Bitcoin returns to $45k amid increased trading volume, positive market sentiment

Bitcoin surged to $45,435, marking a 5.3% increase in a day and a 6.3% rise over the week, as per CoinMarketCap data.

This upward trajectory brings the cryptocurrency past the $45,000 threshold, a figure last seen in the wake of the U.S. Securities and Exchange Commission’s (SEC) landmark approval of spot Bitcoin ETFs.

The enthusiasm around Bitcoin’s (BTC) price hike is further amplified by the significant trading volume observed in spot Bitcoin ETFs, which exceeded $1 billion yesterday, with BlackRock and Fidelity leading the charge, according to Bloomberg’s James Seyffart.

JUST IN: 🇺🇸 Spot #Bitcoin ETFs traded over $1 billion in volume today — Bloomberg’s James Seyffart 🚀 pic.twitter.com/XHtGVEqkVS

— Bitcoin Magazine (@BitcoinMagazine) February 7, 2024

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“Bitcoin rose above its 50-day moving average, confirming the bullish medium-term trend and easing fears of a deeper correction,” said Alex Kuptsikevich, a senior analyst at FxPro.

He also highlighted the importance of weekly closes as benchmarks for market sentiment, emphasizing that Bitcoin and the broader crypto market have emerged stronger after consolidation, with the potential to reach new highs.

The market’s buoyancy is also influenced by expectations around the Federal Reserve’s interest rate policies. Recent comments from Boston Fed President Susan Collins and Cleveland Fed President Loretta Mester suggest potential rate cuts later this year, adding to cryptocurrencies’ volatility and investment appeal, such as BTC.

Read more: Institutional adoption of crypto is growing. What can boost it further?

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