Bitcoin: The ongoing rally in the crypto market persisted as Bitcoin experienced another surge on Thursday, reaching close to the $64,000 mark for the first time in roughly 27 months. As the largest cryptocurrency by market capitalization, it surged by approximately 11 percent, bringing its total valuation to $1.24 trillion.
The significant surge in Bitcoin is primarily attributed to several factors. Firstly, the long-awaited Bitcoin halving has played a crucial role in boosting investor confidence. Additionally, the approval of Bitcoin exchange-traded funds (ETFs) has facilitated the influx of institutional investments into the market. Moreover, rumors circulating about Amazon’s Jeff Bezos showing interest in the digital asset class have also contributed to the bullish sentiment surrounding Bitcoin.
Bitcoin saw a strong rise in the last 24 hours, nearing $64,000. Edul Patel, CEO at Mudrex, attributes this surge to the ten Bitcoin ETFs in the US, which recently set a new daily record with a trading volume surpassing $7.7 billion. BlackRock’s Bitcoin ETF, in particular, traded $3.3 billion on Wednesday, doubling its previous volume record showing the growing demand, he said.
Cryptocurrency has experienced an impressive surge of over 50 percent during the initial two months of 2024, with a remarkable 45 percent surge recorded in February alone. Even within the past week, the leading cryptocurrency has seen a substantial gain of approximately 25 percent in its valuation. As of 12:15 pm on Thursday, Bitcoin was trading around $63,500.
In the past 24 hours, cryptocurrency spot ETFs experienced an unprecedented surge in trading volumes, totaling $7.5 billion, which doubled the previous record. This surge coincided with Bitcoin reaching an all-time high in the Indian markets. According to CoinSwitch Markets Desk’s morning note, Bitcoin has seen a remarkable increase of over 44 percent in February, marking the highest monthly gain since December 2020.
According to data from Coinmarketcap, the global cryptocurrency market cap surged by over 8 percent to reach $2.33 trillion. The total trading volume in the crypto market over the last 24 hours reached $198.71 billion, marking a significant increase of 109.95 percent. Additionally, Bitcoin’s dominance rose by more than 1 percent to reach 53.27 percent.
All Indian investors who previously invested in Bitcoin are currently in a profitable position, as market sentiment gradually shifts towards the ‘extreme greed’ category. It’s noteworthy that Bitcoin has never surpassed all-time highs during halving events. The $69,000 all-time high is viewed as a significant resistance level, prompting caution among investors.
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Bitcoin has surged amid rumors of interest from Jeff Bezos in the digital asset class, with speculation suggesting that he has invested billions of dollars in Bitcoin. However, there has been no confirmation from Bezos himself or his e-commerce giant, Amazon, regarding these rumors.
Amidst a remarkable surge in the broader cryptocurrency market, Bitcoin is approaching its record high, reached in November 2021. Siddhartha Gupta, SVP of Business and Strategic Alliances at CoinDCX attributes this rally to historical trends observed before halving events, strong inflows into BTC spot ETFs, and backing from major institutions.
Jeff Bezos’s speculated $8 billion Bitcoin investment has also intensified the fervor,” he said. “While some within the crypto community view these rumors with skepticism, the mere suggestion of Bezos entering the crypto space has sparked excitement. Despite the absence of concrete evidence or an official statement from Bezos or Amazon confirming the same, the speculation persists.”
Market experts also attribute optimism in the crypto space to the possibility of the US Federal Reserve cutting interest rates this year, given the easing inflationary pressure. This scenario enhances the appeal of Bitcoin futures, they noted. These experts believe that the current rally is predominantly driven by institutional players, with relatively lesser retail participation.
This suggests that cryptocurrency may be on the brink of surpassing its previous highs as we move into March. The countdown to the next halving event in mid-April only adds to the anticipation, setting the stage for Bitcoin to potentially explore uncharted territory.
Despite signs indicating a potential strengthening of the dollar index, technical indicators for BTC/USD point towards a positive outlook,” said Rajagopal Menon, VP at WazirX. “The overall improvement in liquidity has also given investors a green signal to actively participate in the crypto market,” he added.
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