Bitcoin (BTC) extended its “up only” rally on Feb. 27, reaching a 27-month high of $57,513, boosting the wider crypto market amid increasing investor sentiment and positive inflows into spot Bitcoin exchange-traded funds (ETFs).
At the time of publishing, BTC was trading at $57,073, up 10% over the last 24 hours.
BTC/USD daily chart. Source: TradingView
The last time the Bitcoin price traded above $57,000 was more than two years ago, on Dec. 2, 2021, when the price had already peaked and was beginning its reversal into a prolonged bear market. By Jan. 24, 2022, Bitcoin’s price had plunged all the way down to $32,987 — representing a decline of 42% from its last stint above $57,000.
Several factors are fueling BTC’s current price movement, including consistent spot Bitcoin ETF inflows, the upcoming supply halving and overall positive investor sentiment on the retail and institutional side.
Let’s look at the factors behind Bitcoin’s rally today.
Continued buying by institutional investors
Bitcoin’s recent rally came a few days after business intelligence firm MicroStrategy announced it had acquired an additional 3,000 BTC for a total of $155 million at an average price of $51,813 between Feb. 15 and 25.
In a Feb. 26 post on X, the company’s founder and chairman, Michael Saylor, said that MicroStrategy now holds a total of 193,000 BTC, acquired for $6.09 billion at an average price of $31,544.
MicroStrategy has acquired an additional 3,000 BTC for ~$155 million at an average price of $51,813 per #bitcoin. As of 2/25/24, @MicroStrategy now hodls 193,000 $BTC acquired for ~$6.09 billion at an average price of $31,544 per bitcoin. $MSTR https://t.co/micudbYf3P
— Michael Saylor⚡️ (@saylor) February 26, 2024
Moreover, according to Farside Investors data, the nine new spot Bitcoin ETFs have amassed a total of 300,000 BTC, worth $17 billion, since their public debut on Jan. 11. The net inflows have now surpassed $6 billion.
The new spot #Bitcoin ETFs purchased 302,600 Bitcoin (worth ~$17 Billion!!!) in just 31 trading days $GBTC converted to an ETF & experienced large redemptions$IBIT $FBTC $ARKB…
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