February 28, 2024 at 10:51 GMTModified date: February 28, 2024 at 10:51 GMT
February 28, 2024 at 10:51 GMT

Bitcoin surges closer to all-time high as crypto market tops $2 trillion

Bitcoin is gaining closer to the key $60,000 psychological price barrier and JPMorgan analysts anticipate BTC to maintain these gains.

Bitcoin surges closer to all-time high as crypto market tops $2 trillion

Bitcoin ($BTC) soared above $59,000 on Wednesday for the first time in over two years. This recent surge brings the world’s leading cryptocurrency within reach of its all-time high of $68,789, set back in November 2021. 

The digital asset has seen a notable increase, rising by 14% over the past week and 40% throughout the month. The momentum is largely attributed to the excitement generated by the introduction of several spot Bitcoin exchange-traded funds (ETFs) that began trading in January.

The resurgence of Bitcoin’s value not only rekindles memories of the 2021 boom but also tests market optimism, potentially pushing the cryptocurrency towards new record levels. Investors are now keen to see if it can surpass previous benchmarks and stabilise at these newfound heights.

Institutional acceptance fuels Bitcoin rally

This year, Bitcoin has outperformed traditional investment assets, including stocks and gold. The price ratio of Bitcoin to gold is at its highest level in over two years, indicating a growing preference for digital currencies over traditional safe-haven assets.

Notably, major firms are now changing their stance on Bitcoin. JPMorgan, a major financial institution, has revised its outlook on cryptocurrencies amid the Bitcoin rally. The bank’s analysts, including Kenneth Worthington, have noted an improvement in the cryptocurrency market’s conditions. 

In a client note, they stated: “We see the higher cryptocurrency prices not only sustaining but improving.” They also linked the appreciation of Bitcoin to increased flows into spot Bitcoin ETFs, which they believe is driving the price higher and positively impacting other digital tokens.

Meanwhile, crypto companies are benefiting from the recent rally. MicroStrategy, a significant player in the Bitcoin market, disclosed its recent acquisition of an additional 3,000 bitcoins, valued at $155 million, purchased between February 15 and February 25. This purchase increases the company’s total holdings to about 193,000 bitcoins, worth approximately $11 billion.

A revitalised crypto market

The enthusiasm surrounding Bitcoin has spilled over to the broader cryptocurrency market. The total market capitalization has once again breached the $2 trillion mark, a level not seen since April 2022. This revival in market sentiment is mirrored by substantial gains across various cryptocurrencies.

Altcoins such as Solana ($SOL), $XRP, Cardano ($ADA), Dogecoin ($DOGE) and Avalanche ($AVAX) have all seen appreciable gains in the past 24 hours. The global crypto market value has jumped by 3.4% in the past 24-hours, pushing it to a 22-month high of $2.2 trillion, according to CoinMarketCap.