Bitcoin reaches $57,000 as large buyer’s circle.

Yasir AliFebruary 27, 2024

1 7 3 minutes read

Bitcoin reaches $57,000 as large buyer's circle.

Tuesday saw Bitcoin reach a two-year high due to indications that major investors were purchasing the cryptocurrency, while rival ether, which is smaller, crossed $3,200 for its first session since 2022.

Due in part to a Monday disclosure by software company MicroStrategy (MSTR.O), a cryptocurrency investor, the price of bitcoin has increased by more than 10% in the last two sessions. The company revealed that it had recently spent $155 million on roughly 3,000 bitcoins.

Newly approved exchange-traded funds (ETFs) that own bitcoin in the US have also helped the original and biggest cryptocurrency by market value. On Monday, despite uneasy general market conditions, trading volumes in a number of the funds increased and companies connected to cryptocurrencies saw a rise in value as well. In the Asian morning, the digital currency reached its highest price since late 2021, reaching $57,036. The peak price of ether since April 2022 was $3,275.

“The demand sparked by United States spot ETFs appears to be relentless, but there’s a maximum supply,” stated Justin d’Anethan, the head of collaborations in Asia at digital asset trading platform Keyrock.

Right now, the April bitcoin halving event is a big incentive. By halving the reward for creating tokens, this process aims to slow down the issuance of bitcoin, the supply of which has been set at 21 million, 19 million of which have already been mined.

Buyer interest pushes the market capitalization of bitcoin past $1 trillion.

Beyond the investment community, momentum for bitcoin is growing as it has increased in value by 32% so far in February, on track to record its biggest one-month obtain since January 2023.

The social media site Reddit said that it had used a small amount of its extra financial reserves to purchase bitcoin, broadens new tab, ether, as well as the matic icon, the native token price of the network known as Polygon, as payment for the sale of specific virtual goods. On February 22, Reddit filed an application to list its stock on the NYSE.

Ether has risen even more quickly this month, on track to gain 41% from its two-year high of $3,220, up 1.1%. This most recent price increase has been aided by market participants’ growing anticipation of spot ether ETF regulatory approval.

“After the recent debut of an assortment of bitcoin ETFs, the possibility of a spot Ethereum exchange-traded fund is an additional possibility for investors and traders alike,” higher up strategist Nick Crawley of DailyFX wrote in a note. “It represents a further maturation of the cryptocurrency market and a recognition of Ethereum’s role in the future of cryptocurrencies within the financial system.”