Bitcoin ascends to preeminent heights as market sentiment shifts

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27th February 2024 – (Hong Kong) Bitcoin surged to its highest valuation since the previous year on Monday, cresting the $53,000 mark with a 3% increase in the afternoon. This upswing is attributed to a confluence of factors, including Reddit’s transparent acknowledgement of its digital currency reserves and a perceived moderation in former President Donald Trump’s stance on the asset.

In the lead-up to its anticipated public debut, Reddit disclosed its investments in bitcoin and ether, joining a cadre of major corporations such as MicroStrategy and Tesla with significant bitcoin holdings. The social media juggernaut also revealed its engagement with Polygon’s Matic for certain online transactions, though the financial significance of these tokens was downplayed as immaterial in their report. The disclosure underscores Reddit’s sustained foray into the blockchain space, a journey that commenced in 2014.

Trump’s recent comments on Fox News were markedly less hostile towards Bitcoin, a departure from his previously strict opposition. While he maintained a preference for the U.S. dollar, his acknowledgement of Bitcoin’s ascent suggests a softening of his earlier views.

The Federal Reserve’s latest report cast a spotlight on stablecoins, focusing on their performance during market turbulence. It revealed that seemingly similar stablecoins like USDC and USDT exhibit distinctive behaviours across primary markets. Such insights have prompted calls for continued examination of these digital financial instruments due to their integral role in the DeFi ecosystem.

After pushback from industry players, the Department of Energy has paused its survey on the power consumption of crypto mining operations. The temporary halt is a response to a lawsuit challenging the survey’s imposition on business confidentiality.

Despite Bitcoin’s bullish trend, the cryptocurrency sphere has seen some disconcerting developments. BitForex, a cryptocurrency exchange, has gone offline amid reports of significant capital outflows, with customers left in the lurch. In addition, analysts are keeping a close watch on bitcoin ETFs after a dip in activity, although digital asset investment products have experienced four consecutive weeks of net inflows, according to CoinShares’ latest report