Bitcoin hits a two-year high

Bitcoin has rallied over 10% in two sessions, helped by Monday’s disclosure from crypto investor and software firm MicroStrategy that it had recently bought around 3,000 bitcoins for an outlay of $155 million

Bitcoin hit a two-year high on Tuesday, on track for its biggest two-day rally this year, on signs big players were buying the crypto currency, while smaller rival ether topped $3,200 for the first time since 2022.

The biggest crypto currency by market value has also been buoyed recently by the approval of bitcoin-owning ETFs in the US. On Monday, trading volumes in several of the funds soared and crypto-linked companies rallied too, in contrast to nervous wider markets.

Bitcoin was 4.7% higher at $57,232, while ether hit $3,290, its highest since April 2022.

There is only so much supply but the demand unleashed by the U.S. spot exchange-traded funds seems to be relentless, said Justin d’Anethan, head of partnerships in Asia at Keyrock.

Bitcoin has added 32% in value so far in February, heading for its biggest one-month gain since January 2023, and momentum is building beyond the investment community.

Social media platform Reddit, which on February 22 filed to list its shares on the New York Stock Exchange (NYSE), said it had invested a small portion of its excess cash reserves in bitcoin, ether and matic, the native token of the Polygon network, as a form of payment for sales of certain virtual goods.

Ether has advanced at an even faster pace this month, heading for a 41% gain.

Anticipation is growing among market participants over the possible regulatory approval of spot ether exchange-traded funds, which has helped this latest rise in price.

The prospect of a spot ethereum ETF is a further development for traders and investors alike after the recent launch of a variety of bitcoin exchange-traded funds, DailyFX senior strategist Nick Crawley said in a note.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Scommerce. The information provided on Scommerce is intended for informational purposes only. Scommerce is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.