Bitcoin Holds Firm Above $51K—Surge Fueled by US Trading Hours

• Bitcoin surpassed the $51K level in Feb—the first time since November 2021.
• US trading hours contributed 12% to Bitcoin’s monthly gain, revealed Matrixport.
• The surge could partially be attributed to the SEC’s approval of the first Bitcoin ETF.
• Record inflows into digital asset investment products, with the US dominating the trends.

Bitcoin is seeing a remarkable resurgence in February 2024, staying above the$51,000 barrier for the first time since November 2021. Matrixport noted that the 23% increase within the month was significantly influenced by trading activities across different global regions, with the United States leading the charge.

 CoinShares Weekly fund flows also reveal major contributions from the US market.

Bitcoin Price Surge Majorly Driven by US

According to a recent report by Matrixport, the US could have been a major driver of Bitcoin’s price surge. The largest chunk came from the US, contributing 12% to its monthly gains. Europe and Asia followed with contributions of 7% and 4%, respectively. The investment interest in Bitcoin is distributed across regions.

 Bitcoin’s price surge after January is also linked to the regulatory environment and market liquidity. The approval of the first Bitcoin ETF by the SEC created an optimistic investment market for BTC. There is an overall increase in liquidity that has fueled the price rise.

Record Inflows into Digital Assets

CoinShares latest report has revealed that digital assets have seen large inflows due to the ETF approval. According to an earlier ETP update, $2.45 billion in inflows were recorded in one week, bringing the total year-to-date inflows to $5.2 billion. The United States has been at the forefront here as well, accounting for 99% of these positive flows.

Further analysis by CoinShares  revealed on Feb 26 notes year-to-date inflows have exceeded $5.7b, with the US seeing the majority at $610m. Despite Grayscale experiencing outflows, the overall market sentiment remains bullish, with minor inflows also noted in Brazil and Switzerland.

Price Impacted by Several Factors

Bitcoin’s bullish performance above the $51K mark received major support, particularly in the United States. The combination of favorable regulatory developments and increased investment interest led to investment inflows and increased liquidity.

Therefore, digital asset-backed ETP launches and favorable push to crypto regulations will expand price impact in the market.