Major cryptocurrencies are enjoying a bullish rally since the start of 2022, with both Bitcoin and Ethereum posting double-digit gains over the past week.
Despite falling as low as $33,000 in mid-January, Bitcoin has seen an impressive rally during the first week of February.
The top cryptocurrency is currently trading above $43,000 and has seen a 12% rise in the last seven days, according to data provided by CoinMarketCap .
As the appetite for Bitcoin has renewed, so has investor interest in the second largest cryptocurrency: Ethereum .
The development of Ethereum is also enjoying a healthy rally, posting a 10.3% gain on the week. It is currently trading at just over $3,060, after falling as low as $2,211 on January 24.
Cryptocurrencies in general fell sharply in January alongside traditional markets. Amid news that the Federal Reserve would raise interest rates to fight inflation, equity markets such as the Dow Jones Industrial Average and the Nasdaq also fell by about 1% and 3.3%, respectively.
These figures may seem minor in cryptocurrency terms, but integer percentage losses are nothing to write home about for markets as large as these two.
Institutions turn to Bitcoin and Ethereum
The latest cryptocurrency crash also seems to have been a buying event for various institutions.
MicroStrategy, which has become a proxy investment for Bitcoin, snapped up another 660 Bitcoin for $25 million on February 1. The company's CEO, Michael Saylor, reported that the company now owns a total of 125,051 Bitcoin, which were purchased at an average price of approximately $30,000 each.
Electric vehicle manufacturer Tesla also reported that its Bitcoin holdings reached nearly $2 billion by the end of 2021. Tesla first bought $1.5 billion worth of Bitcoin in February 2021, which now appears to have been a good bet. .
The latest marker of recent institutional interest in cryptocurrencies comes from accounting firm KPMG.
The Canadian branch of the firm announced yesterday that it had added both Bitcoin and Ethereum to its treasury through Gemini Crypto custody services.
A KPMG spokesperson told Bloomberg that "Our investment allows us to share our journey, our experiences, our challenges with [clients and prospects] so that we can help them navigate the world of cryptocurrency."
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