"Bitcoin Hits $57,000: Cryptocurrency Rally Gains Momentum"
SUMMARY Propelled by purchases from large investors and booming demand through exchange-traded funds (ETFs), bitcoin hit $57,000 on Tuesday for the first time in over two years. The market is recovering from dire circumstances in 2022 caused by the collapse of major players like Sam Bankman-Fried's FTX, Celsius, and Three Arrows.Important Information
In the early hours of the morning in Asia and the late evening in the United States, the price of bitcoin momentarily crossed the $57,000 threshold for the first time since late 2021.
For the first time since November 2021, bitcoin prices broke through the $53,000 barrier on Monday. On Tuesday, they quickly increased to $57,000 in a matter of minutes.
Even while the digital asset gave up some of its gains, it was still up almost 10% from the previous day's closing price when it was traded at 5 a.m. Eastern.
The rise of bitcoin is a component of a larger upswing in the cryptocurrency markets, as ether's price hit $3,274 on Tuesday.
The price of ether has increased by almost 7% in the last day and is at its highest point since April 2022.
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The surge in the two largest cryptocurrencies in the world by market capitalization, ether and bitcoin, is part of a larger trend in the digital asset economy that has been ongoing for some months. Since the beginning of the year, ether has climbed by more than 40% and bitcoin by around a third (33%) respectively. The first-ever authorization of bitcoin exchange-traded funds (ETFs) by the Securities and Exchange Commission in January, together with the revelation of significant bitcoin holdings by investors such as MicroStrategy, have all contributed to heightened investor anticipation. There is also optimism that ether ETFs will soon receive permission. The market is still below its peak from late 2021, when its total worth momentarily surpassed $3 trillion. It's still recovering from a string of crashes that began at the end of that year and were caused by a number of high-profile failures and scandals. These included the collapse of Bankman-Fried's FTX exchange, the failure of market institutions like investor Three Arrows Capital and lender Celsius, as well as stablecoins like Tether and terraUSD (UST), which were supported by token luna and slipped their $1 pegs, with the latter network failing catastrophically and wiping out billions of value.
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Another factor that can spur market expansion is the impending bitcoin halving event. The event has traditionally increased the price of the token since it reduces the amount of bitcoin that is rewarded for "mining" the cryptocurrency and is a component of its mathematical foundation to limit supply. When a certain amount of blocks—portions of the distributed blockchain of records and data—are mined, a halving occurs. Experts estimate that bitcoin will cross the next barrier in April 2024.$2.23 trillion. According to Forbes, the entire cryptocurrency industry is valued at that amount. In the past day, the market's worth has increased by almost 7%. Much of this rise can be attributed to the recent surge in ether and bitcoin, which together account for 17.3% and 44.5% of the entire cryptocurrency market.