Bitcoin soars to two-year high, on its way to breaking a record admin February 29, 2024

Bitcoin soars to two-year high, on its way to breaking a record

Crypto investments are on the rise, driving up the price of the original currency.

Major investors’ growing interest is propelling the world’s leading cryptocurrency to new highs. Bitcoin has surged by 10% in just two days, reaching over $56,000 (€51,606) per coin, marking its highest value since November 2021.

The CoinDesk Bitcoin Price Index (XBX) peaked at $56,940.18 (€52,472.08) within the past 24 hours before settling around $56,500 (€52,660) by Tuesday morning in Europe.

A significant catalyst for this surge was the announcement from MicroStrategy, a prominent software firm and crypto investor, revealing its acquisition of 3,000 bitcoins for $155 million (€143 million).

Institutional investors are increasingly turning to cryptocurrencies, with CoinShares reporting a $598 million (€551 million) increase in investment in crypto funds last week alone, following a record $2.452 billion (€2.26 billion) inflow the previous week. Bitcoin saw a surge in investments totaling $570 million (€570 million).

The total market capitalization of the cryptocurrency market now exceeds $2 trillion (€1.84 trillion), roughly equivalent to the GDP of Italy, the third-largest economy in the European Union.

How high can the price of Bitcoin rise?

A recent report predicts that Bitcoin will soar to a new pinnacle of $88,000 (€82,000) by the end of 2024, before stabilizing at approximately $77,000 (€70,957) as the year concludes.

The recent green light for bitcoin-based exchange-traded funds (ETFs) has broadened access to Bitcoin for a wider array of investors, spurring a surge in prices.

Justin d’Anethan from Keyrock, a digital asset market maker, remarked to Reuters, “There’s only so much supply … but the demand unleashed by the US spot ETFs seems to be relentless.”

Bitcoin and Ethereum, the second-largest cryptocurrency globally, have become the top choices for institutional investors, as stated by Kuptsikevich. Ethereum is anticipated to see approval for its ETFs later this year, potentially drawing even more investors to this asset.

Anticipation for the forthcoming halving event in April, which will reduce supply, is also expected to drive price increases.

“Bitcoin is gaining traction as a safe-haven asset in regions facing persistent inflation,” noted Kuptsikevich, citing insights from cryptocurrency exchange Bitfinex. “Macroeconomic uncertainties this year underscore the relevance of acquiring the leading cryptocurrency, as well as gold and silver.”

With optimism fueled by a surge in price predictions, there appear to be no significant obstacles for Bitcoin to approach historical highs around $69,000 (€63,585). Many forecasts suggest a six-figure price in the near future.

Kuptsikevich himself believes it’s more likely than not that Bitcoin will surpass $100,000 (€92,500) within the next nine to twelve months. However, he cautioned, “Should markets face pressure from an economic slowdown, it might take longer than a year to reach a new threshold.”

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