Bitcoin soars as large players enter market
Bitcoin hit a two-year high on Tuesday due to major buying signals; it set itself up for its most potent two-day rally of 2024, while Ethereum, its smaller competitor, exceeded $3,200 for the first time since 2022, as reported by Reuters.
Crypto investor and software firm MicroStrategy fuelled a two-day rally in Bitcoin exceeding 10 per cent. The company’s announcement on Monday revealed a recent purchase of 3,000 bitcoins for $155 million, positioning Bitcoin for its strongest two-day surge this year.
Recently, the approval of exchange-traded funds (ETFs) that own Bitcoin in the US has given a boost to the original and largest cryptocurrency by market value.
On Monday, several of these funds saw a spike in trading volumes, and crypto-linked firms also experienced a rally, standing out amidst the broader markets that were showing signs of nervousness.
Bitcoin, peaking at its highest since late 2021, rose by up to 4.3 per cent to $57,036 and last stood at $56,636 with a 3.6 per cent increase, while Ether also ascended by up to 2.7 per cent to hit $3,273, its apex since April 2022.
Justin d’Anethan, head of partnerships in Asia at Keyrock, a digital asset market maker, said that the supply is limited, but the demand from US spot ETFs appears to be unstoppable.
The Bitcoin halving event in April, a significant incentive, aims to slow down the release of Bitcoin, which has a capped supply of 21 million, with 19 million already mined, by halving the mining reward.
Bitcoin has seen a 32 per cent increase in its value this February, marking its biggest monthly gain since January 2023, and the momentum is expanding beyond just investors.
Reddit, a social media platform, announced on February. 22 that it had filed for a listing on the New York Stock Exchange.
It also revealed that it had used a small part of its surplus cash to invest in Bitcoin, Ether, and Matic, the Polygon network’s native token, to facilitate the sale of specific virtual goods.
With a projected gain of 41 per cent this month, Ether’s value has skyrocketed, fueled by the potential regulatory approval of spot Ether ETFs, which has stirred excitement among market participants.
Nick Crawley, a senior strategist at DailyFX, highlighted the potential of a spot Ethereum ETF as a major step forward for traders and investors, following the recent launch of various Bitcoin ETFs, signifying the maturation of the cryptocurrency market and recognising Ethereum’s future role in the financial system.
In US premarket trading, Coinbase shares rose by 5.2 per cent, while Bitcoin miners Marathon Digital and Riot Platforms saw increases of 8.3 per ent and 4.5 per cent respectively, and Grayscale Bitcoin Trust, the largest Bitcoin ETF, also experienced a 4.3 per cent rise.
