Bitcoin has witnessed an impressive surge, crossing the $59,000 mark for the first time, signaling a remarkable rally for investors. The cryptocurrency has experienced a surge of over 200 percent since its low point in November 2022, following the FTX event. The past week alone saw Bitcoin attracting inflows of $570 million, contributing to the annual inflow of $5.6 billion.
Marking the fifth consecutive day of positive momentum, Bitcoin’s current trading value is $59,259, reflecting a notable increase of 4.4%. This surge has been fueled by the influx of funds into new US spot exchange-traded bitcoin. In the month of February, Bitcoin prices have seen an extraordinary increase of 39.7%, positioning it for the most significant monthly rally since December 2020. Notably, this trading value is the highest since December 2021.
Ether, another prominent cryptocurrency, has also experienced a surge, rising by 2.2% to reach $3,320, marking its highest level in two years.
The growing interest in Bitcoin among investors and traders is attributed to factors such as the upcoming halving event scheduled for April. The halving event is a crucial aspect of Bitcoin’s structure designed to slow down the supply of new Bitcoin. Bitcoin achieved a milestone on February 26, reaching its highest level in over two years at $57,000, marking a 9% increase. However, the value experienced a slight correction, stabilizing around $56,500.
Zakhil Suresh, CEO of the crypto investment platform BitSave, highlighted the catalysts behind Bitcoin’s surge, emphasizing increased institutional allocations and growing retail participation. Suresh noted, “The rally has been triggered primarily by increased institutional allocations and retail participation over the last few months due to Bitcoin spot ETF applications in the US and the upcoming Bitcoin halving.” He further added that digital asset investment products witnessed weekly inflows of $598 million, marking the fourth consecutive week of inflows.
Bitcoin’s recent upward trajectory reflects the cryptocurrency’s resilience and growing appeal among a diverse range of investors, positioning it as a significant player in the financial landscape.
