Written by Amanda Cooper and Tom Westbrook
LONDON/SINGAPORE (Reuters) – Bitcoin hit a two-year high on Tuesday on signs that major corporations are buying the cryptocurrency, while smaller rival Ether topped $3,200 for the first time since 2022. .
Bitcoin has tumbled more than 10% in two transactions, helped in part by crypto investor and software company MicroStrategy's recent disclosure Monday that it spent $155 million to buy about 3,000 bitcoins. Rose.
The original and largest cryptocurrency by market value has also received a recent boost from the approval of an exchange-traded fund (ETF) to own Bitcoin in the United States. Trading volumes for several funds surged on Monday, in contrast to a jittery broader market, and crypto companies also rallied.
Bitcoin rose to $57,036 in Asia mid-morning, its highest level since late 2021. Ether rose to $3,275, its highest price since April 2022.
“Supply is limited… but the demand unleashed by US spot ETFs appears to be relentless,” said Justin Danesan, head of Asia partnerships at digital asset market maker Keylock.
The main incentive now is the Bitcoin halving event in April. This process slows the release of Bitcoin by cutting the reward for token generation in half, although the supply of Bitcoin is limited to 21 million, of which 19 million have already been mined. It is an object.
Bitcoin's value has risen 32% so far in February, on track for its biggest one-month gain since January 2023, and the momentum is growing beyond the investment community.
Social media platform Reddit, which filed to list its stock on the New York Stock Exchange on February 22, announced it has invested some of its surplus cash into Bitcoin, Ether, and Matic, the Polygon Network's native token. A form of payment for the sale of certain virtual goods.
Ether hit a two-year high near $3,220, up 1.1%, but it has risen even faster this month, heading for a 41% gain.
Expectations among market participants are rising regarding the possibility of regulatory approval for the Spot Ether ETF, which is contributing to the recent price increase.
“Following the recent launch of various Bitcoin ETFs, the potential for a Spot Ethereum ETF is a further development for traders and investors alike,” DailyFX senior strategist Nick Crowley said in a note. said.
“This represents further maturation of the crypto market and recognition of the role of Ethereum in the future of cryptocurrencies in the financial system.”
(Editing by Tom Hogue, Kim Coghill, Louise Heavens)
