Bitcoin (BTC) jumped above $60,000 on Wednesday, within spitting distance of its all-time high, as enthusiasm for the world's largest cryptocurrency reached levels last seen during a 2021 boom.
The digital asset climbed as high as $63,900, hitting its highest intraday point since November 2021, before falling back to the $60,000 mark after some users of cryptocurrency exchange Coinbase (COIN) reportedly started making a to report balances of $0 in their accounts.
Coinbase said on its website: “We recognize that some users may see a zero balance in their Coinbase accounts and errors may occur when purchasing or selling. Our team is investigating this issue and will provide an update shortly. Your assets are safe.” “
We understand that some users may see a zero balance in their Coinbase accounts and errors may occur when purchasing or selling. Our team is investigating this and will provide an update shortly. Your assets are safe.
You can follow this incident at https://t.co/a3pl4WiDhZ
— Coinbase Support (@CoinbaseSupport) February 28, 2024
Before prices declined, the rally had approached the all-time mark of $68,789. This peak came six months before a spectacular crash in 2022.
“Ultimately, we see crypto rising from the ashes of the 2022 market,” said Ryan Rasmussen, a senior crypto research analyst at Bitwise Asset Management.
Bitcoin is experiencing a wave of excitement sparked by a series of spot Bitcoin exchange-traded funds that began trading in January. These funds gave everyday investors broad exposure to digital assets and sparked predictions of a new bull market.
“We expect Bitcoin price to reach $125,000 by the end of 2025,” added Mark Palmer of Benchmark on Yahoo Finance Live.
The story goes on
Investors are also bidding higher on other cryptocurrencies and related stocks. According to Coinmarketcap, the second-largest cryptocurrency Ether (ETH) has outperformed Bitcoin by more than 4% year to date, while the total market value of all crypto assets has increased by around 36% to $2.24 trillion.
One sign of the growing enthusiasm for Bitcoin is the trading activity of Bitcoin ETFs launched in January. They recorded net inflows of more than $6.7 billion as of Wednesday, according to London-based fund Farside Investors.
So far this quarter, Bitcoin trading volume has exceeded the level of all quarters of 2023 in the same period. This activity has been a boon for major crypto trading venues including Coinbase and Robinhood (HOOD). As of Wednesday, these stocks are up 18% and 26%, respectively, since the beginning of January.
Brian Armstrong, CEO of Coinbase. REUTERS/Brendan McDermid (REUTERS/Reuters)
Bitcoin miner Marathon Digital (MARA) and Bitcoin holder Microstrategy (MSTR) are up 34% and 53%, respectively, over the same period. MicroStrategy announced Monday morning that it had acquired an additional 3,000 BTC, bringing its total investment to 193,000 BTC, valued at over $11 billion as of Wednesday.
According to Cumberland Labs analyst Christopher Newhouse, derivatives traders are now joining the Bitcoin rally.
According to crypto derivatives data provider Coinglass, there are approximately $25 billion worth of open contracts in the Bitcoin futures market. This is a new high for outstanding Bitcoin futures bets, surpassing the mark last set in April 2021.
“In the options market, the story is clear,” Newhouse added. “People are bullish.”
David Hollerith is a senior reporter for Yahoo Finance, covering banking, crypto and other financial areas.
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