- Bitcoin hits two-year high driven by investment from big players, as ether tops $3,200.
- Bitcoin’s upcoming halving event promises to reduce supply and boost its value, with 19 million already mined.
This Tuesday, Bitcoin recorded a peak not seen in two years, achieving the steepest two-day climb of the year. The reason behind this phenomenon is the investment of large investors in the cryptocurrency.
At the same time, ether, its most direct competitor, has surpassed $3,200, a figure not seen since 2022.
MicroStrategy’s Acquisition Boosts Bitcoin
Bitcoin’s surge, up more than 10% in two days, follows MicroStrategy’s disclosure of its purchase of approximately 3,000 bitcoins with a $155 million investment. Actions like this by major market players send a signal of confidence and optimism towards Bitcoin.
Bitcoin’s value has also benefited from the approval of exchange-traded funds (ETFs) inthe United States. On Monday, the trading volume of several of these funds saw a considerable increase.
#CryptoNews: MicroStrategy has acquired an additional 3,000 #Bitcoin for a total of $155 million at an average price of $51,813 between Feb. 15 and 25.👀
— CoinMarketCap (@CoinMarketCap) February 27, 2024
This, coupled with the rally in cryptocurrency-related companies, marks a contrast to a broader, tense and nervous market.
Ether Not Far Behind
As Bitcoin captures attention, ether hits a high of $3,273 since April 2022. This advance indicates palpable interest and continued investment in the cryptocurrency sector, extending beyond Bitcoin.
Bitcoin’s Next Halving
An upcoming event of importance is the Bitcoin halving in April. This process halves the reward for mining Bitcoin and is intended to limit the issuance of new coins. With 19 million of the 21 million total already in circulation, this event could propel an increase in Bitcoin’s value.
The Dollar Retreats in the Face of Bitcoin’s Future
The U.S. dollar has weakened as markets await economic data that signals when the Federal Reserve will begin lowering interest rates. This backdrop benefits Bitcoin, which is benefiting from the uncertainty in conventional markets.
Well-known trader Peter Brandt has suggested that Bitcoin could reach $200,000 by 2025. This projection is based on sustained momentum and market perception. However, caution is advised, as reaching such figures implies a sustained upward trend in the market.
Bitcoin’s breakout from a 15-month channel hints at an upward market cycle that could drive the cryptocurrency to new highs. With the upcoming halving expected to drive prices further, and as long as Bitcoin remains above key support levels, the positive outlook holds, pointing toward the anticipated $200,000 peak.
Bitcoin’s current price is 57,000 USD, experiencing an increase of 3.98%. The recent trend shows an impressive 34.46% growth in the last month, and a remarkable 107.47% increase in the last six months. This year, Bitcoin has seen a 34.04% increase in value.
Given this backdrop and based on current technical analysis, it is possible that we may see short-term fluctuations with potential to retest nearby support or resistance. However, please note that this analysis should not be taken as financial advice.
