Bitcoin eyes US$60,000, biggest monthly rally since late 2020

BITCOIN surged for a fifth day on Wednesday (Feb 28) to close US$60,000, buoyed by flows into new US spot bitcoin change traded merchandise which have pushed it up practically 40 per cent in February, which might mark its largest month-to-month rally since December 2020.

Bitcoin was final up 4.5 per cent at US$59,244, its highest since December 2021.

Traders have poured into bitcoin forward of April’s halving occasion – a course of designed to sluggish the discharge of the cryptocurrency. In addition, the prospect of the Federal Reserve delivering a sequence of fee cuts this yr has fed investor urge for food for higher-yielding or extra unstable property.

“Bitcoin is being driven by the support of consistent inflows into the new spot ETFs and outlook for April’s halving event and June’s Fed interest rate cuts,” Ben Laidler, world markets strategist at retail funding platform eToro, stated.

The worth of all of the bitcoin in circulation has topped US$2 trillion this month for the primary time in two years, in line with crypto platform CoinGecko, whereas the worth of the token itself has doubled in simply 4 months.

The greater bitcoin exchange-traded funds (ETFs) have seen a particular pickup in curiosity this week.

The three hottest, run by Grayscale, Fidelity and BlackRock, have seen buying and selling volumes surge.

On Monday and Tuesday, round 110 million shares within the largest three modified fingers, about 51 per cent of the 215 million shares traded out there’s Most worthy corporations – Apple, Microsoft and Nvidia, in line with LSEG information.

Three weeks in the past, this share was nearer to fifteen per cent.

“Essentially, we’re seeing the ETF effect ahead of schedule. Inflows into them stepped up quickly last week and have been sustained, and we think it’s reflective of advisors getting out there very quickly to start selling the ETFs to clients,” Joseph Edwards, head of analysis at Enigma Securities, stated.

LSEG information confirmed flows into the ten largest spot bitcoin ETFs introduced in flows of US$420 million on Tuesday alone, essentially the most in nearly two weeks.

Crypto investor and software program agency MicroStrategy earlier this week disclosed it had just lately purchased about 3,000 bitcoins for US$155 million, whereas social media platform Reddit additionally stated in a regulatory submitting it had purchased small quantities of bitcoin and ether.

Meanwhile, the world’s second-biggest cryptocurrency ether, which underpins the Ethereum blockchain community, rose 2.2 per cent to US$3,320, having hit one other two-year excessive earlier within the day. The value has risen 47 per cent in February, the largest month-to-month acquire since a 70 per cent rally in July 2022.

Some traders are hoping US regulators will approve purposes for ETFs based mostly on spot ether.

Enigma Securities’ Edwards stated the run greater felt fairly regular.

“There certainly isn’t a manic feeling to who’s buying and why – ether gaining against the field also speaks to a more measured environment – but there’s at least a little FOMO (fear of missing out) going on right now,” he stated. REUTERS