Bitcoin Hits 2-Year High Above $56,000 with MicroStrategy Catalyst

BySamson Ononeme

Feb 27, 2024
Spurred by MicroStrategy's $155 million bet and investors positioning for April's mining "halving", bitcoin reached two-year highs to lead a broader cryptocurrency market rally.

Key Insights

  • Bitcoin hits 2-year high above $56,000, extends rally after MicroStrategy’s $155M buy
  • Buoyed by bitcoin inflows record, other crypto assets surge like Ether ahead of April ‘halving’
  • Bitcon’s twin boosts from dollar weakness, investor positioning for mining reward cut

SINGAPORE (MarketsXplora) – Bitcoin surged to a two-year high above $56,000 on Tuesday, boosting sentiment across cryptocurrencies as investors took heart from bullish developments including a major purchase from MicroStrategy and record inflows into bitcoin funds.

The world’s biggest cryptocurrency by market value leapt over 10% in two days after Nasdaq-listed MicroStrategy said it spent $155 million buying about 3,000 bitcoins on Monday.

Bitcoin powers toward $60,000 on bull sway after fund flows, corporate buy-in

MicroStrategy is currently the largest publicly traded corporate holder of bitcoin, with over 190,000 tokens worth more than $10.5 billion based on Tuesday’s elevated prices.

Industry players cited the move, along with all-time high bitcoin exchange-traded product (ETP) flows, as underpinning the latest crypto rise. Confidence also grew ahead of bitcoin “halving” in April, which will cut its mining rewards.

“The market was encouraged by crypto bulls such as MicroStrategy,” said Greta Yuan, head of research at digital asset platform VDX, adding inflows into bitcoin funds were at fresh records.

Ether, the second-largest cryptocurrency, hit a multi-month peak above $3,200 in tandem. Crypto-exposed stocks like MicroStrategy and U.S. exchange Coinbase leapt over 16% on Monday.

Their double-digit gains this year typify bullish investor sentiment, analysts said, in part buoyed by U.S. approval of spot bitcoin ETFs and prospects of an April rally.

The bitcoin surge comes as the dollar trades down amid expectations of easier Fed policy. Prices of the two assets often move inversely.

Every four years, bitcoin undergoes “halving” where mining rewards are slashed, lowering its supply. It tends to boost its price over time.

“As Bitcoin’s halving draws closer, investors are rushing to the best positioning for the event,” VDX’s Yuan added.

Samson Ononeme

Meet Samson Ononeme, a dynamic writer, editor, and CEO of With a passion for words and a sharp business acumen, Samson captivates readers with captivating storytelling and delivers insightful market analysis. He is a trailblazer in the finance industry, empowering individuals with knowledge and shaping the narrative of money. Get ready to be inspired by his literary prowess and entrepreneurial leadership.

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