Bitcoin soared past the $60,000 mark on Wednesday, marking its highest value in over two years. This surge comes amidst a significant influx of capital into new U.S. spot bitcoin exchange traded products, contributing to a remarkable 42% price increase throughout February, marking its most substantial monthly gain since December 2020.
Currently, Bitcoin stands at $60,131, a notable 6% increase, reaching levels unseen since November 2021, when it nearly touched a record high just shy of $70,000. Moreover, Bitcoin is poised for its most substantial week-on-week gain in a year, rising by 18.5% since February 21st.
Investors have been flocking to Bitcoin in anticipation of April’s halving event, a process aimed at slowing down the release of the cryptocurrency. Additionally, the expectation of the Federal Reserve implementing a series of rate cuts this year has intensified investor interest in higher-yielding or more volatile assets.
Notably, the three most popular Bitcoin exchange-traded funds (ETFs), managed by Grayscale, Fidelity, and BlackRock, have witnessed a significant uptick in trading volumes, underlining the escalating demand for cryptocurrency investment options.
Meanwhile, Ethereum, the world’s second-largest cryptocurrency, which supports the Ethereum blockchain network, also experienced a surge, rising by 3.2% to $3,353. Earlier in the day, it hit another two-year high. Ethereum’s price has climbed by 47% in February, marking its most significant monthly gain since a 70% rally in July 2022.