Bitcoin Surges to Highest Levels Since 2021

Bitcoin’s price has risen to its highest levels since 2021.
The price of Bitcoin surpassed $57,000 for the first time since late 2021,
supported by demand from investors through exchange-traded funds (ETFs) and additional purchases by “MicroStrategy” company.
The digital asset rose by about 4.4% and reached $57,670 before experiencing a slight loss to trade at $56,473 at 1:00 PM Dubai time.

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Bitcoin

Dollar

West Texas Intermediate crude

Bitcoin

Bitcoin’s price has increased by 33% since the beginning of the current year, leading to a continued recovery for a long period. This has also sparked the interest of traders to buy smaller cryptocurrencies like Ethereum and Binance Coin. Bitcoin ETFs on the stock exchange received about $5.6 billion in new funds since they started trading in the United States on January 11, indicating a broadening demand for the iconic symbol to include new categories of the public, not just enthusiasts committed to investing in digital assets. The anticipated Bitcoin halving, which reduces the cryptocurrency’s mining reward by half, further enhances optimistic expectations. “MicroStrategy,” an enterprise software company that purchases Bitcoin as part of its strategy, announced on Monday that it bought around 3,000 new coins this month. The company now owns Bitcoin valued at approximately $10 billion.

Dollar

The dollar awaits inflation data in personal consumption expenditures. The dollar index maintained its recent decline at 103.8 on Tuesday as investors prepared to read key inflation data in the United States this week, which may impact the Federal Reserve’s upcoming policy decision. The monthly Personal Consumption Expenditures (PCE) Price Index, the Federal Reserve’s preferred inflation gauge, is scheduled for release next Thursday. Investors will also evaluate U.S. durable goods numbers on Tuesday for further evidence of the economy’s strength. Currently, the markets expect the central bank to keep interest rates unchanged in March and May, but bets on a rate cut in June are still on the table. Outside the United States, markets will assess inflation data from the Eurozone, Japan, and Australia, as well as Purchasing Managers’ Index readings in China and the Reserve Bank of New Zealand’s interest rate decision.

West Texas Intermediate Crude

Futures for West Texas Intermediate (WTI) crude rebound above $77. WTI crude futures bounced back to over $77 per barrel on Monday after a 2.5% decline in the previous week, driven by market recovery in the United States and disruptions to oil exports from a field in Libya. U.S. crude oil prices have risen in recent weeks, reaching their highest levels this year. Refineries with strong margins are buying more barrels, while foreign buyers turn to U.S. crude to avoid shipping issues in the Red Sea. Investors are eagerly awaiting U.S. inflation data, which will provide insight into potential interest rate cuts by the Federal Reserve. Despite tensions in the Middle East and supply constraints imposed by OPEC+, the oil market remains stable, with increased production from OPEC+ countries such as the United States balancing these factors.

Bitcoin Surges to Highest Levels Since 2021

Bitcoin Surges to Highest Levels Since 2021

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