Updated February 29th, 2024 at 11:40 IST

Bitcoin hits $64,000 as spot ETFs volume breaks all-time high

Pumped up by Bitcoin rally, Ethereum, the second most valuable cryptocurrency, has also recorded 6 per cent gains in the last 24 hours, breaking past $3,450.

Reported by: Anirudh Trivedi
Bitcoin | Image:Republic
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Bitcoin rockets to $64K: The crypto market is witnessing a strong rally led by Bitcoin which has surged more than 8.34 per cent in the last 24 hours. In late-night trade yesterday, Bitcoin briefly touched the mark of $64,000 driven by the United States’s spot Bitcoin ETF trade volume breaking through all of its previous highs and touching $7.69 billion in volume on February 28.

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Pumped up by the Bitcoin rally, Ethereum, the second most valuable cryptocurrency, has also recorded 6 per cent gains in the last 24 hours, breaking through the $3,450 barrier. Other leading altcoins including Solana, Dogecoin, Toncoin, Shibainu, Litecoin, Ethereum Classic, Aptos, Mentle, and ORDI, all have recorded double-digit gains in the last 24 hours. 

However, the strong rally in Bitcoin prices has led to a two-point decline in the Crypto Fear and Greed Index, pushing the index back to 80 points on the speculations of strong profit booking in the coming days. 

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Image credit: Alternative.me

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Talking about Bitcoin nearing its all-time high, CoinDCX Research Team said, “BTC surged to $64,000, nearing its all-time high, while ETH reached $3,400, marking new highs for the year. This rally is driven by historical trends before halving events, strong inflows into BTC spot ETFs, and support from major institutions. Following its ascent to $64,000, BTC experienced a rapid drop to $59,000, triggering high-leverage liquidations on both sides. It has since stabilised above $61,500. This volatile movement led to liquidations in altcoins as well. BTC's stability is crucial for altcoins to regain momentum. The next key levels for BTC are $65,000-$66,000, followed by its all-time high at $69,000.” 

Despite falling 7 per cent after briefly touching $64,000, Bitcoin has been able to regain the $62,000 level. Rajagopal Menon, Vice President, WazirX, talking about this price movement, said, “After briefly exceeding $60,000 for the first time since November 2021, BTC dropped to $59,400 but quickly rebounded to $61,587. Major cryptocurrencies like ETH, SOL, XRP, ADA, DOGE, and AVAX also witnessed declines between 4 per cent and 9 per cent within an hour.

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“The market turmoil resulted in $700 million worth of liquidations, marking the most significant wipe-out since last August. Despite the cryptocurrency turbulence, spot bitcoin ETFs, notably BlackRock's IBIT, recorded unprecedented trading volumes, reaching $3.3 billion,” added Menon. 

“BTC's hourly MACD indicates a bullish trend with increasing momentum. The RSI for BTC/USD is above the 50 level, signalling strength. Key support levels are at $60,800 and $60,000, while essential resistance levels are at $62,500, $64,000, and $65,000. Investors closely monitor these technical indicators for valuable market insights.”

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Manhar Garegrat, Country Head, India & Global Partnerships at Liminal Custody Solutions underlined the role of strong ETF inflows in pushing up the Bitcoin price. Garegrat believes that Bitcoin will not take very long to break past its all-time high. Garegrat told Republic, “Since the launch of the Bitcoin ETF last month, year-to-date inflows have surpassed over $5 billion. As the market inches toward the Bitcoin Halving, we may see a new Bitcoin All-Time High by early May.” 

“Ethereum broke $3,400, which is yet to have a similar rally as Bitcoin, and is expected to hold these levels strongly until the halving. ETH-spot ETFs could send the second-largest crypto to new All-Time Highs. Despite attempting to breach the $3,500 level, ETH underperformed BTC as the ETH/BTC pair weakened. Currently, ETH is holding slightly above $3,400,” Gaaregrat said talking about ETH following the bullish market sentiment. 

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Shivam Thakral, CEO of BuyUcoin said, “The cryptocurrency price is one step closer to its all-time high as Bitcoin ETFs broke their trading volume record with a huge day at $7.69 billion. In fact, Blackrock's iShares Bitcoin Trust, IBIT, broke its own trading volume records at $3.3 billion. Ethereum hasn't matched the pace of Bitcoin but is steadily rallying, crossing $3,400. It may be possible to see a new all-time high in Bitcoin before halving this year.” 

Labelling the Bitcoin price movement as a roller coaster ride, Vikram Subburaj, CEO, Giottus said, “As Bitcoin spot ETF inflows keep increasing, there is a supply and demand imbalance pushing price up this week. Bitcoin should propel towards $65,000 in the near term but volatility should increase as it inches towards its previous all-time high at $69,000. Meanwhile, Ethereum is trading above $3,400 with a 5 per cent gain while Solana, trading at $122, surged by 13 per cent. BTC dominance hit 55 per cent briefly and has now come down to 54.7 per cent indicating that Bitcoin is front-running the market overall.” Subburaj also shared key upside targets for leading altcoins, “Ethereum ($3,500), BNB ($450), Solana ($132), Cardano ($0.69), and Avalanche ($45).” 

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Published February 29th, 2024 at 11:40 IST