Bitcoin's year-to-date gain of 22% has propelled the market capitalization of digital assets above $2 trillion for the first time since April 2022, according to data from CoinGecko. Both Bitcoin and Ether saw increases of more than 1% at one point on Thursday in Singapore, with Ether trading at $2,785 as of 9:37 a.m.
Specific factors within the sector have supported Bitcoin, including the introduction of US exchange-traded funds dedicated to the token. These products, offered by companies like BlackRock Inc. and Fidelity Investments, have attracted a net $3.9 billion since they began trading on Jan. 11. Additionally, the upcoming Bitcoin halving in April is expected to reduce the supply of the largest digital asset, which many view as a positive factor for prices based on historical trends.
Zach Pandl, managing director of research at crypto fund provider Grayscale Investments LLC, noted, "The recent price rally likely reflects strong net inflows into US spot Bitcoin ETFs."
Ether has been slower than Bitcoin in recovering to levels seen before the TerraUSD implosion in early May 2022, a psychologically significant event given the impact it had. TerraUSD's creator, Do Kwon, is currently detained in Montenegro and awaiting extradition to either South Korea or the US, where he faces fraud charges.
Bitcoin has tripled in value since the beginning of last year, rebounding from the digital-asset downturn of 2022. Options market activity suggests traders are aiming for prices above the previous record of almost $69,000 achieved in November 2021.