Bitcoin surges to US$50,000 for first time since 2021 on ETF demand

Rally marks a comeback from scandals and wipeouts that cast doubt on sector’s viability

BOSTON Bitcoin hovered around US$50,000 after briefly scaling the closely watched level for the first time in more than two years, a remarkable comeback from the cryptocurrency scandals and wipeouts that cast doubt on the industry's viability.

The largest digital asset was trading at US$50,100 as at 6.16am on Feb 13 in London (2.16pm in Singapore), having earlier risen as high as US$50,379.

Bitcoin has trebled in value since the start of 2023 after a 64 per cent plunge in 2022. But it remains below the all-time high of almost US$69,000 achieved in November 2021.

The wild price fluctuations seen since the introduction of Bitcoin more than a decade ago have long been one of the main attractions to speculators. While originally promoted as an alternative to the traditional financial system, the latest rally has been driven by optimism that United States approval in January of exchange-traded funds (ETFs) to own Bitcoin directly is leading to greater mainstream acceptance.

"There is a lot of talk about inflow of money into this asset," said Mr Matt Maley, chief market strategist at Miller Tabak + Co.