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Business News/ Markets / Cryptocurrency/  Bitcoin set for biggest monthly gain since 2020 after jumping 45% to $63,933 this February
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Bitcoin set for biggest monthly gain since 2020 after jumping 45% to $63,933 this February

The largest cryptocurrency by market capitalisation was firm in Asia morning trade at $62,000, having changed hands at as high as $63,933 overnight. Its monthly gain is more than 45%, the largest since December 2020.

Bitcoin's momentum suggests a 'test and likely break' of $69,000, according to Tony Sycamore, an analyst at brokerage IG MarketsPremium
Bitcoin's momentum suggests a 'test and likely break' of $69,000, according to Tony Sycamore, an analyst at brokerage IG Markets

Bitcoin is on track for its most significant monthly gain in over three years, reaching a firm $62,000 in Asia morning trade on February 29, Reuters reported. The world's biggest cryptocurrency experienced a surge, peaking at $63,933 overnight, resulting in a monthly gain exceeding 45 percent, marking its most substantial increase since December 2020, the report said.

Bitcoin's momentum is also influencing the smaller cryptocurrency, Ether, which is currently priced at $3,429, reflecting a 50 percent increase in February.

Analyst Predicts Potential Break of $69,000

Brian Armstrong, head of crypto exchange Coinbase Global, reported a surge in traffic on the platform due to the heightened interest in cryptocurrencies, as per the report.

Analyst Tony Sycamore from brokerage IG Markets anticipates that Bitcoin is headed towards a breakthrough, suggesting a "test and likely break" of $69,000 levels. This move could surpass the previous record high set in November 2021.

Spot Bitcoin ETFs Attract Massive Inflows

The approval and launch of spot Bitcoin exchange-traded funds (ETFs) in the United States earlier this year has attracted substantial investments and reignited excitement in the cryptocurrency market.

LSEG data reveals that the 10 largest spot Bitcoin ETFs brought in $420 million on February 27 alone, marking the highest inflow in almost two weeks. Notably, ETFs managed by Grayscale, Fidelity, and BlackRock experienced a surge in volumes.

Traders Flock to Bitcoin Ahead of Halving Event

Traders are also actively entering the Bitcoin market in anticipation of the upcoming halving event scheduled for April. This event, occurring every four years, involves a reduction in the rate at which tokens are released, along with decreased rewards for miners.

With the supply of bitcoin limited to 21 million, and 19 million already mined, this event adds to the overall bullish sentiment.

Investor Appetite Boosted by Rate Cut Prospects and Market Stability

Further, the potential for a series of rate cuts by the US Federal Reserve (Fed) this year has increased investor appetite for higher-yielding and more volatile assets.

Flows into Bitcoin have surged, as foreign exchange volatility hits two-year lows, and the US equity volatility index returns to pre-pandemic ranges.

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Published: 29 Feb 2024, 07:06 AM IST
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