Bitcoin and other cryptocurrencies experienced a significant surge on Thursday, reaching their highest levels since the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States last month. This surge in token prices has propelled them beyond important thresholds, indicating the potential for further gains.
Over the past 24 hours, the price of Bitcoin has advanced by 4.5%, reaching nearly $44,800. These levels haven't been seen since mid-January when prices climbed to around $49,000 during a trading frenzy fueled by anticipation and approval of spot Bitcoin ETFs. This recent upward movement comes after weeks of Bitcoin stagnating and falling below the psychologically significant $40,000 mark at times, causing concerns about a more severe correction.
According to analyst Alex Kuptsikevich from broker FxPro, "Bitcoin rose above its 50-day moving average, confirming the bullish medium-term trend and easing fears of a deeper correction." He also noted that this rise to the highest level since January 12 coincided with all-time highs reached by the S&P 500 and Nasdaq 100 indices.
The correlation between Bitcoin and the stock market is evident in this recent jump, as the Dow Jones Industrial Average, S&P 500, and especially the tech-heavy Nasdaq index have been steadily increasing. The positive sentiment in the stock market, driven by optimism surrounding artificial intelligence-driven demand, seems to be benefiting Bitcoin as well. Notably, Bitcoin has shown a correlation with risk-sensitive assets like stocks, so an overall risk-on mood in the market should contribute to further gains for the cryptocurrency.
Analysts believe that the technical market conditions are favorable for Bitcoin's continued upward momentum. Kuptsikevich stated, "Bitcoin and the broader crypto market have gained strength after a long period of consolidation and are now poised to make new highs." He also mentioned that if Bitcoin breaks the previous highs at $49,000, it would confirm the pattern and set a target of $64,000.
In addition to Bitcoin's surge, Ether, the second-largest cryptocurrency, rose by 2.5% to $2,420. Smaller tokens and altcoins also experienced significant increases, with Cardano climbing 11% and Polygon rising by 5%. Even meme-based coins like Dogecoin saw gains of 2%, while Shiba Inu increased by 4%.
In conclusion, the recent surge in Bitcoin and other cryptocurrencies to their highest levels since the approval of spot Bitcoin ETFs indicates the possibility of further gains. The correlation with the stock market and positive technical market conditions are contributing factors to this upward movement.
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