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Bitcoin soars above $60K as spot ETFs drive trending frenzy, lead to

Bitcoin blew past $60,000 for the first time in more than two years on Wednesday as the popularity of spot ETFs drove a renewed trading frenzy for volatile cryptocurrencies — and crashed popular crypto exchange Coinbase.

The price of bitcoin soared to nearly $64,000 in the early afternoon, nearing it’s all-time high of $$68,789 in November 2021, before falling to around $61,000 by 6 p.m. That marked an 18% increase in the leading digital currency compared to one week ago and 40% bump compared to a month ago.

In the midst of Wednesday’s rally, Coinbase, one of the largest digital asset exchanges, warned users that its website was experiencing issues – but assured customers that their “assets are safe” after several complained that their digital wallets showed “$0.00.”

The Federal Reserve delivering a series of rate cuts this year has fed investor appetite for higher-yielding or more volatile assets. AP

“We are dealing with a large surge of traffic — apologies for any issues you encounter,” Coinbase CEO Brian Armstrong posted on X.

The bullish run on the world’s most popular crypto token could be the start of what Split Capital’s Zaheer Ebtikar called “a pretty clear FOMO kind of rally,” referring to the “fear of missing out.”

“More and more people are just convinced to buy,” Ebkitar told Bloomberg.

The massive early success of recently approved spot bitcoin ETFs — which allow investors to acquire stakes in funds that own bitcoin offered by Blackrock, Fidelity and other firms – has played a key role in the surge, experts told The Post.

The boom drove $520 million into BlackRock’s Bitcoin ETF, a one-day record.

“I do think the fact this is happening concurrent with the ETFs – and you can look at the inflows of those things – that seems to be a pretty big driver for this [rally],” said Colin Harper, head of research at the bitcoin mining software firm Luxor.

“There’s a large segment of the population that sees regulatory approval as, ‘well, the state’s okay with this, they’re not going to ban it, institutions are cleared now.’… “There’s a lot more legitimacy to it for the average person,” Harper added.

The three most popular, run by Grayscale, Fidelity and BlackRock, have seen trading volumes surge. Getty Images

However, other market experts warned that investors may soon see a “sharp correction” of 20% or more.

“This move has been very sharp, leverage is very high at the moment,” AnB Investments’ Jaime Baeza Baeza told Bloomberg.

The overall market capitalization for the cryptocurrency market hovered at a whopping $2.31 trillion as of Wednesday afternoon – after crossing the $2 trillion threshold earlier this month for the first time in two years.

Cryptocurrencies have re-emerged as a hot asset alongside other trendy bets such as AI chipmaker Nvidia and weight-loss drug maker Eli Lilly,…

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