Bitcoin eyes US$60,000, 'FOMO' stirs biggest monthly rally since late 2020
LONDON: Bitcoin surged for a fifth day on Wednesday (Feb 28) to near US$60,000, buoyed by flows into new US spot bitcoin exchange-traded products that have driven it up nearly 40 per cent in February, which would mark its largest monthly rally since December 2020.
Bitcoin was last up 4.5 per cent at US$59,244, its highest since December 2021.
Traders have poured into bitcoin ahead of April's halving event - a process designed to slow the release of the cryptocurrency. In addition, the prospect of the Federal Reserve delivering a series of rate cuts this year has fed investor appetite for higher-yielding or more volatile assets.
"Bitcoin is being driven by the support of consistent inflows into the new spot ETFs and outlook for April's halving event and June's Fed interest rate cuts," Ben Laidler, global markets strategist at retail investment platform eToro, said.
The value of all the bitcoin in circulation has topped US$2 trillion this month for the first time in two years, according to crypto platform CoinGecko, while the price of the token itself has doubled in just four months.
The bigger bitcoin exchange-traded funds (ETFs) have seen a definite pickup in interest this week.
The three most popular, run by Grayscale, Fidelity and BlackRock, have seen trading volumes surge.
On Monday and Tuesday, around 110 million shares in the biggest three changed hands, about 51 per cent of the 215 million shares traded in the market's most valuable companies - Apple, Microsoft and Nvidia, according to LSEG data.
Three weeks ago, this percentage was closer to 15 per cent.
"Essentially, we're seeing the ETF effect ahead of schedule. Inflows into them stepped up quickly last week and have been sustained, and we think it's reflective of