The price of Bitcoin has risen to its highest level in two years

The price of cryptocurrency Bitcoin rose 10% in two days to trade above $56,000, the highest level since November 2021.

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Large investments in the currency increased, leading to an increase in its value.

The CoinDesk Bitcoin (XBX) price index rose to $56,940.18 (€52,472.08) in the past 24 hours, but fell to around $56,500 (€52,0660) on Tuesday morning in Europe.

The rally was fueled by investor demand from exchange-traded funds and additional buying by MicroStrategy Inc.

Cryptocurrency investor and software company MicroStrategy has announced a massive purchase of 3,000 bitcoins for $155 million (€143 million).

Cryptocurrencies are increasingly favored by institutional investors.

“According to CoinShares, investments in cryptocurrency funds increased to $598 million (€551 million) last week, following a record $2.452 billion (€2.26 billion) in the previous week,” said FxPro's chief market analyst Alex Kupczykevich. “Investments in bitcoin increased to $570 million (€570 million) increased.”

The total value of the cryptocurrency market is more than $2 trillion (€1.84 trillion), which is equivalent to the GDP of Italy, the third largest economy in the European Union.

How Much Will Bitcoin Price Go Up?

According to a recent report, Bitcoin is expected to reach a new record high of $88,000 (€82,000) throughout 2024.

The recent approval of Bitcoin-owned exchange-traded funds (ETFs) has made Bitcoin available to a wider range of investors, sending prices soaring.

“There's a lot of supply… but the demand unleashed by spot ETFs in the US appears to be relentless,” Justin Danithan of digital asset markets firm Kerogg told Reuters.

“Bitcoin and Ethereum,” Kubtsikevich said [ثاني أكبر عملة مشفرة في العالم] “These are the two cryptocurrencies of choice for institutional speculators,” he said, whose ETFs are expected to be approved later this year and could see more investors flock to these assets.

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“Bitcoin is gaining popularity in countries with persistently high inflation rates,” Kupczykevich said, citing cryptocurrency exchange Bitfinex's view on the matter. He added, “Macroeconomic risks this year have made gold and silver to cryptocurrency buys relevant.”

Analyst Wikipedia doesn't see any major barriers to upside, with “a historic high of $69,000 (63,585 euros),” leaving expectations that the price will soon hit six figures.

Kupcikiewicz believes the price will rise to more than $100,000 (€92,500) within the next nine to 12 months. But he added: “If markets come under pressure due to an economic slowdown, it could take more than a year to reach a new level.”

Disclaimer: The information contained in the message does not constitute financial advice. Always be sure to do your own research, and while we as a magazine site offer you guidance and advice from experts, your reliance on the information on this page is entirely at your own risk.

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