Bitcoin crossed the $50,000 mark today, according to CoinMarketCap data, reaching the milestone for the first time since December 2021.
CoinMarketCap
This breakout represents a major rebound for Bitcoin, which has faced massive volatility and fluctuations over the past two years, reaching lows of around $16,000. Bitcoin's resilience and upward trajectory underscores its status as a store of value and hedge against inflation in today's bleak economic landscape.
Investors are watching Bitcoin price movements closely, with many viewing the $50,000 level as a crucial psychological barrier. The rise in Bitcoin's price reflects renewed confidence in the asset's long-term potential and its ability to attract institutional investment.
The bullish price movement this year has been mainly driven by spot demand for Bitcoin exchange-traded funds, which is seeing adoption by major financial institutions and increased retail investor participation. The massive amount of selling pressure exerted by Grayscale's Bitcoin ETF, as well as miners selling coins, appears to have now almost exhausted. Now with inflows accelerating to all other spot Bitcoin ETFs, buying demand is far exceeding any current selling pressure.
Also, with the halving event fast approaching for Bitcoin, market participants have been vocal about eagerly buying Bitcoin before the mining reward is halved, which is expected to create a supply shock later in the year.
