Bitcoin surges past $50k mark for first time in over 2 years: Report

Bitcoin has surged above the $50,000 mark for the first time in more than two years, propelled by optimism surrounding potential interest rate cuts later in the year and recent regulatory approval for US exchange-traded funds (ETFs) linked to its price.

According to Reuters, the world's largest cryptocurrency has witnessed a 16.3 per cent increase since the beginning of the year, reaching its highest level since December 2021.

At present, bitcoin is trading at $49,899, up 4.96 per cent for the day.

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Reuters cited Antoni Trenchev, the co-founder of Nexo, a crypto lending platform, who described the $50,000 milestone as significant for bitcoin, especially following the introduction of spot ETFs last month.

Trenchev highlighted the impact of ETFs on market dynamics, noting that despite initial skepticism, these products have contributed to bitcoin's recent surge.

Crypto-related stocks, including Coinbase, Riot Platforms, Marathon Digital, and MicroStrategy, have also experienced notable gains in response to bitcoin's upward momentum.

Alongside bitcoin's rally, the broader cryptocurrency market has witnessed positive momentum, with the price of ether, the second-largest cryptocurrency, rising by 4.12 per cent to $2,607.57.

This surge in cryptocurrency prices coincides with gains in global stock indexes, as investors eagerly await cues on potential interest rate adjustments by the US Federal Reserve.

Market analysts anticipate rate cuts as early as May, further fueling investor optimism.

Matteo Greco, a research analyst at Fineqia International, attributed bitcoin's recent price appreciation to increased inflows into BTC spot ETFs.

The approval of the first US spot bitcoin ETFs by the US securities regulator in January marked a significant milestone for the cryptocurrency industry, opening doors for broader adoption and investment opportunities.

Greco highlighted the slowing outflows from Grayscale Investment's Grayscale Bitcoin Trust, indicating a shift towards spot ETFs.

Looking ahead, investors are closely monitoring pending applications for ETFs tied to the spot price of ether, with the SEC expected to deliver final decisions by May.

Additionally, anticipation is building for bitcoin's upcoming "halving" event in April, which is designed to slow the release of new bitcoins into circulation.

Analysts suggest that these factors, combined with potential interest rate cuts and ETF approvals, could further bolster cryptocurrency market sentiment.

(With inputs from Reuters)