After reaching USD 52,000 last week, Bitcoin has seen profit-making in the recent week, thereby breaking the $1 trillion market cap for the first time since November 2021.
"Bitcoin is consolidating at $51,000, with an increase in profit booking," stated Edul Patel, CEO of Mudrex.
Till February 20, Bitcoin had risen by 22 percent in 2024 alone. Having said that, it has dropped to roughly $51,000. Bitcoin fell below $51,000 and was trading at $50,980, according to CoinMarketCap.com on Friday.
As per the experts, the primary cause for the spike is the approval and subsequent listing of Bitcoin spot exchange-traded funds (ETFs) in the United States on January 11.
Nine such ETFs debuted, and the Grayscale Bitcoin Trust, which had been around for more than a decade, was transformed into an ETF on the same day. Furthermore, the availability of ETFs promises to broaden the investor base for the coin. According to Bloomberg, the new funds have already raised approximately $9 billion.
"The focus this week shifted towards Ethereum, as it led prices ahead of Bitcoin and crossed the crucial $3,000 level," stated Parth Chaturvedi, Investment Lead at CoinSwitch Ventures. It has grown by almost 30 percent since the beginning of 2024 and had risen by 4 percent over the previous seven days; trading at $2,940 on Friday.
"Its Dencun upgrade has played a major role in its price surge, but the correction, which is being driven by Bitcoin's dominance, has impacted it alongside altcoins such as Solana and Ripple," said Rajagopal Menon, Vice President of WazirX.
Menon also suggested that Bitcoin's sell-off could be related to the US Fed's signal that rate reduction may take longer than anticipated. "The Federal Open Market Committee's announcements indicated that there would be no rate cuts while indicating that interest rates have been as high as they need to be for the moment," he told reporters. Also, Patel has predicted that Bitcoin would continue to trade between $50,000 and $52,000 for some time.
