Bitcoin hits $50k first time in over two years

Alex Omenye
Alex Omenye

Bitcoin reached the $50,000 level, marking the first time in over two years, propelled by expectations of upcoming interest rate cuts and recent regulatory approval for U.S. exchange-traded funds tracking its price.

The cryptocurrency has seen a 16.3% increase this year, reaching its highest point since December 27, 2021, with bitcoin trading at $49,899 at 12:56 p.m. EST (1756 GMT) on Monday, showing a 4.96% increase for the day.

Crypto-related stocks experienced a positive trend on Monday, with Coinbase, the crypto exchange, rising by 4.9%, and crypto miners Riot Platforms and Marathon increasing by 10.8% and 11.9%, respectively. Shares of software firm MicroStrategy, a notable bitcoin buyer, saw a 10.2% increase.

Ether, the second-largest cryptocurrency, also gained momentum, rising by 4.12% to $2,607.57.

Global stock indexes showed slight gains as traders sought clues on when the U.S. Federal Reserve might initiate interest rate cuts. Analysts and market expectations point to May as a potential start for rate cuts this year.

The approval of the first U.S. spot bitcoin ETFs by the U.S. securities regulator on January 10 marked a significant development for the cryptocurrency and the broader crypto industry, which had been pursuing such a product for over a decade.

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