Bitcoin hit $50,000 for the first time in more than two years

Bitcoin climbed above $50,000 for the first time in more than two years. The reason is investor optimism that US approval for wider trade in the unit will boost demand.
The cryptocurrency has enjoyed a strong rally in recent months, fueled by expectations that US lawmakers will allow the creation of exchange-traded funds (ETFs) that track the price and allow the public to invest in the cryptocurrency without buying it directly.
After initially falling in response to Washington's green light last month, bitcoin has rallied about 25% since January 22nd.
With that advance, it reached $50,328, according to Bloomberg data, its highest level since late 2021.
"Enthusiast buyers lead to more enthusiast buyers, which push prices up even more," said Fadi Abualfa of Copper Technologies.
"Cryptocurrency has a few green weeks of momentum and has a good chance to continue to rise when markets see weekly moves upwards of 10% (as we saw last week)," Abualfa stated.
The currency remains well below its record high of nearly $69,000 in 2020, but the rally marks a recovery after a series of high-profile scandals and crashes that rocked the crypto industry.
FTX, the world's second-largest crypto exchange, collapsed dramatically last year, and its boss, Sam Bankman-Fried, faces up to 110 years in prison for what prosecutors called "one of the biggest financial frauds in American history."
And in November, Changpeng "CZ" Zhao stepped down as CEO of Binance, the world's largest crypto exchange, after he and the company pleaded guilty to widespread money laundering violations.
Bitcoin was also supported by hopes that the US Federal Reserve will start cutting interest rates this year as inflation eases.
The asset's value was boosted by a supply crunch expected next year due to an event called a "halving"./BGNES