July 22, 2024

Bitcoin Rallies Past $60,000 As Big Investors Join The Chant

Bitcoin Rallies Past $60,000 As Big Investors Join The Chant

Bitcoin Rallies Past $60,000 As Big Investors Join The Chant

Bitcoin surged to a two-year peak today, reaching $61,131 at the time this article was written. The upward momentum was influenced by an announcement from MicroStrategy, a crypto investor and software company, revealing its recent purchase of approximately 3,000 bitcoins for $155 million.

Note that there is some ‘margin’ in the surge as Bitcoin (BTC) reached an all-time high in 2021, as values exceeded over 65,000 USD in November 2021.

The leading cryptocurrency by market value has seen additional support from the recent U.S. approval of bitcoin exchange-traded funds (ETFs). Trading volumes for several of these funds saw significant increases on Monday, alongside a rally in crypto-related companies, despite the wider market’s apprehension. The introduction of U.S. spot ETFs appears to have triggered an insatiable demand.

Another significant factor contributing to Bitcoin’s appeal is the upcoming halving event in April, aimed at reducing the pace at which new bitcoins are generated. This event will halve the reward for mining new tokens, in line with Bitcoin’s total supply limit of 21 million coins, 19 million of which have already been mined.

Bitcoin displays a 45.43% increase in February

This month, Bitcoin has witnessed a 45.43% increase in its value, potentially marking its most substantial monthly gain since January 2023. This growth is gaining traction beyond the investment sphere.

On February 22, Reddit announced its intention to go public on the New York Stock Exchange and disclosed that it had allocated a portion of its spare cash reserves to bitcoin, ether, and matic (Polygon’s native token) for facilitating certain virtual goods transactions.

The cryptocurrency market is also buzzing with the anticipation of regulatory approval for spot ether ETFs. This enthusiasm follows the successful launch of various bitcoin ETFs and signifies the evolving maturity of the cryptocurrency market and acknowledgment of Ethereum’s significance in the future of finance.

However, despite the excitement, regulatory authorities and industry insiders suggest that the U.S. Securities and Exchange Commission may approach the approval of spot ether ETFs with caution. The approval of bitcoin ETFs does not necessarily indicate a readiness to endorse other cryptocurrency products.