In an exhilarating update for crypto enthusiasts, Bitcoin has hit a four-week high, approaching the $45,000 mark, buoyed by the upbeat mood in U.S. equity indexes. The digital currency, after dipping to $42,700, leaped almost 5% to $44,800, hinting at a potential rally towards a fresh yearly high past $50,000.
Experts from LMAX Digital highlight this breakout as a significant moment, suggesting Bitcoin could be on the verge of a new high. Meanwhile, Laurent Kssis, a seasoned crypto ETP specialist, notes the role of leverage in this uptick but advises caution, with the possibility of a retest of the $40,000 level over the coming weekend.
In parallel, the Ether market is also witnessing growth, climbing 3% to a two-week peak. This comes as asset managers Ark Invest and 21Shares update their spot ETH ETF application, sparking further interest in the sector.
January saw a noteworthy increase in spot trading volume across centralized crypto exchanges, reaching heights not seen since June 2022. This resurgence is largely attributed to the approval of Bitcoin ETFs, which has rekindled investor interest in digital assets.
Amidst this landscape, Binance continues to dominate the exchange market, despite facing regulatory challenges. Furthermore, the entry of Blackrock and Fidelity into the Bitcoin ETF arena introduces a new competitive edge, especially in terms of liquidity metrics, setting the stage for a dynamic shift in investment preferences.