Bitcoin has surged to its highest price since 2021 as the cryptocurrency reported record inflows.
This latest rally saw the cryptocurrency rise above $60,000 (£47,000) earlier today which is $10,000 (£79,000) short of the record high seen in November two years ago.
With this development, Bitcoin has experienced a drastic turnaround with it trading below $20,000 (£15,800) last year.
Analysts are citing the approval of spot exchange-traded funds (ETFs) in the US as the primary reason behind this price hike.
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Bitcoin has reached a two-year high
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Advocates of Bitcoin have claimed the Securities and Exchange Commission (SEC)’s ETF approval will make the cryptocurrency more accessible to casual investors.
The latest price increase for the cryptocurrency has coincided in a record day in trading volume for the Bitcoin spot ETF.
Earlier this week (February 26), nine ETFs that were recently launched broke their all-time daily volume record.
On top of this, other popular cryptocurrencies outside of Bitcoin have reported significant gains this week.
Notably, Ethereum (ETH) rose by more than 50 per cent since the beginning of the year and set a 2024 high.
Following these price rises, the global crypto market is valued above $2.2trillion which is more than double its value six months.
Bivu Das, Kraken's UK managing director, told GB News: “Bitcoin’s recent rally to almost £50,000 has been sparked by the spot ETF approval in the US, the upcoming Bitcoin Halving, and overall renewed optimism around the asset class.
“As we look ahead to the next year, its vital to remember first-principles when trading crypto. I always encourage people to do their own research into the crypto platforms and assets in the market.
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The SEC has approved the very first crypto ETFGETTY “Particularly for anyone new the space, look for a platform that provide an experience that centres around simplicity, customer service, robust security, and strong liquidity."
Despite this boon for crypto enthusiasts, analysts are warning Bitcoin’s record high will be tested in the weeks ahead. This is due to an event known as the halving which has previously resulted in record-breaking price runs.
The halving takes place around every four years and is incorporated into Bitcoin’s underlying network. It is currently scheduled to take place on April 19 and will see rewards for mining cut in half to mitigate the impact of inflation.
Following the approval of ETFs, some investors are preparing this event will lead to further price gains before a possible price correction later in the year.