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Bitcoin hits $60,000 as rally accelerates | The Express Tribune

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LONDON:

Bitcoin hit $60,000 on Wednesday for the first time in more than two years, as a surge of capital into new U.S. spot exchange-traded products fueled a 42% price rally in February, which would mark its biggest monthly gain since December 2020.

Bitcoin was last up 6% at $60,131, its highest level since November 2021, when it hit a record just below $70,000. Bitcoin was also heading for its biggest weekly gain in a year, up 18.5% since February 21.

Traders flocked to bitcoin ahead of April’s halving event – a process designed to slow the cryptocurrency’s exit. Additionally, the prospect of a series of rate cuts by the Federal Reserve this year has fueled investors’ appetite for higher-yielding or more volatile assets. “Bitcoin is driven by support from steady inflows into new spot exchange-traded funds (ETFs) and prospects of April halving and June Fed interest rate cut,” said Ben Laidler, global markets strategist at retail investment platform eToro.

The value of all bitcoins in circulation surpassed $2 trillion this month for the first time in two years, according to crypto platform CoinGecko, while the price of the token itself doubled in just four months .

The largest Bitcoin ETFs saw a sharp uptick in interest this week.

The three most popular, managed by Grayscale, Fidelity and BlackRock, saw their trading volumes increase.

On Monday and Tuesday, about 110 million shares of the three largest companies changed hands, or about 51% of the 215 million shares traded in the market’s most valuable companies – Apple, Microsoft and Nvidia, according to data from the LSEG.

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Bitcoin market cap surpasses $1 trillion as buyers flock

Three weeks ago, this percentage was closer to 15%.

“Essentially, we’re seeing the ETF effect sooner than expected. Inflows into these ETFs ramped up quickly last week and were sustained, and we think that reflects the fact that advisors moved very quickly to start selling the ETFs to their clients,” said Joseph Edwards , head of research at Enigma Securities.

LSEG data showed that flows into the 10 largest spot Bitcoin ETFs brought in $420 million on Tuesday alone, the most in nearly two weeks.

“If $60,000 doesn’t whet your appetite, consider that 70% of Bitcoin’s supply has been unchanged for a year and what little is left is being scooped up by companies like BlackRock and Fidelity, just as rewards for minors are about to be obtained. cut in two. The stars are aligning for Bitcoin,” said Antoni Trenchev, co-founder of crypto exchange Nexo.

Published in The Express Tribune, February 29th2024.

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