Bitcoin price surges towards $58K, sparking blockchain market optimism

There has been a huge 6 per cent daily increase in the price Bitcoin, with the cryptocurrency edging closer to the $58,000 mark (US$38,000), following a brief dip below $53,900 on Tuesday.

The latest surge means Bitcoin is now up a staggering 125 per cent over the past 12 months.

The cryptocurrency market as a whole witnessed a resurgence, with Ethereum gaining over 3 per cent, reclaiming the $3080 level after a recent dip to nearly $2926.

Altcoins also joined the rally, with Solana (SOL) and Avalanche (AVAX) taking the lead with impressive jumps of 18 per cent and 23 per cent, respectively.

SOL has been a standout altcoin, gaining momentum over the past month due to increased interest from prominent investors and eased concerns about potential issues with FTX.

AVAX, on the other hand, got a boost from the news that JPMorgan and Apollo are exploring its network for a new idea about digital money.

The CoinDesk Market Index (CMI), a collection of nearly 200 cryptocurrencies, went up by 5 per cent, reflecting the positive trend in the digital asset space.

Charlie Morris, founder of investment advisory firm ByteTree, expressed bullish sentiments, stating, “Bitcoin is going mainstream, and the bear is behind us.”

He emphasised Bitcoin’s strong performance compared to traditional assets like US share indexes and gold, highlighting its strength against critical benchmarks.

Mr Morris sees increased interest from big institutions, driven by Bitcoin’s positive trend.

He also mentioned the improving market breadth, using the ByteTree Crypto Average (BCA) trend breadth indicator, which scored a four-star rating for the first time since April.

Mr Morris suggested that “when the trend is positive, it is better to have higher exposure to crypto”.