- Bitcoin has resumed an upward trajectory.
- The crypto asset’s price reached a new yearly high on Tuesday.
- Such a price level was last seen in 2021.
Bitcoin (BTC), the largest crypto asset by market capitalization, tapped a new yearly high on Tuesday, surpassing a price mark last seen in December 2021.
Following a bullish trend that saw the asset hover slightly above the $50,000 price point for the better part of last week, BTC has resumed an upward momentum, gaining as much as 8.58% in the last 24 hours and 33.06% over the last month.
Bitcoin Rallies Toward 2021 Highs
On February 27 at about 1:30 AM UTC, the price of Bitcoin started rapidly gaining from $54,753 to $57,039 in less than an hour before pairing some of the gains to trade at $56,328 at about 3:00 AM UTC.
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As of press time, the industry’s largest crypto asset had retraced to around $55,730, nearly 21% away from the all-time high of $69,000 in November 2021.
BTC’s early Tuesday rally follows an impressive performance of spot Bitcoin exchange-traded funds (ETFs) on February 26.
According to Bloomberg ETF analyst Erich Balchunas, nine Bitcoin ETFs broke the all-time volume record on Monday with $2.4 billion, double their recent daily average. This shows a growing demand for the crypto asset beyond regular digital asset enthusiasts.
Analysts further anticipated Bitcoin’s price to rally with a potential supply shock arising from the combined buying pressure by these Bitcoin ETF funds. Coupled with the approaching Bitcoin halving, this supply-demand dynamic contributed to the optimistic sentiment, potentially driving the price upwards.
Adding to Tuesday’s bullish momentum, MicroStrategy announced earlier a purchase of an additional 3,000 BTC, bringing its total Bitcoin holdings to 193,000 BTC.
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