Bitcoin has hit a fresh record above $71,000 on Monday as demand for the cryptocurrency picks up amid optimism that the Federal Reserve will cut interest rates the year.
The unit hit a peak of $71,432 in afternoon Asian business, according to Bloomberg data, meaning it has advanced almost 70 percent this year.
A keen observation of the happenings in the cryptocurrency market as a financial instruments is fundamental.
According to a report by Binance, January 2024 was largely a period of consolidation for cryptocurrency markets, with total market capitalization increasing only 0.4%.
The successful launch of spot bitcoin ETFs in the US played a significant role in these developments.
But contrary to expectations, BTC’s price reached a high of nearly $49,000 following the ETF approvals on January 10 before undergoing notable corrections.
The report also noted that, the capital flows of these ETFs paints a positive picture. Despite Grayscale’s significant outflows, aggregate inflows remain positive overall.
Regardless of short-term price action, January 2024 remains a historical milestone for the cryptocurrency industry.
However, the top ten coins by market capitalization saw mixed results in January 2024, reflecting the market’s consolidation phase.
With the launch of anticipated spot ETFs, BTC remained at the center of attention.
This significant development did not translate to major price movements, with the token’s price increasing 1.6% as the broader market’s sentiment remained conservative.
TRX and LINK were the top performers of the month, with modest gains of 4.0% and 3.5%, respectively. Alongside BTC, ETH remained relatively stable, with a price increase of 2.7%.
Notably, BNB and SOL also displayed resilience to broader market corrections, closing the month with decreases of just 1.6% and 0.1%, respectively. The rest of the coins posted relatively poor price performance, with XRP seeing the biggest decline of 17.1%.
Furthermore, Forbes Crypto Market Performance indicated that, Bitcoin prices surged in the closing week of February, topping $60,000 and finishing out the month over $61,000, a 42% monthly gain. Ethereum prices gained 45% in February to close out the month at just over $3,300.
Among the 10 largest cryptocurrencies by market capitalization, excluding stablecoins, Ethereum’s big February gain made it the top performer of the month. XRP (XRP) was the worst performer with a 12% gain.
The bullish 2023 crypto market momentum has carried over into 2024 so far with bitcoin, Ethereum and other leading cryptos trading at new 52-week highs.
Following February’s gains, bitcoin prices are up 45% overall year-to-date, while Ethereum prices are up 47%.
The biggest crypto market story of 2024 so far came on January 10 when the SEC approved 11 spot bitcoin ETFs after years of repeated rejections.
Trading volumes in the three most popular spot bitcoin ETFs, the Grayscale Bitcoin Trust (GBTC), the Fidelity Wise Origin Bitcoin Fund (FBTC) and the iShares Bitcoin Trust (IBIT), surged as bitcoin prices broke out to new 52-week highs in February.
On February 27, IBIT registered record inflows of $520.2 million and record daily trading volume of $1.36 billion.
According to Joel Kruger, FX strategy consultant at LMAX Group, inflows in the first spot bitcoin ETFs in February were impressive and important.
“This sends a message that there is plenty of interest from traditional market participants. We expect that interest will only continue to grow as the ETF providers build up their education materials and promotion efforts,” Kruger says.
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