On February 27th, Singapore (Reuters): On Tuesday, Bitcoin reached a two-year high as a result of indications that significant players are purchasing the cryptocurrency. Bitcoin breaks $57,000 as big buyers circle. Meanwhile, ether, a competitive cryptocurrency, surpassed $3,200 for the first time since 2022.
A revelation made on Monday by the cryptocurrency investor and software company MicroStrategy (MSTR.O.) that it had recently purchased around 3,000 bitcoins for an expenditure of $155 million has contributed to the increased value of bitcoin, which has increased by more than 10% in just two sessions.
The introduction of exchange-traded funds (ETFs) in the United States that own bitcoin has also been a recent factor that has helped to boost the value of the cryptocurrency that was the first and currently has the greatest market value. Trading volumes in some of the funds increased on Monday, and crypto-linked companies also gained, which was in contrast to the nervousness that was seen in the broader markets.
For the first time since late 2021, Bitcoin retook the $57,000 mark. The demand from investors who bought cryptocurrency through exchange-traded funds as well as additional purchases made by MicroStrategy Inc. made this possible.
Most of the crypto market got a lift from bitcoin. Ether gained more than 2% to trade at $3,173.87. Solana added more than 5%, and Cardano’s ADA token advanced about 4%. Polygon’s MATIC token rose 8%.
The value of the digital asset increased by as much as 4.4% to hit $57,039, but it then retraced some of its previous gains and was trading at $56,085 as of six o’clock on Tuesday morning in London. Since the beginning of the year, the price of Bitcoin has grown by 32 percent, continuing a sustained boom that has also fanned speculative desire for smaller currencies such as Ether and Dogecoin.
A total of $6.1 billion has been invested in a group of historic Bitcoin exchange-traded funds (ETFs) that started trading in the United States on January 11. This indicates that the demand for the currency is expanding beyond the realm of dedicated digital asset aficionados. The soon-to-come halving of Bitcoin’s supply growth is boosting this feeling of optimism.
According to a statement released on Monday, MicroStrategy, an enterprise software company that incorporates Bitcoin purchases into its overall business plan, has acquired around 3,000 additional tokens during the current month. The company now owns Bitcoin worth about ten billion dollars.
According to CoinGecko, the estimated total value of digital assets is currently over $2.2 trillion. This figure is significantly higher than the low of approximately $820 billion that was reached during the bear market of 2022, when FTX and other cryptocurrency platforms went bankrupt.
Increases in the Yields
Even though investors have reduced their expectations for a more lenient monetary policy this year, as demonstrated by an increase in yields on US Treasury securities, digital tokens continue to experience a surge in value.
According to a report written by Sean Farrell, Head of Digital-Asset Strategy at Fundstrat Global Advisors, “bullish momentum in crypto is unfolding despite an uptick in rates.”
According to one of the largest two-day tallies since at least November 30th, according to statistics provided by Coinglass, about 162 million dollars’ worth of cryptocurrency trading positions that were based on the expectation of lower prices were liquidated during the course of Monday and Tuesday.
Bitcoin’s performance this year has been superior to that of traditional assets such as equities and gold. The price of the token in relation to the precious metal has reached its greatest level in almost two years, according to a ratio that compares the two.
On Monday, shares of companies tied to cryptocurrencies increased in value in the United States. MicroStrategy experienced a 16% increase, Coinbase Global Inc., a trading platform, experienced a 17% increase, and Marathon Digital Holdings Inc., a miner, experienced a 22% increase.
The optimistic outlook spread to Asian stocks that are associated with digital assets, including gains on Tuesday in businesses such as the Monex Group of Japan and Woori Technology Investment Co. of South Korea.
