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Bitcoin records a two-year high and crosses the $57,000 threshold

Bitcoin is now only slightly away from reaching its all-time high of over $68,000, seen in November 2021

Shashank Bhardwaj
Published: Feb 28, 2024 04:05:43 PM IST

Bitcoin records a two-year high and crosses the ,000 thresholdImage: Shutterstock
Bitcoin has surged beyond $57,000, with indications suggesting further growth. This is the second time Bitcoin has crossed the $57,000 mark, with the first time being in 2021. Bitcoin is now only slightly over $10,000 away from its peak value of $68,000, reached in November 2021.

In the last 12 months, Bitcoin has registered a surge of around 152 percent. This can be attributed to the recent developments in the crypto market. Since the introduction of spot Bitcoin ETFs in January, over $6 billion has flowed into the market. The largest of these ETFs, Grayscale Bitcoin Trust, experienced a nearly 7 percent increase in value and was up 4 percent in premarket trading.

Another factor fueling demand for Bitcoin is the imminent "Bitcoin Halving" event, set to occur in April, which will halve the reward for miners from 6.25 bitcoin to 3.125 bitcoin. This event takes place every four years until the complete supply of 21 million bitcoins is mined.

Bitcoin’s surge is also attributable to the notable transactions in the crypto market. MicroStrategy, an enterprise software and cloud service company, announced on Monday that it has acquired 3,000 bitcoins this month for $155.4 million. This purchase adds to their existing holdings, bringing their total bitcoin ownership to 193,000 coins valued at approximately $10 billion.

Owing to these developments, the overall market capitalisation of Bitcoin has exceeded $1 trillion this year for the first time in the last two years, contributing to the total cryptocurrency market cap of $2 trillion.

In addition to Bitcoin's rally, other cryptocurrencies are also experiencing gains. Ethereum has risen by over 103 percent to $3,300, for example.

With Bitcoin’s market capitalisation exceeding $1 trillion and Ethereum, along with other altcoins, gaining momentum, the crypto landscape is experiencing substantial growth. Additionally, Reddit revealed in its IPO filing that it has invested in Bitcoin, Ethereum, and Polygon's MATIC, further highlighting the increasing adoption and interest in cryptocurrencies.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
Twitter: @bhardwajshash

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