Bitcoin Surges to Over Two-Year High, Breaking Recent Trading Range

Surpassing $54,000, Bitcoin reached its highest point in over Two years as investors were increasingly hopeful that the largest cryptocurrency's price would return to record highs through exchange-traded funds.

According to Spencer Hallarn, global head of over-the-counter trading at cryptocurrency investment firm GSR, "Bitcoin continues its ascent, supported by strong ETF inflows."

After trading in a limited range for more than a week, the original Digital currency rose as much as 5.2% to $54,438. It hit an all-time high of over $69,000 the previous month, and it last traded at this level in December 2021. 

Since nine ETFs went live last month, investors have put almost $5 billion into them. This amount accounts for the $7.4 billion that was removed from the Grayscale Bitcoin Trust—a trust—during the same time frame.

Due to increasing spot demand and momentum traders entering positions following a breakthrough following a week of stabilization, Bitcoin is rapidly reaching new annual highs, according to Chris Newhouse, a DeFi analyst at Cumberland Labs. It's interesting to note that shorts that were liquidated were promptly replaced by leveraged longs, suggesting that liquidations are not overly dramatic given the present price movement.

According to Newhouse, there has been a discernible rise in the perpetual Bitcoin futures open interest or the total number of outstanding contracts. In the most recent surge, short positions have to be liquidated at the same time. According to him, that may be the outcome of new long holdings in the market.

MicroStrategy Inc. made a substantial acquisition of Bitcoin tokens, which increased enthusiasm surrounding the cryptocurrency. The business plan of the enterprise software corporation includes purchasing Bitcoin. On Monday, the company announced that it had spent $155.4 million to acquire almost 3,000 more Bitcoin tokens this month. It possesses almost $10 billion worth of Bitcoin.

Along with other Crypto-related stocks, MicroStrategy's shares surged by almost 14%. The Bitcoin miner Marathon Digital increased by over 20%, while Coinbase Global increased by 14%.

Tokens for Solana and Poly both increased by more than 5% while other cryptocurrencies did the same. The second-biggest digital asset, ether, had a 2% increase.