Today, Bitcoin (BTC) reached a new high for 2024, breaking through 51 thousand USD on the Binance exchange. This is a significant event, since the last time BTC traded at this level was at the end of 2021, before the cryptocurrency market began to correct, RBC reports.
The rise in the Bitcoin rate has led to its capitalization exceeding 1 trillion USD for the first time since December 2021. This indicates increased investor interest in the first cryptocurrency.
The sharp rise in price provoked a cascade of liquidations of short positions of traders on large crypto exchanges. According to Coinglass, in one hour the total amount of forcedly closed “shorts” on Bitcoin amounted to more than 33 million USD.
Following Bitcoin, the second largest cryptocurrency in terms of capitalization, Ethereum (ETH), also grew. Its rate reached 2700 USD, updating the 2024 maximum.
Reasons for growth:
- Declining US Inflation: Recent data showed that US inflation has slowed, which could lead to the Fed easing monetary policy. This, in turn, could make Bitcoin more attractive to investors looking for alternative assets.
- Increasing institutional interest: Large institutional investors such as companies and hedge funds are increasingly interested in Bitcoin. This leads to an increase in demand for BTC and, consequently, to its rise in price.
- Infrastructure Development: Cryptocurrency infrastructure is constantly evolving, making Bitcoin more accessible to a wider range of users.
