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Bitcoin Surges Above $60,000 in Lightning Rally, Biggest Monthly Gains Since 2020

Bitcoin Surges Above $60,000 in Lightning Rally, Biggest Monthly Gains Since 2020

Bitcoin experienced a remarkable surge, surpassing $60,000 for the first time in over two years, marking its strongest monthly performance since 2020. The cryptocurrency climbed as high as $63,968 before retracing to around $60,000, contributing to a 42% increase in the first two months of the year.

The surge in Bitcoin’s price revived memories of the crypto bull market that led to its record peak in November 2021, as investors flocked to capitalize on further price increases. This momentum has been fueled by a variety of factors, including the approval of spot bitcoin exchange-traded funds (ETFs) by US regulators in January, which attracted significant investment from mainstream asset managers like BlackRock and Invesco.

The approval of these ETFs facilitated the influx of new cash into the cryptocurrency market, with 11 funds currently holding 303,000 bitcoins worth $18 billion, equivalent to approximately 1.5% of the total bitcoin supply. This surge in investment activity has been a key driver behind Bitcoin’s recent price surge.

Furthermore, February witnessed a record-breaking influx of $677 million in daily net inflows into bitcoin ETFs, underlining growing investor interest in cryptocurrencies. This surge in demand coincides with a broader rally in traditional financial markets, with chipmaker Nvidia’s robust performance contributing to all-time highs in US and European stocks.

However, despite Bitcoin’s impressive performance, it continues to face regulatory scrutiny and skepticism from some quarters. European Central Bank officials recently reiterated their skepticism, stating that “the fair value of bitcoin is still zero,” highlighting ongoing concerns about the token’s sustainability.

Nevertheless, the crypto industry appears to be moving past the scandals of recent years, with increasing confidence in its future prospects. While challenges persist, including regulatory crackdowns and skepticism from traditional financial institutions, Bitcoin’s recent rally underscores its resilience and growing acceptance as a mainstream asset class.

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