"BTC is now looking like it's going to retest, can the price continue to rise higher?"
The price of the king of cryptocurrencies Bitcoin (BTC), which almost surpassed $53,000, is now hovering below $52,000 while Ethereum (ETH) is also returning to its level before the TerraUSD stablecoin collapsed two years ago.
BTC's nearly 25% year-to-date (YTD) gain has helped increase digital asset market capital beyond $2 trillion for the first time since April 2022 and it is worth noting that ETH gained 2% on Thursday last night to reach $2,852.
Among the factors driving the increase in BTC prices is the first appearance of the spot BTC ETF which caused BlackRock and Fidelity Investment to attract $3.9 billion since they started trading on January 11, 2024 plus there is also a BTC halving event that may take place in April 2024.
The recent price climb likely reflects strong net inflows into spot BTC ETFs, said Zach Pandl who is director of research affairs at crypto fund provider Grayscale Investment LLC.
It is common knowledge that ETH has been slower than BTC to return to levels prior to TerraUSD's collapse in early May 2022 and its creator Do Kwon, who is currently being held in Montenegro, is awaiting extradition to his native South Korea or the US.
While BTC has tripled since the start of last year as betting on the options market shows traders are aiming for prices to exceed the record of almost $69,000 set in November 2021.
So here we can see that a positive narrative for BTC can help the entire crypto market because the correlation between BTC and other digital assets is high, said the author of the Crypto is Macro Now news letter Noelle Acheson.
As of this writing, the price of BTC jumped 0.16% to $52,005 in the last 24 hours with a market capital of $1 billion and recorded an increase of 14.45% over the past week.
