In February 2024, Bitcoin recorded its largest monthly gain since December 2020.
The past 24 hours have seen unprecedented trading volume in Bitcoin spot ETFs, with a total of $7.5 billion traded.
Bitcoin, which continued its winning streak on Thursday, recorded its biggest monthly gain in more than three years in February 2024, reaching a new all-time high as cash poured into listed Bitcoin funds, sparking a massive rally. The largest cryptocurrency by market capitalization reached $63,933 overnight, registering a monthly gain of more than 44%, the highest since December 2020.
The largest cryptocurrency by market capitalization held steady at $61,100 in Asian morning trading and changed hands as high as $63,933 overnight. The monthly increase rate is over 44%, showing the largest increase since December 2020. It was last purchased at $3,416 in February, up 50%.
“The last 24 hours have seen unprecedented trading volume in Bitcoin spot ETFs, with a total of $7.5 billion traded, pushing BTC to an all-time high in Indian markets, breaking the previous record,” CoinSwitch Markets Desk said in a statement. was doubled. Bitcoin is currently up more than 44% in February, its highest monthly gain since December 2020.”
Indian investors who had previously invested in Bitcoin said they are now in a profitable position as market sentiment is slowly shifting towards the 'extreme greed' category. Yesterday we saw a glimpse of what could happen if it is too late. After BTC reached $64,000, there was a sharp drop due to sudden profit booking, and the price of BTC fell below $59,000 in a matter of minutes, resulting in a liquidation of close to $200 million in just one hour. At the same time, Coinbase, the world's largest fiat-based exchange, also went down for a while.
“It is worth noting that Bitcoin has never exceeded its all-time high during a halving event. The all-time high of $69,000 will act as major resistance. But in yesterday’s cryptocurrency market cycle, we also got a glimpse of what altcoins can do in such a scenario, with DOGE, the leading memecoin, rising 20% in just one hour,” CoinSwitch said.
This momentum suggests a “test and possible breakout” of $69,000, said Tony Sycamore, an analyst at brokerage IG Markets. He said.
A Coinbase Global representative said the exchange was dealing with a surge in traffic.
“If this were any other market, you would have said, ‘This is going to be one of those explosive highs. Don’t go anywhere near a bubble,’” said Matt Simpson, senior market analyst at City Index.
“However, Bitcoin has returned to its parabolic rally phase with no immediate signs of a top.”
The approval and launch of a spot Bitcoin exchange-traded fund in the U.S. this year opened up the asset class to new investors and reignited excitement that had died down when prices plummeted in the “crypto winter” of 2022.
Inflows into the top 10 spot Bitcoin ETFs were the highest in nearly two weeks, bringing in $420 million on Tuesday alone, according to LSEG data. Three of the most popular companies, operated by Grayscale, Fidelity and BlackRock, saw sales surge.
Additionally, traders poured into Bitcoin ahead of the April halving event. This process takes place every four years, during which the token issuance rate is halved along with the rewards provided to miners.
The supply of Bitcoin is limited to 21 million, of which 19 million have already been mined.
Additionally, the prospect that the Federal Reserve will make a series of interest rate cuts this year has given investors a preference for high-yielding or volatile assets. Foreign exchange volatility has fallen to a two-year low, and U.S. stock volatility indices are returning to pre-pandemic ranges.
(with input from agency)