Bitcoin continues to rise, hitting a two-year high on Tuesday (February 27), surpassing $57,000 as big buyers flock to the cryptocurrency market.
The value of the digital currency has increased by more than 10% in just two sessions, Reuters reported on Tuesday.
According to the report, the recent surge in Bitcoin prices may be due in part to the entry of large companies into the market. For example, crypto investor and software company MicroStrategy announced on Monday (February 26) that it had bought 3,000 Bitcoins for $155 million, further fueling the rally.
Additionally, the approval of an exchange-traded fund (ETF) to hold Bitcoin in the US has also contributed to the Bitcoin bull market, the report said.
Ether, Bitcoin's smaller rival, also saw a significant rally, topping $3,200 for the first time since 2022, according to the report.
According to the report, Bitcoin's rally comes ahead of the Bitcoin halving event scheduled for April, which is expected to further reduce Bitcoin's supply. This event, coupled with increased demand for the cryptocurrency, pushed Bitcoin's value up 32% in February.
Market participants are also hopeful that the Spot Ether ETF may receive regulatory approval, which could further push Ethereum prices higher, the report said.
According to the report, the cryptocurrency market is rapidly maturing, with major companies such as Reddit investing in Bitcoin, Ether, and other digital assets. Reddit also said it uses these digital assets to pay for certain virtual goods.
The news comes about two weeks after Bitcoin hit $50,000 for the first time in 26 months. When Bitcoin reached that milestone on February 12, it was the first time since December 2021 and marked a recovery for the digital asset, which plunged 64% in value in 2022.
Venture capital (VC) firms are also returning to the crypto and Web3 space, PYMNTS reported on Friday (February 23). These investors appear to be more focused on infrastructure businesses than in the past, with funding directed less towards service providers and more focused on building out the underlying ecosystem.
Small investors are also returning to crypto, but with less enthusiasm than before. These everyday crypto enthusiasts, who lost billions of dollars in the 2022 market crash, could be returning to the world of crypto with the launch last month of a US ETF that invests directly in Bitcoin. .
