Bitcoin soared past $50,000 for the first time in over two years on Tuesday, fueled by investor optimism over US approval of broader trading and the easing of Federal Reserve policy.
This recent rally follows a strong run for the cryptocurrency, driven by expectations of US exchange-traded funds (ETFs) allowing easier public investment.
Despite an initial dip after greenlighting, Bitcoin has climbed 25% since January, reaching its highest price since late 2021.
Experts see the rise as a self-fulfilling prophecy, with enthusiastic buyers driving prices further up. This momentum, coupled with several weeks of strong gains, suggests further potential growth.
While Bitcoin remains below its 2020 peak, the rally marks a significant comeback after a string of scandals and collapses within the crypto industry. Notably, FTX’s demise and Binance’s guilty plea cast a shadow over the sector.
However, Bitcoin is finding support in hopes of the Fed softening its stance on interest rates as inflation eases. The upcoming ‘halving’ event, where the reward for mining Bitcoin is cut in half, is expected to limit supply and potentially drive up its value.