000 level late Monday, which had stopped prices in January after the U.S. launch of spot Bitcoin exchange-traded funds (ETFs), a long-awaited catalyst that initially fizzled but has since proved to be a driver of gains.
"$50,000 is a big moment for Bitcoin and dispels the fear, uncertainty and doubt that's gripped the space since the launch of spot ETFs sent the Bitcoin price as low as $38,500 and had investors questioning why these new products failed to live up to their billing," said Antoni Trenchev, co-founder of crypto lender Nexo. "Bitcoin is now sitting at Camp 4 of Mount Everest with the peak -- the all-time high of $69,000 -- tantalizingly close."
Indeed, crypto bulls hope that spot Bitcoin ETFs will usher in a fresh wave of interest in digital assets -- especially from institutional investors who have previously stayed on the sidelines. So far, these funds have seen steady inflows, which is a positive sign.
Jubilation in the stock market hasn't hurt, either, since tokens have proved to be correlated with other risk-sensitive assets like equities. The Dow Jones Industrial Average, S&P 500, and Nasdaq are all around record levels, with increased sentiment for risk among investors in stocks likely leaking into crypto markets.
Beyond Bitcoin, Ether -- the second-largest crypto -- jumped 8% to $2,675. Smaller tokens or altcoins were also higher, with Cardano climbing 5% and Polygon popping 7%. Memecoins exhibited more of the same, with Dogecoin and Shiba Inu up 4% each.
Write to Jack Denton at jack.denton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
February 13, 2024 05:29 ET (10:29 GMT)
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