From Nasdaq:

Bitcoin has surged 22% this year to reach $52,005, surpassing a market value of $1 trillion for the first time since late 2021. The overall cryptocurrency market, including ether, has now exceeded $2 trillion, fueled by U.S. regulatory approval of spot bitcoin ETFs from BlackRock and Fidelity.

The U.S. spot ETFs added 60,000 bitcoin in the first month of their launch, more than twice the miner production in the same period. Total spot trading volumes on centralized exchanges rose 4.4% to $1.4 trillion in January, the highest reading since June 2022.

Many industry watchers anticipate a surge in bitcoin ahead of the blockchain’s “halving” event in April, with an optimistic outlook that could see bitcoin hitting a peak of $150,000 by mid-2025. While this outlook is bolstered by an upcoming halving event and the possibility of interest rate reductions, bitcoin remains 32% away from its record high of $69,000.

Despite the optimism, there are some signs that the market’s surge may be driven by fear of missing out (FOMO). The Crypto Fear & Greed Index is at 72, which may signal a need for a correction. Additionally, persistently high interest rates and inflation could pose downside risks for bitcoin and other risk assets.

Overall, the cryptocurrency market is experiencing a surge driven by optimism about the future price of bitcoin, regulatory approvals, and strong trading volumes. However, the market’s vulnerability to investor sentiment and external economic factors necessitates a cautious approach to investment.



Read more: Cryptoverse: Breezy bitcoin reclaims $1 trillion crown