Bitcoin tops $55,000 price level for first time since late 2021

Shares of crypto-related companies gained in the US on Monday. MicroStrategy rose 16%, trading platform Coinbase Global Inc. increased 17% and miner Marathon Digital Holdings Inc. jumped 22%

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Bitcoin retook the $57,000 level for the first time since late 2021, supported by investor demand through exchange-traded funds as well as further purchases by MicroStrategy Inc.

The digital asset added as much as 4.4% to reach $57,039 before paring some of the jump to trade at $56,473 as of 10:22 a.m. Tuesday in Singapore. Bitcoin’s price has increased 33% since the turn of the year, extending a prolonged rally that has also stoked speculative appetite for smaller tokens like Ether and BNB.

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A net $5.6 billion has poured into a batch of landmark Bitcoin ETFs that began trading in the US on Jan. 11, signaling a widening of demand for the token beyond committed digital-asset enthusiasts. An upcoming reduction in the token’s supply growth, the halving, is adding to the optimistic sentiment.

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MicroStrategy, an enterprise software firm that buys Bitcoin as part of its corporate strategy, said Monday that it had purchased another 3,000 or so tokens this month. The company now owns about $10 billion.

“We do not expect a major pullback from Bitcoin given its breakout and positive intermediate-term momentum,” Katie Stockton, founder of Fairlead Strategies, wrote in a note.

The combined value of digital assets now stands at roughly $2.2 trillion, according to CoinGecko, compared with a low of about $820 billion during the bear market of 2022 when FTX and other crypto platforms collapsed.

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Digital tokens are jumping even though investors have pared back expectations for looser monetary policy this year, evidenced by a rise in US Treasury yields.

“Bullish momentum in crypto is unfolding despite an uptick in rates,” Fundstrat Global Advisors Head of Digital-Asset Strategy Sean Farrell wrote in a note.

Bitcoin has outperformed traditional assets like stocks and gold this year. A ratio comparing the price of the token to the precious metal is at the highest level in more than two years.

Shares of crypto-related companies gained in the US on Monday. MicroStrategy rose 16%, trading platform Coinbase Global Inc. increased 17% and miner Marathon Digital Holdings Inc. jumped 22%.

The positive sentiment spread to Asian stocks related to digital assets, including advances Tuesday in companies such as Japan’s Monex Group and Woori Technology Investment Co. in South Korea.

 

Source:bloomberg

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