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Business News/ Markets / Cryptocurrency/  Bitcoin hits $60,000 mark for the first time since November 2021, soars over 40% in 2024. What is driving the rally?
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Bitcoin hits $60,000 mark for the first time since November 2021, soars over 40% in 2024. What is driving the rally?

Bitcoin Price Today: The largest cryptocurrency has already jumped more than 40 per cent this year, fuelled in part by the successful launch of US exchange-traded funds.

Bitcoin on February 28 hit the $60,000 mark for the first time since November 2021.Premium
Bitcoin on February 28 hit the $60,000 mark for the first time since November 2021.

Bitcoin rose to the coveted $60,000 mark for the first time in more than two years, amid a surging optimism that demand for the token is widening beyond committed digital-asset enthusiasts. 

At 1325 GMT, bitcoin traded at about $60,301, closing in on its all-time high of $68,991 -- which was struck in November 2021.

The largest cryptocurrency has already jumped more than 40 per cent this year, fuelled in part by the successful launch of US exchange-traded funds (ETFs) holding the coins that have attracted more than $6 billion since they began trading on January 11. 

ALSO READ: Bitcoin surpasses $59,000 mark, highest level since December 2021; Why is it rising?

The instruments are comparable to stocks or mutual funds, as far as accessibility to everyday investors.

The expected approval of the new investment product had contributed in recent months to a rise in its price, which had largely fallen by the end of 2022 following the bankruptcy of several crypto giants.

An upcoming reduction in Bitcoin’s supply growth, known as the halving, is adding to the optimistic sentiment. That has helped to extend a prolonged rally that has also stoked speculative appetite for smaller tokens ranging from Ether to Dogecoin.

Bitcoin has outperformed traditional assets like stocks and gold in 2024.

The virtual unit has also been partly boosted by hopes that the US Federal Reserve will start to cut interest rates this year as inflation eases.

The nine new spot ETFs have more than 300,000 Bitcoin, or seven times the amount of new coins mined since January 11.

ALSO READ: Bitcoin Breaks From Recent Range to Set More Than Two-Year High

After the halving, expected in late April, the number of new coins mined daily will decline to 450 from 900 currently.

The value of all the bitcoin in circulation has topped $2 trillion this month for the first time in two years, according to crypto platform CoinGecko.

Crypto investor and software firm MicroStrategy earlier this week disclosed that it had recently bought about 3,000 bitcoins for $155 million, while social media platform Reddit also said in a regulatory filing it had bought small amounts of bitcoin and ether.

Bitcoin is created -- or "mined" -- as a reward when powerful computers solve complex problems to validate transactions made on the blockchain.

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Published: 28 Feb 2024, 08:47 PM IST
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