Bitcoin experienced a fifth consecutive day of surging prices, nearing the $60,000 mark, fueled by increased investments in new U.S. spot bitcoin exchange-traded products. The cryptocurrency’s value surged nearly 40% in February, marking its most substantial monthly rally since December 2020. Currently, Bitcoin is trading at $59,244, reaching its highest level since November 2021.
Investors are flocking to Bitcoin ahead of the upcoming halving event in April, which is designed to reduce the release rate of the cryptocurrency. Additionally, anticipation of potential interest rate cuts by the Federal Reserve this year has spurred demand for assets with higher yields or greater volatility.
Ben Laidler, a global markets strategist at eToro, attributes Bitcoin’s rise to the consistent inflows into new spot ETFs and the expectations surrounding the halving event and Fed interest rate policies.
The total value of Bitcoin in circulation has surpassed $2 trillion for the first time in two years, according to data from CoinGecko. This milestone coincides with Bitcoin’s price doubling in just four months.
Notably, major Bitcoin exchange-traded funds (ETFs) managed by Grayscale, Fidelity, and BlackRock have experienced a surge in trading volumes. Over the past two days, approximately 110 million shares from the top three ETFs changed hands, accounting for 51% of the total trading volume in Apple, Microsoft, and Nvidia stocks.
This uptick in ETF activity reflects a broader trend of increased interest in Bitcoin investment products. Flows into the ten largest spot Bitcoin ETFs reached $420 million on Tuesday alone, indicating strong investor demand.
Additionally, prominent companies like MicroStrategy and Reddit have disclosed recent Bitcoin purchases, contributing to the cryptocurrency’s bullish momentum.
Meanwhile, Ethereum, the second-largest cryptocurrency by market capitalization, also saw gains, rising 2.2% to $3,320. The price surge in Ether, which powers the Ethereum blockchain network, marks a 47% increase in February, its most significant monthly gain since July 2022.
While some investors anticipate regulatory approval for Ether-based ETFs, market analysts note a steady rise in both Bitcoin and Ether prices, driven by growing investor interest and a sense of FOMO (fear of missing out).
