2/29/2024

Bitcoin reaches 60,000 dollars

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Key points:

  • Bitcoin price reached $60,000 for the first time in two years.
  • Bitcoin’s February rally was 42%.
  • Investors are hoping for the approval of a spot ether-based ETF.

On Wednesday, February 27, the price of Bitcoin reached $60,000 for the first time in more than two years, fueled by capital inflows into new Bitcoin spot exchange products in the United States. Bitcoin’s rally was 42% in February, its biggest monthly gain since December 2020.

Bitcoin soared 8% to $61,272, its highest since November 2021, when it was close to its all-time high of $70,000. Bitcoin rose 18.5% for the week, its biggest weekly gain in a year.

Halving and ETFs are the main growth factors

Traders are actively investing in Bitcoin ahead of the April halving, an event that will halve the rate at which new coins are issued. This event is expected to slow Bitcoin inflation and make it more scarce, which could cause the price to rise. In addition to halving, the growth of the Bitcoin price is influenced by the prospect of a Fed rate cut. Lower rates make high-yield and volatile assets like Bitcoin more attractive.

“Bitcoin is boosted by the support of persistent inflows into new spot ETFs and forecasts for the April halving and June Fed interest rate cut,”

– commented Ben Laidler, global markets strategist at retail investment platform eToro.

This month, the total capitalization of all bitcoins in circulation exceeded $2 trillion for the first time in two years. The price of the token itself has doubled over the past four months.

Major players are also showing interest in Bitcoin. Crypto investment company MicroStrategy announced the purchase of 3,000 bitcoins for $155 million. The Reddit platform also announced the acquisition of small amounts of bitcoin and ether.

Ethereum also rises in hopes of ETF approval

The second largest cryptocurrency by capitalization, Ethereum (ETH), is also showing growth. During the day, it rose in price by 3.2%, reaching $3,353, which became a new two-year high. Since the beginning of February, ETH has increased by 47%. Some investors are hopeful that U.S. regulators will approve applications for ETFs based on spot ether.

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