Bitcoin Hits $60,000 Mark Amid Halving Anticipation and Rising ETF Activity
Summary:
Bitcoin surpassed $60,000 for the first time in over two years, largely driven by market anticipation of the upcoming halving event, according to Hectic Labs CEO Bryan Legend. However, an unidentified crypto analyst warns of a potential 'pre-halving retracement'. Meanwhile, Bitcoin Exchange-Traded Funds (ETFs) in the US hit an all-time high daily trading volume of $2.4 billion two days prior, with three-quarters of new Bitcoin investments originating from these ETFs.
Breaking the $60,000 barrier for the first time in over two years, Bitcoin registered a surge of over 6% in the 24-hour lead-up to 1:00 pm UTC, hitting the mark precisely at 1:11 pm UTC. As per data from CoinMarketCap, the pioneering digital currency has increased by over 13% week-on-week and risen 37% within the past month. It last traded above $60,000 on November 12, 2021, before entering a reversal that saw it drop more than 67% to a record low of $19,297 in early April 2022.
Bryan Legend, an investor and CEO of Hectic Labs, suggests that the recent surge in Bitcoin's value can largely be attributed to the market's expectations revolving around the forthcoming halving event which typically triggers a surge in purchasing activities in anticipation of reduced supply, initiating what is commonly known as the 'Pre-Halving rally'. This, in turn, leads to a revamped bullish market sentiment, mirrored in the current market scenario.
However, the anonymous crypto analyst who goes by the name Rekt Capital warns of a possible "pre-halving retracement" based on historical market data which suggests that significant movements in Bitcoin’s price have traditionally occurred after halvings rather than before.
In terms of Bitcoin Exchange-Traded Funds (ETFs) operating in the American markets, they struck an all-time daily trading volume high of $2.4 billion two days prior, as per Eric Balchunas, a senior ETF analyst at Bloomberg. The nine Bitcoin ETFs have since recorded daily trading volumes exceeding $2 billion for two consecutive days.
The BlackRock-owned iShares Bitcoin ETF (IBIT) reported over 100,000 individual trades on February 27, a significant jump compared to the usual 30,000 to 60,000 average daily trades.
According to a mid-February report by on-chain data analytics firm CryptoQuant, three-quarters of the new Bitcoin investments were traced back to US Bitcoin ETFs, hinting at the rise of digital currency ETFs poised to outshine gold ETFs.
Published At
2/28/2024 4:16:39 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.