Bitcoin has surged past the $60,000 mark for the first time in more than two years, showing a growth of over 6% in the 24-hour period leading up to 1:00 pm UTC. The cryptocurrency reached a high of $60,001 on Binance at 1:11 pm.
According to data from CoinMarketCap, Bitcoin’s value has increased by over 13% on the weekly chart and 37% in the past month. The last time Bitcoin traded above $60,000 was on November 12, 2021, before experiencing a significant decline to a low of $19,297 in April 2022.
The surge in Bitcoin’s price can be attributed to the anticipation surrounding the upcoming halving event, which has historically led to increased buying activity. Bryan Legend, investor and CEO of Hectic Labs, believes that this anticipation is driving the current price performance.
However, Rekt Capital, a pseudonymous crypto analyst, suggests that there may still be a “pre-halving retracement” to come. Based on historical market data, Rekt Capital argues that the market has not fully priced in the upcoming halving, as Bitcoin’s major movements have typically occurred after previous halvings, rather than before.
Bitcoin’s recent bullish momentum coincides with the spot Bitcoin exchange-traded funds (ETFs) in the United States reaching an all-time high of $2.4 billion in daily trading volume on February 26. The new nine spot Bitcoin ETFs have seen combined trading volumes of over $2 billion for the second consecutive day on February 28.
BlackRock’s iShares Bitcoin Trust ETF, in particular, has experienced a significant increase in individual trades. On February 27, it recorded over 100,000 trades, compared to an average of 30,000 to 60,000 daily trades. This surge in trading volume suggests that approximately 75% of new Bitcoin investments in the United States are coming from spot Bitcoin ETFs, according to a report by on-chain data analytics firm CryptoQuant.
Overall, Bitcoin’s recent price surge and the growing popularity of spot Bitcoin ETFs indicate a positive trend in the cryptocurrency market.