Bitcoin price today surpassed $ 57,000, a level that the cryptocurrency has not seen since the end of 2021. The increase in Bitcoin price today is majorly due to the rise helped by investors buying into the exchange-traded funds and MicroStartegy Inc. buying more Bitcoins.
The Fluctuations of the Bitcoin Price Today
The Bitcoin price today went up by 5.1%, reaching $57,443. It has already gained 12% this week.
Continuing its successful rally, Bitcoin’s price has increased by 32% since the start of the year. The rise in the worth of Bitcoin has also shown an increase in interest in other cryptocurrencies like Ether and Dogecoin.
New Bitcoin ETFs in the US got $6.1 billion in total since they started trading on January 11 showing that more people are getting interested in Bitcoin beyond its usual fanbase. Moreover, there is also a positive buzz about the upcoming halving, which will reduce the supply growth of Bitcoin.
MicroStrategy, a software company, recently bought 3000 more Bitcoin this month as a part of their business strategy, resulting in them owning about $10 billion worth of Bitcoin.
Katie Stockton, Founder of Fairlead Strategies, recently said in a note that there is a probability that Bitcoin will not have a big drop. According to CoinGecko, the total value of digital assets is around $2.2 trillion now, which is much higher compared to the $820 billion during the 2022 bear market.
Crypto prices are increasing even though expectations for looser monetary policy have reduced, which can be seen through the increase in the yields of the US Treasury.
Sean Farrell, Head of Digital-Asset Strategy at Fundstat Global Advisors, recently noted that the crypto is doing quite well even though there are high US Treasury yields.
According to the data provided by CoinGlass, around $162 million in crypto positions betting on lower prices were liquidated on Monday and Tuesday, making it one of the biggest 2-day tallies since 30 November. It has been seen that Bitcoin has done better than stocks and gold this year. When contrasted between gold and Bitcoin, it showed that the ratio comparing the price of Bitcoin to gold was at its highest level in two years.
On Monday, the shares of crypto-related companies increased in the US, where MicroStrategy rose by 16%, Coinbase Global Inc. increased by 17%, and Marathon Digital Holdings also increased by 22%.
This increase was also seen in the Asian stocks linked to digital assets. For example, Monex Group in Japan showed gains, and Woori Technology Investment Co. in South Korea also showed a rise.
History of Bitcoin
Bitcoin is one of the first cryptocurrencies launched in 2009 by an anonymous person or group using the pseudonym Satoshi Nakamoto, whose identity has never been revealed or confirmed. Gaining much popularity, Bitcoin became the world’s most valuable and well-known cryptocurrency.
From the beginning, Nakamoto capped the total supply of Bitcoin at 21 million coins. As of 12 November 2023, around 19.53 million Bitcoins exist, leaving 1.46 million yet to be mined. With each block being cut in half in a process known as Bitcoin halving by the Bitcoin mining operators, experts believe it will take until 2140 to reach the 21 million coin supply cap fully.
Nakomoto launched Bitcoin in 2009, mining about 1.1 million coins before disappearing in 2010. The development responsibility was then passed on to Gvin Andresen, leading to the decentralized structure of Bitcoin. Now, Bitcoin operates without any central authority, server, or administrator, making all peer-to-peer transactions confirmed by a distributed blockchain network.
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