Bitcoin reached a significant milestone on Tuesday, surging to a two-year high and marking its most significant two-day rally of the year. The surge was fueled by a notable uptick in institutional interest, with crypto investor MicroStrategy disclosing a substantial purchase of bitcoins worth $155 million.
Institutional Backing and ETF Approval Boost Sentiment
The recent surge in Bitcoin comes on the heels of MicroStrategy’s announcement of acquiring approximately 3,000 bitcoins, a move that bolstered confidence in the cryptocurrency market. Additionally, the approval of bitcoin-owning exchange-traded funds (ETFs) in the United States provided further momentum, driving trading volumes and boosting crypto-linked firms.
Bitcoin Soars, Ether Reaches New Heights
Bitcoin’s rally saw the cryptocurrency reaching as high as $57,036, its peak since late 2021, before settling at $56,636. Similarly, ether, the second-largest cryptocurrency, climbed to $3,273, its highest value since April 2022.
Anticipation Surrounding Halving Event
Analysts attribute the sustained demand for Bitcoin to the upcoming halving event scheduled for April. This event, designed to control the supply of bitcoin, is anticipated to heighten market dynamics and sustain investor interest in the digital asset.
Broader Market Impact and Momentum
Bitcoin’s remarkable surge in February, with a 32% increase in value, reflects broader market sentiment and growing momentum beyond traditional investment circles. The surge in institutional backing and regulatory developments signal a maturing cryptocurrency market.
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Credit:Medha Singh