Bitcoin surpasses $60,000 fueled by institutional interest and market optimism, with Ethereum also hitting new highs, prompting anticipation of ETF approvals by U.S. regulators.
29 February 2024 – On Wednesday, Bitcoin soared above the $60,000 threshold for the first time in over two years, propelled by a surge of investment into new U.S. spot bitcoin exchange traded products. The cryptocurrency witnessed a remarkable 42% price rally in February, marking its most substantial monthly gain since December 2020.
At the time of reporting, Bitcoin was up 6% at $60,131, reaching its highest level since November 2021. The cryptocurrency is also on track for its largest week-on-week gain in a year, climbing 18.5% since February 21st.
Investor enthusiasm for Bitcoin has been fueled by anticipation surrounding April’s halving event, designed to slow the release of the cryptocurrency, and speculation regarding potential interest rate cuts by the Federal Reserve later in the year.
Ben Laidler, Global Markets Strategist at eToro, attributed Bitcoin’s rally to the influx of funds into new spot ETFs, coupled with optimism surrounding upcoming events like April’s halving and potential Fed interest rate adjustments.
In a significant milestone, the total value of all Bitcoin in circulation surpassed $2 trillion this month for the first time in two years, while the token’s price itself doubled in just four months.
The surge in Bitcoin’s popularity has been reflected in increased trading volumes for major exchange-traded funds (ETFs) offered by Grayscale, Fidelity, and BlackRock. Trading volumes for these ETFs have surged in recent days, signaling growing interest from investors.
Joseph Edwards, Head of Research at Enigma Securities, noted a notable uptick in ETF inflows, suggesting that advisors are actively promoting ETFs to clients, accelerating the adoption of Bitcoin among institutional and retail investors alike.
With $60,000 serving as a new milestone, experts anticipate continued bullish momentum for Bitcoin, especially considering factors like reduced available supply due to long-term hodling and increased institutional interest from firms like BlackRock and Fidelity.
In parallel, Ethereum, the world’s second-largest cryptocurrency, experienced a 3.2% rise to $3,353, reaching another two-year high. Ethereum’s price surge, up 47% in February, has sparked speculation among investors about potential approval for ETFs based on spot ether by U.S. regulators.
While the market remains optimistic, Edwards emphasizes a measured environment with steady gains, albeit with a hint of FOMO (fear of missing out) among investors.
In summary, Bitcoin’s latest surge underscores the growing mainstream acceptance of cryptocurrencies, fueled by institutional investment, positive market sentiment, and anticipation of regulatory developments. – ref: Reuters
