Bitcoin Briefly Soars Above $64,000 Amid Record Spot Bitcoin ETF Inflows and Increased Crypto Liquidations
Summary:
Bitcoin's value briefly surpassed $64,000 on Feb 28, sparking a significant increase in Bitcoin ETF trades and a rise in cryptocurrency liquidations. The surge is believed to be linked to new inflows into spot Bitcoin ETFs, which recorded a net $673 million - a record high. Despite subsequent price volatility resulting in significant liquidations, analysts expect Bitcoin's bullish trend to continue due to an imminent supply halving event.
On February 28, the value of Bitcoin (BTC) briefly rose above $64,000 before declining to the $62,000 range. The spike in Bitcoin's value was mirrored in a high volume of spot Bitcoin ETF trades and a rise in cryptocurrency liquidations. As of 3:35 pm UTC, Bitcoin was trading at $62,669, marking a 5% increase in the last 24 hours. This rally sparked a 93% increase in Bitcoin's daily trading volume, which reached $90.2 billion. Bitcoin’s market cap also rose to $1.23 billion, reaffirming its position as the top-rated cryptocurrency on CoinMarketCap.
Experts believe that the rising value of Bitcoin is due to an influx of capital into new spot Bitcoin ETFs. On February 28, as Bitcoin’s value exceeded $64,000, spot Bitcoin ETFs reported a record $673 million in net inflows. Farside Investors data shows these figures surpassing the January 11 high of $655.2 million when ETF trading began.
Among the inflows, BlackRock’s Bitcoin ETF, IBIT, reported inflows of about $6.12 million, marking its highest input to date. Fidelity’s ETF (FBTC) followed with about $245.2 million, and ARK Invest 21Shares’ ARKB recorded $23.8 million. Grayscale’s ETF (GBTC) marked an outflow of $216.4 million on February 28.
In addition, new Bitcoin ETFs have recorded net inflows of approximately $7.4 billion, the most since their debut. The volatility of Bitcoin's price has led to significant liquidations of leveraged positions in the cryptocurrency market.
As the price point wavered around $63,500 in the early Asian trading hours on February 29, short positions worth $435 million were liquidated in the last 24 hours compared to $364 million long liquidations, as per Coinglass data. The start of the New York trading saw prices hovering around $62,500, with overall liquidations reaching $683 million.
With rising inflows into spot Bitcoin ETFs and an imminent supply halving event, investors anticipate continued bullish Bitcoin price action. An independent analyst, Ali, has stated that Bitcoin is facing “no resistance” in its upward trajectory.
According to an IOMAP chart shared by Ali, almost 89.75% of holders are in the money at the current price compared to 9.24% who are not, a relatively small percentage that can resist attempts to drive up the price. Ali also warned about a potential sell signal flashed by the TD Sequential indicator on the four-hour chart. If confirmed, it could trigger a price correction between 1.50% and 4.20%.
Please note that this article doesnt contain investment advice or suggestions. All investments and trading decisions carry risk, and it's advised that individuals conduct thorough research before making any decisions.
Published At
2/29/2024 9:33:43 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.