Bitcoin (BTC) has surged past $57,000, marking its highest level in more than two years. The largest cryptocurrency has defied expectations of a looming price correction, climbing steadily in 2024.
The rally, which saw Bitcoin reach $57,148, displayed a significant 12% increase from its previous trading range. This surge comes after a period of relative stability, with Bitcoin trading within a narrow range for over a week.
Bitcoin (BTC) Price Chart (Source: TradingView)
At the time of writing, BTC is trading at $55,801, with a daily trading volume exceeding $45 billion, a surge of over 217%. Additionally, the price of Bitcoin has witnessed a 33% increase in the past month and a staggering 138% surge in the past year, reaffirming its status as a formidable asset in the financial landscape.
What’s Propelling Bitcoin (BTC) to New High?
The rise in Bitcoin’s optimism stems from increased investor interest in exchange-traded funds (ETFs). Bitcoin ETFs saw a net inflow of $5.6 billion, which commenced trading in the US on Jan. 11, which suggests growing interest in the cryptocurrency beyond its usual enthusiast base.
Another factor contributing to the positive sentiment is anticipating an upcoming reduction in Bitcoin’s supply growth, known as the halving. This event is seen as a bullish signal by many investors.
Moreover, Bitcoin advocate Michael Saylor, CEO of MicroStrategy, a business intelligence firm, continues to bolster confidence in Bitcoin. MicroStrategy announced the acquisition of an additional 3,000 BTC, bringing its total holdings to 193,000 BTC, valued at approximately $10.7 billion.
The overall value of the crypto market has seen a remarkable rise, standing at $2.22 trillion, as per CoinGecko. This is a huge increase from the lows experienced during the bear market of 2022, which saw the combined value plummet to about $1.2 trillion following the collapse of platforms like FTX.