Bitcoin, the world’s highest-valued cryptocurrency, reached a two-year high on Tuesday, surging above the $57,000 mark. The token’s price hit $57,036 in early Asian trading, marking its highest since November 2021. This comes after a recovery from a dip below $40,000 in the initial days following the launch of US-based spot Bitcoin exchange-traded funds (ETFs) in early January.
As of 08:30 GMT, Bitcoin pulled back slightly to trade at $56,325, maintaining a significant increase of over 9% in the past 24 hours. Analysts attribute this latest surge to increased inflows into ETFs, with a record-high $2.4 billion trading volume reported on Monday. ETFs provide a means for retail investors to hold Bitcoin through funds traded on exchanges indirectly.
There is only so much supply, but the demand that the US spot ETFs have unleashed seems to be unstoppable, as Justin d’Anethan of Keyrock, a digital asset market maker, noted.
Growing interest from significant market players is further fueling the price rally for Bitcoin. On Monday, software company MicroStrategy, known for its substantial crypto investments, disclosed the acquisition of approximately 3,000 bitcoins for around $155 million. Social media platform Reddit recently announced investing some of its excess cash reserves in Bitcoin and several smaller tokens.
Bitcoin’s resurgence to a two-year high demonstrates the continued influence of institutional interest and ETFs on the cryptocurrency market, with demand remaining a driving force in the current market conditions.
