Bitcoin soars past $56000 as 'unprecedented' adoption seen tripling ...

A rally in Bitcoin pushed the asset to a 2024 high.

The world’s largest cryptocurrency is up more than 10% to $56,449 in the last 24 hours — its highest price since December 2021, TradingView data shows.

Buoyed by record inflows in exchange-traded funds and the so-called halving event in April, the asset has lured both retail and institutional investors.

The latter will drive further rallies, says research firm Bernstein.

“Bitcoin is on an 18-month path to $150,000, led by unprecedented institutional adoption,” Bernstein analysts led by Gautam Chhugani said in a note to clients on Tuesday.

Some have predicted Bitcoin could rise to as much as $500,000 over the next five years, with others estimating that Bitcoin will reach $170,000 by 2025.

Sophisticated investors at finance firms have piled into Bitcoin derivatives.

Open interest for Bitcoin futures contracts reached about $22 billion — unseen since the end of the bull market in November 2021, DL News reported.

Meanwhile, in options markets, traders holding long Bitcoin positions are willing to pay a premium to maintain those trades.

Those traders have sent funding rates for so-called USD-margined perpetual options to their highest point in over a month. That suggests optimism about the future price.

Bernstein’s Chhugani noted that Bitcoin’s price is less than 20% below its record $68,992, reached in November 2021.

Crypto market movers

• Bitcoin is up 11% in the last 24 hours and trading for $56,449.
• Ethereum is up about 6.6% in the same period, reaching about $3,260.

What we’re reading

Sebastian Sinclair is a markets correspondent for DL News. Have a tip? Contact Seb at sebastian@dlnews.com.