Bitcoin and Ether reach new highs amid investor interest
Bitcoin reached a two-year peak on Tuesday, propelled by significant purchases, while its smaller counterpart, ether, crossed the $3,200 mark for the first time since 2022.
Bitcoin's price soared over 10% in just two sessions, following MicroStrategy's announcement on Monday that it had acquired approximately 3,000 bitcoins for $155 million. The surge was further supported by the U.S. approval of Bitcoin exchange-traded funds (ETFs), sparking a rally in crypto-linked stocks despite broader market apprehensions.
In the early trading hours in Asia, Bitcoin's value climbed to $57,036, its highest since late 2021, and ether reached $3,275, marking its peak since April 2022. The supply is finite, but demand from the U.S. spot ETFs seems unstoppable, noted Justin d'Anethan of Keyrock. The anticipation of the Bitcoin halving event in April, which reduces the reward for mining new tokens, is also driving interest. This event aims to decelerate the issuance of Bitcoin, which is capped at 21 million units, with 19 million already mined.
Bitcoin has appreciated 32% in February, setting the stage for its most substantial monthly gain since January 2023. The momentum is not limited to traditional investment circles. Reddit announced on February 22 its intention to go public and disclosed investments in Bitcoin, ether, and Matic to support virtual goods sales.
Ether has seen even more robust growth, with a 1.1% increase to around $3,220, eyeing a 41% rise this month. The market is buzzing with the potential approval of spot ether ETFs, signaling a maturation in the cryptocurrency market. The prospect of a spot in Ethereum ETF marks a significant step forward, acknowledging Ethereum's growing role within the financial ecosystem, said Nick Crawley of DailyFX.
