2024-02-28 05:03:26
The price of the cryptocurrency Bitcoin rose 10% in two days and was trading at more than $56,000, the highest level since November 2021.
Announcement
Large investments in the currency increased, leading to an increase in its value.
The CoinDesk Bitcoin (XBX) price index peaked at $56,940.18 (€52,472.08) in the past 24 hours but the index fell to around $56,500 (€52,0660) by Tuesday morning in Europe.
The rally was fueled by investor demand through exchange-traded funds as well as additional buying by MicroStrategy Inc.
Cryptocurrency investor and software company MicroStrategy has announced the purchase of large quantities of 3,000 bitcoins for $155 million (€143 million).
Cryptocurrencies are increasingly favored by institutional investors.
“According to CoinShares, investment in cryptocurrency funds rose by $598 million (551 million euros) last week, following a record inflow of $2.452 billion (2.26 billion euros) the previous week,” said Alex Kubtsikevich, chief market analyst at FxPro. “Investments in Bitcoin rose by $570 million (€570 million).”
The total value of the cryptocurrency market exceeds $2 trillion (€1.84 trillion), roughly equivalent to the GDP of Italy, the third-largest economy in the European Union.
How high can the price of Bitcoin rise?
According to a recent report, Bitcoin is expected to reach a new record high of $88,000 (€82,000) throughout 2024, before stabilizing at around $77,000 (€70,957) at the end of the year.
The recent approval of Bitcoin-owned exchange-traded funds (ETFs) has made Bitcoin available to a wider range of investors, sending prices soaring.
“There is only so much supply… but the demand unleashed by spot ETFs in the US appears to be relentless,” Justin Dannithan of digital asset market firm Kerok told Reuters.
“Bitcoin and Ethereum,” Kubtsikevich said [ثاني أكبر عملة مشفرة في العالم] “They are the two cryptocurrencies of choice for institutional speculators,” he said, adding that its ETFs are expected to be approved later this year, which might see more investors flocking to these assets.
“Bitcoin is gaining popularity in countries with persistently high inflation rates,” Kubtsikevich said, citing cryptocurrency exchange Bitfinex’s view on the matter. He added, “The macroeconomic risks this year make it appropriate to buy the first cryptocurrency, which is gold and silver.”
The analyst does not see any major obstacles to Bitcoin’s rise “around the historical highs of $69,000 (63,585 euros),” as expectations for the price to rise quickly inspire optimism that it will soon reach six figures.
Kubtsikevich believes the price is likely to rise to more than $100,000 (€92,500) between the next nine and 12 months. But he added: “If markets come under pressure due to the economic slowdown, it may take more than a year to reach a new level.”
Disclaimer: The information contained in the news does not constitute financial advice. Always make sure to do your own research, and although we, as a journalistic site, provide you with guides and advice from experts, your reliance on the information contained on this page lies entirely at your own risk.
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