Bitcoin Surges Past $47,000 in Impressive Comeback to Conclude the Week

Bitcoin concluded the week on a strong note, as its price surged above the $47,000 mark, marking the first time it has reached this level since the commencement of spot bitcoin exchange-traded funds. According to Coin Metrics, the leading cryptocurrency recorded a gain of over 3%, reaching $46,922.18. Additionally, Ether experienced a 2% increase, reaching $2,482.81.

In a previous instance, Bitcoin climbed to a peak of $47,708.00, marking the first occurrence since January 11 when the price briefly touched $49,058.48 in a period of volatile trading subsequent to the introduction of spot bitcoin ETFs. Prior to this, the cryptocurrency had not reached the $47,000 level since March 2022. The trading volume and sentiment surrounding Bitcoin were subdued over the past two weeks as investors expressed concerns about significant outflows from the Grayscale Bitcoin ETF and anticipated a substantial pullback in its price before an expected upward surge later in the year.

However, Bitcoin has recorded a 10% gain for the week, and Ether is poised for a 9% increase. Coin Metrics assesses a week in the cryptocurrency market, which operates 24 hours a day, spanning from the 4:00 p.m. ET stock market close on one Friday to the next. The resurgence of positive sentiment is evident as the outflows from GBTC have decelerated. Furthermore, the momentum generated by the S&P 500 briefly reaching 5,000 on Thursday, a historic milestone, may be influencing the cryptocurrency market positively.

Sylvia Jablonski, CEO and Chief Investment Officer at Defiance ETFs, suggests that the recent surge in Bitcoin’s value may be attributed to increased investments in spot ETFs, anticipation of the upcoming halving, which historically generates investor optimism as prices tend to rise thereafter, and the overall momentum in the market.

Highlighting historical parallels between bitcoin and technology stocks, she further noted, “Decreasing interest rates, declining inflation rates, positive earnings growth, and major market indices like the S&P 500 reaching record levels undoubtedly enhance risk sentiment for the asset class.” This development propelled crypto-related equities upwards, with cryptocurrency exchange Coinbase and bitcoin proxy Microstrategy experiencing gains of over 6%. Meanwhile, leading miners Riot Platforms and Marathon Digital saw substantial increases of 10% and 11%, respectively.

Approaching a significant resistance point, Fairlead Strategies, in an assessment earlier this week, pinpointed the level at $48,600 for Bitcoin. Surpassing this threshold, according to the firm, could pave the way for a new all-time high. On Thursday, Bitcoin exceeded $45,000, marking the first instance since January 12, which was the day following the commencement of U.S. bitcoin ETF trading. While the cryptocurrency has encountered challenges in maintaining its pre-ETF peak values, it has managed to stay above the anticipated $36,000 low, consistently holding above $39,000 over the past month.