Bitcoin Surges Above $60,000 Amid Positive Investor Sentiment and Record ETF Inflows
Summary:
Bitcoin (BTC) surpassed the $60,000 mark for the first time in over two years on Feb. 28, stimulated by record spot Bitcoin ETF inflows and positive investor sentiment ahead of the forthcoming Bitcoin halving. The 10 spot Bitcoin ETFs saw more individual trades than the $SPY and $QQQ indexes. As Bitcoin reached a new high, the CMC Crypto Fear and Greed index indicated "extreme greed" among crypto investors. Increased investor sentiment is primarily attributed to the upcoming Bitcoin halving and the approval of spot Bitcoin ETFs.
On Feb. 28, Bitcoin (BTC) surpassed the $60,000 mark for the first time in over two years, prolonging its one-way surge. The pioneering digital currency saw a hike of over 6.64%, landing at $60,629 at 2:10 pm UTC. Bitcoin's previous stint above $60,000 can be traced back to Nov. 12, 2021, following which it experienced a downward turn, plunging over 67% to a significant low of $19,297 in early April 2022. This recent shift in Bitcoin’s value was stimulated by unprecedented spot Bitcoin ETF inflows and progressively positive investor sentiment in view of the forthcoming Bitcoin halving.
The 10 spot Bitcoin ETFs have seen more individual trades than the $SPY and $QQQ indexes. These ETFs gathered a cumulative total of 241,000 trades on Feb. 27, outpacing the 185,000 trades on the $SPY and the 138,000 on the $QQQ the same day, as noted in a Feb. 28 post by Jim Bianco, the founder and president of Bianco Research.
Giving a boost to investor optimism, the nine spot Bitcoin ETFs posted collective trading volumes in excess of $2 billion for the second straight day on Feb. 28. BlackRock's Ishares Bitcoin ETF (IBIT) witnessed over 100,000 individual trades on Feb. 27, a considerable leap from the daily average of 30,000 to 60,000 trades, as reported by Balchunas on X (formerly Twitter).
As per Mikkel Morch, the founder of digital asset investment fund ARK36, we might observe a fresh all-time peak for both Bitcoin and Ether in the forthcoming weeks, spurred by the anticipation of the looming Bitcoin halving and the probable approval of a U.S. spot Ether ETF. However, the pseudonymous crypto analyst Rekt Capital suggests a "pre-halving retracement" might still be a possibility, citing past major Bitcoin movements took place post-halving rather than pre-halving.
As Bitcoin hovered above a two-year peak, investor sentiment morphed into "extreme greed." The CMC Crypto Fear and Greed index escalated to over a three-month high of 80, indicating increased greed among crypto investors, a level last observed in early December 2023, as noted by CoinMarketCap.
Alex Onufriychuk, CEO and co-founder of Kaminari, a Lightning Network payments infrastructure firm, attributed this heightened investor sentiment primarily to the upcoming Bitcoin halving and the approval of spot Bitcoin ETFs, stating, "Every four years, as the rewards for new Bitcoin mining are halved, effectively doubling the mining cost of Bitcoin and generally amplifying its value. The approval of Bitcoin ETF has further validated Bitcoin in the eyes of many investors.
Published At
2/28/2024 7:12:21 PM
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