Bitcoin trades near $64,000 after 27 months; reasons behind the surge and outlook for crypto token

The rally in the crypto market continued. Bitcoin saw another rally on Thursday to hover near the $64,000 mark for the first time in about a 27 months period. The largest crypto token in terms of market capitalisation of up about 11 per cent with a total valuations at $1.24 trillion.

The rally in Bitcoin is majorly attributed to much-awaited Bitcoin halving; approval of Bitcoin exchange-traded-funds (ETFs), which is pumping in the institutional flows; and rumoured interest of Amazon's Jeff Bezos in the digital asset class.

Bitcoin saw a strong rise in the last 24 hours, nearing $64,000. This surge is attributed to the ten Bitcoin ETFs in the US, which set a new daily record with a trading volume exceeding $7.7 billion, said Edul Patel CEO at Mudrex. BlackRock's Bitcoin ETF, in particular, traded $3.3 billion on Wednesday, doubling its previous volume record showing the growing demand, he said.

Bitcoin has surged more than 50 per cent in the first two months of 2024, while it has surged about 45 per cent in the February itself. Even in the last one week, the largest crypto token has gained about 25 per cent to its valuations. Bitcoin was around $63,500 as of 12.15 pm on Thursday.

In the last 24 hours, unprecedented volumes were seen in Bitcoin spot ETFs with a total of $7.5 billion being traded, doubling the previous record as BTC hit an all-time high in the Indian markets. Bitcoin is now up by more than 44 per cent in February which is the highest monthly move since December 2020, said  CoinSwitch Markets Desk in its morning note.

According to the data from Coinmarketcap, the global crypto market cap jumped more than 8 per cent to $2.33 trillion. The total crypto market volume over the last 24 hours stood at $198.71 billion, which makes a 109.95 per cent rise. Bitcoin’s dominance jumped more than a per cent to 53.27 per cent.

All Indian investors who had previously invested in Bitcoin are now in a profitable position with the market sentiment slowly moving towards the 'extreme greed' category. It is worthwhile to note that Bitcoin has never crossed all-time highs in the halving event. The $69,000 all-time high would act as a major resistance, it cautioned.

Bitcoin has been set on fire amid the rumours of interest by Jeff Bezos in the digital asset class, who is speculatively said to have invested billions of dollars in the Bitcoin. However, there is no confirmation on this from Bezos himself or his e-commerce behemoth Amazon.

Amidst a remarkable surge in the broader crypto market, Bitcoin has surged and nearing its record high hit in November 2021. This rally is fueled by historical trends preceding halving events, robust inflows into BTC spot ETFs, and support from major institutions, said Siddhartha Gupta, SVP, Business and Strategic Alliances at CoinDCX.

Jeff Bezos's speculated $8 billion Bitcoin investment has also added fuel to the fire, he said. "Within the crypto community view these rumors with skepticism, the mere suggestion of Bezos entering the crypto space has sparked excitement. Despite the absence of concrete evidence or no official statement from Bezos or Amazon confirming the same, the speculation persists."

Optimism in the crypto space is also on the back of possibility of the US Federal Reserve cutting interest rates this year amid the easing inflationary pressure, which pushes the appeal of Bitcoin future, said market experts who believe that the current rally is majorly being driven by institutional players, with lesser retail participation.

This means that Bitcoin is poised to potentially surpass its previous highs as we enter March. The countdown to the next halving event in mid-April only heightens anticipation, setting the stage for Bitcoin to venture into unprecedented territory.

Despite indications of a possible strengthening of the dollar index, the technical indicators for BTC/USD suggest a positive outlook, said Rajagopal Menon, VP at WazirX. "The overall improvement in liquidity has also sent a green signal to investors to engage with the crypto market in a robust manner," he added.
 

Disclaimer: Business Today provides stock market news for informational purposes only and should not be construed as investment advice. Readers are encouraged to consult with a qualified financial advisor before making any investment decisions.