Bitcoin breaks through $61,000, madly sprinting towards its all-time high.

Jafar224

Bitcoin has once again staged a surge in its price.
On February 28th, Bitcoin rose for the fifth consecutive day, reaching a trading price of $61,114 as of the time of writing, breaking through the $60,000 mark and continuing its upward trend. This marks the highest price for Bitcoin since November 2021, and it is just a step away from its all-time high of $68,991.

Stimulated by the significant rise in Bitcoin, the entire cryptocurrency market collectively experienced a "wild rally." Within the 24 hours leading up to the time of writing, over 100,000 people were liquidated, totaling a staggering $333 million. Ethereum, Dogecoin, BNB, among others, all saw substantial increases, with Ethereum reaching $3,331, the highest level since April 2022.
This week, Bitcoin's price has risen by over 15%, and it has surged by 40% year-to-date, with a market value touching $1.2 trillion. This is primarily attributed to factors such as the possibility of a June interest rate cut by the U.S. Federal Reserve, the April "halving" event, and the approval of new spot ETFs.

The anticipation of a rate cut by the U.S. has increased the attractiveness of high-yield or volatile financial products to investors. A report from Goldman Sachs in February indicates an expectation that the Federal Reserve will significantly cut interest rates in 2024, with at least four rate cuts, starting in June.

A rate cut reduces borrowing costs, increases liquidity in the market, and encourages more funds to flow into various investment channels, including Bitcoin. Additionally, the attractiveness of savings or fixed-term products with low-interest rates to investors will decrease, further propelling the price of Bitcoin higher.

The rapid surge in the price of Bitcoin is directly related to the approval of the BTC ETF (Exchange-Traded Fund) listed in January this year. On January 10th, the U.S. Securities and Exchange Commission (SEC) approved 11 physically-backed Bitcoin ETFs, and the first batch of ETFs began trading on January 11th. According to reports, this decision by the SEC allows ordinary investors to conveniently buy and sell Bitcoin, similar to trading stocks and mutual funds.
This new measure lowers the barrier to purchasing Bitcoin and attracts more institutional and retail investors into the market. Furthermore, the approval of listing enhances the legitimacy of crypto assets, gradually pushing the price of Bitcoin higher.

The market response to the first batch of Bitcoin (BTC) ETFs was extremely positive. On the day of listing, the trading volume of Bitcoin spot ETFs surpassed $4 billion, with the total trading value of the 11 spot Bitcoin ETFs exceeding $3.5 billion.

Another factor driving the price increase is the upcoming Bitcoin "halving" event in April. This is a mechanism in the Bitcoin protocol designed to control the issuance speed and total supply of Bitcoin. The "halving" occurs approximately every four years, depending on the block generation speed of the Bitcoin network.

The "halving" event has a significant impact on the market. When the new supply of Bitcoin decreases while demand remains constant, the reduced supply may lead to a price increase. Before the "halving" event in April, traders are rushing into the Bitcoin market, anticipating profits when the reduced supply causes a price surge.

As the cryptocurrency market continues to heat up, cryptocurrency "whales" have also sensed the bull market and started entering the scene. Individuals or entities holding large amounts of cryptocurrency are often referred to as "whales," such as someone holding over 1000 Bitcoins.

On February 26th, MicroStrategy, the publicly-listed company holding the most Bitcoin globally, made a significant purchase of 3,000 Bitcoins. The founder of the company stated that between February 15th and February 25th, the company purchased approximately 3,000 Bitcoins at an average price of about $51,813 per Bitcoin, with a total cost of around $155.4 million.

A regulatory filing posted on the social media platform Reddit shows that the company also bought a small amount of Bitcoin and Ethereum.

Amidst the bullish factors of the ETF frenzy and the expectation of the "halving," Bitcoin may potentially break its all-time high before the "halving" event.

Niti998

The situation with Bitcoin is definitely worth taking a look at.

Kamal531

The more you disbelieve something, the more likely it is happening for real.