Bitcoin, the world’s largest cryptocurrency by market capitalization, is poised to mark its most substantial monthly gain in more than three years as it edges closer to its all-time high. On Thursday, Bitcoin was up by 3.4%, trading at $62,205, with overnight trading reaching as high as $63,933, a level not seen since late 2021.
This surge in Bitcoin’s value is largely attributed to the influx of cash pouring into exchange-traded funds (ETFs), particularly in the United States. The approval and launch of spot Bitcoin ETFs this year have opened up the cryptocurrency asset class to a broader range of investors, reigniting excitement that had waned during the crypto market downturn of 2022.
Bitcoin’s monthly gain stands at over 47%, its most significant increase since December 2020, propelling other cryptocurrencies like Ether along with it. Ether, the second-largest cryptocurrency, surged past $3,500 for the first time since April 2022, recording a 52% increase for February.
Analysts predict that Bitcoin’s momentum could lead to a breakthrough of the $69,000 mark, surpassing its previous record high set during the peak of the crypto market in November 2021. Tony Sycamore, an analyst at brokerage IG Markets, noted the potential for Bitcoin to reach new heights.
Matt Simpson, senior market analyst at City Index, commented on Bitcoin’s rally, likening it to a “parabolic-rally phase” with no immediate signs of slowing down.
Also Read: 8.4% GDP growth shows strength in Indian economy, its potential: PM Modi
The surge in Bitcoin investment is evident in the flow of funds into ETFs, with approximately $612 million pouring into the top 10 spot Bitcoin ETFs on Wednesday, the highest since February 14. BlackRock’s iShares Bitcoin Trust saw the most significant influx, with $550 million in flows, marking the highest single-day inflow since its inception in January.
Traders are also eyeing April’s halving event, a process occurring every four years that reduces the rate at which new Bitcoins are produced, along with the rewards for miners. With the supply of Bitcoin limited to 21 million, and approximately 19 million already mined, anticipation for this event is contributing to investor enthusiasm.
Additionally, the expectation of interest rate cuts by the US Federal Reserve this year has led investors to seek higher returns in riskier assets like Bitcoin, especially as yields on traditional bonds remain low.
Geoff Kendrick, head of crypto research at Standard Chartered, emphasized the significance of ETF inflows and the overall health of the US economy in driving Bitcoin’s recent surge, highlighting the increasing attractiveness of Bitcoin compared to other investment options.
As Bitcoin continues its upward trajectory, investors remain optimistic about its potential to reach new milestones in the near future, signaling a resurgence in confidence and interest in the cryptocurrency market.
Read all the World News, Business News, Sports News, Entertainment News, Business News and Opinion here. Follow us on Facebook, Twitter and Instagram.