Bitcoin Hits Two-Year High Following MicroStrategy's Latest Acquisition and ETF Approval
Summary:
Bitcoin sees a price surge of 3.79% to trade at $58,504, attaining a two-year-plus high. This comes following MicroStrategy's latest acquisition of 3,000 Bitcoins, pushing its total holdings to 193,000. With the institutional backing of this rally, and following the approval of Bitcoin-owning ETFs in the U.S, the total crypto market capitalization moved up, retracing the $2 trillion mark. Industry experts suggest that this could lead to record highs for both Bitcoin and Ether in the coming weeks.
Bitcoin, the pioneer of cryptocurrencies, experienced a 3.79% uptick in its value over 24 hours ending at 8:20 am UTC, reaching a trading price of $58,504, its highest in the last two years and three months. CoinMarketCap data reveals that Bitcoin (BTC) has recorded over 13.5% gains on a weekly basis and an impressive 38% surge on the monthly chart. This price rally followed MicroStrategy's purchase of an extra 3,000 Bitcoin, amounting to $155 million at an average cost of $51,813 per Bitcoin, between the 15th and 25th of February. With the sum total of Bitcoin in their possession being 193,000 (acquired with $6.09 billion at an average price of $31,544 per Bitcoin), MicroStrategy stands as the leading Bitcoin holder among publicly trading firms.
Mikkel Morch, the founder of digital asset investment fund ARK36, notes that MicroStrategy's recent acquisition primarily acts as institutional validation that is motivating this rally. He shares that the current rally goes beyond figures on a chart. It's an assertion of the confidence institutional investors have in the transformative scope of cryptocurrencies. Additionally, the approval of Bitcoin-owning ETFs in the U.S has brought in newfound optimism, elevating trading volumes and directing attention to crypto-linked corporations in an otherwise hesitant broader market. The total capitalization for the cryptocurrency market went up by 2.85% in the last 24 hours to $2.19 trillion. The industry regained the $2 trillion market capitalization on February 27 when Bitcoin broke through the $57,000 mark, backed by Bitcoin ETF inflows and an enhanced crypto investor mood. Morch suggests that both Bitcoin and Ether could reach new all-time highs within the coming weeks, spurred by the impending Bitcoin halving and the potential approval of a U.S. spot Ether ETF. The upcoming approval for spot Ether ETFs, he added, further highlights the maturity of the cryptocurrency market. It acknowledges Ethereum not just as a digital currency, but also a foundation for a future where finance and technology integrate more seamlessly. The nine spot Bitcoin ETFs reported combined trading volumes surpassing $2 billion for the second day in a row on February 28.
Published At
2/28/2024 11:58:07 AM
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