Bitcoin eyes 60000-dollar mark in biggest rally since late 2020

Bitcoin eyes $60,000 in biggest monthly rally since late 2020

/ 07:52 PM February 28, 2024

Bitcoin eyes $60,000 in biggest monthly rally since late 2020

Physical representations of the bitcoin cryptocurrency are seen in this illustration taken October 24, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

LONDON  –Bitcoin surged for a fifth day on Wednesday to near $60,000, buoyed by flows into new U.S. spot bitcoin exchange traded products that have driven it up nearly 40 percent in February, which would mark its largest monthly rally since December 2020.

Bitcoin was last up 4.5 percent at $59,244, its highest since December 2021.


Traders have poured into bitcoin ahead of April’s halving event – a process designed to slow the release of the cryptocurrency. In addition, the prospect of the Federal Reserve delivering a series of rate cuts this year has fed investor appetite for higher-yielding or more volatile assets.


Bitcoin is being driven by the support of consistent inflows into the new spot ETFs and outlook for April’s halving event and June’s Fed interest rate cuts,” Ben Laidler, global markets strategist at retail investment platform eToro, said.

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

The bigger bitcoin exchange-traded funds (ETFs) have seen a definite pickup in interest this week.

READ: Bitcoin breaks $57,000 as big buyers circle

The three most popular, run by Grayscale, Fidelity and BlackRock, have seen trading volumes surge.

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


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

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“Essentially, we’re seeing the ETF effect ahead of schedule. Inflows into them stepped up quickly last week and have been sustained, and we think it’s reflective of advisors getting out there very quickly to start selling the ETFs to clients,” Joseph Edwards, head of research at Enigma Securities, said.

READ: Cryptocurrencies pose risks to emerging markets, says RBI chief

LSEG data showed flows into the 10 largest spot bitcoin ETFs brought in flows of $420 million on Tuesday alone, the most in almost two weeks.

Crypto investor and software firm MicroStrategy earlier this week disclosed it had recently bought about 3,000 bitcoins for $155 million, while social media platform Reddit also said in a regulatory filing it had bought small amounts of bitcoin and ether.

Meanwhile, the world’s second biggest crypto currency ether,, which underpins the Ethereum blockchain network, rose 2.2 percent to $3,320, having hit another two-year high earlier in the day. The price has risen 47 percent in February, the biggest monthly gain since a 70 percent rally in July 2022.

Some investors are hoping U.S. regulators will approve applications for ETFs based on spot ether.

Enigma Securities’ Edwards said the run higher felt reasonably steady.

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“There certainly isn’t a manic feeling to who’s buying and why – ether gaining against the field also speaks to a more measured environment – but there’s at least a little FOMO (fear of missing out) going on right now,” he said.

TAGS: 'FOMO', Bitcoin, Rally

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