Crypto bulls are more confident than ever.

Crypto Rally

Bitcoin is rallying this week, breaking past $57,000 for a two-year high. It's a surge of confidence in the increasingly-mainstream cryptocurrency as investors become more optimistic about the market — or at least as bullish as you can be after its catastrophic wipeout in 2021 and the ensuing collapse of the premier crypto exchange FTX.

The digital currency is still around $11,000 short of its all-time high of over $68,000 in November 2021, but given Bitcoin was worth almost half of its current value just 12 months ago, there's clearly plenty of momentum and renewed enthusiasm in the space that could have it continue inching towards, or possibly even breaking, its all-time record.

Running of the Bulls

On Monday, crypto investing company MicroStrategy — the largest publicly traded owner of the crypto, according to CNBC — announced it had bought 3,000 Bitcoins for $155 million.

The news also comes after US regulators announced they had approved spot Bitcoin ETFs last month, offering investors a regulated way to access and invest in the crypto.

The latest rally is especially noteworthy considering that the rewards for Bitcoin mining, the energy-intensive process of bringing new bitcoins into circulation, are about to be halved. Every four years, the currency goes through a "bitcoin halving event" to effectively lower the supply of new coins.

"As Bitcoin’s halving draws closer, investors are rushing to the best positioning for the event," Greta Yuan, head of research at digital asset platform VDX, told CNBC. "The new record of inflow volume of Bitcoin ETFs is another confidence check for bullish investors."

Another reason for the recent rally may be a weakening of the US dollar, with the Federal Reserve rumored to start lowering interest rates. Broadly speaking, the value of Bitcoin has historically been inversely correlated to the value of the dollar.

When will Bitcoin hit its peak? Will it have a chance to crush its all-time record? With crypto bulls pouring money into Bitcoin, it's not impossible. But given the cryptocurrency's infamous volatility, they could also be buying at the top of the market.

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