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Bitcoin Price Surge: From FTX Low to ETF High, BTC had a Wild Two Years

Last Updated February 29, 2024 11:57 AM
Shraddha Sharma
Last Updated February 29, 2024 11:57 AM
By Shraddha Sharma
Verified by Peter Henn

Key Takeaways

  • Bitcoin is nearing an all-time high, two years after breaking $68,000.
  • The BTC price surge is linked to record influx in Bitcoin ETFs coupled with a pre-halving rally.
  • Prominent community members spoke to CCN and attributed the surge to institutional investments.

The Bitcoin price is seeing a remarkable uptick and has climbed close to $63,000 at the time of writing (February 29 2024). The rise comes more than two years after the cryptocurrency’s all-time high of just over $68,000 in November 2021.

While BTC is only 9% away from the peak, several factors, including record inflows into Bitcoin ETFs and the anticipation of the BTC halving event, have contributed to this bullish momentum.

Bitcoin’s Bullish Resurgence

Bitcoin’s trading volume surpassed $95 billion in the last 24 hours to February 29. Robert Kiyosaki, author of the personal finance book “Rich Dad Poor Dad,” recognized this bullish trend, while criticizing the US dollar.

 The cumulative cryptocurrency market cap hit $3 trillion in November 2021. While it has almost touched the $2.5 trillion mark at the time of writing, we must remember its steep decline in 2022. The market cap bottomed out at less than $800 billion due to the collapse of the FTX exchange. In the weeks following the collapse in November 2022, Bitcoin’s price dipped below $16,000. This downturn was driven by investor uncertainty over the potential fallout from FTX’s financial troubles and Binance’s pullout from a rescue plan.

ETF Inflows and Price Correlation

The recent peak in Bitcoin’s price correlates with record inflows into BTC ETFs. BitMEX Research highlighted   record inflows of $673.4 million, predominantly driven by Blackrock’s significant contribution of $612.1 million, on February 28. This influx of institutional capital is an indicator of growing investor interest, significantly affecting Bitcoin’s valuation.

Parth Chaturvedi, Investments Lead at CoinSwitch Ventures, told CCN: “Crypto Spring has arrived early in 2024, as the spot BTC ETFs continue to gain investor interest and are the primary reason for the current surge in BTC prices. The spot ETFs have brought in a wave of institutional capital into the asset class and we are seeing strong inflows daily.”

Bitcoin Spot ETF Inflows | Source:
Bitcoin Spot ETF Inflows | Source:BitMEX Research/X

Sumit Gupta, co-founder of CoinDCX, echoed the sentiment, adding, “While Bitcoin maintains its dominance, there’s palpable excitement surrounding the possibility of an Ethereum ETF approval, sparking renewed interest in Altcoins. This collective optimism is driving increased market participation, potentially leading to broader gains across the entire ecosystem.”

Fees Still High

BitInfoCharts data revealed 618,364 BTC, valued at around $38.73 billion—or 3.15% of Bitcoin’s total market cap—was sent. The activity heightened trading volume when the average is 16,145 transactions per hour.

Despite the surge, the cost of transactions remains high. The average transaction fee for Bitcoin stands at 0.00014 BTC, or $8.58. This indicates a sustained demand for network space at 55.2 sats/vB.

 

That said, momentum remains bullish.

Blackrock is reported to hold approximately $9 billion in BTC, while Fidelity’s holds around $6 billion. These figures are notably high for an ETF that has just been introduced. He added that the surge in demand along with the supply shock related to the BTC halving event will result in price growth.

In response, Gupta told us the spot market volume of Indian crypto exchange CoinDCX has gone up 150% amid the interest.

BTC Paints Positive Price Trajectory

Bitcoin’s journey from its lows to nearing its all-time high in two years is keeping the community confident about the asset’s dominance.

The role of institutional investments, coupled with the scheduled BTC halving, is a potentially transformative period for Bitcoin and the broader market. The next few months could be critical in determining the long-term trajectory of Bitcoin’s value.

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