Bitcoin marched higher to end the week, with its price breaching the $47,000 level for the first time in almost two years.
On Friday the flagship cryptocurrency rose more than 4% to $47,307.00, according to Coin Metrics, a level not seen since March 2022. Ether advanced 3% to $2,511.75.
Bitcoin trading volume and sentiment have been suppressed over the past two weeks as investors worried about big outflows from the Grayscale Bitcoin ETF and a deeper pullback in its price ahead of an expected rip higher this year. Nevertheless, bitcoin’s now up 10% for the week, while ether is on track for a 9% gain.
Positive sentiment appears to be returning now as the GBTC outflows have slowed. Additionally, momentum from the S&P 500 briefly touching 5,000 Thursday for the first time ever may be spilling over to crypto.
“The recent price appreciation of bitcoin could be attributed to recent inflows into the spot ETFs, the prospect of the halving around the corner, which tends to generate optimism from investors as prices often shoot up after, and general market momentum,” said Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs. “In the past, there have been parallels between bitcoin and tech stocks. Lower rates, falling inflation, earnings growth and indices like the S&P 500 hitting groundbreaking levels certainly improve risk sentiment for the asset class.”
The move pulled crypto equities higher in premarket trading. Crypto exchange Coinbase and bitcoin proxy Microstrategy each gained more than 6%, while the biggest miners, Riot Platforms and Marathon Digital, rose 10% and 11%, respectively.
Bitcoin is nearing a key resistance level, which Fairlead Strategies earlier this week identified at $48,600. Hitting that level would open the door to a new all-time high, the firm said.
On Thursday, bitcoin passed $45,000 for the first time since Jan. 12, the day after U.S. bitcoin ETFs began trading. The cryptocurrency has struggled to maintain its pre-ETF highs but has avoided falling to as low as $36,000, as expected. It has not fallen below $39,000 in the past month.