Bitcoin tops US$57,000 for first time since late 2021
Sign up now: Get ST's newsletters delivered to your inbox
Bitcoin’s price has increased by 32 per cent since the turn of the year, extending a prolonged rally.
PHOTO: REUTERS
Follow topic:
Singapore – Bitcoin retook the US$57,000 (S$76,600) level for the first time since late 2021, supported by investor demand through exchange-traded funds (ETFs) as well as further purchases by MicroStrategy.
The largest digital asset added as much as 4.4 per cent to reach US$57,039 before paring some of the gain to trade at US$56,085 as of 6am in London on Feb 27. Bitcoin’s price has increased 32 per cent since the turn of the year, extending a prolonged rally that has also stoked speculative appetite for smaller tokens like Ether and Binance Coin.
A net US$6.1 billion has poured into a batch of landmark Bitcoin ETFs that began trading in the United States on Jan 11, signalling 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.
MicroStrategy, an enterprise software firm that buys Bitcoin as part of its corporate strategy, said on Feb 26 that it had purchased another 3,000 or so tokens in February. The company now owns about US$10 billion in Bitcoin.
“We do not expect a major pullback from Bitcoin, given its breakout and positive intermediate-term momentum,” Ms Katie Stockton, founder of Fairlead Strategies, wrote in a note to clients.
The combined value of digital assets now stands at roughly US$2.2 trillion, according to CoinGecko, compared with a low of about US$820 billion during the bear market of 2022 when FTX and other crypto platforms collapsed.
Digital tokens are jumping even though investors have pared back expectations for looser monetary policy in 2024, evidenced by a rise in US Treasury yields.
“Bullish momentum in crypto is unfolding despite an uptick in rates,” Mr Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors, wrote in a note.
Coinglass data showed that about US$162 million worth of crypto trading positions betting on lower prices have been liquidated over Feb 26 and 27, one of the biggest two-day tallies since at least Nov 30.
Bitcoin has outperformed traditional assets like stocks and gold in 2024. A ratio comparing the price of the token to that of the precious metal is at the highest level in more than two years.
Shares of crypto-related companies rallied in the US on Feb 26. MicroStrategy rose 16 per cent, trading platform Coinbase Global increased 17 per cent and miner Marathon Digital Holdings jumped 22 per cent.
The positive sentiment spread to Asian stocks related to digital assets, including advances on Feb 27 in companies such as Japan’s Monex Group and Woori Technology Investment in South Korea. BLOOMBERG
