Bitcoin marched higher at the end of the week, with its price surpassing the $47,000 level for the first time in nearly two years.
The flagship cryptocurrency rose more than 4% to $47,307.00 on Friday, a level not seen since March 2022, according to Coin Metrics. Ether advanced 3% to $2,511.75.
Bitcoin’s trading volume and sentiment have been suppressed over the past two weeks as investors worried about large outflows from the Grayscale Bitcoin ETF and a deeper decline in its price ahead of an expected rally this year. However, bitcoin is now up 10% for the week, while ether is on track for a 9% gain.
It appears that positive sentiment is returning now as GBTC outflows have slowed. Additionally, momentum from the S&P 500 Index briefly touching 5,000 on Thursday for the first time ever could spill over into cryptocurrencies.
Bitcoin surpasses $47,000
“Bitcoin’s recent price appreciation could be attributed to recent inflows into spot ETFs, the prospect of halving around the corner, which tends to generate optimism among investors as prices often rise afterward, and overall market momentum” , said Sylvia Jablonski, CEO and chief investment officer of Defiance ETFs. “In the past, there have been parallels between bitcoin and tech stocks. Lower rates, declining inflation, earnings growth, and indexes like the S&P 500 reaching breakthrough levels certainly improve risk appetite for the asset class.”
The move pushed crypto stocks higher in pre-market trading. Cryptocurrency exchange Coinbase and bitcoin proxies Microstrategy each gained more than 6%, while the largest miners, Riot control platforms AND Digital marathonthey increased by 10% and 11% respectively.
Bitcoin is approaching a key resistance level, which Fairlead Strategies earlier this week identified at $48,600. Reaching that level would open the door to a new all-time high, the company said.
On Thursday, bitcoin surpassed $45,000 for the first time since Jan. 12, the day after U.S. bitcoin ETFs began trading. The cryptocurrency struggled to hold its pre-ETF highs, but avoided falling to $36,000, as expected. It has not fallen below $39,000 in the last month.