The upward momentum in U.S. stock markets likely boosted risk assets like cryptocurrencies, with major indices reaching new all-time highs.
Bitcoin ($BTC) saw a surge on Wednesday, climbing over $44,000 to reach a fresh four-week peak, driven by increased accumulation by large holders and record highs in U.S. equity indices. The leading cryptocurrency rose from $42,700 earlier in the day to as high as $44,300, marking its highest level since January 12, the day following the launch of spot bitcoin exchange-traded funds (ETFs) in the U.S.
Other cryptocurrencies also experienced upward movements, with Ether ($ETH) leading the way with a 2.3% gain, while Cardano ($ADA) saw a slight decline of 0.4%.
Analysts at Bitfinex suggested earlier this week that increased selling by miners might have contributed to recent downward pressure on BTC prices. However, today’s market dynamics may have countered this trend, possibly overwhelming sellers.
Crypto analyst Ali Martinez highlighted on Wednesday that bitcoin whales, or large investors, have been accumulating assets. According to Glassnode data, the number of bitcoin wallets holding over 1,000 tokens (roughly $44 million) reached a multi-month high of 73.
The continued rally in U.S. stock markets likely bolstered risk assets such as cryptocurrencies, as the S&P 500 closed at a record high near the 5,000 level, the Dow Jones Industrial Average approached its all-time high, and the Nasdaq Composite continued its ascent towards its record peak.
Ethereum’s ether (ETH) also saw gains, surpassing $2,400 for the first time in two weeks amid renewed optimism surrounding spot ETFs. Asset managers Ark Invest and 21Shares made amendments to their joint application earlier in the day, aligning it more closely with approved spot bitcoin ETFs to potentially address regulatory concerns. The updated filing also hinted at the possibility of staking some of the fund’s tokens for rewards.
Other tokens related to Ethereum, such as Polygon’s $MATIC, Optimism’s OPT, Arbitrum’s $ARB, and liquid staking protocol Lido’s LDO, also experienced gains ranging from 2% to 5%.
