Bitcoin Surges 50% as U.S.-Listed Funds Drive Crypto Momentum

The cryptocurrency market is witnessing a remarkable surge in 2024, with Bitcoin, the largest cryptocurrency by market value, gaining 50% in value since the beginning of the year. Most notably, this rise has been concentrated in the last few weeks, coinciding with a significant surge in trading volume for U.S.-listed Bitcoin funds.

Earlier this year, the approval of spot Bitcoin exchange-traded funds (ETFs) in the United States marked a significant milestone in the crypto market. This regulatory green light not only paved the way for new large investors to enter the market but also reignited enthusiasm and momentum reminiscent of the historic run-up to record levels in 2021.

Markus Thielen, the head of research at crypto analytics house 10x Research in Singapore, commented on the current market dynamics, stating, “The flows are not drying up as investors feel more confident the higher price appears to go.” This sentiment reflects the growing confidence among investors in the sustained upward trajectory of Bitcoin’s price.

While Bitcoin steals the spotlight with its impressive gains, its smaller rival Ether is also experiencing significant growth. Ether, the native cryptocurrency of the Ethereum blockchain, has surged 50% year-to-date. On Monday, it reached $3,490, hovering just below the two-year highs it reached last week.

One of the driving forces behind Ether’s surge is speculation surrounding the potential approval of exchange-traded funds for the cryptocurrency. If approved, these ETFs could bring substantial inflows into the Ether market, further fueling its upward momentum.

The crypto rally is occurring against the backdrop of record-breaking performances in traditional markets. Stock indexes around the world, from Japan’s Nikkei to the S&P 500 and the tech-heavy Nasdaq, are setting new highs. Additionally, volatility gauges in equities and foreign exchange markets are trending lower, indicating a period of relative stability and optimism among investors.

Overall, the resurgence of interest in cryptocurrencies, particularly Bitcoin and Ether, underscores the growing acceptance and integration of digital assets into mainstream finance. As regulatory barriers continue to be overcome and institutional adoption expands, the crypto market is poised for further growth and evolution in the coming months.