Bitcoin surges 60.000 USD in more than two years

The surge of capital into new U.S. spot bitcoin exchange-traded products has led to a significant rally in the value of bitcoin this month, with an increase reaching 42%, on track largest monthly gain since December 2020.

Bitcoin increased 8% to 61,272 USD/BTC, its highest since November 2021, when it hit a record price of just below 70,000 USD. It is experiencing the largest weekly gain in a year, with an 18.5% increase since February 21.

The three most popular Bitcoin spot ETFs, run by Grayscale, Fidelity and BlackRock, have seen a significant increase in trading volume. Particularly, in the first two sessions of this week, about 110 million shares changed hands, about 51% of the 215 million shares traded in the high-valued investment stocks (Apple, Microsoft and Nvidia), according to LSEG data.

LSEG data also shows 420 million USD flowed into the 10 largest spot Bitcoin ETFs on February 27, the highest level in nearly two weeks.

According to a Reuters report, traders have poured into Bitcoin ahead of the Bitcoin halving event in April. It involves the reduction of the Bitcoin mining reward by half.

This is done to keep the inflation rate of Bitcoin in check and slow the release of the cryptocurrency.

In addition, the prospect of the US Federal Reserve (Fed) cutting interest rates this year has caused investors to look for higher-yielding or more volatile assets.

The total value of Bitcoin in circulation surpassed $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.