Bitcoin’s price soared above the $64,000 mark on Monday morning in Asia, inching closer to its all-time high set in November 2021. With a 2.78% increase in the last 24 hours, the world’s largest cryptocurrency by market cap was trading at around $63,600, boasting a market capitalization of $1.25 trillion. This year alone, Bitcoin has surged more than 50%.
March 1 Milestone: Bitcoin Crosses Historic Threshold
March 1 marked another significant milestone as Bitcoin prices surpassed the historic $63,000 price threshold for the first time since December 2021.
Cryptocurrency Market Overview
In addition to Bitcoin’s rally, other cryptocurrencies also saw notable movements. Ethereum rose 1.5% to $3,476.97, Solana eased 0.83% to $129.03, Tether edged up 0.02% to $1, and XRP gained 0.57% to $0.639. Notably, the overall cryptocurrency market value surpassed $2.5 trillion.
Spot Bitcoin ETFs Fuel Investor Excitement
The recent surge in Bitcoin prices follows the approval and launch of spot Bitcoin exchange-traded funds (ETFs) in the United States earlier this year. These ETFs attracted substantial investments, reigniting excitement in the cryptocurrency market. According to LSEG data, the 10 largest spot Bitcoin ETFs brought in $420 million on February 27 alone, marking the highest inflow in almost two weeks.
Anticipation Builds for Halving Event
Bitcoin’s prices were further boosted by anticipation surrounding the upcoming halving event scheduled for April. Bitcoin halving occurs every four years and involves a reduction in the rate at which tokens are released, along with decreased rewards for miners. With the bitcoin supply limited to 21 million, and 19 million already mined, this event adds to the overall bullish sentiment.
Implications of Halving Event
The nine new spot ETFs collectively hold more than 300,000 Bitcoin, approximately seven times the amount of new coins mined since January 11. After the halving, the number of new coins mined daily will decline to 450 from 900 currently.
Market Capitalization Surpasses $2 Trillion
The value of all Bitcoin in circulation has topped $2 trillion this month for the first time in two years, according to crypto platform CoinGecko.
