Updated March 6th, 2024 at 15:51 IST

Bitcoin surges in volatile trade, Ether jumps 10% as crypto frenzy persists

Bitcoin soared by as much as 6.8 per cent to hit a session high of $67,645, rebounding from a 6 per cent dip on Tuesday after briefly surpassing $69,000.

Reported by: Business Desk
Bitcoin | Image:Unsplash
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Bitcoin price: Cryptocurrency markets witnessed another wave of bullish activity on Wednesday, with Bitcoin leading the charge in volatile trading sessions. Ether also witnessed a surge, rising nearly 10 per cent, as enthusiasm for digital assets continues to grip the investment community.

Bitcoin soared by as much as 6.8 per cent to hit a session high of $67,645, rebounding from a 6 per cent dip on Tuesday after briefly surpassing $69,000. It currently stands at $66,896, marking a 5.7 per cent increase.

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Meanwhile, Ether surged by 9.8 per cent to reach its highest level since January 2022, with its price climbing to $3,827, up 8.6 per cent from the previous day.

The momentum behind Bitcoin's rally, which has seen a 55 per cent increase since the start of the year, is fuelled by heightened investor interest in US spot exchange-traded crypto products and the anticipation of global interest rate declines.

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According to Lennix Lai, Global Chief Commercial Officer at crypto exchange OKX, billions of dollars have flowed into ETFs in recent weeks, providing additional support to the market. The outlook is further buoyed by expectations of an Ethereum upgrade and the Bitcoin "halving," which reduces the rate of Bitcoin production.

The approval of 11 spot Bitcoin ETFs by the US Securities and Exchange Commission in late January marked a significant milestone for the industry, following a challenging period of regulatory uncertainties and market downturns.

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Even institutional investors, traditionally cautious of the crypto market's volatility, are now allocating long-term investments, contributing to the ongoing rally.

The positive sentiment surrounding Bitcoin has spilled over to other digital tokens, particularly Ether, which has surged over 60 per cent since the beginning of the year.

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However, sceptics caution against the speculative nature of these assets, emphasizing the inherent volatility. Bitcoin's recent behaviour, including sharp reversals after hitting record highs, underscores the unpredictable nature of the market.

According to Matt Simpson, Senior Market Analyst at City Index, such fluctuations are characteristic of Bitcoin's trading patterns.

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Deutsche Bank strategist Jim Reid highlights that Bitcoin is still some way off from its real all-time high, adjusting for inflation. With consumer prices rising by over 10 per cent since the previous peak in November 2021, Bitcoin's real value would exceed $75,000 in today's prices.

(With Reuters inputs)
 

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Published March 6th, 2024 at 15:51 IST