Bitcoin has been on a tear, recently surpassing $64,000 – its highest point in two years. This surge marks a near 50% gain year-to-date, significantly outperforming the U.S. Dollar, represented by the Dollar Index’s (DXY) 2% gain over the same period.
Several factors are attributed to Bitcoin’s recent ascent. However, the approval of spot Bitcoin Exchange Traded Funds (ETFs) earlier this year is seen as a major catalyst. This approval of spot Bitcoin ETFs has opened the door for broader institutional investment, mirroring the enthusiasm seen before the 2021 peak. These ETFs allow investors to gain exposure to Bitcoin without directly holding the cryptocurrency, potentially attracting new institutional investors. Since their launch, Bitcoin’s value has climbed over 30%.
Technically, the trend remains positive, with Bitcoin consistently trading above its 100-day moving average. This suggests continued buying momentum and potential further growth. The all-time high of $68,999.99 could be within reach if this momentum persists.
However, it’s important to remember that cryptocurrency markets are highly volatile. Past performance is not indicative of future results, and caution is always advised when considering any investment.
Sources: Reuters, TradingView
Piece Written By Nkosilathi Dube, Trive Financial Market Analyst
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