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With the Bitcoin Halving event on the horizon, the world's leading cryptocurrency, Bitcoin (BTC-USD), experienced a meteoric rise on Tuesday, surging over 11% to reach a two-year high of over $56,700 in the early trading hours of Tuesday.
This marks the first time Bitcoin has surpassed $56,000 since November 2021, a significant leap from its $51,000 position just 24 hours prior.
The surge in Bitcoin's price was accompanied by an impressive inflow of almost $34B in trading volume within the same time frame.
This significant increase in trading volume further solidified the bullish momentum in the cryptocurrency market, indicating strong interest and participation from investors.
Furthermore, the purchase of 3,000 bitcoins by MicroStrategy (NASDAQ:MSTR), a Virginia-based software company and the largest publicly traded owner of bitcoin, played a significant role in the rally. This $155 million purchase, announced on Monday, further amplified investor confidence by demonstrating the faith of a major player in the financial world in Bitcoin's future.
Additionally, data analysis by Bloomberg ETF analyst Eric Balchunas revealed that the recently launched nine Bitcoin ETFs collectively achieved an all-time high trade volume of $2.4B, surpassing their launch day record and doubling their recent daily average. This further highlights the growing interest and participation of institutional investors in the cryptocurrency market.
The positive sentiment extended beyond Bitcoin, uplifting the broader crypto market. Ethereum (ETH-USD), the second-largest cryptocurrency by market cap, also witnessed significant gains. It climbed 7% to reach a multi-month high of over $3,258, marking its highest point since April 2022.
Bitcoin's rally also had a positive impact on cryptocurrency-linked stocks, which saw gains in premarket trading: CleanSpark (NASDAQ:CLSK) and Bitfarms (NASDAQ:BITF) surged by 10%, Coinbase (NASDAQ:COIN) rose by 5%, Marathon Digital (NASDAQ:MARA) jumped by 8.2%, and Riot Platforms (NASDAQ:RIOT) saw a 4% increase.