Bitcoin’s Market Value Surges Past US$1 Trillion as Investors Rally 

For the first time since November 2021, the aggregate investment in Bitcoin eclipsed the AU$1.54 trillion (US$1 trillion) mark, propelled by continuous inflows into U.S.-based spot Bitcoin exchange-traded funds (ETFs) that have been bolstering cryptocurrency valuations. Witnessing a surge to a 25-month zenith, Bitcoin’s price soared to AU$80,202 (US$52,079) overnight. The cryptocurrency last recorded a 4.29% daily increase, positioning its market capitalisation at AU$1.56 trillion (US$1.013 trillion).

February has seen a remarkable uptrend in Bitcoin, with approximately a 22% increase since its commencement, positioning it for its most substantial monthly gain since October. Analysts attribute this price momentum to the robust inflows into newly introduced U.S.-listed ETFs. According to LSEG Lipper’s data, the 11 U.S. spot Bitcoin ETFs witnessed an infusion of AU$2.52 billion (US$1.64 billion) in the week leading up to Wednesday, significantly higher than the AU$630 million (US$409 million) inflows recorded in the prior five trading sessions since their regulatory approval and market debut in January.

The sustainability of this influx pace is uncertain, yet in the crypto realm, the price often steers the flow. One could foresee that with more days mirroring the recent, hefty inflows will correspond with additional price ascents for spot Bitcoin.

In a recent development, the bankrupt cryptocurrency lender Genesis Global Capital received a green light from a U.S. court to liquidate approximately AU$2.46 billion (US$1.6 billion) worth of shares in Grayscale Investments’ spot Bitcoin ETF as part of its creditor repayment strategy.

Following its all-time high of US$69,000 in November 2021, Bitcoin faced a challenging phase throughout much of 2022 and into early 2023, hindered by global central banks’ monetary tightening and high-profile collapses within the crypto sector, including the leading exchange FTX.

However, recent months have witnessed a rejuvenated optimism, buoyed by the potential for a soft economic landing and the advent of spot Bitcoin ETFs, which are lauded as transformative for the sector. Ether, the Ethereum network’s principal token, also enjoyed a 4.9% uplift, reaching its highest point since May 2022 at AU$4,248 (US$2,762).

Bitcoin’s Price Trajectory: A Bullish Continuum

The current trend for Bitcoin’s price is decidedly bullish, marking consistent higher peaks within an ascending channel. Despite the Relative Strength Index (RSI) hovering around the 80 mark, indicating an overbought status, the upward trajectory of the RSI suggests that Bitcoin still harbours room for growth.

The resilience of the bulls is apparent, underscored by significant activity reflected in the histogram bars of both the Awesome Oscillator (AO) and the Moving Average Convergence Divergence (MACD). The MACD’s position above its signal line further underscores a robust bullish phase.

Should buying momentum persists, Bitcoin’s price could ascend beyond the channel’s upper limit, targeting the AU$84,700 (US$55,000) mark, marking a 5% increase from its current position.

In an optimistic scenario, Bitcoin could surge towards the AU$92,400 (US$60,000) psychological threshold, representing a 15% gain from its present value.

 

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