Bitcoin surges to a two-year high, blazing through $57,000 in a remarkable two-day rally

Bitcoin has surged to a two-year peak, surpassing the $57,000 mark in an impressive two-day rally, marking its most significant gain of the year.

The rally, which saw an increase of over 10% across two sessions, was spurred by news from crypto investor and software firm MicroStrategy, which disclosed its recent acquisition of approximately 3,000 bitcoins, representing a $155 million investment.

Bitcoin’s upward trajectory has also been fueled by the recent approval of bitcoin-owning exchange-traded funds (ETFs) in the United States, leading to heightened trading volumes and a rally in crypto-related companies amidst uncertainties in broader markets. According to the latest data, Bitcoin has climbed 4.7% to reach $57,232, while its counterpart, ether, has surged to $3,290, its highest level since April 2022.

Commenting on this surge, Justin d’Anethan, Head of Partnerships in Asia at Keyrock, a digital asset market maker, observed, “There’s only so much supply … but the demand unleashed by the US spot ETFs seems to be relentless.”

Bitcoin’s recent spike coincides with the upcoming bitcoin halving event in April, designed to reduce the rate of bitcoin release, heightening anticipation and demand among investors.

February has proven bullish for Bitcoin, with a gain of 32%, marking its most substantial one-month increase since January 2023. In addition to traditional investors, social media platform Reddit has joined the crypto trend, revealing a small investment from its excess cash reserves in bitcoin, ether, and matic, the native token of the Polygon network.

Ether has outpaced Bitcoin with a notable 41% gain this month, driven by growing expectations of regulatory approval for spot ether ETFs. Market participants are eagerly awaiting potential regulatory approval for spot ether ETFs, viewing it as a significant milestone for the cryptocurrency market’s maturity.

However, experts warn that the US Securities and Exchange Commission may adopt a cautious stance, and approval of bitcoin ETFs may not necessarily expedite the approval process for other crypto products.

Bitcoin’s surge has not only impacted the cryptocurrency itself but has also provided a boost to related stocks. Crypto exchange Coinbase saw a 5.8% increase in shares, while bitcoin miners Marathon Digital and Riot Platforms rose by 5.7% and 0.7%, respectively. The largest bitcoin ETF, Grayscale Bitcoin Trust, also experienced a 4.4% increase.

Overall, market sentiment suggests a positive outlook for the cryptocurrency sector, attributing the surge to a combination of factors, including institutional investment, regulatory developments, and growing mainstream acceptance.