On Thursday, according to CoinDesk data, Bitcoin sustained its upward trajectory, increasing by 1.34 percent to reach $53,311. Remarkably, earlier in the week, on Tuesday, it achieved a significant milestone by surpassing $50,000 for the first time in over two years.

According to CoinDesk data, Bitcoin maintained its upward momentum, climbing 1.34 percent to reach $53,311 on Thursday. Notably, earlier in the week, it reached a significant milestone by surpassing $50,000 for the first time in over two years. Bitcoin's last recorded trade at $50,000 occurred in December 2021.

According to CoinDesk data at 14:50 GMT, Ethereum saw a 3 percent increase, trading at $2,845, while Binance Coin surged 8.4 percent to $359, and XRP rose 3.35 percent to $0.55. Industry analysts suggest that the recent approval of BTC ETFs has spurred increased buying interest among cryptocurrency investors. Furthermore, the anticipation of the BTC halving event slated for April 2024 is also contributing to the current upswing in the market.

Shivam Thakral, CEO of BuyUcoin, notes that market optimism surrounding Bitcoin halving persists as Bitcoin surpasses a $1 trillion market cap above $52,000 and stands just 30 percent below its all-time high. Thakral highlights the significance of the recent Genesis court approval to redeem its Grayscale Bitcoin Trust holdings, valued at $1.3 billion, and emphasizes the potential impacts this event could have on the cryptocurrency market.

Onset of crypto spring

Some say that the spike in bitcoin prices can also be attributed to the spot bitcoin ETF approval followed by the offering by BlackRock and Fidelity.

Parth Chaturvedi, Investments Lead at CoinSwitch Ventures, highlights the approval of spot Bitcoin ETFs, which has sparked heightened institutional interest. Offerings from BlackRock and Fidelity have rapidly accumulated over $5 billion and $4 billion, respectively, in Bitcoin assets under management (AUMs) within their first month of launch. These ETFs have been the most successful offerings to date. The increased institutional buying pressure has significantly driven up Bitcoin's price and solidified crypto's broader acceptance as a legitimate asset class.

Chaturvedi notes that Fidelity has already integrated 1-3% Bitcoin exposure into its "All in One" ETF offering in Canada, aiming to provide users with higher risk-adjusted returns. With such passive inflows shaping the landscape, Chaturvedi suggests that Crypto Spring has arrived sooner than expected.

The price rise has created a sense of optimism in the industry. It is also seen as a hallmark of growing acceptance of bitcoin as an asset class. CoinDCX's Sumit Gupta says that the number of user logins rose by three times on their platform.

Sumit Gupta, Co-founder of CoinDCX, emphasizes that this development not only confirms the growing acceptance of Bitcoin but also highlights its potential as an investment asset. The surge in Bitcoin prices is expected to attract a diverse range of retail and institutional investors in India, leading to increased adoption and liquidity. Gupta mentions observing a threefold increase in new user sign-ups on their platform. The evolving narrative surrounding crypto assets and the rising curiosity among investors bode well for the Indian VDA (Virtual Digital Asset) market.

However, Gupta points out that the 1 percent Tax Deducted at Source (TDS) and the 30 percent tax rate continue to act as deterrents for many potential investors, despite the promising outlook for the market.