Bitcoin, the world’s pioneering cryptocurrency, experienced a 3.79% increase in value within a 24-hour period, reaching $58,504 at 8:20 am UTC. This marks the first time in two years and three months that Bitcoin has reached this level. On a weekly basis, Bitcoin has surged by over 13.5%, while on a monthly basis, it has seen a remarkable increase of over 38%, according to data from CoinMarketCap.
The surge in Bitcoin’s price follows the recent news that MicroStrategy, led by Michael Saylor, has acquired an additional 3,000 BTC, bringing their total holdings to 193,000 BTC. The company purchased these Bitcoins for a total of $155 million, at an average price of $51,813, between February 15 and 25. As a result, MicroStrategy now holds the largest amount of Bitcoin among publicly traded companies, with a total acquisition value of $6.09 billion and an average purchase price of $31,544.
Mikkel Morch, the founder of digital asset investment fund ARK36, believes that MicroStrategy’s latest purchase is the main catalyst behind this price rally. In a research note shared with Cointelegraph, Morch stated that this institutional endorsement has significantly contributed to Bitcoin’s surge.
The overall cryptocurrency market capitalization has increased by 2.85% in the past 24 hours, reaching $2.19 trillion. On February 27, the market capitalization surpassed $2 trillion as Bitcoin surpassed $57,000. This surge was driven by a combination of inflows into Bitcoin exchange-traded funds (ETFs) and a positive sentiment among crypto investors.
Morch predicts that both Bitcoin and Ether (ETH) could reach new all-time highs in the coming weeks. This is due to the anticipation of the upcoming Bitcoin halving and the potential approval of a spot Ether ETF in the United States.
On February 28, the nine spot Bitcoin ETFs recorded a combined trading volume of over $2 billion for the second consecutive day. This indicates that Bitcoin ETFs account for approximately 75% of new investments, according to CryptoQuant.