Bitcoin Surges To $57,000 High As Crypto Rally Builds Momentum
On Tuesday, Bitcoin reached a new high of over $57,000, which it hadn't reached in over two years. This surge in value was thanks to significant investments from major investors and an increase in demand through ETFs. This is a significant turnaround for the market, which was in a tough spot in 2022 when big names like Sam Bankman-Fried's FTX, Celsius, and Three Arrows faced severe challenges.
The value of Bitcoin has reached a level that has not been seen in over 24 months.
Bitcoin's value surged past $57,000 in the early hours of the morning in Asia and late evening in the U.S, marking the first time it has reached this level since late 2021.
Bitcoin reached over $53,000 on Monday, which is the first time it has surpassed this number since November of last year. In a matter of minutes on Tuesday, its value even climbed to $57,000 from $54,000.
The virtual currency decreased some of its profits and was exchanging at approximately $56,300 at 5 a.m. Eastern Time, although it still increased by almost 10% in the past day.
The expansion of Bitcoin is just one part of the overall increase in the cryptocurrency markets. On Tuesday, the cost of ether hit $3,274 as well.
In the past 24 hours, there has been a significant increase in the price of ether by almost 7%. This surge in price has brought ether to its highest value since April of 2022.
Bitcoin and ether, which are the two largest cryptocurrencies based on market capitalization, have been on the rise lately, mirroring the trend in digital assets as a whole. Since the beginning of this year, bitcoin has increased by approximately 33%, while ether has grown by a whopping 40%. The authorization of bitcoin ETFs by the Securities and Exchange Commission in January and the disclosure of major bitcoin holdings by companies such as MicroStrategy have driven investor interest. Expectations of ether ETFs obtaining approval soon have also contributed to this positive sentiment. Despite this, the market has yet to exceed the highs seen towards the end of 2021 when its value briefly rose above $3 trillion. The market is still recovering from several high-profile incidents, such as the collapse of the FTX exchange owned by Bankman-Fried, the downfall of market institutions such as lender Celsius and investor Three Arrows Capital, and the destabilization of stablecoins like Tether and terraUSD (UST), which are backed by the token luna. The latter network's collapse eliminated billions of dollars in value.
Things To Observe
The upcoming bitcoin halving is expected to cause growth within the market. This event happens when the amount of bitcoin rewarded during "mining" is reduced, due to the mathematical foundation of the cryptocurrency controlling its supply. In the past, this event has caused the price of bitcoin to increase. Halving takes place after a specific number of blocks are mined and industry experts predict the next halving will occur in April 2024.
Forbes predicts that the complete worth of the cryptocurrency market is $2.23 trillion. The market value has increased by almost 7% in the previous 24 hours. Bitcoin and ether are the primary drivers of this growth, accounting for roughly 44.5% and 17.3%, respectively, of the entire cryptocurrency market.
Additional updates from Forbes report that Worldcoin, a cryptocurrency project launched by Sam Altman from OpenAI, has been performing well following the introduction of the 'Sora' video tool. Interested readers may also want to learn more about Worldcoin, a unique digital asset that uses eyeball scanning technology, by reading an article on Forbes.
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