Bitcoin is rising above 59000 close to its all time high

Bitcoin is rising above $59,000, close to its all-time high

Bitcoin (BTC) jumped above $59,000 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 price of the digital asset is now up more than 15% week-on-week and up 40% so far this year, largely due to excitement sparked by a series of spot Bitcoin exchange-traded funds launched in January started trading.

Bitcoin was up more than 5% at $59,396 at last check, hitting its highest level since November 2021. The current rally is testing whether the price can be pushed closer to its all-time high 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.

“We expect Bitcoin price to reach $125,000 by the end of 2025,” added Mark Palmer of Benchmark on Yahoo Finance Live.

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 10% year to date, while the total market value of all crypto assets has increased by about 30% to $2.15 trillion.

One sign of rising enthusiasm for Bitcoin is the trading activity of Bitcoin ETFs launched in January, giving everyday investors broad access to the digital asset. They recorded more than $6 billion in net inflows as of Tuesday, according to London-based fund Farside Investors.

So far this quarter, Bitcoin trading volume has exceeded the level of the same period in all quarters of 2023. This activity has been a boon for major crypto trading venues, including Coinbase Global (COIN) and Robinhood (HOOD). These stocks are up 27% and 31%, respectively, since the beginning of January.

The story goes on

Coinbase CEO Brian Armstrong looks on at the Piper Sandler Global Exchange and FinTech Conference in New York City, U.S., June 7, 2023. REUTERS/Brendan McDermidCoinbase CEO Brian Armstrong looks on at the Piper Sandler Global Exchange and FinTech Conference in New York City, U.S., June 7, 2023. REUTERS/Brendan McDermid

Brian Armstrong, CEO of Coinbase. Portal/Brendan McDermid (Portal / Portal)

Bitcoin miner Marathon Digital (MARA) and Bitcoin holder Microstrategy (MSTR) are up 32% and 27%, respectively. MicroStrategy announced Monday morning that it had acquired an additional 3,000 BTC, bringing its total investment to 193,000 BTC, worth around $11 billion as of Tuesday.

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 $24 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 at Yahoo Finance, covering banking, crypto and other financial areas.

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