February turned out to be a month of absolute rejoicing for Bitcoin traders, because the BTC worth rallied all the best way to $64,000 in pursuit of a brand new all-time excessive. The Bitcoin worth climbed 3% to $62,216.43 on the final day of February. It skilled a surge to $64,000 on Wednesday earlier than a wave of long liquidations led to a pullback to round $60,000.
Bitcoin Price Registers the Best Month In Three Years
Bitcoin concluded the month with a formidable practically 45% improve, marking its sixth consecutive month-to-month achieve, its strongest efficiency since December 2020. February proved to be successful for Bitcoin exchange-traded funds (ETFs), witnessing a document $677 million in day by day web inflows on Wednesday alone, marking the third consecutive day of inflows surpassing $500 million.
However, the outflows from the Grayscale Bitcoin ETF (GBTC) had exerted downward stress on the Bitcoin worth.Investors credit score February’s outstanding features to the availability and demand dynamics of Bitcoin. Sylvia Jablonski, CEO and chief funding officer at Defiance ETFs, highlighted the introduction of recent ETFs and the forthcoming bitcoin halving as key catalysts for this surge. Speaking to CNBC, she said:
“We’ve seen over $2 billion coming into the various bitcoin ETFs so there’s been this need to access more supply of bitcoin to build these ETFs and that ends up driving prices up, particularly in the near term”.
“The second reason why you might be getting some extra momentum in the price over the last couple of days is the upcoming halving,” she added. “Historically, the halving has led to bitcoin prices increasing … past performance is not indicative of future performance, but I do think there’s this belief that the halving process will result in the same level of price appreciation”.
Historically, February has persistently confirmed to be a sturdy month for Bitcoin. Bitcoin has concluded 10 out of the final 12 February with features and has boasted a median return of 15.7% for the month, as reported by CoinGlass.
What’s Ahead for Bitcoin In March?
Wall Street veteran and Galaxy Digital CEO Michael Novogratz is advising traders to be cautious, suggesting that Bitcoin worth may expertise some corrections earlier than surging to a document excessive and finally concluding the 12 months at considerably elevated ranges. Novogratz added:
“I wouldn’t be surprised to see some corrections and some consolidation. If it corrects, Bitcoin price might correct to the mid-$50,000s, before taking off to the new high. “I think the market is too leveraged right now. It happens after huge runs. There will be a wash out. People can’t sustain this much leverage.”
Novogratz additional talked about that amongst millennials and Gen-Z traders who’re pursuing excessive returns, “some will profit, but many will face significant losses”. He characterised the continued rally as a “price discovery” part, notably with the introduction of Bitcoin exchange-traded funds (ETFs), which are a magnet for “a fresh cohort” of patrons and sellers. Bitcoin has surged by over 40% for the reason that starting of the 12 months, buoyed by the favorable launch of the ETF product.
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