Bitcoin surged past the $52,000 mark in a widespread cryptocurrency upswing, with Ether, the second-largest token, reclaiming its pre-collapse levels from nearly two years ago when the TerraUSD stablecoin stumbled. Bitcoin's YTD gain of 22% propelled its market capitalization above $1 trillion, a milestone unseen since December 2021, according to CoinGecko data. Ether also experienced a 5% increase, alongside notable rises in altcoins like Avalanche, Polkadot, and Polygon.

Despite a higher-than-expected US inflation report on Tuesday, the ongoing digital asset recovery, initiated over a year ago and bolstered by recent SEC approval of Bitcoin ETFs, remained unaffected. However, analysts have issued cautionary notes, citing technical signals that hint at a potential temporary slowdown in the rally.

"Bitcoin exhibited impressive resilience despite the overnight deterioration in risk sentiment," remarked Tony Sycamore, a market analyst at IG Australia Pty. Simultaneously, chart-based technical analysis suggests a potential brief downturn to the high $30,000s, he added.

Bitcoin reached a peak of $52,054 and traded around $51,800 by 9:44 a.m. in New York, while Ether hovered around $2,760. Ether's ascent to pre-TerraUSD collapse levels has been relatively slower than Bitcoin's, underscoring its psychological significance following the 2022 event.

Specific factors within the sector, such as the introduction of US ETFs dedicated to Bitcoin, have provided support. Products from BlackRock Inc. and Fidelity Investments have attracted a net inflow of $3.3 billion since trading commenced on Jan. 11. Additionally, the impending Bitcoin halving scheduled for April is anticipated to limit the supply of the largest digital asset, historically influencing price trends.

Caroline Mauron, co-founder of digital-asset derivatives liquidity provider Orbit Markets, expects a brief market pause following the four-month rally before the narrative shifts to the upcoming Bitcoin halving. Bitcoin's remarkable journey has tripled its value since the beginning of last year, rebounding from the 2022 digital-asset downturn. Options market activity indicates traders are eyeing prices beyond the record set in November 2021, nearing $69,000.