Bitcoin’s surge fuels a rally across the cryptocurrency spectrum, hitting over US$57,000 yesterday, reaching its highest point since December 2021. The collective value of cryptocurrencies has surged to nearly $2 trillion, a milestone unseen in almost two years, fueled by an ETF-driven surge in Bitcoin.
With Bitcoin representing 52% of the entire market, its value climbed over 5% to reach US$57,443 yesterday, maintaining this high throughout the day. This week alone, Bitcoin has surged by approximately 12%, hitting its highest point since December 2021. The cryptocurrency market previously peaked at around US$2.7 trillion a month ago during the record-breaking token prices.
Since the start of the year, Bitcoin’s price has risen by 30% to 32%, continuing its consistent upward trajectory, which has also sparked interest in smaller tokens like ether and gogecoin. The introduction of bitcoin exchange-traded funds in the US on January 11 saw a net investment of $6.1 billion, indicating a growing demand beyond traditional digital asset enthusiasts.
Optimism is further fueled by the impending reduction in bitcoin’s supply growth, known as the halving. MicroStrategy, a software firm integrating bitcoin into its corporate strategy, disclosed acquiring an additional $3,000 tokens this month, bringing its total digital asset holdings to about US$10 billion.
Katie Stockton, founder of Fairlead Strategies, expressed confidence in bitcoin’s continued momentum, expecting no significant pullback given its recent breakout. The combined value of digital assets now stands at approximately $2.2 trillion, a significant climb from the low of about $820 billion during the 2022 bear market.
Recent data from Coinglass reveals that around $162 million in cryptocurrency trading positions betting against higher prices were liquidated over Monday and Tuesday, indicating a trend of profit-taking among bitcoin holders.
Despite expectations of tighter monetary policies as evidenced by rising US Treasury yields, digital tokens continue to rise. Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors, noted this bullish momentum, highlighting Bitcoin’s outperformance compared to traditional assets like stocks and gold.
In the US, shares of cryptocurrency-related companies surged on Monday, with MicroStrategy climbing 16% and Coinbase Global rising by 17%.
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