Bitcoin reigns supreme: the 2024 surge
Bitcoin, the king of crypto, is back! After surging 20% this week, it is now up almost 50% calendar year to date, leaving all comers in its wake in the early months of 2024, including the resurgent nikkei.
Where it took the nikkei a mere thirty-four years to reclaim its 1989 high, bitcoin seems set to retake its November 2021 $69,000 high in just 27 months.
Bitcoin’s resurrection from the crypto winter is comparable to that of the mythical Phoenix of Greek legend. But here we have a new legend taking shape, and whether it lasts for 500 years like the Phoenix, as bitcoin’s proponents might hope, remains to be seen.
Fueling the rally: influx of bitcoin ETFs
Bitcoin’s gains in recent weeks have been fuelled by record client inflows into the newly launched Bitcoin ETFs. Contributing factors include anticipation of the Bitcoin halving event in April, concerns over a partial US government shutdown, and MicroStrategy’s Michael Naylor acquiring an additional 3,000 bitcoin for his already significant holdings.
Significantly, bitcoin’s ascendancy has begun to extend into the altcoin space, supported by speculation that ETFs for some alternative cryptocurrencies, including Ethereum, Ripple, and Solana, may soon be introduced.
The next frontier: Altcoins on the rise
Ethereum is now firmly entrenched above $3,000, admittedly still with some work to do to reclaim its $4,868 November 2021 high. Solana at $118 is a long way from its November 2021 high. Once a pullback in bitcoin commences, traders will likely cycle into the alts, looking for the next outsized move within the crypto ecosystem.
