Bitcoin price reaches $60,000: What is the reason?

February 28, 2024  15:53

Today, Bitcoin surged to almost $60,000, driven by a continuous influx of funds into new Bitcoin ETFs. In February alone, the main cryptocurrency has already grown by almost 40%, marking the largest rally since December 2020.

Traders are actively investing in Bitcoin ahead of the April halving, where block mining rewards will be halved, potentially leading to a price increase. Additionally, the prospect of a series of interest rate cuts by the Federal Reserve this year has heightened investor appetite.

"Bitcoin is stimulated by the support of constant inflows into new spot ETFs and forecasts for the April halving and the June interest rate reduction by the Federal Reserve," said Ben Laidler, a strategist for global markets at the eToro retail investment platform.

According to data from the cryptocurrency platform CoinGecko, the total value of all Bitcoins in circulation this month surpassed $2 trillion for the first time in two years, and the token's price doubled in just four months.

This week, interest in larger ETFs on three popular platforms managed by Grayscale, Fidelity, and BlackRock has sharply increased. Trading volumes on these platforms continue to grow.

"In essence, we are witnessing a pre-chart ETF effect. Inflows into them increased rapidly last week and were sustained, reflecting consultants quickly entering the market and starting to sell ETFs to clients," said Joseph Edwards, head of research at Enigma Securities.

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