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Bitcoin Soars Beyond $57,000 in Surge Driven by Major Investors

February 27, 2024

Bitcoin reached a two-year high on Tuesday, marking its most substantial two-day rally of the year, as indications emerged that significant players were entering the cryptocurrency space. Meanwhile, its counterpart, Ether, surpassed $3,200 for the first time since 2022.

Bitcoin has experienced a surge of over 10% in just two sessions, with momentum fueled by Monday’s announcement from crypto investor and software firm MicroStrategy. The company revealed it had recently acquired approximately 3,000 bitcoins, amounting to $155 million.

The primary cryptocurrency, with the highest market value, has also found support in the recent approval of bitcoin-centric exchange-traded funds (ETFs) in the United States. Trading volumes in several of these funds surged on Monday, and companies linked to the crypto market experienced positive movements, standing in contrast to the cautious atmosphere prevailing in broader markets.

Bitcoin reached a peak of 4.3%, hitting $57,036, its highest point since late 2021. It settled at a 3.6% gain, standing at $56,636. Ether also witnessed a surge of up to 2.7%, reaching $3,273, the highest since April 2022.

Justin d’Anethan, Head of Partnerships in Asia at Keyrock, a digital asset market maker, commented, “There’s only so much supply … but the demand unleashed by the U.S. spot ETFs seems to be relentless.”

A significant driving force behind the current momentum is the upcoming bitcoin halving event in April. This process aims to slow down the release of new bitcoins, with the reward for producing tokens halving.

In February alone, Bitcoin has gained 32% in value, heading for its most substantial one-month increase since January 2023. The positive trend is not limited to the investment community, as social media platform Reddit revealed it invested a portion of its excess cash reserves in bitcoin, ether, and matic, the native token of the Polygon network.

Ether has seen an even faster ascent this month, poised for a 41% gain. Market participants are eagerly anticipating potential regulatory approval of spot ether ETFs, contributing to the ongoing surge in its price.

DailyFX senior strategist Nick Crawley noted, “The prospect of a spot Ethereum ETF is a further development for traders and investors alike after the recent launch of a variety of bitcoin ETFs. 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.”

In response to the positive market sentiment, shares of crypto exchange Coinbase rose 5.2% in U.S. premarket trading, while bitcoin miners Marathon Digital and Riot Platforms climbed 8.3% and 4.5%, respectively. The largest bitcoin ETF, Grayscale Bitcoin Trust, also saw a 4.3% increase.

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