The jump comes amid surging optimism that demand for the token is widening beyond committed digital-asset enthusiasts, according to Bloomberg.

On Thursday, the token rose as much as 5.12% to $63,649 by 9:30 am (local time) in New York. Earlier, Bitcoin spiked to $63,968 on Wednesday but soon lost the gains to end at below $59,000.

Bitcoin had last traded at the $60,000 mark in November 2021, after reaching an all-time high of almost $69,000 earlier that same month.

According to Bloomberg, Bitcoin has jumped over 40% already this year atop the successful debut of the US ETFs (Exchange-Traded Fund), which directly hold the token.

Why Bitcoin prices are rising?

According to Chris Newhouse, a DeFi analyst at Cumberland Labs, Bitcoin is approaching new yearly highs off the back of increased spot demand and momentum traders taking positions after a week of consolidation.

Besides this, a projected reduction in Bitcoin’s supply growth is also adding to the upbeat sentiment in the cryptocurrency market.

“Optimism around Bitcoin is being driven by a few factors working together: the spot BTC ETF inflows in the US, the upcoming reduction of new Bitcoin issuance known as the halving, and overall renewed optimism around the crypto asset class as a whole,” Jonathon Miller, managing director of the Kraken Australia digital-asset exchange, told Bloomberg.

Zaheer Ebtikar, founder of crypto fund Split Capital, told the media outlet that more and more people are just convinced to buy. “We are starting to see a pretty clear FOMO kind of rally,” he said.

However, some experts have also warned of a sharp correction in the rally.

“This move has been very sharp, leverage is very high at the moment, as implied by derivatives basis and funding rates, so I would not be surprised by a sharp correction” of 20% or more, said Jaime Baeza, founder at crypto hedge fund AnB Investments. “Nonetheless, I would not be shorting into this rally while it continues to move at this pace.”

(Inputs from Bloomberg)