On Wednesday, the price of Bitcoin went up by 7%, reaching over $61,000. This is the first time it has crossed the $60,000 mark since November 17, 2021. The increase in Bitcoin’s value is more than 30% since U.S. regulators approved exchange-traded funds (ETFs) for bitcoin. These ETFs make it easier for investors to directly invest in bitcoin, and Bitcoin’s performance has outpaced major stock indexes. The rise in Bitcoin prices is also linked to more money flowing into the bitcoin ETFs. Stocks of companies heavily involved in cryptocurrency, like Coinbase, MicroStrategy, and Marathon Digital, also saw increases of over 4%, reaching multiyear highs in morning trading.

Bitcoin Market Cap

According to CoinGecko, the total market capitalization of Bitcoin was $1.19 trillion. Back in November 2022, during a challenging period for the cryptocurrency industry, Bitcoin’s overall value was slightly above $300 billion when crypto prices hit their lowest point.

Key Background

Around $6.7 billion of new capital has gone into spot bitcoin ETFs in the first six weeks since they started, as reported by BitMEX Research. On Monday and Tuesday alone, over $1 billion was invested, with a significant portion going to funds run by well-established companies like BlackRock and Fidelity. The rise in Bitcoin’s value is happening at the same time as discussions about more relaxed monetary policies and concurrent increases in the stock market. Despite the recovery, Bitcoin is still about 10% below its record high in November 2021, which was over $68,000.

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