Bitcoin price on Tuesday crossed the $57000 mark for the first time since December 2021 supported by high demand for its exchange-traded funds (ETFs) as well as further purchases by Microstrategy Inc. Bitcoin price hit a two-year high on Tuesday morning on indications of large players buying it. Ethereum, the second largest cryptocurrency by market cap, also topped $3,200 for the first time since April 2022.
Bitcoin price experienced a notable surge, climbing over 10% over the course of two trading sessions. This uptick was supported by an announcement on Monday from MicroStrategy, a prominent crypto investor and software firm, revealing their recent acquisition of approximately 3,000 bitcoins for a total investment of $155 million.
Additionally, the original and most valuable cryptocurrency witnessed further momentum due to the recent approval of bitcoin-backed exchange-traded funds (ETFs) in the United States. This development spurred increased trading volumes within several ETFs and prompted a rally in crypto-related companies, contrasting with the cautious sentiment prevailing in broader markets.
Despite briefly surpassing the $57,000 mark, Bitcoin price retreated below $56,000 in recent trading. Over the past 24 hours, the cryptocurrency has seen a notable gain of over 8%. At 9:30 am, it was trading at $55,800 as reported by CoinMarketCap. Meanwhile, Ethereum price has recorded a 3.5% increase, reaching a trading value of $3,214.
Highlighting Bitcoin’s growing prominence, Zakhil Suresh, the chief executive officer at BitSave, remarked, “Bitcoin is now the second largest ETF commodity in the US, surpassing Silver which has $11.5 billion in assets under management.”
During the Asian morning session, Bitcoin price reached a peak of $57,036, its highest level since late 2021. Meanwhile, Ether, the second-largest cryptocurrency, surged to $3,275, marking its highest valuation since April 2022.
Since the beginning of 2024, Bitcoin gained 33%, largely propelled by robust demand for its newly introduced exchange-traded funds (ETFs). According to a report by Bloomberg, these Bitcoin ETFs have garnered substantial investments amounting to $5.6 billion since their debut on January 11 of this year. This surge in investment activity is fostering optimism not only within the Bitcoin ecosystem but also in Ethereum.
Edul Patel, the CEO of Mudrex, notes that a positive sentiment will continue in the market as the Bitcoin halving event approaches. Scheduled for April, the halving event is anticipated to further impact market dynamics and investor sentiment.
According to data from CoinMarketCap, the collective value of cryptocurrencies currently hovers around $2.2 trillion. This figure reflects a substantial recovery from the bear market conditions witnessed in 2022, during which the market cap plummeted to approximately $820 billion amidst the collapse of platforms like FTX and others. Shivam Thukral, CEO of BuyUcoin, highlighted a remarkable milestone, stating that Bitcoin price alone surged by $100 billion in terms of market capitalization within a single day.
“The next resistance lies at the $57,400 level and the $60,000,” said Patel. “Important level to cross right now for Bitcoin is the $60k resistance to continue its uptrend going into halving,” Patel added when he was asked about Bitcoin price prediction.
Ryan Lee, chief analyst and Bitget Research said that Ethereum price is not expected to have any major pullback before May. He said it would “follow Bitcoin shock break through $3,500” with support at $2,600.
Bitcoin has emerged as a standout performer this year, surpassing traditional assets such as stocks and gold. The ratio comparing Bitcoin price to that of the precious metal has soared to its highest level in over two years.
In the US market, shares of companies linked to cryptocurrencies experienced significant gains on Monday. MicroStrategy saw a notable increase of 16%, while trading platform Coinbase Global Inc. surged by 17%, and miner Marathon Digital Holdings Inc. jumped by 22%.
This positive momentum extended to Asian stocks associated with digital assets, with notable advances observed on Tuesday in companies like Japan’s Monex Group and South Korea’s Woori Technology Investment Co.