Bitcoin surged to hit another more than two-year high on February 14, sending its market cap back above the $1 trillion psychological level, and the increasing success of US spot Bitcoin ETFs turned investor sentiment more positive.
The biggest crypto has climbed above $52,000, its highest level since December 2021. Its market cap and the value of Bitcoin in circulation increased to reach above $1 trillion for the first time since late 2021, according to CoinMarketCap data.
On February 14, Bitcoin surged to another December 2021 high, breaching the $52,000 level.
This move was powered by the increased demand for Bitcoin due to the newly launched US spot Bitcoin ETFs as outflows from the Grayscale Bitcoin ETF (GBTC) that weighed on market sentiment for the earlier part of the last month have reduced considerably.
The head of research at crypto-focused asset manager CoinShares, James Butterfill, told CNBC:
“Yesterday, we saw $651 million [in] inflows, the largest daily inflow since the launch day. Furthermore, there were 12,000 Bitcoin tokens demanded by the issuers yesterday at a time when only 900 were produced every day. Investors are beginning to realize that demand is beginning to outstrip newly issued supply.”
Some $9.5 billion of new money has entered the Bitcoin market through the funds since they started trading on January 11, according to CryptoQuant data provider. In the last two weeks, over 71% of new money invested in Bitcoin has originated from the spot ETFs, not including GBTC.
Ether (ETH) was last trading 4% higher at 2,743.08, after earlier hitting a May 2022 high. The bitcoin surge related to the stock markets higher. The trading platform Coinbase gained by 11% and Bitcoin proxy Microstrategy surged by 10%. Miners CleanSpark and Iris Energy gained by 14% and 17% respectively, while Marathon Digital spiked by 13%.
Bitcoin gained 157% in 2023, as anticipation increased for the U.S. Securities and Exchange Commission’s approval of Bitcoin exchange-traded funds (ETFs), which eventually came in January 2024.
Although the price of Bitcoin dropped after the ETF approvals, investors are still upbeat about the crypto’s setup for the year. In addition to ETF inflows, they are also closely watching the ‘halving’ – a supply-limiting event written in Bitcoin’s code that happens every four years and is expected to happen in April.
Historically, the halving event has preceded Bitcoin reaching new all-time highs in the following months. The head of product go-to-market strategy at Coincover, Duncan Ash, stated:
“If the pace of bitcoin issuance slows while demand either remains steady or increases, the effect on price can be substantial. On Feb. 12 alone, bitcoin ETFs purchased ten times the amount of bitcoin that miners were able to create in a day. The upcoming halving will reduce supply even further. If the next halving follows the same pattern, we can expect continued growth in bitcoin’s price during the months ahead.”
Bitcoin is up over 21% in 2024. On February 14, Bitcoin gained over 4% to reach highs of $52,079.00 at one point, its highest level since December 2021. The move was powered partially by growing demand for Bitcoin thanks to the newly launched US spot Bitcoin ETFs.
In the last two weeks, over 71% of new money invested in Bitcoin has originated from the spot ETFs, not including GBTC, based on CryptoQuant data.
Bitcoin’s upswing price movements continued from the past week, and the asset is expected to rise towards $55,000. Most of the altcoins are also in the green, with XRP rising to $0.55 and ADA has neared $0.60.
Related:Spot Bitcoin ETFs Add Another 10,600 BTC On Day 5
Bitcoin Is Still Climbing
The biggest crypto had a strong past week as it closed it with a 13% gain – the best weekly performance since October 2023. February 12 started with a minor retracement from $48,800 to $48,000, but all that was short-lived.
This token turned strongly bullish and exploded to reach above $50,000 for the first time since late 2021. Another brief retracement followed, pushing BTC down to $48,400 on February 13 after the US published the latest CPI data.
Nonetheless, Bitcoin appears to be on a roll, and could not keep it down either. On February 14, Bitcoin surged further and soared above $52,000 to reach a new multi-year high. How high will it go before the halving? Time will tell.
