Bitcoin soared to a two-year peak above $57,000 in Asia on Tuesday, fueled by significant institutional investment, while its smaller counterpart, ether, reached over $3,200 for the first time in two years. The surge in Bitcoin’s value, over 10% in just two sessions, was partly triggered by an announcement from cryptocurrency investor and software company MicroStrategy that it had acquired around 3,000 bitcoins for $155 million.
The surge in the value of Bitcoin, the foremost and biggest cryptocurrency by market cap, has also been supported by the U.S. approval of Bitcoin-backed exchange-traded funds (ETFs). On Monday, these funds saw a spike in trading volumes, and companies linked to cryptocurrencies also experienced a rally, offering a stark contrast to the otherwise anxious market atmosphere.
In a single day, exchanges saw the forced closure of over 80,000 Bitcoin short positions, totaling $187 million.
The crypto market’s fear and greed index has re-entered the “extreme greed” zone, scoring 79 out of 100.
Trading volumes for spot Bitcoin ETFs in the U.S. hit a daily record of over $2.4 billion, the highest since their introduction in January.