Bitcoin Skyrocketed above $57000 for The First Time in Two Years
Cryptocurrency investors have been on cloud nine ever since they witnessed an unexpected surge in bitcoin. On Monday, 26 Feb 2024, the value of Bitcoin skyrocketed above $57,000 in Asia trade in over two years. This milestone has been touched in two years, however, at the time of writing, the price has dropped and reached around $56,500 still, cryptocurrency investors are happy with this rise in bitcoin. The report states that the cryptocurrency rose 9 per cent to briefly reach the $57,000 milestone- its first time since November 2021, before falling to $56,500 levels.
This rise is a sign of heavy institutional buying, while smaller rival Ether topped $3,200 for the first time in 2 years. With the help of a Monday announcement from software company MicroStrategy, a cryptocurrency investor, that it had just spent $155 million on purchasing roughly 3,000 bitcoins, the price of bitcoin has increased by more than 10% in just two sessions. The largest and only cryptocurrency by market value has also been delighted recently by the approval of bitcoin-owning exchange-traded funds (ETFs) in the US. It is worth noting that, on Monday, 26 Feb 2024, trading volume in numerous of the funds spiked and crypto-linked companies rallied too, in comparison to many broader markets.
Speaking about the rise of cryptocurrency, Bitcoin first surpassed the $53,000 milestone before fastly rising to $54,000, then $56,000 and finally reached $57,000 in quick succession before dropping down to $56,500.
What Are The Views Of Experts On It
CEO of crypto investment platform BitSave, Zakhil Suresh said that bitcoin is now up more than 200 per cent as compared to its previous bottom levels which was noted in November 202 and after the FTX fiasco. He said, “This rally has been primarily triggered by institutional allocation and the increased retail participation in the last few months due to Bitcoin Spot ETF applications in the US and forthcoming Bitcoin halving.”
He noted that “Digital asset investment products saw weekly inflows totalling $598 million last week, as per Coinshares, marking the fourth consecutive week of inflows. Bitcoin saw $570 million in inflows last week, bringing year-to-date inflows to $5.6 billion. Regarding the market’s moves, Suresh stated that although prices quickly began to decline following the SEC’s approval of 11 spot ETFs last month due to early speculators taking profits, Bitcoin found support below $40,000, which also happened to coincide with the 100-Day Moving Average.
He further added that “AUM of all Bitcoin spot ETFs combined have surpassed $39.40 billion as per Coinglass. Bitcoin is now the 2nd largest ETF commodity in the United States, crossing Silver which has $11.5 billion in AUM. Fresh inflows from institutions have helped cryptocurrency maintain its bullish trend.”
Moreover, Suresh states that it is important for Bitcoin to cross the $60,000 resistance level to maintain the trend and if they want to rise similarly. In a conversation with a media outlet, Spencer Hallarn, the global head of over-the-counter trading at crypto investment company GSR said that the ascent of cryptocurrencies is “supported by strong ETF inflows.”
Previously, the largest cryptocurrency in the world saw a growth of up to 3.5 per cent and reached the amount of $53,600.