Bitcoin Crosses $59,000 In Surprise Pre-Halving Rally
February 28 2024 - 8:00AM
NEWSBTC
The Bitcoin price has now successfully crossed the $59,000 level
after an incredibly bullish month of February. The market leader
has also barreled ahead of all expectations during this time as
well, continuing to rally at a time when prices are expected to
crash ahead of the next halving. Institutional Investors Drive
Bitcoin Price Higher One of the major drivers behind the Bitcoin
performance over the last day has been institutional investors.
These investors have continued to take advantage of the
opportunities provided by the Bitcoin Spot ETFs approved by the
Securities and Exchange Commission (SEC) in January. Related
Reading: Can Ethereum Touch $4,000? Crypto Analyst Says ETH Rally
Far From Over While there have been outflows from the Grayscale
Bitcoin Trust due to concerns about high fees, the inflows have not
slowed. On Tuesday, Bloomberg Analyst James Seyffart revealed that
Spot ETF inflows rose once again, to cross $400 million in a single
day. In the same vein, the trading volumes have been on the rise.
With demand soaring, volumes crossed $2 billion on Tuesday and it
is the second time in a month that it has crossed this figure. This
rise in both inflows and trading volumes shows a willingness among
institutional investors to take positions in Bitcoin. Fidelity
Investments, one of the issues of the many Spot Bitcoin ETFs
available for trading in the market, also recently encouraged
investors to put a small portion of their portfolios in Bitcoin.
According to the asset manager, a portfolio allocation of 1-3% in
Bitcoin is ideal at this point. Now, while a 1-3% allocation may
seem small to the average investor, it is quite large when it comes
to institutional investing. These portfolios are often made up of
billions of dollars, and even a 1-3% allocation could work out to
hundreds of millions of dollars being funneled into Bitcoin. BTC
Dominance Not Budging While the price of Bitcoin has rallied in the
last week, expectations are that Bitcoin will begin to consolidate
and then give way to altcoins. However, the BTC dominance over the
crypto market remains quite high, suggesting that the time for
altcoins may not be here yet. Related Reading: Crypto Analyst
Predicts Dogecoin Parabolic Breakout Above $3.5, Here’s When
Presently, the BTC dominance is sitting at 54.1% after seeing a
local peak of 54.4%. This shows that Bitcoin is still leading
the entire market by a large margin, and until this dominance
subsides, Bitcoin will continue to lead the rally while altcoins
lag behind. For now, the bulls are focusing on maintaining support
at $59,000, giving it a bounce point toward $60,000. With the
previous all-time high at $69,000, the BTC price needs a less than
20% move from here to reach a new all-time high. BTC bulls push
price above $59,000 | Source: BTCUSD on Tradingview.com Featured
image from CBC, chart from Tradingview.com
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