Bitcoin
Bitcoin : Bitcoin is on track for its biggest monthly gain in three years, hitting a solid $62,000 in Asian morning trading on February 29, Reuters reported. According to the report, the price of the world’s largest cryptocurrency rose overnight to $63,933, representing a monthly gain of more than 45 percent and the biggest gain since December 2020.
Bitcoin’s momentum is also impacting its smaller digital cryptocurrency, Ether, which is currently trading at $3,429 reflecting a 50 percent increase in February.
Analyst Predicts Potential Break of $69,000
Bitcoin :Brian Armstrong, the head of cryptocurrency exchange Coinbase Global, reportedly attributed the platform’s increase in traffic to increased interest in cryptocurrencies.
Tony Sycamore, an analyst at brokerage IG Markets, believes Bitcoin is headed for an breakthrough, pointing to a “test and possible breakout” at $69,000. The move could break the previous record set in November 2021.
Spot Bitcoin ETFs Attract Massive Inflows
The approval and launch of a Bitcoin exchange-traded fund (ETF) in the United States earlier this year attracted significant investments and created excitement in the cryptocurrency market.
LSEG data shows that the top 10 Bitcoin ETFs raised $420 million on February 27 alone, the highest inflows in almost two weeks. In particular, the trading volume of ETFs managed by Grayscale, Fidelity and BlackRock increased.
Traders Flock to Bitcoin Ahead of Halving Event
Bitcoin : Traders are also actively entering the Bitcoin market in anticipation of the upcoming halving event scheduled for April. This event, which happens every four years, reduces the reward for miners and the rate at which tokens are issued.
Considering that the number of bitcoins is limited to 21 million and 19 million have already been mined, this event will only add to the general excitement.
Investor Appetite Boosted by Rate Cut Prospects and Market Stability
Bitcoin : Additionally, the possibility that the Federal Reserve could make a series of interest rate cuts this year is increasing investor appetite for higher-yielding and more volatile assets.
Flows into Bitcoin have surged, as foreign exchange volatility hits two-year lows, and the US equity volatility index returns to pre-pandemic ranges.
Also read Three new penal laws: What changes, what are some key takeaways?