Bitcoin’s price breaches US$60,000, edging towards record peak amid ETF fervour

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28th February 2024 – (New York) Bitcoin’s value has surged dramatically, breaching the $60,000 threshold and hurtling towards its record peak, as investor enthusiasm reignites, reminiscent of the fervour that characterised the 2021 cryptocurrency boom.

The premier digital currency’s value has soared by nearly 19% within this week alone, and an impressive 43% year-to-date. This uptick is attributed largely to the burgeoning excitement surrounding the introduction of several spot bitcoin exchange-traded funds (ETFs), which began trading in January.

At its recent zenith, Bitcoin climbed over 6%, pushing past $60,500, marking its loftiest level since November 2021. This rally is a litmus test for the currency’s potential to close in on its all-time high of $68,789, reached six months prior to the precipitous crash in 2022.

Market watchers and cryptocurrency analysts are closely scrutinising this resurgence. “We’re observing crypto’s phoenix-like resurgence from the 2022 market ashes,” stated Ryan Rasmussen, crypto research analyst at Bitwise Asset Management. Meanwhile, Mark Palmer of Benchmark posited on Yahoo Finance Live that “Bitcoin’s price could very well hit $125,000 by the end of 2025.”

The cryptocurrency market, in general, has seen a bullish trend, with Ethereum (ETH), the second-largest digital asset, outstripping Bitcoin’s performance by over 4%. The cumulative market capitalisation for all cryptocurrencies has surged by approximately 36% to $2.24 trillion, as per CoinMarketCap.

An indicator of the burgeoning bitcoin interest is the trading volume seen in the newly launched bitcoin ETFs. These funds have registered over $6.7 billion in net flows, reports Farside Investors, a London-based fund.

Furthermore, the trading volume for Bitcoin this quarter has already outpaced any quarter in 2023. This has translated into substantial gains for major cryptocurrency exchanges like Coinbase Global (COIN) and Robinhood (HOOD), with respective stock price increases of 27% and 31% since January’s inception.

Coinbase CEO Brian Armstrong recently participated in the Piper Sandler Global Exchange and FinTech Conference in New York City, amid these market developments.

Bitcoin-centred firms such as Marathon Digital (MARA) and MicroStrategy (MSTR) have also experienced significant gains, rising by 32% and 27%, respectively. Notably, MicroStrategy disclosed this Monday that it had purchased an additional 3,000 BTC, expanding its massive bitcoin portfolio to 193,000 BTC, valued at an estimated $11 billion.

The derivatives market is also catching the Bitcoin wave, as noted by Cumberland Labs analyst Christopher Newhouse. The bitcoin futures market is currently experiencing an unprecedented volume of open contracts, with a reported $25 billion, a figure that eclipses the previous high set in April 2021.