Bitcoin skyrockets to $57,000, hits two-year high

Bitcoin surged to a two-year high, hitting $57,000 on Tuesday, marking a 9 percent increase before settling around $56,500.

The rise is being driven by increasing optimism about sustained investor demand through exchange-traded funds (ETFs) as per a Bloomberg report.

Bitcoin is up 200 percent from its previous bottom in November 2022. The last time Bitcoin traded at this level was in December 2021 when it achieved an all-time high of almost $69,000 the preceding month.

Another crypto Ether also crossed $3,200 for the first time in two years.

In a groundbreaking development for the cryptocurrency sector, the US Securities and Exchange Commission (SEC) granted approval to a Bitcoin ETF in January. This decision marks a significant milestone after years of efforts within the industry to launch such a product. The SEC approved a total of 11 spot bitcoin ETFs, including notable ones like BlackRock’s iShares Bitcoin Trust, Grayscale Bitcoin Trust, and ARK 21Shares Bitcoin ETF.

Currently, bitcoins have no legal backing in India and investors have to pay a 30 per cent tax on the income earned by trading in them.

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