Bitcoin Surges 9% to Reach Highest Level Since 2021

Following strong gains on Monday in the United States, Bitcoin surged higher in early trading on Tuesday, surpassing $57,000 for the first time since November 2021.

At the time of writing, Bitcoin has pared some of its gains, now trading at $56,173, up over 9% in the past 24 hours.

The rally began on Monday morning US time, with Bitcoin reaching $53,000, also for the first time since November 2021. Over the past few hours, things have gotten very active again, with Bitcoin breaking through the $55,000, $56,000, and $57,000 levels in a matter of minutes.

Most cryptocurrencies have received a boost from Bitcoin’s rise. Ethereum is up over 4% to trade at $3,229. Solana has added over 6%, and Cardano is up about 6.5% to $0.6193. Polygon is also up 5.5%.

Meanwhile, crypto-related stocks have also rallied. Coinbase Global Inc (NASDAQ:COIN) and MicroStrategy (NASDAQ:MSTR) shares are up 16%. Riot Platforms (NASDAQ:RIOT) and Marathon Digital (NASDAQ:MARA), the largest Bitcoin mining companies, are up 15% and 20% respectively.

Gold Moves Higher as Dollar Retreats, Waiting for Important Data and Fed Statements

Gold prices rose globally during these moments of trading on Tuesday, coinciding with the decline of the US dollar index, while investors await data on the Federal Reserve’s preferred inflation index.

At the same time, the week is expected to be full of economic data, along with statements from Federal Reserve officials, which will help to get signals about the possible timing of interest rate cuts by the central bank.

With the decline of the dollar index, the dollar-denominated bullion has become relatively cheaper for holders of other currencies.

The markets are waiting for the release of the US consumer confidence index on Tuesday, a day before the release of the second reading of gross domestic product for the fourth quarter with expectations of growth of 3.3%, in line with the initial reading.

At least 10 Federal Reserve officials are scheduled to speak this week, while investors are focused on the Personal Consumption Expenditures Price Index, the Fed’s preferred inflation measure, due to be released on Thursday.

Investors are also watching the risk of a US government shutdown if Congress fails to reach a deal on extending borrowing by Friday.

Gold and Dollar Now

Gold futures are now up 0.32% to $2045 an ounce.

While spot gold is up about 0.22% to $2036 an ounce. On the other hand, the dollar index is down 0.13% to 103.612 points.

Other Metals

Platinum rose 0.6% in spot trading to $884.90 an ounce, palladium rose 0.3% to $951.63, and silver rose 0.1% to $22.57 an ounce.

Yen Rebounds After Inflation Data in Japan

The Japanese yen rose in the Asian market on Tuesday against a basket of currencies, starting to recover from a two-week low against the US dollar, after the release of inflation data in Japan for January.

The data revived speculation that the Bank of Japan is on track to exit its negative interest rate policy as soon as possible, perhaps next month, pending further evidence to support that hypothesis in the coming period.

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Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances, or needs.

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