Bitcoin soars past $47,000 for the first time since March 2022
- Bitcoin surged to $47,307.00, reaching the highest level since March 2022.
- Ether also experienced gains, rising to $2,511.75.
- Positive sentiment is resurging as outflows from the Grayscale Bitcoin Trust (GBTC) decrease and the S&P 500 touches the historic milestone of 5,000.
Bitcoin surged to close the week on a high note, surpassing the $47,000 mark for the first time in nearly two years. The leading cryptocurrency today climbed over 4% to reach $47,307.00, as reported by Coin Metrics, marking a level not seen since March 2022. Ether also experienced gains, rising 3% to $2,511.75.
Concerns over significant outflows from the Grayscale Bitcoin ETF and a potential deeper pullback in Bitcoin's price had previously subdued trading volume and sentiment over the past fortnight. However, bitcoin has managed to record a 10% increase for the week, while ether is poised for a 9% gain.
Positive sentiment seems to be resurging as the pace of outflows from the Grayscale Bitcoin Trust (GBTC) has decreased. Moreover, the momentum generated by the S&P 500 briefly touching the historic milestone of 5,000 on Thursday could be influencing the cryptocurrency market as well.
The recent surge in bitcoin's price may be attributed to increased inflows into spot ETFs, anticipation of the upcoming halving event, which typically generates optimism among investors as prices often rise afterward, and the overall positive momentum in the market. Historically, there have been similarities observed between Bitcoin and tech stocks. Favorable factors such as lower interest rates, declining inflation, earnings growth, and record-breaking levels in indices like the S&P 500 are enhancing risk sentiment for the cryptocurrency. Bitcoin is approaching a crucial resistance level identified at $48,600 by Fairlead Strategies earlier this week. Breaking through this level could pave the way for a new all-time high.