Bitcoin, the original digital currency, experienced a 3.79% increase in value within a 24-hour period, reaching $58,504 at 8:20 am UTC. This marks the first time in over two years and three months that Bitcoin has reached this price level. In terms of weekly performance, Bitcoin has seen a growth of over 13.5%, and on a monthly basis, it has risen by more than 38%, as reported by CoinMarketCap.
The recent surge in Bitcoin’s price comes shortly after MicroStrategy, led by Michael Saylor, acquired an additional 3,000 BTC. The purchase, totaling $155 million, was made between February 15 and 25, with an average price of $51,813. MicroStrategy now holds a total of 193,000 BTC, acquired for $6.09 billion at an average price of $31,544. This makes MicroStrategy the largest Bitcoin holder among publicly traded companies.
Mikkel Morch, the founder of the digital asset investment fund ARK36, believes that MicroStrategy’s recent purchase has been the main driving force behind the current rally. In a research note shared with Cointelegraph, Morch stated that this institutional endorsement has played a significant role in fueling Bitcoin’s price increase.
The overall market capitalization of the cryptocurrency industry has also seen a 2.85% increase in the past 24 hours, reaching $2.19 trillion. This milestone was achieved on February 27 when Bitcoin surpassed $57,000. The rise in market capitalization can be attributed to the inflow of funds into Bitcoin exchange-traded funds (ETFs) and an improvement in investor sentiment towards cryptocurrencies.
Morch predicts that both Bitcoin and Ether (ETH) could reach new all-time highs in the next few weeks. This is driven by the anticipation of the upcoming Bitcoin halving and the potential approval of a spot Ether ETF in the United States.
On February 28, the nine existing spot Bitcoin ETFs recorded a combined trading volume of over $2 billion for the second consecutive day. This indicates that Bitcoin ETFs account for around 75% of new investments, according to CryptoQuant.
In conclusion, Bitcoin’s recent price rally, along with the overall growth in the cryptocurrency market, can be attributed to various factors such as institutional endorsements, Bitcoin ETF inflows, and positive investor sentiment. With the potential for new all-time highs in the near future, the cryptocurrency market continues to generate significant interest and investment.