Bitcoin’s price experienced a significant surge on February 28, briefly surpassing $64,000 before retracing to the $62,000 range. This surge was accompanied by record volumes in spot Bitcoin ETFs and a spike in crypto liquidations.
As of 3:35 pm UTC, the price of Bitcoin was $62,669, representing a 5% increase over the past 24 hours. The latest rally has also seen a 93% spike in Bitcoin’s daily trading volume, reaching $90.2 billion. With a market capitalization of $1.23 billion, Bitcoin solidifies its position as the most valuable cryptocurrency.
The surge in Bitcoin’s price is largely attributed to increased inflows into new spot Bitcoin ETFs. In fact, spot Bitcoin ETFs continue to attract capital, with a record $673 million of net inflows on February 28 as Bitcoin soared past $64,000. This figure surpasses the previous high of $655.2 million set on January 11 when these ETFs first began trading.
Notably, BlackRock’s spot Bitcoin ETF, IBIT, saw an inflow of around $6.12 million, its highest amount to date. Fidelity’s ETF, FBTC, followed with around $245.2 million, and ARK Invest 21Shares’ ARKB came in third with $23.8 million. However, Grayscale’s ETF, GBTC, experienced outflows totaling $216.4 million on February 28.
Furthermore, data from BitMEX research reveals that the nine new Bitcoin ETFs collectively received net inflows of approximately $7.4 billion, the highest since their launch.
Bitcoin’s price volatility has also led to significant liquidations of leveraged positions across the crypto market. In a span of 24 hours, short positions worth $435 million were liquidated, along with $364 million in long positions.
Looking ahead, as inflows into spot Bitcoin ETFs continue to increase and the supply halving event approaches, investors anticipate further bullish price action for Bitcoin.
According to independent analyst Ali, Bitcoin’s price faces “literally no resistance ahead” based on IntoTheBlock’s In/Out of the Money Around Price (IOMAP) chart. The chart indicates a strong support zone between $54,300 and $56,200, where a large number of addresses previously bought nearly 500,000 BTC.
However, short-term traders should be cautious as the TD Sequential indicator has flashed a sell signal on the four-hour chart, which could result in price corrections of 1.50% to 4.20%.
Disclaimer: This article does not provide investment advice or recommendations. Investors should conduct their own research before making any decisions.