Bitcoin approaches $60,000 after 3.7% daily gain

The last time Bitcoin traded at similar levels was in November 2021, before correcting from its all-time high of $68,789.

Bitcoin, the world’s first cryptocurrency, rose 3.79% in the 24 hours leading up to 8:20 am UTC, to trade at $58,504, for the first time in two years and three months.

Bitcoin (BTC) is up over 13.5% on the weekly chart and over 38% on the monthly, according to CoinMarketCap data.

Bitcoin’s price rally comes two days after the announcement that Michael Saylor’s MicroStrategy had acquired an additional 3,000 Bitcoin for a total of $155 million at an average price of $51,813 between Feb. 15 and 25. With a total of 193,000 Bitcoin acquired for $6.09 billion at an average price of $31,544, MicroStrategy is the world’s largest Bitcoin holder among publicly traded companies.

MicroStrategy has acquired an additional 3,000 BTC for ~$155 million at an average price of $51,813 per #bitcoin. As of 2/25/24, @MicroStrategy now hodls 193,000 $BTC acquired for ~$6.09 billion at an average price of $31,544 per bitcoin. $MSTR https://t.co/micudbYf3P

— Michael Saylor⚡️ (@saylor) February 26, 2024

According to Mikkel Morch, founder of the digital asset investment fund ARK36, MicroStrategy’s recent purchase is the institutional endorsement mainly fueling this rally. Morch wrote, in a research note shared with Cointelegraph:

“This rally is not just numbers on a chart; it’s a declaration of the confidence among institutional investors in the transformative potential of cryptocurrencies… Moreover, the green light for Bitcoin-owning ETFs in the United States has injected a fresh wave of optimism, propelling trading volumes and spotlighting crypto-linked firms amidst a broader market fraught with apprehension.”

The total crypto market capitalization increased 2.85% in the past 24 hours to $2.19 trillion. The industry recaptured the $2 trillion market capitalization on Feb. 27, as Bitcoin breached $57,000, bolstered by a combination of Bitcoin ETF inflows and improving crypto investor sentiment.

According to Morch, we could see a new all-time high for both Bitcoin and Ether in the next couple of weeks, driven by the anticipation of the upcoming Bitcoin halving and the potential acceptance of a U.S. spot Ether ETF. He wrote:

“The anticipation swirling around the approval of spot Ether ETFs further underscores the maturation of the cryptocurrency market. It recognition of Ethereum’s role not just as a digital currency, but as an infrastructure backbone for a future where finance and technology merge more seamlessly.”

The nine spot Bitcoin ETFs recorded combined trading volumes of over $2 billion for the second consecutive day on Feb. 28.

Related: Bitcoin ETFs account for about 75% of new investments — CryptoQuant