[ad_1]
The bitcoin halving is an event that occurs approximately every four years in which rewards for miners are cut in half, effectively limiting the supply of the token.
S3studio | fake images
bitcoinThe world’s largest cryptocurrency by market cap, extended a rally in Asia trading on Tuesday, hitting a two-year high of over $56,000 and boosting the broader crypto market amid positive market developments and buying of crypto bulls.
The price of bitcoin rose more than 10% in two days, according to data from CoinMarketCap, after software and crypto investment firm MicroStrategy revealed a purchase about 3,000 bitcoins for $155 million on Monday.
Microstrategy, based in Virginia, is currently the largest publicly traded bitcoin holder. The company reported a possession of around 190,000 cryptocurrency tokens earlier this month, which today would be worth more than $10.5 billion.
According to Greta Yuan, head of research at digital asset platform VDX, the market was “encouraged by crypto bulls like MicroStrategy” as well as a “new record of Bitcoin ETF inflows.”
Most of the cryptocurrency market saw momentum since the last rally. Ethereumthe second-largest cryptocurrency by market capitalization, hit a multi-month high above $3,200.
Cryptocurrency Related Stocks Trading also increased on US-based crypto exchange MicroStrategy and San Francisco. Coinbase both rose more than 16% on Monday and continued to gain in the aftermarket.
The two cryptocurrency-related companies have seen their share prices grow by 200% over the past year.
Speaking to CNBC last week, Coinbase CFO Alesia Haas attributed the company’s recent strong financial results to the regulatory approval of spot bitcoin ETFs in the US last month, which had triggered a renewed fervor around cryptocurrency.
According to VDX’s Yuan, the rise in bitcoin price also reflects “bullish investor sentiment, especially in the US,” ahead of an upcoming “bitcoin halving” scheduled for the second half of April.
TO bitcoin halving event occurs every four years, and the reward for bitcoin mining (the process by which transactions are digitally verified on the blockchain) is cut in half, thus reducing the speed at which new bitcoin tokens are created and decreasing the amount of new supply available.
“As the Bitcoin halving approaches, investors are rushing to find the best positioning for the event. The new record of Bitcoin ETF inflow volume is another test of confidence for bullish investors,” he added Yuan.
Bitcoin’s strong performance also comes amid the dollar’s decline on Monday and Tuesday. Markets anticipate U.S. economic data this week that could indicate how soon the Federal Reserve could begin cutting interest rates.
Bitcoin prices and us dollar index have historically showed an inverse correlation.
[ad_2]
Source link