Wow. Bitcoin’s surge is starting again. News that investors who left are also returning in large numbers

Wow. Bitcoin’s surge is starting again. News that investors who left are also returning in large numbers

~ Bitcoin, the virtual currency market leader, which had been locked in the box sector, rose to the highest level in more than two years as it started its upward trend again.

According to Coinbase, a U.S. cryptocurrency exchange, on the 26th (local time), the price per bitcoin was traded at $53,481, up 3.74% from 24 hours ago as of 1:40 p.m. ET (10:40 a.m. EDT).

It is the first time since December 2021 that Bitcoin has exceeded $53,000. Since touching $52,000 on the 14th, Bitcoin has moved up and down the $51,000 mark over 10 days.

However, after soaring nearly 5% from $51,200 during the day to $53,600 in two hours, it is now crossing the $54,000 mark.

At the same time, Ethereum, the second-largest market capitalization, also rose 2.54% to $3,139.

Bloomberg analyzed that the rise comes amid growing optimism that continued investor demand through spot ETFs will push bitcoin prices back to record levels.

Spencer Harlan, global head of unlisted transactions at virtual currency investment company GSR, said on the same day, “Bitcoin continues to rise thanks to strong ETF inflows.”

Investors have poured more than $5 billion into nine ETFs since the Bitcoin ETF began trading last month.

“Bitcoin is due to rising demand and momentum traders (short-term trading investors) buying after a week-long period of stability,” said Chris Newhouse, an analyst at Comberland Labs. “What’s interesting is that selling for the current price is not big, and the liquidated short position (selling for expecting a fall in price) is quickly replaced by the leveraged long position (buying for expecting a rise in price).”

He added, “The number of open interest on Bitcoin futures (contracts that investors buy or sell futures and options contracts and hold without counter-selling them) has increased noticeably.”

It is analyzed that the announcement of MicroStrategy, the largest holding company in Bitcoin, also led to the rise in Bitcoin.

The company said on the same day that it has purchased an additional 3,000 cryptocurrencies for $155.4 million this month. The company holds about $10 billion in Bitcoin.