In a sign of second wave surge, Bitcoin propelled a notable rally in cryptocurrency prices and associated stocks on Tuesday, surpassing $57,000 for the first time since November 2021.
During Tuesday morning trading, Bitcoin exceeded $57,000, briefly touching $57,430, marking a considerable ascent compared to late 2021 levels. According to CoinDesk data cited by Investor's Business Daily, the world's largest cryptocurrency surged nearly 11 percent over the past 24 hours.
Moreover, in mid-February, Bitcoin's market capitalization surpassed the $1 trillion milestone for the first time in over two years. Year-to-date, Bitcoin has appreciated by 34 percent, with a substantial portion of the gains occurring post the launch of spot Bitcoin ETFs in early January.
In parallel, Ethereum witnessed a surge of approximately 6.8 percent in the 24-hour period leading up to Tuesday morning, hovering around $3,280, its highest level since April 2022. ETH peaked at $3,289 during early Tuesday trading, recording an increase of almost 44 percent in 2024.
Reflecting on Bitcoin's journey since 2022, the year was characterized by the high-profile collapse of the crypto exchange FTX, triggering liquidity challenges at various smaller crypto firms, as per CNN.
Following Bitcoin's resurgence in 2023, investors have flocked back in recent weeks, propelling the asset's market capitalization above $1 trillion for the first time since its peak in 2021, according to CoinMarketCap data.
In contrast to traditional currencies, Bitcoin's finite supply is anticipated to peak in 2140, as indicated by cryptocurrency price-tracking websites.
The inflow of funds into Bitcoin has been bolstered by the recent introduction of exchange-traded funds directly investing in the cryptocurrency, making it more accessible for retail investors. Since January 10, when US regulators approved such funds, Bitcoin's value has surged by nearly 13 percent, CNN reported.
While Bitcoin remains distant from its all-time high of $69,000 achieved in November 2021, industry insiders anticipate further growth this year, potentially surpassing previous peaks, as reported by CNN.
Part of the optimism surrounding Bitcoin's future trajectory is attributed to its upcoming "halving" event, which automatically halves the rate of new coins entering circulation, occurring approximately every four years.
(With inputs from IANS)
