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Bitcoin has reached a new yearly high far above $56,000, marking its first high since December 2021. At the time of writing, the most important crypto asset is trading at $57200, up 4.91%.
Professional investors at finance firms have piled into Bitcoin derivatives, with open interest for Bitcoin futures contracts reaching about $22 billion, unseen since the end of the bull market in November 2021. The asset has lulled both retail and institutional investors, with some predicting it could rise to as much as $500,000 over the next five years, while others estimate it will reach $170,000 by 2025.
Bitcoin is widely believed to be on an 18-month path to $150,000, driven by unprecedented institutional adoption. In options markets, traders holding long Bitcoin positions are willing to pay a premium to maintain those trades, with funding rates for USD-margined perpetual options reaching their highest point in over a month. It is worth noting that Bitcoin’s price is less than 20% below its record $68,992, reached in November 2021.
Bitcoin has reached a two-year high on Tuesday, inching its way to an all-time record high. The original crypto currency rallied for the second day on Tuesday, surpassing $57,000 for the first time since 2021.
Since the start of the year, bitcoin has risen 28% as result of renewed interest in the digital currency after the U.S. approved the first bitcoin spot ETFs. A technical event called halving, which restrains the mining of new bitcoins, is approaching in April and has also contributed to rising demand.
Bitcoin is just over $10,000 away from the all-time high it hit in November 2021, of over $68,000. Recent transactions in the cryptocurrency market have led to bitcoin gaining more than 10% in value over the past two days. MicroStrategy, an enterprise software and cloud service firm, revealed Monday that it has bought this month 3,000 bitcoin for $155.4 million. The company now owns a total of 193,000 coins worth about $10 billion. Over $6 billion have entered the market since spot bitcoin ETFs began trading in January.
Another contributor to the digital currency’s hot demand is its upcoming “halving” event. In April, reward miners get will be halved from 6.25 bitcoin to 3.125, which happens every four years and will continue until all 21 million bitcoins are mined. The market cap of all bitcoin has surpassed $1 trillion this year, bringing the market cap of all cryptocurrencies to $2 trillion.
Ethereum, a smaller cryptocurrency, is up 7% to $3,274. The stock of the crypto exchange Coinbase has risen 6% during premarket trading, with its share price jumping 16% yesterday. Bitcoin miner Riot Platforms is up 5% this morning.
