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Bitcoin Tops $57,000 Price Level for First Time Since Late 2021 - BLOOMBERG

FEBRUARY 27, 2024

BY  Suvashree Ghosh and Sidhartha Shukla

(Bloomberg) -- 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 $56,085 as of 6 a.m. Tuesday in London. Bitcoin’s price has increased 32% since the turn of the year, extending a prolonged rally that has also stoked speculative appetite for smaller tokens like Ether and Dogecoin.

A net $6.1 billion has poured into a batch of landmark Bitcoin ETFs that began trading in the US on Jan. 11, signaling widening demand for the token beyond committed digital-asset enthusiasts. An upcoming reduction in Bitcoin’s supply growth, the halving, is adding to the optimistic sentiment.

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 in Bitcoin.

Read more: MicroStrategy Purchases Another 3,000 Bitcoin for $155.4 Million

“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.

Rising Yields

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.

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