On Monday (February 12), the price of Bitcoin soared past the $50,000 mark, hitting its highest level in over 2 years. The surge is attributed to a trend of attracting net capital from spot Bitcoin exchange-traded funds (ETFs), marking a significant milestone for the world’s largest virtual currency.

As of 9:00 a.m. Vietnam time on February 13, Bitcoin’s price stood at $50,134, marking a 3.3% increase over the past 24 hours and a nearly 18% increase in the past week. During the first trading session of the week, Bitcoin’s price reached $50,334, its highest level since December 2021.

Ether, the world’s second-largest virtual currency, also experienced a sharp increase, reaching $2,679 at 9:00 a.m., reflecting a 6.4% increase over the previous 24 hours and a more than 16% increase within a week.

The surge past $50,000 is seen as a major milestone for Bitcoin, particularly after the launch of spot Bitcoin ETFs last month faced challenges in pushing the price beyond this threshold. The recent influx of capital into spot Bitcoin ETFs and a positive trend in the US stock market have contributed to renewed optimism in the cryptocurrency market.

Bitcoin’s recent price increase is also attributed to an uptick in risk appetite, with the US stock market maintaining an upward trajectory. Various factors, including China’s pursuit of an easy monetary policy and increased demand for holding assets like Bitcoin, are influencing market dynamics.

James Butterfill, Chief Researcher at CoinShares, noted that investor demand for spot Bitcoin ETFs remains strong, with net inflows of $1.1 billion over the past week and $2.8 billion since the funds were introduced. In addition, ETFs purchased 12,000 bitcoins on a single day, surpassing the daily bitcoin mining output of approximately 900 bitcoins.

Analysts consider the $48,600 mark as a key resistance level for Bitcoin, and if maintained, the cryptocurrency could break further past $50,000, potentially setting a new all-time record. Bitcoin’s previous price record was set on November 10, 2021, at nearly $69,000.

The approval of the first spot Bitcoin ETFs by the US Securities and Exchange Commission (SEC) on January 10 is seen as a pivotal moment for Bitcoin and the broader virtual currency industry. Analysts predict substantial capital inflows into spot Bitcoin ETFs, with projections ranging from $10 billion in 2023 to 50-100 billion USD in 2024. The upcoming halving event scheduled for April, occurring approximately every four years, is also contributing to Bitcoin’s price surge by reducing miners’ rewards and limiting the overall supply of the virtual currency.