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Bitcoin Surpasses $60K Mark for the First Time in Two Years

ByDayne Lee

Mar 1, 2024
Bitcoin Surpasses $60K Mark for the First Time in Two Years

For the first time in more than two years, Bitcoin has crossed the $60,000 threshold, marking a significant milestone in its price trajectory. As of 1:00 pm UTC, the cryptocurrency saw a 6% increase within 24 hours, peaking at $60,001 on Binance by 1:11 pm.

This remarkable surge places Bitcoin’s weekly gain at over 13% and a monthly increase of 37%, according to CoinMarketCap. The last instance Bitcoin traded above $60,000 was on November 12, 2021, before it underwent a dramatic decline, plummeting by 67% to a macro low of $19,297 in early April 2022.

The Driving Forces Behind Bitcoin’s Rally

Bitcoin’s recent price action is largely attributed to the market’s anticipation of the upcoming halving event, a mechanism that reduces the reward for mining new blocks by half, thereby diminishing the new supply of Bitcoin. Bryan Legend, investor and CEO of Hectic Labs, elaborated on this phenomenon to Cointelegraph, stating, “The ‘Pre-Halving rally’ is a recognized market pattern where investors expect the impending supply cut to escalate prices, setting the stage for a new bull market with renewed bullish sentiment.”

However, crypto analyst Rekt Capital warns of a potential “pre-halving retracement” despite the current bullish trend. According to Rekt Capital, the market has yet to fully price in the halving event, with significant price movements historically occurring after, not before, the halving.

Spot Bitcoin ETFs Fueling the Bullish Momentum

The bullish momentum aligns with record-breaking activity in the spot Bitcoin ETF sector in the United States. Eric Balchunas, senior ETF analyst at Bloomberg, reported that spot Bitcoin ETFs hit an all-time high in daily trading volume of $2.4 billion on February 26. The introduction of nine new spot Bitcoin ETFs has contributed to sustained trading volumes exceeding $2 billion for two consecutive days as of February 28.

BlackRock’s iShares Bitcoin Trust ETF notably experienced a surge in trading activity, with over 100,000 individual trades on February 27, a significant jump from the average daily trades ranging between 30,000 to 60,000, as highlighted by Balchunas in an X post.

CryptoQuant’s on-chain data analytics report from February 14 indicates that an estimated 75% of new Bitcoin investments in the United States have been channeled through these spot Bitcoin ETFs.

Key Events in Bitcoin’s Recent Price Surge

Feb. 26Bitcoin crosses $60,000Marks first breach of $60K in over two years
Feb. 26Spot Bitcoin ETFs reach all-time high trading volumeFuels bullish momentum in the market
Feb. 27BlackRock’s iShares Bitcoin Trust ETF sees spike in tradesReflects increased investor interest
  • Highlights of Bitcoin’s Price Action:
    • Surpasses $60K for the first time since November 2021.
    • Weekly and monthly gains exceed 13% and 37%, respectively.
    • Anticipation of the halving event stimulates market optimism.
    • Spot Bitcoin ETFs play a pivotal role in recent investment influx.

Bitcoin’s ascent past the $60,000 mark underscores a period of renewed optimism and bullish sentiment within the cryptocurrency market. Driven by anticipations of the halving event and bolstered by the burgeoning spot Bitcoin ETF sector, Bitcoin’s performance reflects a dynamic interplay of market forces and investor enthusiasm. As the crypto community looks ahead to the halving event, the trajectory of Bitcoin’s price and the role of innovative financial products like spot Bitcoin ETFs will continue to be focal points of interest.

Featured image credit: fox17 via Adobe Stock

Dayne Lee

With a foundation in financial day trading, I transitioned to my current role as an editor, where I prioritize accuracy and reader engagement in our content. I excel in collaborating with writers to ensure top-quality news coverage. This shift from finance to journalism has been both challenging and rewarding, driving my commitment to editorial excellence.