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  • Voltaire Staff

Bitcoin breaches $57,000-mark first time since Nov 2021, Doge in tow

Bitcoin continued its weeks-long rally and crossed $57,000 mark for the first time since November 2021 on Monday.

Memecoin Doge has followed bitcoin rally in lockstep, reaching its highest price this year to $0.096, or Rs 8.30 on Tuesday.

Bitcoin's price slightly decreased to $56,500 on Tuesday. However, it's still up more than 9 per cent in the last 24 hours. In India, it traded at Rs 46.82 lakh on Tuesday.

The CoinDesk 20 Index (CD20) also increased by 8.9 per cent during the same period.

The price of bitcoin started going up on Monday morning in the US. It passed $53,000, which it hadn't done since November 2021. Later that day, it went even higher, surpassing $54,000. Then, during the evening in the US and early morning in Asia, amid a lot of activity, it quickly passed $55,000, $56,000, and $57,000 within just a few minutes, reported CoinDesk.

Investor interest in bitcoin has been given a boost by buying through exchange-traded funds and additional purchases by MicroStrategy Inc.

MicroStrategy, a software company that invests in bitcoin as part of its business strategy, announced on Monday that it had bought around 3,000 more tokens this month. The company now holds about $10 billion worth of bitcoin.

Bitcoin's price has gone up by 33 per cent since the beginning of the year, continuing a long period of growth that has also increased interest in smaller cryptocurrencies like Ether and BNB.

The increase in bitcoin's price caused a lot of trading activity in the United States-based spot bitcoin ETFs. Excluding Grayscale's GBTC, the group saw a record-high trading volume of $2.4 billion on Monday, as reported by Bloomberg.

Eric Balchunas, senior ETF analyst on Bloomberg, posted on X "It's official... the New Nine Bitcoin ETFs have broken all time volume record today with $2.4b, just barely beating Day One but about double their recent daily average. $IBIT went wild accounting for $1.3b of it, breaking its record by about 30%."

GBTC, however, experienced its lowest one-day outflow of bitcoin since the launch of the spot ETFs on January 11. The fund lost 921 tokens.

Bitcoin has outperformed traditional assets like stocks and gold this year. A ratio comparing the price of the token to the precious metal is at the highest level in more than two years.




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