Bitcoin aims for $60,000 as ‘FOMO’ sparks the largest monthly increase since late 2020.

Yasir AliFebruary 28, 2024

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Bitcoin aims for $60,000 as 'FOMO' sparks the largest monthly increase since late 2020.

Encouraged by inflows into new the United States notice bitcoin exchange traded products, which have pushed it up nearly 40% in February, BTC exploded for a fifth day on Wednesday, approaching $60,000, marking its largest monthly rally since the end of 2020.

With a 4.5% gain, BTC reached its highest point since December 2021 at $59,244. In anticipation of April’s halving event, which is intended to slow down the cryptocurrency’s release, traders have flocked to bitcoin. Additionally, investors’ appetite for riskier or higher-yielding assets has been fueled by the possibility that the Federal Reserve will cut interest rates multiple times this year.

“The outlook for the Fed reducing interest rates in June and the support from consistent withdrawals into the new recognize ETFs are driving cryptocurrency,” stated Ben Laidler, the chief market analysts at selling investing platform eToro. “April’s halving event is also driving BTC.”

For the initial time in two years, the total value of BTC in movement has surpassed $2 trillion this month, according to cryptocurrency platform CoinGecko, even though the token’s price doubled in only four months. There has been a noticeable increase in interest this week in the larger cryptocurrency exchange-traded funds (ETFs).

For the initial time ever, Bitcoin reaches $33,000 as investors' fear of losing money fuels the increase.

Trading volumes have increased at the three most popular exchanges, which are run by Grayscale, Fidelity, and BlackRock (IBIT.O). According to LSEG data, on Monday and Tuesday, about 110 million contributes in the top three traded, or roughly 51% of the 215 million contributes traded in the most valuable companies on the market: Apple (AAPL.O), Microsoft (MSFT.O), Nvidia (NVDA.O), and Microsoft (MSFT.O).

This percentage hovered around 15% three weeks ago. In essence, the ETF effect is manifesting earlier than expected. The amount of money coming into them increased significantly last week and has continued to do so. According to Joseph Edwards, the chief of analysis at Enigma Securities, “we believe this is a reflection of advisors moving quickly to begin marketing the ETFs to clients.” According to LSEG data, $420 million was invested in the top ten spot cryptocurrency ETFs on Tuesday alone—the highest amount in nearly two weeks.

MicroStrategy (MSTR.O), a software company and cryptocurrency investor, revealed earlier this week that it had recently purchased roughly 3,000 digital currencies for $155 million. Additionally, Reddit, a social media platform, disclosed in a regulatory application that it had purchased small amounts of ether and BTC.

Ethereum, the second-largest cryptocurrency in the world and the foundation of the Ethereum blockchain, increased 2.2% to $3,320 during the day after touching a two-year high earlier. For the first time since a 70% surge in July 2022, the price increased by 47% in February. Investors are hoping that applications for exchange-traded funds (ETFs) based on spot ether will be approved by US regulators.
Edwards from Enigma Securities stated that the upward trend felt fairly stable.

“There certainly isn’t a manic feeling to who’s buying and why – ether gaining against the field also speaks to a more measured environment – but there’s at least a little FOMO (fear of missing out) going on right now,” he stated.