Bitcoin extends its gains, breaking through the $50,000 level

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Bitcoin it jumped above $50,000 on Monday, at one point reaching its highest level in more than two years.

The price of the major cryptocurrency was last higher by 4% at $50,168.36, according to Coin Metrics. Earlier, it rose to $50,334.00, its highest level since December 2021. Ether was up more than 5.5% at $2,643.80, after rising to $2,638.62 for the first time since January 12.

“$50,000 is an important milestone for bitcoin after spot ETFs launched last month not only failed to move above this key psychological level but led to e sale and a little soul searching about these new bitcoin products,” said Antoni Trenchev, co-founder of crypto services company Nexo.

Bitcoin is coming off its best week since December 8, ending with 10.76% as of Friday.

Positive sentiment has returned to crypto after massive flows from the Grayscale Bitcoin ETF dampened sentiment over the past month. Not only are these flows declining, but inflows are increasing. In addition, bitcoin took appeal last week from the stock market, where the S&P 500 passed 5,000 last week. On Monday, both the broad S&P market and the blue-chip Dow Jones industrial average Download the new album within a day.

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Bitcoin goes down to $50,000

“A number of factors are influencing market dynamics, including China’s adoption of a more relaxed monetary policy, which has led to increased asset purchases, particularly in bitcoin and equities,” said James Butterfill, head of research at crypto-focused asset manager CoinShares.

“Demand for spot-bitcoin ETFs remains strong, with net inflows of $1.1 billion over the past week and $2.8 billion since launch,” he said. “On Friday alone , ETFs received 12,000 bitcoins, significantly exceeding the daily creation rate of about 900 new bitcoins.”

Investors have been watching around $48,600 as a key resistance level. If bitcoin holds above that level, the door could be open for it to reach new highs beyond $50,000 and possibly even a new all-time high, chart analysts say. The coin hit its record of $68,982.20 on November 10, 2021.

Monday’s climb pulled crypto equities higher. Crypto trading Coinbase it gained more than 3% while a bitcoin proxy MicroStrategy advanced 11%. Several mining stocks rose double digits. Clean Spark increased by about 14% and Energy Magazine an increase of 16%. A digital marathon received 14%.

Correction: Earlier, bitcoin broke through the $49,000 level for the first time since January 11.

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