Bitcoin Surges 45% To $63,933 In February, Poised For Largest Monthly Gain Since 2020
The recent approval and launch of spot Bitcoin exchange-traded funds (ETFs) in the United States have further fueled investor interest and excitement in the cryptocurrency market.
Bitcoin is poised to achieve its most significant monthly gain in over three years, soaring to a robust $62,000 during Asia morning trade on February 29, as reported by Reuters. The world's leading cryptocurrency experienced a remarkable surge, reaching a peak of $63,933 overnight, marking a monthly increase exceeding 45 percent, the most substantial jump since December 2020, according to the report.
This surge in Bitcoin's value is also impacting other cryptocurrencies, with Ether, the second-largest cryptocurrency, currently priced at $3,429, reflecting a remarkable 50 percent surge in February.
Analysts foresee a potential breakthrough for Bitcoin, with Brian Armstrong, head of crypto exchange Coinbase Global, noting a surge in platform traffic due to heightened interest in cryptocurrencies. Analyst Tony Sycamore from brokerage IG Markets predicts that Bitcoin is on track to test and likely break the $69,000 levels, potentially surpassing the previous record high set in November 2021.
The recent approval and launch of spot Bitcoin exchange-traded funds (ETFs) in the United States have further fueled investor interest and excitement in the cryptocurrency market. Data from LSEG reveals that the ten largest spot Bitcoin ETFs attracted $420 million in inflows on February 27 alone, marking the highest influx in nearly two weeks. Notably, ETFs managed by Grayscale, Fidelity, and BlackRock experienced a surge in trading volumes.
Traders are also flocking to Bitcoin ahead of the upcoming halving event scheduled for April. This event, occurring every four years, involves a reduction in the rate at which new bitcoins are produced, along with decreased rewards for miners. With the total supply of Bitcoin capped at 21 million and approximately 19 million already mined, the halving event contributes to the prevailing bullish sentiment in the market.
Additionally, the prospect of a series of interest rate cuts by the US Federal Reserve (Fed) this year has heightened investor appetite for higher-yielding and more volatile assets. Flows into Bitcoin have surged, especially as foreign exchange volatility hits a two-year low and the US equity volatility index returns to pre-pandemic levels.
In summary, Bitcoin's remarkable performance in February, with its most significant monthly gain since 2020, highlights the enduring appeal and resilience of the cryptocurrency market. Analysts remain optimistic about its future trajectory, anticipating further price breakthroughs and heightened investor interest fueled by factors such as the upcoming halving event and potential rate cuts by the Fed.
