Bitcoin breaks from recent range to set more than two-year high

BITCOIN rose to the best in additional than two years, climbing above US$54,000, amid rising optimism that persistent investor demand via exchange-traded funds (ETFs) will drive the value of the biggest cryptocurrency again to file ranges.

“Bitcoin continues its ascent, supported by strong ETF inflows,” stated Spencer Hallarn, international head of over-the-counter buying and selling at crypto funding agency GSR.

The unique digital foreign money elevated as a lot as 5.2 per cent to US$54,438 after buying and selling in a slim vary for greater than every week. It final traded at this stage in December 2021, and reached an all-time excessive of just about US$69,000 the prior month.

Investors have poured greater than US$5 billion into 9 ETFs that started buying and selling final month. That determine takes into consideration the US$7.4 billion that has been withdrawn throughout the identical interval from the Grayscale Bitcoin Trust, which was transformed from a belief.  

“Bitcoin is approaching new yearly highs off the back of increased spot demand and momentum traders taking positions off the back of a breakout after a week of consolidation,” stated Chris Newhouse, a DeFi analyst at Cumberland Labs. “Interestingly enough, liquidations are not too excessive for the current price action, and shorts who were liquidated were quickly replaced with leveraged longs.”

The open curiosity, or the variety of excellent contracts, for perpetual Bitcoin futures has seen a noticeable enhance, Newhouse stated. At the identical time, quick positions have been pressured to be closed within the newest rally. That could also be the results of recent lengthy positions available in the market, he stated.

Adding to the optimism round Bitcoin was one other giant buy of the tokens by MicroStrategy. The enterprise software program agency, which has made shopping for Bitcoin as a part of its company technique, stated on Monday (Feb 26) that it bought one other 3,000 or so of the cryptocurrency tokens this month for US$155.4 million. It owns about US$10 billion in Bitcoin.  

Shares of MicroStrategy jumped round 14 per cent, whereas different crypto-relate shares additionally rallied. Coinbase Global rose 14 per cent and Bitcoin miner Marathon Digital jumped virtually 20 per cent.

Other cryptocurrencies adopted swimsuit, with tokens for Solana and Poly every rising greater than 5 per cent. Ether, the second-biggest digital asset, gained about 2 per cent. BLOOMBERG