The largest cryptocurrency in the world by market capitalization, Bitcoin, continued its upward trend in Asian trade on Tuesday, hitting a two-year high of almost $56,000 and boosting the whole cryptocurrency market amid encouraging market developments and purchases from bulls.
According to statistics from CoinMarketCap, the price of bitcoin rose by more than 10% in only two days after software and cryptocurrency investment business MicroStrategy said on Monday that it had bought over 3,000 bitcoins for $155 million.
Alesia Haas, the CFO of Coinbase, told CNBC this week that the company’s recent impressive financial performance were due to the regulatory approval of spot bitcoin ETFs in the U.S. last month, which sparked a fresh interest in cryptocurrencies.
The rising price of bitcoin, according to VDX’s Yuan, also reflects the “bullish sentiment of investors, especially in the U.S.”, in anticipation of the impending “bitcoin halving,” which is scheduled for the second half of April.
Every four years, there is a bitcoin halving event. During this time, the incentive for mining bitcoins, which is how transactions are digitally confirmed on the blockchain, is halved. This lowers the rate at which new tokens are created and the total quantity of new supply that is accessible.
Investors are scrambling to get the greatest positions for the impending Bitcoin halving. Another check on investor confidence for optimistic sentiment is the newly recorded number of inflows into Bitcoin ETFs, Yuan continued.