Bitcoin price breaks through $54,000, reaching the highest level in over two years.

Zhitong
2024.02.26 22:38
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Bitcoin price has surged past $54,000, reaching its highest point in over two years. Investors' continued demand for Exchange-Traded Funds (ETFs) is expected to drive Bitcoin prices back to the record levels seen in November 2021. MicroStrategy once again made significant purchases of Bitcoin, boosting optimism around the cryptocurrency. The company has integrated buying Bitcoin into its corporate strategy. By the end of Monday's trading session, MicroStrategy's stock price had risen by over 15.8%. Stocks related to cryptocurrencies, such as Coinbase and Marathon Digital, have also experienced a rebound.

Zhitong App learned that on Monday, the price of Bitcoin surged past $54,000, reaching its highest point in over two years. Optimism towards Bitcoin is growing as investors believe the continued demand for Exchange-Traded Funds (ETFs) will drive the price of Bitcoin back to the record levels seen in November 2021.

Cryptocurrency investment firm GSR's Global Head of Over-the-Counter Trading, Spencer Hallarn, stated, "With the ongoing influx of funds into ETFs, Bitcoin will continue to rise."

Investors have poured over $5 billion into 9 ETFs that started trading last year. This figure also takes into account the $7.4 billion withdrawn from the Grayscale Bitcoin Trust during the same period.

Chris Newhouse, a DeFi analyst at Cumberland Labs, mentioned, "With the increase in spot demand, Bitcoin prices are nearing yearly highs. Momentum traders quickly entered the market for long positions after a week of consolidation. Interestingly, despite the price increase, there hasn't been significant profit-taking, and short positions that were closed were quickly replaced by leveraged long positions."

Newhouse pointed out a significant increase in the number of open or unsettled contracts for perpetual Bitcoin futures. Meanwhile, short positions were forced to close during the recent uptrend. He suggested that this might be a result of new long positions emerging in the market.

MicroStrategy (MSTR.US) once again made a substantial purchase of Bitcoin, further boosting optimism towards Bitcoin. The enterprise software company has integrated buying Bitcoin into its corporate strategy. On Monday, the company announced that it had purchased around 3,000 cryptocurrency tokens for approximately $155.4 million, increasing its Bitcoin holdings to around $10 billion.

By the end of Monday's trading session, MicroStrategy's stock price had surged over 15.8%, and other cryptocurrency-related stocks also saw a rebound, with Coinbase (COIN.US) rising over 16% and Marathon Digital (MARA.US) increasing by more than 21%.

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