Bitcoin has surged past the $60,000 mark for the first time in more than two years, experiencing a 6% increase in the 24 hours leading up to 1:00 pm UTC. The cryptocurrency reached a high of $60,001 on Binance at 1:11 pm. According to data from CoinMarketCap, Bitcoin has seen a 13% increase on the weekly chart and a 37% increase over the past month.
This is the first time Bitcoin (BTC) has traded above $60,000 since November 12, 2021, when it began a downward trend and fell by over 67% to a low of $19,297 in April 2022.
The surge in Bitcoin’s price can largely be attributed to the anticipation surrounding the upcoming halving event, which has historically led to increased buying activity. Bryan Legend, investor and CEO of Hectic Labs, noted that the market is expecting this event to drive up the price of Bitcoin.
However, pseudonymous crypto analyst Rekt Capital suggests that a “pre-halving retracement” could still occur. Based on historical market data, previous halvings have resulted in major movements in Bitcoin’s price after the event, rather than before.
Bitcoin’s recent bullish momentum coincides with the spot Bitcoin exchange-traded funds (ETFs) in the United States reaching an all-time high of $2.4 billion in daily trading volume on February 26. The nine spot Bitcoin ETFs have recorded combined trading volumes of over $2 billion for the second consecutive day on February 28.
BlackRock’s iShares Bitcoin Trust ETF saw over 100,000 individual trades on February 27, a significant increase from the average daily trades of 30,000 to 60,000. According to CryptoQuant, approximately 75% of new Bitcoin investments in the United States have come from spot Bitcoin ETFs.
Overall, Bitcoin’s price surge and the increasing popularity of Bitcoin ETFs indicate a growing interest and investment in the cryptocurrency market.