Bitcoin Within Touching Distance of $60,000: Here’s What’s Fueling Its Biggest Monthly Rally Since Late 2020
Bitcoin on Wednesday has hit its two-year high by going past $59,000-mark and the crypto token is now less than $10,000 from its all-time high of $69,000 that it witnessed in November 2021. Euphoric sentiment and institutional buying demand have put the asset on fire. Trades have also doubled down on the asset out of pure FOMO (fear of missing out) about a seemingly new bull rally.
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.
Bitcoin was last up 4.5% at $59,244, its highest since December 2021.
The price spike came as US spot Bitcoin exchange-traded funds (ETF) recorded over $3.2 billion in cumulative trading volumes.
Bitcoin has gained 24% since ETF trading began on January 11 and is up 40% year-to-date.
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% of the 215 million shares traded in the market’s most valuable companies, according to LSEG data.
Three weeks ago, this percentage was closer to 15%.
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, reported Reuters on Wednesday.
Traders have poured into Bitcoin ahead of April’s halving event, a process designed to slow the release of the cryptocurrency. Also, the prospect of the US Federal Reserve delivering a series of rate cuts this year has fed investor appetite for riskier assets.
