Bitcoin Climbs to Highest Level Since Mid-August

Bitcoin rose above $28,000 on Monday. The catalyst for the rise was not immediately clear. In other positive news for the crypto industry, several ether futures’ ETFs are set to launch on Monday. Crypto market watchers have been waiting to see whether the Securities and Exchange Commission will approve a true bitcoin ETF in the coming months, which could further open up the industry.

Bitcoin has risen for four straight weeks and is now up about 70% for the year. However, the digital currency is still more than 50% below its all-time high.

However, even with the recent rally, trading volumes for bitcoin have been light. Although the global crypto market cap has risen around 30% year-to-date, bitcoin volumes are struggling to sustain higher levels.

Indeed, volumes have been trending lower since March, and currently sit roughly 57% below 2022 averages. Separately, this year’s crypto rally has also seen a rise in bitcoin dominance – defined as Bitcoin’s share of the total crypto market cap – which has stabilized around 50%.

The crypto industry has had a tough eighteen months. After Bitcoin reached an all-time high of around $67,000, a crypto winter set in as a string of damaging company collapses broadsided the industry, resulting in a loss of market confidence.

Now, even the smallest win is celebrated enthusiastically by crypto market participants. On the back of bitcoin’s latest rise, selected equities tied to crypto moved higher, with Riot Platforms and Marathon Digital each jumping more than 7% in premarket trading.