On February 26, Bitcoin hit $57,000, its highest level in more than two years. According to CoinDesk, the cryptocurrency increased by 9% to momentarily cross the $57,000 mark for the first time since November 2021. After that, it declined again to roughly $56,500 levels.
According to reports, the increase is being driven by growing optimism about ongoing investor demand through exchange-traded funds (ETFs).
Bitcoin first broke through the $53,000 barrier during the daylong rally, and it then swiftly increased to $54,000, $56,000, then $57,000 in quick succession.
Experts claim that institutional allocation triggered the rally
According to Zakhil Suresh, CEO of cryptocurrency investing platform BitSave, bitcoin has increased by more than 200% since its lowest points in November 2022 and following the FTX debacle.
"This rally has been primarily triggered by institutional allocation and the increased retail participation in the last few months due to Bitcoin Spot ETF applications in the US and upcoming Bitcoin halving," Suresh said.
"Digital asset investment products saw weekly inflows totalling $598 million last week, according to Coinshares, marking the fourth consecutive week of inflows. Bitcoin saw $570 million inflows last week, bringing year-to-date inflows to $5.6 billion," he noted.
Regarding the market's moves, Suresh stated that although prices quickly began to decline following the SEC's approval of 11 spot ETFs last month due to early speculators taking profits, Bitcoin found support below $40,000, which also happened to coincide with the 100 Day Moving Average.
"AUM of all Bitcoin spot ETFs combined have crossed $39.40 billion according to Coinglass. Bitcoin is now the second largest ETF commodity in the US, surpassing Silver which has $11.5 billion in AUM. Fresh inflows from institutions have helped Bitcoin maintain its bullish trend," he noted.
Furthermore, Suresh stated that in order for Bitcoin to continue its upward trend ahead of the halving, it is critical that it cross the $60,000 resistance level at this time.
As stated by the journal, the rise of cryptocurrencies is "supported by strong ETF inflows" according to Spencer Hallarn, global head of over-the-counter trading at cryptocurrency investment firm GSR.
The biggest cryptocurrency in the world earlier experienced a gain of up to 3.5 percent, hitting $53,600, according to Bloomberg. Bitcoin last traded at this level in December 2021, the month before it hit an all-time high of about $69,000.
Across nine recently introduced ETFs, investors have committed almost $5 billion in the last month. The $7.4 billion that was taken out of the Grayscale Bitcoin Trust—which was converted from a trust during the same period.
Market forces propel the rise of bitcoin
According to Chris Newhouse, a DeFi analyst at Cumberland Labs, "Bitcoin is approaching new yearly highs off the back of increased spot demand and momentum traders taking positions after a week of consolidation," Bloomberg said. Despite the increase, leveraged longs are swiftly displacing liquidated shorts, thus liquidations are not unduly large given the current price action.
A discernible rise in the open interest—that is, the number of existing contracts—for perpetual Bitcoin futures was noted by Newhouse. Concurrently, during the most recent rally, short positions have been forced to close, possibly as a result of new long holdings entering the market.
MicroStrategy Increases Trust Through Major Bitcoin Purchase
This month, MicroStrategy Inc., which is well-known for incorporating Bitcoin into its business plans, said that it had purchased roughly 3,000 cryptocurrency tokens for $155.4 million.
This action has contributed to the bullish sentiment surrounding Bitcoin, which now stands at approximately $10 billion in total holdings.
The announcement caused MicroStrategy's stock to rise by about 14%. Other firms in the cryptocurrency space also saw gains; Coinbase Global had a 14% increase, and Marathon Digital, a miner of Bitcoin, saw an over 20% increase.
(Source:www.livemint.com)
According to reports, the increase is being driven by growing optimism about ongoing investor demand through exchange-traded funds (ETFs).
Bitcoin first broke through the $53,000 barrier during the daylong rally, and it then swiftly increased to $54,000, $56,000, then $57,000 in quick succession.
Experts claim that institutional allocation triggered the rally
According to Zakhil Suresh, CEO of cryptocurrency investing platform BitSave, bitcoin has increased by more than 200% since its lowest points in November 2022 and following the FTX debacle.
"This rally has been primarily triggered by institutional allocation and the increased retail participation in the last few months due to Bitcoin Spot ETF applications in the US and upcoming Bitcoin halving," Suresh said.
"Digital asset investment products saw weekly inflows totalling $598 million last week, according to Coinshares, marking the fourth consecutive week of inflows. Bitcoin saw $570 million inflows last week, bringing year-to-date inflows to $5.6 billion," he noted.
Regarding the market's moves, Suresh stated that although prices quickly began to decline following the SEC's approval of 11 spot ETFs last month due to early speculators taking profits, Bitcoin found support below $40,000, which also happened to coincide with the 100 Day Moving Average.
"AUM of all Bitcoin spot ETFs combined have crossed $39.40 billion according to Coinglass. Bitcoin is now the second largest ETF commodity in the US, surpassing Silver which has $11.5 billion in AUM. Fresh inflows from institutions have helped Bitcoin maintain its bullish trend," he noted.
Furthermore, Suresh stated that in order for Bitcoin to continue its upward trend ahead of the halving, it is critical that it cross the $60,000 resistance level at this time.
As stated by the journal, the rise of cryptocurrencies is "supported by strong ETF inflows" according to Spencer Hallarn, global head of over-the-counter trading at cryptocurrency investment firm GSR.
The biggest cryptocurrency in the world earlier experienced a gain of up to 3.5 percent, hitting $53,600, according to Bloomberg. Bitcoin last traded at this level in December 2021, the month before it hit an all-time high of about $69,000.
Across nine recently introduced ETFs, investors have committed almost $5 billion in the last month. The $7.4 billion that was taken out of the Grayscale Bitcoin Trust—which was converted from a trust during the same period.
Market forces propel the rise of bitcoin
According to Chris Newhouse, a DeFi analyst at Cumberland Labs, "Bitcoin is approaching new yearly highs off the back of increased spot demand and momentum traders taking positions after a week of consolidation," Bloomberg said. Despite the increase, leveraged longs are swiftly displacing liquidated shorts, thus liquidations are not unduly large given the current price action.
A discernible rise in the open interest—that is, the number of existing contracts—for perpetual Bitcoin futures was noted by Newhouse. Concurrently, during the most recent rally, short positions have been forced to close, possibly as a result of new long holdings entering the market.
MicroStrategy Increases Trust Through Major Bitcoin Purchase
This month, MicroStrategy Inc., which is well-known for incorporating Bitcoin into its business plans, said that it had purchased roughly 3,000 cryptocurrency tokens for $155.4 million.
This action has contributed to the bullish sentiment surrounding Bitcoin, which now stands at approximately $10 billion in total holdings.
The announcement caused MicroStrategy's stock to rise by about 14%. Other firms in the cryptocurrency space also saw gains; Coinbase Global had a 14% increase, and Marathon Digital, a miner of Bitcoin, saw an over 20% increase.
(Source:www.livemint.com)