Bitcoin surged past the $57,000 price level to reach levels last seen in late 2021.
This rally has been largely fueled by increased institutional investments and a surge in demand for Bitcoin exchange-traded funds (ETFs).
Bitcoin’s price skyrocketed by as much as 4.4% to peak at $57,039 before slightly retreating to $56,085 on Tuesday as of 6 a.m. Nigerian time.
This surge represents a 32% increase since the beginning of the year, extending a prolonged rally that has also buoyed other cryptocurrencies like Ether and Dogecoin.
A significant catalyst behind this surge has been the influx of approximately $6.1 billion into a series of Bitcoin ETFs that commenced trading in the United States on January 11.
These ETFs have signaled a broadening demand for Bitcoin beyond the traditional circle of digital asset enthusiasts.
MicroStrategy Inc., a prominent enterprise software firm known for its bullish stance on Bitcoin, announced that it had acquired an additional 3,000 Bitcoins this month, bringing its total Bitcoin holdings to around $10 billion.
This move underscores the growing trend of corporations adopting Bitcoin as part of their treasury reserve strategies.
The overall value of digital assets now stands at approximately $2.2 trillion, as per CoinGecko data, a significant recovery from the lows experienced during the bear market of 2022.
Despite concerns over rising US Treasury yields, Bitcoin’s bullish momentum remains robust, buoyed by favorable sentiment and increasing institutional adoption.
The surge in Bitcoin’s price has also propelled shares of crypto-related companies in the US, including MicroStrategy, Coinbase Global Inc., and Marathon Digital Holdings Inc., which all saw notable gains on Monday.
This positive sentiment has also spilled over into Asian stocks related to digital assets, indicating a broader global appetite for cryptocurrencies amidst a shifting financial landscape.