Technology

Bitcoin (BTC) Price Records Best Monthly Close Since 2020, What’s Ahead In March? – Crypto News

Published

2 years ago

March 1, 2024

Dripp

February turned out to be a month of absolute rejoicing for Bitcoin investors, as the BTC price rallied all the way to $64,000 in pursuit of a new all-time high. The Bitcoin price climbed 3% to $62,216.43 on the last day of February. It experienced a surge to $64,000 on Wednesday before a wave of long liquidations led to a pullback to around $60,000.

Bitcoin Price Registers the Best Month In Three Years

Bitcoin concluded the month with an impressive nearly 45% increase, marking its sixth consecutive monthly gain, its strongest performance since December 2020. February proved to be a success for Bitcoin exchange-traded funds (ETFs), witnessing a record $677 million in daily net inflows on Wednesday alone, marking the third consecutive day of inflows surpassing $500 million.

However, the outflows from the Grayscale Bitcoin ETF (GBTC) had exerted downward pressure on the Bitcoin price.Investors credit February’s remarkable gains to the supply and demand dynamics of Bitcoin. Sylvia Jablonski, CEO and chief investment officer at Defiance ETFs, highlighted the introduction of new ETFs and the forthcoming bitcoin halving as key catalysts for this surge. Speaking to CNBC, she said:

“We’ve seen over $2 billion coming into the various bitcoin ETFs so there’s been this need to access more supply of bitcoin to build these ETFs and that ends up driving prices up, particularly in the near term”.

“The second reason why you might be getting some extra momentum in the price over the last couple of days is the upcoming halving,” she added. “Historically, the halving has led to bitcoin prices increasing … past performance is not indicative of future performance, but I do think there’s this belief that the halving process will result in the same level of price appreciation”.

Historically, February has consistently proven to be a robust month for Bitcoin. Bitcoin has concluded 10 out of the last 12 February with gains and has boasted an average return of 15.7% for the month, as reported by CoinGlass.

What’s Ahead for Bitcoin In March?

Wall Street veteran and Galaxy Digital CEO Michael Novogratz is advising investors to be cautious, suggesting that Bitcoin price might experience some corrections before surging to a record high and ultimately concluding the year at significantly elevated levels. Novogratz added:

“I wouldn’t be surprised to see some corrections and some consolidation. If it corrects, Bitcoin price might correct to the mid-$50,000s, before taking off to the new high. “I think the market is too leveraged right now. It happens after huge runs. There will be a wash out. People can’t sustain this much leverage.”

Novogratz further mentioned that among millennials and Gen-Z investors who are pursuing high returns, “some will profit, but many will face significant losses”. He characterized the ongoing rally as a “price discovery” phase, particularly with the introduction of Bitcoin exchange-traded funds (ETFs), which attract “a fresh cohort” of buyers and sellers. Bitcoin has surged by over 40% since the beginning of the year, buoyed by the favorable launch of the ETF product.