Bull market returns? Bitcoin breaks $57,000 mark

In an event that was not unexpected, Bitcoin (BTC) surged to new heights, crossing the $57,000 mark early Tuesday morning in Asia. This price level has not been seen since November 2021, marking a significant recovery for the leading cryptocurrency.

Bitcoin ETFs experience unprecedented activity

It is worth noting that the surge in Bitcoin prices has triggered a lot of activity in US spot Bitcoin ETFs, excluding Grayscale’s GBTC. According to Bloomberg, trading volume in these ETFs hit a record high of $2.4 billion on Monday. The surge in trading activity highlights the growing interest and participation of institutional investors in the cryptocurrency market.

As of the time of publication, Bitcoin’s slight gains have reduced to $56,437 , but it is still up about 10% from the previous day. Bitcoin's price has increased by more than 30% since the start of the year, continuing a surge that has also fueled speculator interest in smaller currencies such as Ether and Solana.

Demand for Bitcoin isn’t limited to spot trading; some $5.6 billion poured into the recently launched U.S. Bitcoin ETF, which began trading on January 11. This influx of investment points to expanding interest in Bitcoin beyond the traditional base of digital asset enthusiasts.

Bitcoin gains more than traditional assets

Surprisingly, Bitcoin has outperformed traditional assets such as stocks and gold this year. The ratio of Bitcoin prices to precious metal prices has reached its highest level in more than two years, signaling a shift in investor preference for digital assets.

The total value of digital assets, including various cryptocurrencies, has now reached a staggering $2.2 trillion, a significant increase from the lows during the 2022 bear market, when the market value fell to around $820 billion. This recovery demonstrates the resilience and growing prominence of digital assets in the financial sector.

BTCUSD trading at $55,799 on the daily chart: TradingView.com

Contrary market indicators fail to halt cryptocurrency’s momentum

Interestingly, bullish momentum in the cryptocurrency market remains strong despite rising U.S. Treasury yields typically signaling expectations of tightening monetary policy. Digital tokens like Bitcoin are experiencing significant upward trends, defying traditional market indicators.

Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors, noted in a recent statement that “bullish momentum for cryptocurrencies continues to unfold despite rising interest rates,” highlighting the unique dynamics affecting the cryptocurrency market.

MicroStrategy increases corporate Bitcoin holdings

Amid the ongoing rally, MicroStrategy, an enterprise software company known for incorporating Bitcoin into its corporate strategy, announced a significant increase in its holdings of the cryptocurrency.

The company revealed that it had purchased an additional 3,000 Bitcoin tokens this month, bringing its total Bitcoin holdings to approximately $10 billion. This strategic move by MicroStrategy highlights the growing acceptance of cryptocurrencies by corporate entities as valuable assets.

Featured image from TradingView Charts

Disclaimer: This article is for educational purposes only. It does not represent NewsBTC’s opinion on whether to buy, sell or hold any investment, and investing naturally involves risks. It is recommended that you conduct your own research before making any investment decision. Use of the information provided on this website is entirely at your own risk.

Comments

Post a Comment

Popular posts from this blog

Bitcoin’s rally to $70K opens a bullish path for OP, TAO, STX and MNT

Image
Cointelegraph - Bitcoin has managed to hold on to its gains this week, indicating that traders are in no mood to book profits even as the price reaches near $70,000. The number of Bitcoin whales, unique addresses holding more than 1,000 Bitcoin, has risen to 2,104 as of March 7 , suggesting they anticipate the uptrend to continue. Bitcoin’s rally has improved sentiment across the cryptocurrency sector. Data from DefiLlama shows that the global total value locked (TVL) in decentralized finance (DeFi) protocols  jumped above $100 billion for the first time  in about two years. However, the TVL is far below the $189 billion record set in November 2021, even after the increase. Crypto market data daily view. Source:   Coin360 During a bull market, traders throw caution out of the window and chase prices higher. This generally does not end well. Bitwise chief investment officer Matt Hougan  cautioned investors to be careful , stating on X tha
Read more

10 Best Free Courses To Learn Bitcoin, Blockchain And Cryptocurrencies (2024)

Image
One of the best (and worst) things about bitcoin, blockchain and cryptocurrencies is just how new the technology and its practical implementations are. Even though there have been many early adapters, the ecosystem as a whole involves a lot of learning, especially for those looking to come up to speed. This represents a massive opportunity as well as a pitfall for those who are on the outside looking in. I like to monitor different courses in the space for my own education as well as for resources to share with others to include them as part of the discussion and learning: I've compiled this list as a set of reliable resources to do just that. 1- DFIN 511: Introduction to Digital Currencies (Offered By UNIC) This free online course is taught by  Andreas Antonopoulos (author of Mastering Bitcoin) and Antonis Polemitis and it represents the first course in the  MSc in Digital Currency offered by UNIC. The course places bitcoin and cryptocurrencies in the broader framework of the hist
Read more

Bitcoin price consolidates gains, can BTC extend rally to $60,000?

Image
Bitcoin price rose further to $58,000.  BTC is currently consolidating gains and may soon attempt to break above the $60,000 resistance further. Pic by Bloomberg Bitcoin price is consolidating gains below the $57,500 resistance zone. The price is trading above $56,000 and the 100 hourly simple moving average. An ascending channel is forming with resistance near $57,650 on the hourly chart of the BTC/USD pair (data feed from Kraken). The pair is likely to extend its current gains towards the $60,000 resistance. Bitcoin price faces new hurdles Bitcoin price continues to rise towards  the $55,000 resistance zone  .  BTC gained bullish momentum after breaking above the $55,500 and $56,000 resistance levels.  There was also a surge above the $57,000 resistance zone. A new multi-week high was formed near $57,572, with prices now  consolidating gains  .  There was a slight decline below the $57,000 level, but the price remained above the 23.6% Fib retracement level of the recent swing from th
Read more