Finally 40,000. The price of Bitcoin (BTC) experienced a nice “pump” overnight: it surpassed $41,000, and for the moment seems to be holding above this key psychological threshold. We take a look at the reasons for this rapid rise
The price of Bitcoin (BTC) soars overnight
The price of Bitcoin soared +6% in the space of ten hours, crossing the $40,000 mark around midnight. Early this morning, it hit $41,700, and is currently trading around $41,400. The breakthrough is very notable for the largest cryptocurrency, which had been aiming for this psychological threshold for a few days.
The price of Bitcoin (BTC) rose sharply overnight
The other major cryptocurrencies are also benefiting from Bitcoin’s pump. Ethereum’s ETH has posted +4.1% over the last 24 hours, while Ripple’s XRP has gained +3.3%. Binance’s BNB, which took a beating last week, is now up +2.4%. Overall, the total capitalization of crypto-currencies has gained +3.3% over the last 24 hours.
The gold rush, future ETFs and institutional investors… The reasons for this enthusiasm
This breakthrough above $41,000 comes against a backdrop of great optimism in recent weeks. Several pieces of news have combined to favor Bitcoin’s advance, including of course the rumors of approval for Bitcoin Spot ETFs, which are the topic of the moment in the ecosystem. The halving of Bitcoin is also approaching, and should take place around April 2024. Historically, this event has boosted the price of the world’s largest cryptocurrency. Investors are therefore anticipating this possible rise by positioning themselves in advance.
With regard to yesterday, we should also mention gold’s breakthrough. Historically correlated with Bitcoin, the yellow metal jumped 3.5% in a matter of minutes, reaching an all-time high. This certainly contributed to the rapid breakthrough of the largest cryptocurrency over the same period.
Moreover, institutional investors are back in the ecosystem, and hungry for Bitcoin. According to asset manager CoinShares, investment funds have been flocking to BTC in recent days, with a record inflow of $346 million. This sum had not been reached since the year 2021.
The lights are therefore green for the world’s largest cryptocurrency, and the news to come could propel its price even higher.
