Bitcoin price (BTC) briefly surged above $64,000 on February 28th before retracing back to the $62,000 range. Along with this surge, there was a significant increase in trading volumes for spot Bitcoin ETFs and a spike in crypto liquidations.
As of 3:35 pm UTC, the price of BTC was $62,669, showing a 5% increase over the last 24 hours.
The recent rally has resulted in a 93% surge in BTC’s daily trading volume, reaching $90.2 billion. As a result, Bitcoin’s market capitalization has increased to $1.23 billion, establishing its position as the most valuable cryptocurrency, according to CoinMarketCap.
The surge in Bitcoin’s price is mainly attributed to the increased inflow into new spot Bitcoin ETFs.
In the United States, spot Bitcoin ETFs continue to attract capital, with a record $673 million of net inflows on February 28th as BTC surpassed $64,000. This figure surpasses the previous record of $655.2 million set on January 11th when these ETFs were first launched.
BlackRock’s spot Bitcoin ETF, IBIT, accounted for approximately $6.12 million of the total inflows, marking its highest inflow to date. Fidelity’s ETF, FBTC, came in second with around $245.2 million, and ARK Invest 21Shares’ ARKB was third with $23.8 million. However, Grayscale’s ETF, GBTC, experienced outflows totaling $216.4 million on February 28th.
According to data from BitMEX research, the nine new Bitcoin ETFs collectively saw net inflows of approximately $7.4 billion, the highest since their launch.
Bitcoin’s price volatility also led to significant liquidations of leveraged positions across the crypto market. Within a 24-hour period, short positions worth $435 million were liquidated, along with $364 million in long positions.
As inflows into spot Bitcoin ETFs increase and the upcoming supply halving event approaches, investors anticipate that Bitcoin’s bullish price action will continue.
Independent analyst Ali posted a chart showing IntoTheBlock’s In/Out of the Money Around Price (IOMAP), suggesting that Bitcoin’s price currently faces “literally no resistance ahead.” The chart indicates a strong support zone between $54,300 and $56,200, where nearly 500,000 BTC was previously bought by approximately 903,540 addresses.
However, Ali warned short-term traders that the TD Sequential indicator had flashed a sell signal on the four-hour chart, which could potentially result in price corrections between 1.50% and 4.20%.
Please note that this article does not provide investment advice or recommendations, and readers should conduct their own research before making any decisions.