Bitcoin is poised for its biggest monthly gain in over three years, currently trading at $62,986 and within striking distance of its all-time high. This surge has been driven by several factors, including the launch of spot Bitcoin ETFs in the US and anticipation of the upcoming Bitcoin halving event.
The approval of Bitcoin ETFs has opened up the asset class to a wider investor base, igniting a rally that has seen Bitcoin’s price soar by over 44% this month, the most since December 2020. This momentum suggests a potential test and likely break of the $69,000 mark, which would eclipse Bitcoin’s previous record set in November 2021.
Data from LSEG reveals significant inflows into Bitcoin ETFs, with the 10 largest attracting $420 million on Tuesday alone, the highest in nearly two weeks. This highlights the renewed interest in Bitcoin, following a period of decline in 2022.
Furthermore, the upcoming Bitcoin halving event in April, where the mining reward is halved, is also contributing to the current price surge. This event historically leads to supply constraints, potentially pushing prices upwards.
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Additionally, the possibility of the Federal Reserve implementing rate cuts this year has increased investor appetite for assets like Bitcoin, which are seen as offering higher yields or being more volatile compared to traditional investments.
Meanwhile, other major cryptocurrencies are also seeing positive movements. XRP has recovered from yesterday’s losses to trade at $0.5944, while Ether, the second-largest cryptocurrency by market capitalisation, is currently trading at $3490.