Bitcoin Hits 27-Month High, MicroStrategy Acquires More BTC Amid Optimistic Market Sentiment
Summary:
Bitcoin (BTC) has continued its sustained growth, reaching a 27-month high of $57,513 on February 27. Among the factors fueling this surge are continuous inflows to spot Bitcoin ETFs, anticipation of the upcoming supply halving, and increased positive investor sentiment. Following recent acquisitions, MicroStrategy now holds 193,000 Bitcoins, accumulated for a total of $6.09 billion. Market intelligence firm Santiment notes that Bitcoin's rise above $57,000 brings it close to its former peak set 27 months ago, stimulating high interest among investors. An upcoming Bitcoin halving event, set for April, has investors positioning themselves to benefit. Meanwhile, the rise in Bitcoin's price has also led to a surge in the liquidation of leveraged crypto positions. Despite this bullish market action, investors are encouraged to do thorough research as all investment and trading activities carry risk.
On February 27th, Bitcoin (BTC) continued its sustained upwards trend, hitting a 27-month record of $57,513. This encouraging development bolstered the entire cryptocurrency market as increasing positive investor sentiments and inflows into Bitcoin-related exchange-traded funds (ETFs) were observed. At press time, BTC was valued at $57,073, showcasing a rise of 10% within a day. TradingView's daily BTC/USD chart tracks the progression. It had been over two years since Bitcoin crossed the $57,000 threshold. Back on December 2, 2021, the digital asset was on a decline after peaking, which ushered in a bear market that lasted for a significant period. By January 24th, 2022, the value of Bitcoin had plummeted to $32,987, marking a 42% drop from the prior time it was above $57,000.
Various factors can be attributed to the latest Bitcoin price movements. Continuous inflows to Bitcoin ETFs, anticipation for the upcoming supply halving, and an overall uptick in positive investor sentiment contribute significantly to this trend.
The recent surge in Bitcoin came after business intelligence firm MicroStrategy disclosed that it purchased another 3,000 BTC, totaling an investment of $155 million at an average price of $51,813 per Bitcoin between February 15th to 25th. Michael Saylor, MicroStrategy’s founder and chairman, reported on February 26th that the firm's total Bitcoin holdings now accumulated to 193,000, which were purchased for an average price of $31,544, amounting to a total of $6.09 billion.
Additionally, Farside Investors provided data showing the nine new Bitcoin spot ETFs have collectively gathered 300,000 BTC, valued at approximately $17 billion since their public launch on 11th January. The net inflows have now risen beyond $6 billion. This implies that these nine spot ETFs currently possess 1.5% of the total Bitcoin supply, capped at 21 million BTC.
Analysts expect that the mix of reduced supply and consistent high demand will push BTC's price even higher in the near future. A case in point is market intelligence firm Santiment, which noted that Bitcoin crossing $57,000 has brought it within a 19.9% reach of the former peak of $68.6K set 27 months ago. They added that interest in Bitcoin is exceedingly high.
Another factor contributing to Bitcoin’s rising price is the anticipation of an upcoming halving event. This halving, set for April, will reduce the reward for mining new Bitcoin blocks by half, from 6.25 BTC to 3.125 BTC. Industry participants are keenly positioning themselves in advance of this event.
Furthermore, BTC's ascension above $57,000 has led to a sharp rise in the liquidation of leveraged crypto positions. As an example, Bitcoin analyst On-Chain College highlighted the surge in Bitcoin short liquidations totaling $18 million in just 15 minutes as BTC rose above $53,000.
Finally, data from Coinglass revealed liquidations of $262 million worth of short positions over against $120 million long liquidations in the last 24 hours. Market players expect this round of bullish Bitcoin price action to carry on, providing a welcome boost to the broader market. It's essential to note, however, that all investment and trading activity carries risks, and prospective investors are urged to undertake due diligence before making any decisions.
Published At
2/27/2024 8:13:11 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.