Bitcoin surges to US$50 000 since 2021

BITCOIN hovered around US$50 000 after scaling the closely watched level for the first time in over two years, a remarkable comeback from the crypto scandals and wipeouts that had cast doubt on the industry’s viability.

The largest digital asset was trading at US$49 960 as of 10:52 a.m. Tuesday in Singapore having earlier risen as high as US$50 379. The token has tripled in value since the start of last year following a 64 percent plunge in 2022. Bitcoin remains roughly US$19 000 below the all-time high achieved in November 2021.

The wild price fluctuations seen since the introduction of Bitcoin more than a decade ago have long been one of the main attractions to speculators.

While originally promoted as an alternative to the traditional financial system, the latest rally has been driven by optimism that last month’s US approval of spot Bitcoin exchangetraded funds is leading to greater mainstream acceptance.

“There is a lot of talk about inflow of money into this asset,” said Matt Maley, chief market strategist at Miller Tabak & Co. “I’d also note that the momentum players are getting excited as well.”

Risk appetite

The resurgence in crypto prices comes as expectations of looser monetary policy burnish the allure of riskier assets. “The appetite for risk has trickled over into digital assets as well,” said Chris Newhouse, a DeFi analyst at Cumberland Labs.

Shares of crypto-related companies also gained Monday with Bitcoin proxy MicroStrategy rising 11 percent, trading platform Coinbase Global increasing 3,8 percent and miner Marathon Digital Holdings jumping 14,2 percent.