Bitcoin (BTC) rose to $51,195 in the middle of the week. In weekly terms, the value of the digital currency increased by 19%.
In February, the BTC exchange rate appreciated by more than 17%. Ether (ETH) is approaching $2800, while Binance Coin (BNB) jumped 1.5% overnight to $331.3.
The cryptocurrency market capitalization could exceed $2 trillion as early as today. Last Tuesday, bitcoin slipped below $50,000 due to higher-than-forecast inflation in the United States. The stock market closed in the negative.
However, on Wednesday the situation improved and European business activity indices began to grow after optimistic data on inflation in the UK. In monthly terms, it decreased, and this creates conditions for easing of monetary policy.
If the Bank of England lowers the prime rate, investors will strengthen investments in virtual currencies. Europe’s Stoxx 600 composite index is strengthening, indicating a growing interest in technology stocks.
The share of profitable bitcoin addresses rose to 94% as a result of February’s surge. The correlation between BTC and the S&P 500 index has strengthened to 0.68, according to data from the IntoTheBlock platform.
Santiment notes that before bitcoin soared to its highest level since December 2021, there was an increase in stablecoin capitalization. Their supply increased by $11.4 billion to $140 billion in four months.
Large investors accumulated dollar-backed digital currency, which was then channeled into bitcoin, which led to its strengthening.