Bitcoin had declined slightly to $56,437, but was still up around 10% from the previous day.
In a not-so-unexpected turn of events, Bitcoin (BTC) has reached new heights, breaking the $57,000 barrier during the early hours of Tuesday in the Asian market.
This price level, not seen since November 2021, marks a significant resurgence of the leading cryptocurrency.
The last time Bitcoin was seen above USD $54,000 was at the end of November 2021, at which time the digital currency was facing a strong correction after having reached the highest capitalized historical highs in its entire history days ago.
Bitcoin ETFs See Unprecedented Activity
Surprisingly, the rise in Bitcoin price has triggered substantial activity in US-based spot Bitcoin ETFs, excluding Grayscale’s GBTC. According to Bloomberg, these ETFs recorded record volume of $2.4 billion on Monday. This increase in trading activity underscores the growing interest and participation of institutional investors in the cryptocurrency market.
Since the beginning of the year, the price of Bitcoin has risen more than 30%, continuing a prolonged rally that has also spurred interest in smaller coins such as Ether and Solana, among speculators.
The demand for Bitcoin is not just limited to spot trading. A substantial inflow of approximately $5.6 billion has poured into the recently launched Bitcoin ETFs in the US, which began trading on January 11.
This influx of investments indicates a growing interest in Bitcoin, extending beyond the traditional base of digital asset enthusiasts.
Yesterday, Eric Balchunas posted the following on X:
“It’s official…the New Nine Bitcoin ETFs have broken all time volume record today with $2.4b, just barely beating Day One but about double their recent daily average. $IBIT went wild accounting for $1.3b of it, breaking its record by about 30%.”
Bitcoin Rally Outshines Traditional Assets
Surprisingly, Bitcoin’s rally this year has outperformed traditional assets like stocks and gold. The ratio comparing the price of Bitcoin to that of the precious metal has reached its highest level in more than two years, indicating a shift in preference among investors towards digital assets.
The total value of digital assets, including several cryptocurrencies, now stands at a staggering $2.2 trillion, a substantial increase from the lows experienced during the 2022 bear market, when the market value fell to around of 820 billion dollars. This resurgence demonstrates the resilience and growing importance of digital assets in the financial landscape.
Contrary Market Indicators Fail to Deter Crypto Momentum
In an intriguing development, despite a rise in US Treasury yields, which typically signals expectations of tighter monetary policy, bullish momentum in the cryptocurrency market remains resilient.
Digital tokens like Bitcoin are experiencing notable upward movements, defying conventional market indicators. Fundstrat Global Advisors head of digital asset strategy Sean Farrell noted in a recent statement that “cryptocurrency bullish momentum is building despite a rally in rates,” highlighting the unique dynamics influencing the cryptocurrency market.”
MicroStrategy Boosts Corporate Bitcoin Holdings
Amid this ongoing rally, MicroStrategy, a prominent enterprise software company known for incorporating Bitcoin into its corporate strategy, has announced a major addition to its cryptocurrency holdings.
The company revealed that it had purchased an additional 3,000 Bitcoin tokens this month, bringing its total Bitcoin holdings to approximately $10 billion. This strategic move by MicroStrategy highlights the growing acceptance of cryptocurrencies as a valuable asset by corporate entities.
By Audy Castaneda
