Bitcoin surged to a two-year peak on Tuesday, driven by indications of significant investment activity from major players in the cryptocurrency market, while its smaller counterpart, ether, surpassed $3,200 for the first time since 2022.
The rally in Bitcoin, exceeding 10% over two sessions, was propelled by MicroStrategy’s revelation that it had acquired approximately 3,000 bitcoins at a cost of $155 million.
Amidst the bullish sentiment, the recent approval of bitcoin-focused exchange-traded funds (ETFs) in the United States further boosted Bitcoin’s momentum. Trading volumes in these ETFs surged on Monday, accompanied by a rally in crypto-linked companies, contrasting with the cautious mood prevailing in broader financial markets.
Bitcoin soared to $57,036 in Asian trading, marking its highest level since late 2021, while ether climbed to $3,275, reaching its peak since April 2022.
Justin d’Anethan, Head of Partnerships in Asia at Keyrock, attributed the surge to relentless demand fueled by the introduction of U.S. spot ETFs, underscoring the limited supply of Bitcoin and the ongoing halving event scheduled for April.
With Bitcoin registering a 32% increase in value in February, its largest monthly gain since January 2023, interest in cryptocurrencies extends beyond traditional investors. Social media platform Reddit, in its bid to go public, disclosed investments in bitcoin, ether, and $matic, the native token of the Polygon network, signaling growing acceptance of cryptocurrencies as viable payment options.
Ether, up 1.1% at two-year highs near $3,220, has outpaced Bitcoin’s gains this month, rising by 41%. Market participants are eagerly anticipating regulatory approval for spot ether ETFs, which could further drive the token’s price appreciation. According to Nick Crawley, Senior Strategist at DailyFX, the potential launch of spot Ethereum ETFs represents a significant development for traders and investors, following the recent debut of various bitcoin ETFs.