Bitcoin, the pioneering cryptocurrency, has surged past the $61,000 mark for the first time in over two years and three months, marking a significant milestone in its tumultuous journey. The surge, characterized by a remarkable 6% spike in the 24 hours leading up to 1:00 pm UTC, culminated in a momentary peak of $60,001 on Binance at 1:11 pm UTC.
According to data from CoinMarketCap, Bitcoin has exhibited a robust performance, boasting a staggering 13% increase over the weekly chart and a remarkable 37% surge over the past month.
This rally marks a notable resurgence since its previous peak above $60,000 on November 12, 2021, before embarking on a substantial decline, plummeting over 67% to a macro low of $19,297 in April 2022.
Related: Bitcoin Holds Strong Around $52,000 Mark Amid Cryptocurrency Rally
The driving force behind Bitcoin’s price surge can largely be attributed to the anticipation surrounding the upcoming halving event, according to insights from Bryan Legend, an esteemed investor and CEO of Hectic Labs.
Legend notes that investors are foreseeing a reduction in supply, a phenomenon historically associated with price hikes, thereby fueling a ‘Pre-Halving rally’ and instigating a renewed bullish sentiment in the market.
However, the optimism is met with a cautious outlook from pseudonymous crypto analyst Rekt Capital, who suggests that a “pre-halving retracement” could still be plausible. Citing historical market data, the analyst contends that previous halvings have not been entirely priced in by the market, with significant Bitcoin movements occurring post-halving rather than before.
The bullish momentum in Bitcoin’s price trajectory is further buoyed by the record-breaking performance of spot Bitcoin exchange-traded funds (ETFs) in the United States.
Eric Balchunas, a senior ETF analyst at Bloomberg, reports that these ETFs reached an all-time high of $2.4 billion in daily trading volume on February 26, indicating a substantial influx of investor capital into the cryptocurrency market.
The surge in trading volumes is underscored by the performance of BlackRock’s iShares Bitcoin ETF (IBIT), which witnessed a surge in individual trades, recording over 100,000 trades on February 27 alone, a significant uptick from its average daily trade volume.
Balchunas highlights the growing popularity of spot Bitcoin ETFs, with an estimated 75% of new Bitcoin investments flowing through these instruments in the United States, as reported by on-chain data analytics firm CryptoQuant on February 14.
As Bitcoin continues to capture headlines with its meteoric rise, investors remain cautiously optimistic, navigating the intricate dynamics of market sentiment, historical patterns, and institutional participation. Whether Bitcoin sustains its upward trajectory or encounters a retracement remains to be seen, underscoring the volatile yet captivating nature of the cryptocurrency landscape.
Note: *Cryptos are unregulated virtual assets, not legal tender, and subject to market risks.