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June 29, 2022


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Bitcoin price exceeds 57 thousand dollars for the first time since late 2021

The Bitcoin Price returned to exceed the level of 57 thousand dollars for the first time since late 2021, supported by the demand of investors via exchange-traded funds for the currency, as well as additional purchases made by the company “micro strategy” (MicroStrategy).

The digital asset advanced by about 4.4% and reached 57039 dollars before losing some gains to trade at 56473 dollars at 10:22 am on Tuesday, Singapore time.

The price of bitcoin has risen by 33% since the beginning of this year, which has led to the continuation of the long-standing and so far ongoing recovery, which also aroused the appetite of speculators to buy smaller cryptocurrencies such as Ethereum and BNP.

Bitcoin exchange-traded funds received a new USD 5.6 billion, after they started trading in the United States on January 11, which indicates the breadth of demand for the token to include new categories of the public and not just enthusiasts committed to investing in digital assets.

The upcoming Bitcoin halving event, which cuts the cryptocurrency miner’s bonus in half, also reinforces optimistic forecasts towards it.

“Micro strategist,” an enterprise software company that buys bitcoin as part of its strategy, said on Monday that it has bought 3,000 or so new coins this month. The company now owns an estimated USD 10 billion worth of bitcoin.

Bitcoin has outperformed other assets such as gold this year. “We do not expect a significant decline in bitcoin given the strength of its ascent and positive momentum in the medium term,” Katie Stockton, founder of fairled Strategies, wrote in a note.

The combined value of digital assets is now about 2.2 trillion dollars, according to the data of the company”CoinGecko” (CoinGecko), compared to a low of about 820 billion dollars during the bear market phase in 2022 when FTX and other cryptocurrency platforms collapsed.

Cryptocurrencies are also making big jumps, although investors have reduced their expectations about easing monetary policy in the United States this year, which is reflected in the rise in US Treasury bond yields. Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors, noted in a note that “the upward momentum in cryptocurrencies continues despite the fact that interest rates are still high”.

Cryptocurrency has outperformed traditional assets such as stocks and gold this year. The comparison ratio between bitcoin and the precious metal reached the highest level in more than two years.

Shares of cryptocurrency-related companies rose in the United States on Monday. The shares of “MicroStrategy” climbed 16%, while the trading platform “Coinbase Global” (Coinbase Global) increased by 17%, and the shares of the mining company “Marathon Digital Holdings” (Marathon Digital Holdings) jumped by about 22%.

Positive sentiment extended to Asian stocks related to digital assets as well, including the rise achieved by companies such as “Monex Group” (Monex Group) of Japan and”Woori technology Investment” (Woori Technology Investment) in South Korea on Tuesday.

Source: Bloomberg

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