Major cryptocurrencies surged on Tuesday, with Bitcoin soaring to a 27-month high, hovering around $57,000 levels.
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EST) |
| Bitcoin BTC/USD | +1.85% | $56,743 |
| Ethereum ETH/USD | +0.47% | $3,234 |
| Dogecoin DOGE/USD | +7.69% | $0.096 |
What Happened: The rally in Bitcoin price propelled the broader crypto market, fueled by growing investor optimism and a surge in investments into spot Bitcoin exchange-traded funds (ETF).
The last time Bitcoin reached the price level of $57,000 was over two years ago, on December 2, 2021.
The cryptocurrency market is experiencing a strong bullish sentiment, with the Fear & Greed Index registering at 79 on Feb. 27, indicating “extreme greed” according to data from Alternative. This level of extreme greed was last observed in November 2021 when the price of the leading cryptocurrency surged to an all-time high of $69,000.
The rally in the broader cryptocurrency market is primarily driven by Bitcoin, which has attracted demand due to spot ETFs.
CoinShares‘ report indicates that BTC investment products dominated last week’s crypto fund inflows, comprising 99% of the total. Bitcoin alone attracted $569.5 million in fund inflows, contributing to total global assets under management of $67.5 billion. Overall, these crypto products have accumulated a net total of $5.8 billion since their introduction.
In addition, data from Yahoo Finance shows that Bitcoin ETFs have collectively received inflows totaling $5.5 billion since their market debut on Jan. 11.
Top Gainer (24 Hour)
| Cryptocurrency | Gains +/- | Price (Recorded 9:30 p.m. EDT) |
| Pepe FLR/USD | +58.19% | $0.00000284 |
| Arweave MNT/USD | +27.95% | $21.4 |
| Gala AR/USD | +21.94% | $0.040 |
The global cryptocurrency market cap now stands at $2.16 trillion, showing a 8.92% increase in the past 24 hours.
To provide context, the current valuation of the cryptocurrency market exceeds that of Amazon by $36 billion and even surpasses Google’s parent company, Alphabet, by $43 billion.
Major U.S. indices traded mixed on Tuesday. The S&P 500 edged up by 0.17% to reach 5,078.18, while the Nasdaq rose by 0.37% to conclude at 16,035.30. The Dow Jones Industrial Average experienced a decline of 96.82 points, equivalent to 0.25%, and closed at 38,972.41.
The latest data from the U.S. Department of Commerce, released Tuesday, revealed a significant downturn in the orders for durable goods in January. The primary contributing factor was a substantial decrease in demand for transportation.
See More: Best Cryptocurrency Scanners
Analyst Notes: Cryptocurrency analyst Michael Van de Poppe stated that there is a "giant move" occurring in Ethereum. The cryptocurrency has seen a substantial rally, rising from $2,150 to $3,220.
"To be accurate, having a 10-20% correction after this run would be very normal to expect. I’m still determining where, but if it happens, it’s a dip opportunity before Ethereum visits $4,000."
He added, "Bitcoin at $57,000. It’s almost insane if you see the current return and the value of Bitcoin pre-halving. What we can expect from the markets in the coming 18-24 months is mind boggling."
Bitcoin appears to be leaning toward an uptrend, as per analyst Jason Pizzino. He mentions a potential target of the $45,000 range if Bitcoin’s price corrects, while considering a larger drop to the $38,000-$39,000 range as "relatively unlikely", as it would signify a significant correction in BTC’s current move.
Senior Crypto Research Analyst, Ryan Rasmussen, of Bitwise, on Tuesday in an interview with Yahoo Finance projects a bullish trajectory for Bitcoin, with the potential for a price surge to $88,000 by the end of 2024.
"We think that Bitcoin will certainly set all time highs in 2024. That previous price is right around $69,000 but we don't think its going to stop there, we think we'll at least see a 10% to 15% bump over the last all time highs in 2024. That will take us to the mid $80,000 range so I think our target was $88,00 by 2024, and I'm still sticking by that."
Ryan Lee, Chief Analyst at Bitget Research, in a note sent to Benzinga said, “Institutions have a strong bullish sentiment. With 54 days left before the Bitcoin halving and the expectation of the Fed’s interest rate cut in the middle of the year, Bitcoin will receive support at $50,000 and may fluctuate to hit historical highs in March.”
According to Ali Martinez, over 76,670 BTC have been withdrawn from crypto exchanges" in the last month alone, totaling over $3.45 billion! The rush is on – secure your share of #Bitcoin now before the supply dries up!"
Photo by Svetlana Parnikova on Shutterstock
Read Next: Jim Cramer Advises Against Using Binance, Provokes Strong Reactions From Twitter Users
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
