Bitcoin approached $60,000 on Wednesday, up 39.7 percent in February, its greatest monthly advance since December 2020. Bitcoin was up 4.3 percent, trading at $59,244, its highest since December 2021.
Over the previous four months, the token's price has doubled. Furthermore, the total value of Bitcoin in circulation surpassed $2 trillion this month, the first time in two years. During the bad market in 2022, when the FTX and other crypto platforms collapsed, the cap fell to around $820 billion.
"This surge can be attributed to the substantial trading activity, totalling $3 billion, in Bitcoin spot ETFs, showing increasing demand in the market," said Edul Patel, Chief Executive Officer of Mudrex.
The larger bitcoin exchange-traded funds (ETFs), which were listed in the United States on January 11, have experienced a noticeable increase in demand this week. According to Reuters, trade volumes have increased at the three most prominent exchanges, run by Grayscale, Fidelity, and BlackRock. "Blackrock now has around $7 billion in Bitcoin holdings, and Fidelity has around $5 billion, which are phenomenal numbers for a newly launched ETF," said Parth Chaturvedi, CoinSwitch Ventures' investment head.
According to another Bloomberg report, since their inception on January 11 of this year, Bitcoin ETFs have garnered $5.6 billion in investments. Patel stated that the rise is also due to the expectation of the Bitcoin halving, which is expected to occur in April.
"The approaching Bitcoin halving event, a historical catalyst for price surges, adds to the positive outlook," the analyst said. Bitcoin halving is intended to slow the release of the token, resulting in a decrease in supply and, consequently, an increase in its price. "With daily Bitcoin generation set to fall from 900 to 450 and constant demand of over 2000 Bitcoin in inflows by the new ETFs, this imbalance will result in price appreciation," Chaturvedi said in a statement.
Experts predict that Bitcoin will reach an all-time high of roughly $69,000 in the next few days.
"Given the current trajectory of increasing demand and optimistic sentiment among investors, there is a strong likelihood that Bitcoin will exceed its previous all-time high soon," Patel said in a statement.
"After the halving event, the supply pressure will increase further and may take Bitcoin value even higher. We can expect Bitcoin to touch the $100,000 mark by the end of 2024 if macroeconomic factors remain favorable," Thakral said in a statement.
