Bitcoin returned to the $50,000 level for the first time since December 2021, in the wake of a broader rally in US stocks.
Largest in the world cryptocurrencywhich had reached a one-month high last Friday, maintained its momentum on Monday by increasing by almost 5%.
Competitors, such as ether, have seen similar percentage moves.
Analysts have attributed several factors to recent crypto gains, saying overall market sentiment is benefiting from growing expectations for interest rate cuts from central banks.
The prospect of lower borrowing costs ahead helped the S&P 500 and Dow Jones Industrial Average post intraday highs earlier in the day.
The tech-focused Nasdaq was very close to breaking its best level ever.
BitcoinThe recovery after a wave of scandals, including the fraudulent bankruptcy of the FTX exchangewas helped last month when U.S. regulators supported the creation of 11 exchange-traded funds (AND F).
These are market price-based investment products that allow investors to gain exposure to bitcoin without directly owning the currency.
The Securities and Exchange Commission’s decision was seen as giving cryptocurrencies a form of official legitimacy for the first time, despite deep skepticism remaining about the lack of broader rules and oversight.
The body is currently reviewing applications for ETFs linked to the ether spot price.
Bitcoin values were affected by a wave of ETF outflows earlier this month, but the price swing ended on Friday when they were reportedly replaced by net inflows.
The news helped leave bitcoin up more than 10% from the start of the year.
It topped $50,196 Monday evening, according to LSEG data.
The all-time high in bitcoin’s value occurred in November 2021, when it surpassed the $65,000 level.
Analysts said the recent rise in value was also attributable to Bitcoin’s upcoming “halving” event, expected in April.
This process aims to slow down the release of bitcoin, the supply of which is capped at 21 million tokens, of which 19 million have already been created.
Bitcoin has rallied in three previous halvings, the most recent in 2020.
Ben Laidler, global markets strategist at eToro, said: “With [the] Bitcoin’s fourth halving, the Fed’s first interest rate cut, and the potential approval of the Ethereum spot ETF all matter for what is the smallest asset class, the youngest and most dominated by retail.