Bitcoin crosses $56,000 threshold, boosting the crypto sector in latest rally

Bitcoin, the world's largest cryptocurrency by market capitalization, extended its climb in Asia trade on Tuesday, reaching a two-year high of more than $56,000 and boosting the entire crypto market amid favourable market developments and purchasing from crypto bulls.

Bitcoin's price jumped by more than 10% in two days, according to CoinMarketCap, after crypto investment and software business MicroStrategy announced a $155 million acquisition of about 3,000 bitcoins on Monday.

MicroStrategy, headquartered in Virginia, is now the largest publicly traded owner of bitcoin. Earlier this month, the business disclosed possessing approximately 190,000 cryptocurrency tokens, which are now worth more than $10.5 billion.

As indicated by Greta Yuan, head of exploration at computerized resource stage VDX, the market was "empowered by crypto bulls like MicroStrategy" as well as "another record of Bitcoin ETF inflows."

A large portion of the cryptographic money market encountered a lift from the most recent meeting. Ethereum

, the second-biggest digital currency by market cap, came to a multi-month high above $3,200.

Crypto-related values likewise flooded in exchanging the U.S. MicroStrategy and San Francisco-based crypto trade organization Coinbase

 both jumped more than 16% on Monday and kept acquiring in post-retail exchanging.

The two crypto-related organizations have seen their stock costs develop 200% throughout the last year.

As per VDX's Yuan, the flooding cost of bitcoin likewise mirrors the "bullish opinion of financial backers, particularly in the U.S.," in front of an impending "bitcoin splitting" set for the last part of April.

A bitcoin dividing occasion happens like clockwork, with the compensation for bitcoin mining — the cycle by which exchanges are carefully confirmed on the blockchain — cut down the middle, subsequently decreasing the rate at which new bitcoin tokens are made and bringing down how much new stockpile accessible.

"As Bitcoin's halving approaches, investors hurry to secure the best position for the event. The new record inflow volume of Bitcoin ETFs provides additional confidence to optimistic investors," Yuan remarked. 

The strong bitcoin performance comes as the currency trades lower on Monday and Tuesday. Markets are anticipating US economic data this week, which could indicate when the Federal Reserve will begin decreasing interest rates.

Bitcoin prices and the US dollar index have typically been inversely correlated.