Bitcoin reached a two-year high on Tuesday, displaying its most significant two-day rally of the year, fueled by indications that major players are actively acquiring the cryptocurrency. Simultaneously, Ether, a prominent alternative in the crypto space, surpassed $3,200 for the first time since 2022.
The surge in Bitcoin, up over 10% in just two sessions, can be attributed to Monday’s revelation by crypto investor and software firm MicroStrategy (MSTR.O), disclosing the acquisition of approximately 3,000 bitcoins at a cost of $155 million. This move contributed to the positive momentum that has been building in the cryptocurrency market.
The recent approval of bitcoin-owning exchange-traded funds (ETFs) in the United States has further boosted Bitcoin’s value. Trading volumes in these ETFs experienced a notable increase on Monday, leading to a rally in crypto-linked firms amidst contrasting market conditions.
As of the latest update, Bitcoin stands at $57,232, representing a 4.7% increase, while Ether achieved a peak of $3,290, reaching its highest point since April 2022.
Justin d’Anethan, Head of Partnerships in Asia at Keyrock, a digital asset market maker, commented on the current dynamics, stating, “There’s only so much supply… but the demand unleashed by the U.S. spot ETFs seems to be relentless.”
A significant contributing factor to the current surge is the upcoming bitcoin halving event in April. This process, designed to slow down the release of bitcoin, involves cutting the reward for producing tokens in half. With the supply of bitcoin capped at 21 million, of which 19 million have already been mined, the impending halving event has intensified interest in the cryptocurrency.
Bitcoin has exhibited remarkable growth, gaining 32% in value in February alone, on track for its most substantial one-month increase since January 2023. The momentum extends beyond the traditional investment community, signaling a broader interest in the cryptocurrency space. As institutional players continue to show interest and ETFs gain approval, the cryptocurrency market is witnessing a resurgence in bullish sentiment.
