Bitcoin reclaims $54k two years after painful crash initially of winter

Bitcoin (BTC) surged 6% on Feb. 26 to a brand new two-year excessive of $54,910 after US markets started buying and selling, a sign of rising curiosity within the flagship crypto from retail and institutional buyers.

Bitcoin was buying and selling at roughly $54,650 as of press time, up 5.6% each day, with a market cap of $1.07 trillion, in keeping with StarCrypto knowledge.

Begin of winter

The final time Bitcoin was buying and selling at these ranges was in December 2021 — 21 days after it hit a brand new all-time excessive of $69,044 on Nov. 10, 2021.

On Dec. 3, 2021, Bitcoin was buying and selling round $54,365 after giving up important features over the previous three weeks following its rally to a brand new all-time excessive amid profit-taking and shifting market situations.

Nevertheless, the drawdown had solely simply begun, because the flagship crypto noticed a extreme dip over the following 24 hours that took Bitcoin to a painful low of $42,000 earlier than recovering among the virtually $15,000 in losses earlier than the day closed.

By the tip of Dec. 4, 2021, Bitcoin was buying and selling at $49,191, down 8.6% over a single day.

ETF efficiency, halving hype

Spot Bitcoin ETFs have continued their robust efficiency over February and skilled a big spike in quantity on Feb. 26 to set a brand new file of $2.4 billion in day by day quantity.

In line with knowledge shared by Bloomberg ETF analyst Eric Balchunas, BlackRock’s spot Bitcoin ETF IBIT posted a file buying and selling quantity of $1.3 billion as of press time, which brings it to the highest 0.3% of all ETFs and the highest 25 of all shares for the day.

In the meantime, spot Bitcoin ETF inflows for the previous week stood at $583 million. The whole is made up of greater than $1 billion in inflows, that are offset by $436 million of Grayscale’s GBTC outflows.

Notably, GBTC outflows have slowed down considerably over the previous couple of weeks, with the ETF recording solely $44.2 million in outflows on Feb. 23.