Bitcoin surged past the $57,000 mark, marking its return to this level for the first time since late 2021. This uptick was driven by growing investor interest in exchange-traded funds and fresh purchases by MicroStrategy Inc.
The cryptocurrency saw an impressive 4.4% increase, hitting $57,039 at its peak before slightly retracting to $56,085 by 6 a.m. Tuesday in London. Since the beginning of the year, Bitcoin’s value has soared by 32%, fueling not only its own rally but also spurring enthusiasm for other digital assets like Ether and Dogecoin.
Investors poured approximately $6.1 billion into newly launched Bitcoin ETFs in the US since January 11, indicating a broader demand for the cryptocurrency beyond its core enthusiast base. Additionally, anticipation surrounding the upcoming halving event, which will reduce Bitcoin’s supply growth, has contributed to positive market sentiment.
MicroStrategy, known for its strategic investment in Bitcoin, announced its acquisition of another 3,000 tokens this month, bringing its total Bitcoin holdings to around $10 billion.
Analysts like Katie Stockton from Fairlead Strategies remain optimistic, predicting continued upward momentum for Bitcoin without significant pullbacks.
Despite a rise in US Treasury yields, digital assets continue to flourish, with crypto trading positions betting on lower prices experiencing significant liquidation, signaling strong bullish momentum.
Bitcoin has notably outperformed traditional assets like stocks and gold this year, with its price relative to gold reaching its highest level in over two years.
In the US market, shares of companies closely tied to cryptocurrencies saw substantial gains on Monday, including MicroStrategy, Coinbase Global Inc., and Marathon Digital Holdings Inc.
This positive market sentiment spilled over into Asian stocks related to digital assets, with companies like Japan’s Monex Group and South Korea’s Woori Technology Investment Co. experiencing gains on Tuesday.
