Bitcoin is on track for its largest monthly gain in over three years, reaching $62,000 in Asia morning trade on February 29, Reuters reported.
The world’s biggest cryptocurrency by market capitalization experienced a surge, peaking at $63,933 overnight, resulting in a monthly gain exceeding 45 percent, its most substantial increase since December 2020, the report said.
Bitcoin’s momentum is also influencing, Ether, the smaller crypto token, which is currently priced at $3,429, reflecting a 50 percent increase in February.
Potential Break of $69,000 for Bitcoin
Analysts expect that Bitcoin is headed towards a breakthrough, suggesting a ‘test and likely break’ at $69,000 levels. This move could surpass the previous record high set in November 2021.
Bitcoin ETFs Attract Massive Investment
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.
The 10 largest spot Bitcoin ETFs brought in $420 million on February 27 alone, marking the highest inflow in almost two weeks, according to industry monitor reports.
Investment surges ahead of Halving Event
Traders are also actively investing in Bitcoin ahead of the halving event scheduled for April.
A halving 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 regarding cryptocurrencies.
Investor Appetite Boosted by Rate Cut, Market Stability
A series of rate cuts by the US Federal Reserve (Fed) expected this year has increased investor appetite for higher-yielding and more volatile assets such as crypto tokens.
Flows have also surged, as foreign exchange volatility hits two-year lows, and the US equity volatility index returns to pre-pandemic ranges.